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War hit tourism trade to lose $ 120m
Friday, 8 December 2006 - 7:59 PM SL Time | | |
Friday, December 08,2006
COLOMBO: The Sri Lankan tourism industry is estimated to lose US$120 million for this year in the wake of the escalating violence that continued in the North and East and terrorist attacks in Colombo. This has led to increased travel advisories warning foreign travelrs against visiting Sri Lanka. President of the Tourist Hoteliers Association of Sri Lanka Hiran Cooray said this month hotels were down by 60% in terms of bookings. As such the country is likely to see an estimated loss in earnings by 30% amounting to around US$ 120 million. ?Usually resort hotels would be doing at least 80% but now they are struggling to do 20% even after giving special offers,? he said.
In a good year such as 2004 Sri Lanka was able to obtain US$420 million in terms of monetary value, Cooray said. But this year the country has lost an estimated US$21 million per month and is also expected to lose out in the next 12 months another estimated US$252 million.
However as per Central Bank data, earnings from tourism had increased by nearly US$ 120 million to US$ 380 million in the first ten months of this year though arrivals have grown by only by 7%.
Nevertheless industry sources said that the estimated loss and drop in forecast arrivals in the winter has been a result of the continuing violence in the North and East with no peace talks carried out between the government and the LTTE to find a solution to the problem that has left most tourists from visiting in the country, the industry observes. This has therefore culminated in countries such as the UK, Germany, France, Italy and New Zealand which are increasingly generating the majority of tourists, have issued travel advisories against their nationals from visiting Sri Lanka.
The British Government has stated in their travel advisory of the high incidence of threat from terrorism and the risk to British nationals with ?terrorist attacks having also taken place in central and southern Sri Lanka in or close to areas and travel routes popular with tourists.?
This advisory had been updated on December 1, in the wake of a suicide attack on a senior government official, the advisory stated.
Meanwhile, the Australian Government stated thus: ?We advise you to reconsider your need to travel to Sri Lanka at this time because of ongoing civil unrest, the volatile security situation and the very high risk of terrorist attacks.? This was updated yesterday by the Australian government.
In addition New Zealand issuing a travel warning alerted their national to the ?extreme risk? to their security regarding of travel to the northern and eastern areas of Sri Lanka due to the fighting between the LTTE and the Sri Lankan authorities. While in other parts of Sri Lanka, they noted a ?high risk? to their security as the ?situation is unpredictable? and as such have advised against tourist and non-essential travel to the country.
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Source(s)
RapaSource/SAMN |
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