Tourists have no business in doing business

27 February 2024 12:00 am - 31 - {{hitsCtrl.values.hits}}

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Stakeholders confirm increasing trend of tourists engaging in businesses
Say issue has been brewing for nearly two years
Point out such establishments have spread from South to other regions, impacting livelihoods of people dependent on tourism
Assert such establishments make environment uncompetitive

The tourism sector stakeholders yesterday confirmed that Sri Lanka is witnessing an increasing trend of international visitors engaging in business activities and warned that the industry, in certain parts of the country, is impacted as a result.

Speaking to Mirror Business, the stakeholders representing two of the largest tourism associations asserted that the island nation has been facing this issue for nearly two years.

The industry had alerted the relevant authorities regarding a section of tourists arriving in the country for long stays, carrying out business activities, without proper registrations.

The Sri Lanka Association of Inbound Tour Operators (SLAITO) shared that the majority of these tourist-run businesses started off small but have grown considerably over time.

“We have been talking about this to the authorities as early as 2022. We saw this situation brewing in the South but now it has spread to other areas as well.

These people come in and start by renting a space. Then they operate as destination management companies (DMCs), bringing their guests into Sri Lanka. They even carry out money exchange services,” SLAITO President Nishard Wijetunge said.

He pointed out that there are no controls and Sri Lanka not having in place proper monitoring mechanisms makes it difficult to assess and handle the situation.

The SLAITO representative pointed out that due to these businesses, the livelihoods of the locals in these regions, who depend on tourism, are negatively impacted.

“It affects not only us. It affects the hoteliers and restaurants, as well as there is no level playing field. It is the same problem that we (DMCs) have as well.

The Hotels Association of Sri Lanka (THASL) also reflected similar sentiments and urged the authorities to tackle the situation before it gets out of hand.

According to THASL President M. Shanthikumar, the tourists engaging in unregistered businesses have created an uncompetitive environment, especially for the small and medium enterprise segment.

“Our membership and businesses registered with the Sri Lanka Tourism Development Authority pay taxes and other charges. These businesses don’t. Therefore, they can offer their products and services at a much lower rate, which will certainly pull tourists towards their establishments. This is the ground reality,” said Shanthikumar.

He asserted that the tourists should respect and follow the laws of the country and not get involved in activities that would hamper the livelihoods of those engaged in the sector.

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Comments - 31

Ron Tuesday, 27 February 2024 08:28 AM

Its call whats go arround comes arround. If we had decent honest who does everything accordingly country will not have issues in the first place....

Gona Tuesday, 27 February 2024 08:53 AM

Crying over failure to compete. Be innovative and reasonable, so that you can survive, without asking for monopoly.

Onlooker Tuesday, 27 February 2024 11:56 AM

It is the lack of a level playing field and not a failure to compete. When they do not pay taxes and are unregistered, no one can compete. Registration fees and VAT at 18% etc means over 25% benefit. So understand before commenting..

Ling Madiya Tuesday, 27 February 2024 01:01 PM

Islanders mentality wont help us become competitive. For articles of this nature we comment about locals have to pay taxes and registration fees. But we only have 243,000 tax payers in the country! We want to be like Singapore but we dont want to have competition. Certainly the tourists who violated their tourists visas should be punished. But the attitude of our citizens towards creating a competitive nation must be significantly improved.

Hadam Tuesday, 27 February 2024 02:11 PM

And anyone coming to do Youtube vlogs. Those who create content for YouTube make an enormous amount of money. Whilst some videos benefit Sri Lanka this should be regulated.

Mohamed Adham Tuesday, 27 February 2024 08:57 AM

Arugambay in particular, is littered with foreign owned businesses. Crack down on those..........

Lankan citizen Tuesday, 27 February 2024 02:39 PM

Maybe the people of Arugam bay should be innovative and competitive and run businesses. Lazy Sri Lankans, trying to live in the past

Duty Free Tuesday, 27 February 2024 08:58 AM

Harin's dream of a " Free Trading Zone" .. lol...

