A crucial piece of legislation in tourism, held up for nearly two years will finally see the light of day following changes at the helm of the Ministry of Tourism, renewing hopes of the industry stakeholders. Ministry officials confirmed that the new Tourism Minister Milinda Moragoda will finalise the decision to bring in the new Tourism Act by next month, following discussions with some stakeholders earlier this week.

“The Minister met with some industry stakeholders and will be meeting with all others within the next two weeks,” George Michael, Secretary Ministry of Tourism and acting Chairman of the Sri Lanka Tourist Board told The Sunday Times FT. He said that Moragoda will have a better idea after he concludes discussions with all parties concerned.

“In a couple of weeks’ time the Act will be ready,” Michael further said. The new Act seeks to provide for the setting up of the Sri Lanka Tourism Development Authority and to vest the authority with powers to facilitate the planning and implementation of the policy relating to the tourism industry and other related industries. The Act will also provide for the regulation and monitoring of the industry.
The hotel industry is elated about the new minister’s positivism. “We met the Minister on Wednesday and he is approaching the matter very scientifically,” said Tourism Hotels’ Association President, Hiran Cooray.

“Minister Moragoda and Treasury Secretary P.B. Jayasundera will take it up with the President within a few days,” he said, adding that by early next month the Tourism Act No.38 of 2005 is set to be implemented. He said that the industry is ‘very happy’ with the way Moragoda has dealt with the issue. “He has not given us false promises,” Cooray further said.

The industry was disappointed with the way earlier Tourism Minister Anura Bandaranaike ‘took his time’ to implement the Act. Lalith de Mel, Former Chairman, Tourism Cluster told The Sunday Times FT that more than one and a half years have passed without the industry getting a firm answer on whether the Act will actually come into being.

“The Tourism Cluster has repeatedly requested that this Act be implemented. The industry is totally disgusted that it was not implemented,” he further said. He said that the tourist industry in Sri Lanka is 95 percent plus owned and operated by the private sector and in the foreseeable future it will continue to be so, and this is an important fact to bear in mind. “There are many demands on government revenue and there is no easy way that it can invest in owning and managing Hotel or resort properties,” De Mel, also chairman of Hemas Holdings, said.

He further explained that promotion becomes the key role in communicating the target branding of Sri Lanka as a destination. “There has to be a radical shift in the management of promoting the industry and the people best equipped to manage the process are those in the industry who on a regular basis have the most intimate contact with the tourist and the whole marketing chain relating to tourism,” De Mel said, adding that this need has been recognised and reflected in the proposed new Tourism Act.

Last year, a Special Committee was appointed to review the new Tourism Act passed in Parliament in October 2005 and recommended a “Way Forward” for the future development of tourism. But this committee also suggested changes to the Act, drawing criticism from the industry.