c









Tourist arrivals to Sri Lanka has increased over the past few months; in June by
8.1%, in August 34.3%, and in October 7.0%. Requests to invest in tourism
projects have also increased tremendously. H.E. the President has declared 2011
the ³Visit Sri Lanka Year´ and set a target of 2.5 million tourist arrivals by 2016.

With this in mind, the Board of Management of the SLTDA decided to prepare a
10-year Tourism Master Plan (2011-2020) to ensure the preservation of Sri Lanka¶s
resources while meeting the needs of tourists. The Master Plan will identify tourist
generating markets, demand for accessibility, and diverse types of tourism product
development and human resource development.

As the first step, the UNWTO assisted the SLTDA in preparing the terms of reference
for a consultant to undertake the 10-year plan. Subsequently, Mr. John Yacoumis,
consultant for UNWTO, was appointed and from November 16th ± 26th undertook
the necessary field work in Sri Lanka, which included discussions with Government
and private sector individuals. In addition, Dr. H. Varma, Director/Development
Assistant - UNWTO, was also in Sri Lanka (November 17th ± 19th) to discuss
relevant matters with the Ministry of Tourism, External Resources Department, and
the UNDP.

2


Existing Product Improvement 2


It is sometimes difficult to define what is meant by a new product. Improvements to an exi sting product can render the

product¶s exterior so much that it could be seen by prospective purchasers as a genuinely new product, and if an

existing product is launched to a new market or to other purposes, that product is also new for the customer. In m ost

cases the tourist products are advances on and modifications of existing products.

Development Projects Underway

1. Development of Certain Tourist Attractions.

Plans are in place to renovate and refurbish the Kandyan Cultural Centre

SLTDA initiated action to renovate and refurbish the Kandyan Cultural Centre which functions as a self

standing entity managed by a Trust chaired by the District Secretary, Kandy. This is one of the most

patronized tourist attractions in Kandy city. The refurbishment will add more facilities to the foreign and local

tourists and also to the cultural performers. The SLTDA contribution towards the refurbishment programme

is Rs. 8.0 million and the Central Engineering Consultancy Bureau (CECB) was selected to complete the above
 scope of work as a ³Turn Key´ Project, which will be completed in April 2008.

2. Improvements to Existing Domestic Holiday Resorts.

The Sri Lanka Tourist Development Authority owns and manages domestic resorts at Nuwara Eliya [Wiki],

Bandarawela [Wiki], Anuradhapura [Wiki] and Kataragama [Wiki]. The facilities were developed during the

1970s with a view to provide accommodation facilities for domestic tourist at a reasonable price.

Over the last 30 years, accommodation facilities of this category have developed. Presently, studies indicate

that there is a shortage of accommodation for domestic tourists falling in the upper and middle class income

earners category.

Resorts undergoing renovations and restructuring are as follows

Ë
  

Ë  [Wiki]

Situated in the upper side of Gregory Lake, the resort consists of three cottages

double rooms, three family rooms, twenty two dormitory beds, and a restaura

The first phrase of the development included refurbishing three cottages, nine d

rooms, the restaurant, dormitory, resort office and quarters, replacing all sani

fittings with modern fittings, fixing the chain link fence and entrance gate,

constructing of drains, and resurfacing of internal road network and landscape

[More]

Ë
  

   [Wiki]

Placed 2.5 km from the Bandarawela town, the resort is set on a 17 acre land an

ten cottages, a dormitory (88 beds), and a restaurant.

Development work included resurfacing internal roads, constructing drains,

constructing entrance gate with chain link fence, cutting foot paths and landsca

The refurbishment of ten cottages is in progress and would involve replacing sa

fittings, colour washing internal and external, floor tilling and wall tilling.

[More]

Ë
  

   [Wiki]
 Located at Jayanthi Mawatha, Anuradhapura the resort has 18 double rooms, five

A/C double rooms, eleven triple rooms, four dormitory rooms and 13 dormitory beds

and caters chiefly to pilgrims on route to Anuradhapura.

[More]

Ë
  


  [Wiki]

Situated within the sacred area, the resort serves as an ideal resting place for

pilgrims. Tourists can select from fourteen double rooms, seven triple rooms an

air conditioned rooms.

[More]

 

 


Lanka Sportsreizen, a leading adventure tour operator, is committed to set up

camping and caravan site in Giritale. Currently, the Giritale National Holiday R

Hotel Giritale, Angsana Hotel and Spa (formerly known as the Deer Park), and

Hotel Lotus Flower are in operation.

