Sri Lanka Tourism industry caught in a catch 22 situation
The debt moratorium on capital and interest for Sri Lanka's tourism sector, which was granted by the government after the April 2019 Easter attacks, that was consequently extended since then, every six months has lapsed despite pleas from the country’s ‘Hotels Association’ President M. Shanthikumar, lamented, ““We are at a loss since the tourism industry can’t start making payments by July 2022 and we are struggling to get money to pay salaries and at the same time we can’t service the banks.”
In the absence of a moratorium at least 70-80 per cent of the SMEs will shut down and along with dependents about 1 million people will be out on the streets, Mr. Shanthikumar said.
As the authorities are struggling to sustain a direct income generator and avert a further disaster should the banking system collapse; the tourism industry is struggling to make ends meet as occupancies in most hotels is below 10% with domestic tourism at a virtual standstill due to the current fuel crisis.
Jetwing Symphony Chairman Hiran Cooray, sounding a positive note said, “You and I have come to a standstill but tourists are moving around.” If they arrive through a recognized travel agent they will be assured of safe travel around the country, it was noted, adding that they are committed to earning US$1 billion in the next six months.
Tourism Minister Harin Fernando said that they have held discussions with banks and the Central Bank and have come to understand that it is not possible to continue this situation, going on to add that the immediate need is to “get the country back to normal” only after which tourists will come back here. Furthermore, he pointed out that after July 10th, there will be a steady supply of fuel.
Given the current crisis, the government believes that the country will gain more credibility once the International Monetary Fund (IMF) comes in and the required debt restructuring begins.
Clinging on to the belief that this may happen by the time the winter season arrives’, the Minister opined “things will fall into place,” optimistically adding that they then expect to generate another 500,000 tourists to visit Sri Lanka before the end of 2022, and close-in on around a total of one million arrivals for this year.
Hospitality Sri Lanka
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