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Tuesday, January 11, 2011

Sri Lanka: taxes and visa fees may trouble tourism

The Sri Lankan government has imposed a new ‘nation building tax’ and will implement a new online visa, despite heavy protest from hoteliers and tourist operators.
The introduced tax will be 2 percent of the turnover for any hotel with 4 stars or more.
Destination Management Companies (DMCs) and hoteliers of Sri Lanka will share the burden of the tax until 31 January 2011, after which Sri Lankan tour operators will encumber the costs.
Opting to alter the current on-arrival visa system, the Sri Lankan government will require travellers to apply for a visa over the internet.
According to Sri Lankan Tourism, the new system of online visas is being carried out on instruction from President Mahinda Rajapaksa.
“The new rule is very dangerous for the tourism industry and will have serious repercussions on our plans to woo more tourists in 2011,” City Hotels Association Chairman M. Shanthikumar said.
When it was first announced that the government was introducing online visas, the travel industry of Sri Lanka protested and were given an indication that it would not be implemented, according to Aitken Spence Travels ltd.
Sri Lanka has granted foreign tourists a 30-day visa on arrival since the 1970s as part of tourism promotion.
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