Ë
  

   [Wiki]

The Sri Lanka Tourist Development Authority has joined together with two loc

investors to develop two hotel projects. One would be a 100 roomed hotel with

facilities and the second would be a 100 roomed hotel.

 





In 1993, 37 Public Admi nistration Rest Houses were vested with the Tourist Development Authority. The rest

houses were upgraded and 15 houses registered with the SLTDA(A or B grade).
 2
  
New Product
2

Development


In order to facilitate growth in the Tourism industry, the Sri Lanka Tourism Development A uthority(SLTDA)

has teamed up with the government and private and foreign sectors in order to draw investment and further

development.

To stay ahead of the competition, proactive tourism companies must constantly look for new product

innovations. The traditional product life cycle theory indicates that typically a product will have a s -curve with

stages of growth, maturity, saturation and decline in sales and profits. This theoretical model seems to hold

true also for tourist products, which means that the question of product development and new- product

innovations is important in tourism companies.

The role of tourism products for sustainable tourism development would involve successfully developing

products that would utilize the profitable use of resou rces and result in economic sustainability. Moreover, it

would consider other principles of sustainable tourism which would help create a sustainable tourism product.

Development Projects Funded By The Government

ù Dutch Bay Resort ± Kalpitiya

ù Dedduwa Lake Resort

ù Bentota Re-development Programme

ù Loggal Oya and Rathkinda Land Acquisition

ù East Coast Development

Dutch Bay Resort Dedduwa Lake Bentota Loggal Oya

± Kalpitiya Resort Re-development And Rathkinda Land

Programme Acquisition

Private Sector Investments

As per the Sri Lanka Tourism Development Act of No. 14 of 1968, the Sri Lanka Tourist Development Board is

the sole authority in processing and approving Tourism related development projects.

Few of the unique and diverse products which will co mmence operations shortly, are;
 Project Location No. of Rooms Category

Thalalla Retreat Centre Galle 32 BH

Six Senses Ahungalla 40 BH

Sirimedura Hotel Seeduwa 64 5*

Airport Garden Hotel Katunayake 100 5*

Aththidiya Wet-Park Aththidiya 22 BH

Celestial Tower Colombo 245 5*

Hotel at Katunayake Katunayake 90 5*

Shunayata Villa Induruwa 05 BH

Rainforest Eco Lodge Deniyaya 15 Eco

Ayurvedic Healing Centre Wadduwa 30 SLH

Sinahave Hotel Colombo 05 BH

Kendra Villas Rattota 19 BH

Country Garden Kandy 10 BH

Casa Colombo Colombo 4 12 BH

Hotel at Ahangama Ahangama 05 BH

Alangkara Resort Weligama 47 LR

Shanthi Nilaya Hotel Ranna 25 SLH

Belbea Resort Dambulla 50 DR

Hotel at Kegalle Kegalle 15 SLH

Hotel at Karukapone Chilaw 37 SLH

Hotel at Kotugoda Kotugoda 15 BH

BH - Boutique Hotel

DR - Deluxe Resort

LR - Luxury Resort

5* - Five Star Hotel

SLH - Small Luxury Hotel

Eco - Eco Tourism Project

The Green Belt Development of Tourism Infrastructure along the Sri Lanka Coast Line was carried out with the

assistance of United Nation World Tourism Organization (UNWTO) and was funded by UNDP.

The aims of the project were to develop a comprehensive general and area specific development guidelines

and to make proposals to increase local community participation and better livelihood opportunities, in 25

Coastal Tourism Zones.

Development of Tourist Attractions

The SLTDA has taken steps to develop a new attraction, referred to as the µRamayana¶

A committee was set up by the Hon. Minister of Tourism in August 2007 to develop the product relating to

³Ramayana´ in Sri Lanka and to market it to the Indian market. The committee was set up and started with

the research to identify the places of interest and its tourism po tential.

New Tourism Development Areas

The former Sri Lanka Tourist Board declared eleven sites as Tourist Development Areas under Section 73A

from the Tourist Development (Amendment) Act No. 2 of 1987, which was an amendment to the Tourist

Development Act No. 14 of 1968. In these areas the Sri Lanka Tourist Board was able to regulate only tourism

activates.

According to the Tourism Act No 38 of 2005 (TA), the Sri Lanka Tourism Development Authority (SLTDA) is

empowered with powers to regulate and monitor even other economic activities. Under the new act once a site

is declared as a Tourism Development Area (TDA) then they need to ensure that all new developments are

carried out according to the rules and regulations formulated by the SLTDA.