Citizen2023 Tuesday, 27 February 2024 09:04 AM

Immediate action should be initiated by the govt authories to inspect n investigate how these foreign businessmen engaged in unauthorised business. Why the Minister of Tourism is deaf n blind on such activities. He has a duty to see that the small Sri Lankan businessmen are not deprived of their bread n butter. These unscrupulous foreign business should be caught n deported Immediately.

Sandy Tuesday, 27 February 2024 09:05 AM

If someone is bringing more tourists through destination management then it should be welcomed , there is no guarantee local business can bring the same tourists . Anyone should be able to bring more tourists.

Bandu Tuesday, 27 February 2024 12:00 PM

Just bringing in tourists does not benefit the country unless they are made to pay taxes and services are provided by locals. Big difference - otherwise country loses out.

LOCATE, PUT BEFORE A COURT OF LAW, REMAN UNTIL FINE IS PAID AND DEPORT WITH LIFETIME BAN IN ENTERING THE COUNTRY. Tuesday, 27 February 2024 01:44 PM

Destination management is NOT destination illegal operations of businesses, they should be immediately located, investigated, fined and once the fine is paid they should be deported and lifetime ban. We do not need these types of businesses springing up like mushrooms around the country. it is a well known fact that money laundering of ill-gotten funds be it local and or overseas are made clean through gambling and using others to turn illegal money into clean funds and then sent out of the country. money laundering lords are targeting underdeveloped countries using people who are desperate to make a quick buck, there are many ways to use innocent people, it is going round around the world. we do not need this type of tourists, which impact on our local businesses in some shape or form.

KoffieMoffie Tuesday, 27 February 2024 09:08 AM

Tourist visas clearly state that employment or business may not be taken up. Surely these people risk deportation and banning.

Fact Tuesday, 27 February 2024 09:32 AM

Cant foreigners do business here ? they should be allowed to do provided they meet the requirements only then the standard of our business will increase if not we will have same old crap like our TV channels and and other service outlets .If we didn’t allow companies like dialogue we will be still using like 1080 techs in telecommunication .there should be a healthy competition . see our petrol stations until recently we allowed foreign companies standard was poor .like wise we must allow foreign private transport and other businesses so our local industry and quality will grow ,see Dubai and other developed places.

Nujra Atiw Tuesday, 27 February 2024 03:53 PM

Can I go to Russia on a tourist visa and start a business there ?

Samantha Tuesday, 27 February 2024 09:59 AM

if someone is on a tourist visa and do businesses. They should be deported immediately. Even other countries do not allow people to do business on tourist visa. If some foreigner wants to do business they are highly welcome as long as they follow correct procedures. They need a local partner to carry out business activity here. Probably we should amend this law so that they should pay a one time initial fee like USD 20000 upward based on business type to start doing businesses here or find a local business partner as usual.

VJ Tuesday, 27 February 2024 10:13 AM

As correctly pointed out by a commentator above, the tourist visa has a list of conditions. No business, no employment, no acquisition of properties etc., Penalties for violations of visa conditions must be enforced, otherwise it defeats the purpose of having placed such conditions. Incompetent management of everything in this country is too obvious.

Sam Silva Tuesday, 27 February 2024 06:52 PM

Just like the other laws that is being implemented in our country but not imposed. They are only just on a paper people don't respect or practice.

Eper Tuesday, 27 February 2024 10:30 AM

Samantha, you said it correct.The law should be strictly followed.Competition is vital

Bandu Tuesday, 27 February 2024 12:17 PM

#Fact: Cant foreigners do business here. Yes they can but not surreptitiously. Registration, Payment of taxes and money really tranferred to country must be ensured. (unlike Halwa system where they pay in home country and these people provide the service - money laundering)

Dan Tuesday, 27 February 2024 12:19 PM

In countries like Australia, when a person with a tourist visa engages in business they are deported and debarred from entering for another three years. But to do that we need a country with law and order. Lawlessness and corruption will only ruin countries.

