PM promises incentives for hotel schools
The government is ready to provide incentives to the hotel sector provided they would establish the required training academies to increase the workforce for the sector, Prime Minister Ranil Wickremesinghe said on Wednesday.
Addressing the tourism industry at the 53rd anniversary celebrations of the Tourist Hotels Assocaition of Sri Lanka (THASL) at the Shangri-La Hotel in Colombo, he said that what is required today are quality hotel schools and pointed out that they would provide incentives to those that were ready to establish these institutes.
“We are not developing our hotel services,” he said adding that the workforce for the sector needed to improve and also noted that guides were needed to develop the product.
Asserting that the Cabinet had approved the marketing plan, he noted “It’s no longer a question of selling rooms but experiences.”
The government would accord priority to the tourism industry, Mr. Wickremesinghe said adding that Sri Lanka needed to engage in extensive marketing of the destination in India due to its “great potential.”
In fact, he pointed out the government was ready to treat the industry as an “export sector” product adding that there was a need to encourage all types of travellers but provide emphasis to those spending US$200 per night on holidaying on the island.
The Prime Minister wanted the industry to take a new look at the product offering and ensure that Sri Lanka would be cheaper to fly in by pushing for lower fuel prices and ground handling.
SriLankan Airlines would also be in a tie-up on a Public Private Partnership, he said adding that other plans were underway to promote the domestic air services as well.
THASL President Sanath Ukwatte addressing the gathering requested the Prime Minister to consider reducing the 20 per cent tax on revenues as that was impeding the industry compared to its counterparts in the region like Thailand, Singapore and Malaysia who were taxed only about 5-10 per cent. He requested for the removal of the NBT in addition to revising outdated laws that compel hotels to pay exorbitant rates for liquor licences.
He pointed out that the government needed to bring in adequate regulation to ensure fair play in selling the rooms as hotels were taxed and apartments that were part of the informal sector were not. Mr. Ukwatte said that nearly 50 per cent of travellers were found to stay in the informal sector.
Moreover, he claimed that the hotel rates have drastically dropped ever since the government removed the minimum rate on city hotels due to excessive rooms as a result of which he asked for a halt to the construction of increased star class hotels. The average occupancy of city hotels was currently at 60 per cent and would hit a low of 40 per cent during the off peak season, he said.
In fact he pointed out that there was a decline in earnings in almost all of the public listed companies due to the existing conditions prevalent in the market.
Mr. Ukwatte asserted that the THASL would be involved in carrying out an islandwide campaign to attract youth to the tourism industry.
Meanwhile, he noted that attracting five million tourists would not be a difficult task but asserted that they required the necessary support from the state to sustain its people and the industry.