The process

ù To identify the sites to be declared as Tourism Development Areas.

ù Prepare site specific regulations to facilitate to ensure sustainable development, and monitor
activities within TDA.

ù The regulations are to be prepared in consultation with the Minister of Environment (Sec 29 (3) (a)

and (c) TA) and the Commissioner of Archaeology (Sec 29 (4) (a) and (b) TA ) or any other relevant

Minister (Sec 29 (5) TA ). Such regulations shall not apply to public roads, public monuments, places

of worship, public parks, public offices, schools, dispensaries and other public places and facilities

provided by either the government, Provincial Council or a local authority. (Sec 27 (4) (a) TA )

ù According to Section 26 (2) of TA conduct public hearing prior to declare TDA.

ù According to Section 27 (2) of TA the Minister of Tourism, on the recommendation of the SLTDA may
gazette TDAs. Such order shall be valid for ten years.

ù According to Section 30 of TA - Within the TDA, the SLTDA may make regulations in consultation

with the relevant subject Minister and declare Trekking areas and nature trails, and charge fees for

the use.

ù SLTDA shall have jurisdiction over TDA (Sec 25 TA ) to exercise powers, duties and function

efficiently to ensure sustainable development. (Sec 27 (3) TA ). It includes environmental planning

and preservation of Archaeology under the National Environmental Act No. 47 of 1980 and

Antiquities Ordinance (Chapter 18) (Sec 29 (1) TA )

ù If any one contravenes any regulation shall be guilty of an offence (after trial), liable to a fine not

less than Rs. 25,000 and not exceeding Rs. 100,000. (Sec 28 (1) TA)

Other Requirements:

ù To prepare list of facilities and places of historical or environmental interest which amount to tourist
attractions?

(Sec 26 (3) (3) TA ).

ù To provide security and safety to the persons entering, and to prevent or mitigate health hazards.

(Sec 27 (4) (b) TA )

Follow-up actions:

ù To obtain the services of a Legal Consultancy firm to study the Tourism Act no 25 of 2003 and other
relevant Acts (CCD, UDA, etc), and prepare the procedure to be followed to declare Tourism

Development Areas by SLTDA. The consultancy firm needs to obtain the concurrence o f the relevant

government departments and the Attorney General¶s Department for the recommended procedure.

ù To identify the sites to be declared as Tourism Development Areas.

ù For the selected TDAs prepare site specific rules and regulations.

ù In each TDA setup a SLTDA regional office with necessary resources (Human, Finance, and proper

legislations).

Registration of Tourist Enterprises and Tourist Services

Tourist establishments were registered according to the provision in the Tourist Development Act No. 14 of

1968 (TDA). According to Section 68 (2) of Tourism Act No. 38 of 2005 (TA) the sections 77, 78, 79, 80, 81,

and 82 of Chapter I Part IV of the Tourist Development Act number 14 of 1968 are repealed. Further, the

relevant schedules are also repealed.

Sec 77 of TDA ± Tourist Hotels Code (4th Schedule)

Sec 78 of TDA ± Travel Agent¶s code (5th Schedule)

Sec 79 of TDA ± Tourist Guide Lecturers¶ code (6th Schedule)

Sec 80 and 81 of TDA ± Specified Tourist Services Code (7th Schedule)

Need to review the present criteria and make any changes necessary, in order to develop, enforce and

maintain locally and internationally accepted standards. Then, the Minister on the recommendation of SLTDA

will gazette the order to class ify and register Tourist Enterprises and Tourist services. (Sec 48 (1) TA ). Such

order to be placed before the Parliament. (Sec 48 (2) TA)

Registration

ù To prescribe the procedure to be followed for registration of Tourist Enterprises and Tourist Services,
and the manner of issuing license. (Sec 48 (3) (6) (7) (8) TA).

ù Every Tourist Enterprise and Tourist Service falling within the criteria to be registered with SLTDA
and a license to be issued

(Sec 48 (3) TA).

ù Registration fee and license fee to be pu blished by a gazette notification (Sec 48 (4) TA).

ù To maintain a register of licensed Tourist Enterprises and Tourist Services by SLTDA.

ù All Tourist Enterprises and Tourist Services registered and licensed with the Authority to notify in

every advertisement and communication. (Sec 48 (9) TA).

