Tourism longs for Auld Lang Syne
View(s):Sri Lanka’s tourism industry does not have too many hopes for the next year and are viewing 2021 with concern as they are clouded with a possible end to moratoriums and no large numbers of arrivals whenever the country opens to tourists on commercial flights.
“The pandemic is changing course everyday so we really cannot predict what’s in store for us next year,” Hotels Association President Sanath Ukwatte said.
However they hope some stability would prevail and left it to the health authorities to decide on the re-opening of the airport and the country to tourists.
The industry has so far lost over US$3 billion in revenue “so we find it very difficult to maintain our profitability.”
He pointed out, “We are not expecting a large number of tourists anyway because it all depends on the health protocols” and noted that there are a number of hotels that have been subjected to the audits to obtain the certification to receive tourists in future.
Commenting on the paying back of loans, Mr. Ukwatte explained that no sooner the moratorium ends in September next year they had already requested a total restructuring of their debt by the government including waivers on the interests on loans.
Due to restrictions imposed on travel, Sri Lankans too were unable to patronize hotels which was the only hope the industry could rely on, he added.
“There is a lot of uncertainty,” Jetwing Chairman Hiran Cooray said adding, “I hope there will be some decision made,” as most people are unaware if they can travel for the holidays or not.
He noted that for the Christmas period there were a number of bookings but these are now getting cancelled as people are frightened to go out since there is no clear decision from anyone.
City Hotels Association President M. Shanthikumar told the Business Times that all plans have been cancelled or put on hold since they cannot invest any money.
Moreover, he pointed out that “sooner or later we may have to start paying the capital plus interest and that will be the biggest burden on the industry”.
In this respect, he also noted that they will be depending on the Sri Lankans for revenues through food and beverage and local business.
“Currently we have to depend on the local business only,” he said adding that the European markets are closed with immediate effect so they are unlikely to move out. Mr. Shanthikumar said they are trying to sustain what they have and retain the staff and “probably if we cannot retain we will have to retrench staff further.”
“How long can we do this is the question,” he noted pointing out that since March, The Ramada has had about a total maximum occupancy of 12 rooms.
Should a vaccine gain approval Sri Lanka will become one of the best countries to visit since about 95 per cent of the population is cured and the death rate is low, he noted adding that tourists from certain countries like Russia and Eastern Europe are willing to travel to Sri Lanka.
Founder CEO Santani Vickum Nawagamuwage told the Business Times that while Sri Lanka’s tourism industry needs to follow the right protocols, communication about the guidelines to adhere to need to be carried out swiftly and clearly.
In addition it was noted that the health sector also needs to be aware that this is also an economic concern as well and that if they were to wait until the vaccines come through finally it would take up to six months and that would cause more damage to the industry. “Ninety per cent of the industry will go bust if we wait for another six months,” he noted adding however that they were able to sustain themselves with the current moratorium for a year or two. (SD)