Minister of Tourism Milinda Moragoda is an economist whose tactical skills as a strategist will be well utilized in his new role.

“Confidence building is our prime concern at the moment, and we are currently going through the process of doing just this with the international community and the tourism industry,˜ he said. Explaining that H.E. President Mahinda Rajapakse will be announcing a Tactical Marketing Plan and a package to give the industry a fillip early this month, Minister Moragoda said: - The idea is to give a short term push and kick start the industry through a range of incentives and policy measures which would hopefully provide encouragement to the sector to gain a bit more confidence.˜

He said there would be considerable focus on the region with India being No. 1 and China also given priority. - We will also be looking at the Middle East and East Asia, particularly since the eastern region is recognized as being the fastest growing region in the world. Traditional markets would also be concentrated on and we will also look further off as well, ˜ he said. The Minister emphasized that this has to be a partnership with the private sector and state sector working together. “The Government sector will be the catalyst and facilitator while the private sector - both big and small players - will be the implementers, ˜ he said.

The Tactical Marketing Plan to be announced early this month by H.E. the President targets China, the U.K., France and possibly the Middle East region. It would be effective from now until April this year to help the industry overcome the current downturn and return to normal.

The package formulated will have SriLankan Airlines and Emirates Airlines join forces with travel agents and tour operators in those countries to promote back to back operations. This would be publicized through a targeted media campaign.

Tourists who visit Sri Lanka during this period would be offered a 40% to 50% discount on air fares and hotel accommodation. Entrance fees to tourist sites would be at half price. The Minister stressed this is a short term strategy employed to help Sri Lanka to regain its place as a preferred destination. - We will formulate long-term plans and strategies for marketing of Sri Lanka thereafter,” he said.

Speaking on the infrastructure facilities available the Minister said: “We could provide material support to agencies directly involved in developing infrastructure such as the Road Development Authority who are responsible for highways and on our part we could provide them the maximum support and sustainability.”

The Japan Bank of International Cooperation (JBC) is giving Sri Lanka Rupees 3 billion to undertake a Tourism Resource Implementation Project. Under this project, the Ministry will be targeting Nuwara Eliya, Negombo, Anuradhapura and Sigiriya. Basic infrastructure facilities would be developed in these cities. They include development of ring roads and dredging of the Hamilton Canal in Negombo. The beach front would be re-done and developed in to a modern beach park while the fishing areas would be made tourist attractions.

Signage would be re-looked at and city beautification would be of primary importance. In Nuwara Eliya dredging of Lake Gregory would be done while roads would also be improved. Implementers would be the Road Development Authority and Municipal Councils in Negombo, Nuwara Eliya, Anuradhapura and Sigiriya.

Another important segment of the plan is a concerted Marketing Programme and Awareness Campaign to be carried out in Japan.

A new Hotel School building is to be constructed in Kandy while the main Hotel School in Colombo would be supplied with the equipment they need.

Speaking of the electricity tariffs he said the Ministry has made the necessary recommendations for tourism to be brought under the industries category and the papers have already been submitted to the Cabinet.

The levy of US$10 on foreign passport holders has been deferred and will be implemented with a lead time six months - in August 2007.

The Ministry has also requested for duty free facilities for promoters of adventure tourism. Equipment could be imported on a duty free basis, but only for investment projects of Rs.100 million and more.

Tsunami-affected persons would be given a loan re-scheduling scheme for repayment of their loans. All these measures have been agreed to by the Treasury in principal and are now awaiting formal approval. The final decision on all these would be announced by H.E. the President very soon.