CORRUPT OFFICIALS TURN A BLIND EYE AND FEATHER THEIR NESTS, SACK THE LOT Tuesday, 27 February 2024 01:55 PM

In other countries a HOLIDAY VISA is for those visiting family, friends and or tourists for certain number of months as decided by IMMIGRATION department and you must show finances to cover the stay and or family who intend accommodating you and or hotel bookings. in some instances a BOND may be required. NO BUSINESS and or WORKING, you get DEPORTED and X NUMBER of year banned from re-entering the country.

Imtias Tuesday, 27 February 2024 01:01 PM

Completely agree with Samantha. Our local stooges support these guys for a mess of portage. Tourists should not be allowed to do any kind of business irrespective of the quantity or quality. If a tourist does business he is depriving the locals the opportunity.

Aquarius Tuesday, 27 February 2024 01:02 PM

No country in the world allows tourists to carry out businesses in the countries they visit. This is happening in Sri Lanka because most of the time local businesses and politicians are behind these activities. Strict regulations should be imposed and the visa applications should mention this prohibited and can face time in prison.

Adwani Wednesday, 28 February 2024 08:14 AM

We are already branded as Fools in the world and now if we put conditions we will loose what we are getting. Those business tourists have invested their money, simply you cannot do the business. It is better to collect taxes, then to fight with them by imposing stupid conditions.

Sam perera Tuesday, 27 February 2024 01:27 PM

Tourists bring money to the country they visit.also they spread the world about the country's goodness and encourage others to visit,they vuy local products andsupport local producers of all their products.they create jobs in tens of thousands to the local economy.the nore tourists cone,the more longer they stay they have to pay from water to food,hotels and everything.tgeir nondy is the sakaries of tbe government's one and a half million,mostly sleeping and corrupt employees.set up the governmentvas honest,thieves are here crying foriegners are doing business,it is good they do.local corruot business looting money from foriegners by selling 300 to 500 % high pricess.don't you see these corruptiond.leagaluse the foriegners to do any business and charge them a flat charge as pay $ 100 per year business permit at the time of entry to the country.government get million of dollers income,lical businessess learn the advance vysiness tactics,they learn high quality standerd of business.

Rickey Tuesday, 27 February 2024 01:30 PM

Only hope for the nation is to have foriegn investers to take over majority sectors for a long period to rebuild the nations economy and prosperity if not the place wil go down under

Punchi Tuesday, 27 February 2024 01:40 PM

The business of tourists is savouring the delights and providing income for our comely damsels and lads whose beauty is the envy of all the damsels and lads in the world - not taking away income from them

Dinesh Tuesday, 27 February 2024 05:15 PM

Why do we have a police for?? It it not their job to arrest foreigners on travel visa from doing business here?? Most of the cops can't even put 2 English words together, when foreigners film them they just grin like idiots.. Unprofessional.

Adwani Wednesday, 28 February 2024 08:10 AM

'The Sri Lanka Association of Inbound Tour Operators (SLAITO) shared that the majority of these tourist-run businesses started off small but have grown considerably over time' Which means that local have totally fialed. During the British rule the Britishers brought Indian labour to solve the labour problems in Tea Estates. Locals only know to protests and complain. Long before the boats provided by Ministry to local fishermen for catching fish were rented out to Tourists, now we see Tamil Nadu fishermen are thriving in SL waters. Simply register them and collect Taxes.

raj soma Wednesday, 28 February 2024 10:11 AM

The problem is with the Immigration officials and Govt.. Firstly , to start any business in SL there should be strict regulations for Foreigners .Next , all businesses including locals Tea shops on the street should display Govt issued Business ID ..Taxes should be collected every year on a set date and month by filling if not Tax dept should go after them fine penalty should be imposed.. How did foreigners buy Land on 99 yrs lease? Govt needs to confiscate these unauthorized purchases.

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Tourists have no business in doing business

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