ù It is an offence for not registered Tourist Enterprises and Tourist Services with the SLTDA, to publish

them as registered with SLTDA (Sec 48 (10) TA ).

ù No Tourist Enterprises or Tourist Services that confirms to ou r criteria shall carry on business unless

they are registered with SLTDA. If they carryout then it is an offence (Sec 48 (4) TA)

ù Any person where the license is refused or cancelled may appeal to a tribunal appointed by the
Minister for this purpose. The c omposition of the Tribunal and the procedure to be followed by the

tribunal to be prescribed (Sec 51 TA)

ù The Minister shall prescribe the symbol of the Authority. All duly registered tourist establishments

are authorized to use or display the symbol as pr escribed (Sec 52 (1) TA). It is an offence to use the

symbol without the sanction of

SLTDA (Sec 52 (2) and (3) TA). The fine is not stipulated in the Act.

ù It is an offence for not registered Tourist Enterprises and Tourist Services to publish them as

registered with

SLTDA (Sec 48 (10) ).

Code of Conduct for Tourist Enterprises and Tourist services:

ù The Minister on the advice of the SLTDA shall make regulations prescribing Codes of Conduct for all

Tourist Enterprises and Tourist Services. (Sec 49 (1) TA).

ù If the Tourist Enterprises and Tourist Services do not comply with the Code of Conduct then liable to

a fine of maximum Rs. 100,000.

Classification of Tourist Enterprises and Tourist services:

ù The Minister on the advice will prescribe the classification st andards of the Tourist Enterprises and
 Tourist Services.

(Sec 50 (1) (2) TA).

ù If the standard specified is not maintained, then steps to be taken by such establishment to improve
the standards.

ù If the establishments fails to maintain the standards then to cancel the license by SLTDA (Sec 50 (3)

TA).

Follow up actions to ensure that the SLTDA comply with the Tourism Act No. 38 of 2005

ù To obtain the services of a Legal consultancy firm, to prepare the necessary required documents
needed according to this Act.

ù We will work together with the selected Management Consultancy firm to identify the human and
financial resources required.

ù It is also planned to setup Tourism Development Areas (TDA) under this Act. If regional offices are
to be set up within the TDA then one of the Corporate Service Division staff to be employed in the

same office to ensure the quality of tourist enterprises.

ù To continue with the conducting of the monthly mobile services in different districts.

2


Tourism Zones 2


There are 45 tourism zones have been introduced by SLTDA is order to avoid development all over the

country. The developers should select site within the tourism zones in order to minimize negative impact on

the environment.Further concentrating hotel in zones will also result in mitigating shows you cultural impact.

The declare zones as follows:

1. Kalpitiya [Wiki] - Beach Resort and islands in lagoon

2. Marawila - Beach Resort with lagoon

3. Waikkal - Beach Resort with Gin Oya

4. Negombo [Wiki] - Beach Resort with fishing community

5. Colombo [Wiki] - Commercial city with entertainment

6. Mt. Lavinia [Wiki] - Beach Resort in close proximity to Colombo

7. Wadduwa [Wiki] - Beach Resort with fishing community

8. Kalutara [Wiki] - Beach Resort in close proximity to Colombo

9. Beruwala [Wiki] - Beach Resort with local community

10. Bentota [Wiki] - National holiday resort in the west coast

11. Dedduwa - Lake Resort with five Islands

12. Madu Ganga [Wiki] - Lake Resort with 16 islands

13. Balapitiya [Wiki] - Beach Resort

15. Hikkaduwa [Wiki] - Beach Resort with ocean based activities

16. Galle [Wiki] - World heritage site

17 Unawatuna [Wiki] - Beach Resort with local community

18. Koggala - Beach Resort and Koggala lagoon

19. Weligama [Wiki] - Beach Resort with stilt fishing

20. Mirissa - Beach Resort with fishing community

21. Matara [Wiki] - Beach Resort with Heritage

22. Tangalle [Wiki] - Beach Resort with lagoons

23. Hambantota [Wiki] - Beach Resort and sand dune

24. Tissamaharama [Wiki] - Sacred city in close proximity to wild life park

25. Yala [Wiki] - Wild life Resort

26. Arugambay [Wiki] - Beach Resort for surfing activities

27. Passekudah [Wiki] - National holiday Resort in the east coast

28. Trincomalee [Wiki] - Ocean based city

29. Nilaweli [Wiki] - Beach Resort in close proximity to Trincomalee

30. Pinnawala [Wiki] - Nature Park Resort

31. Kandy [Wiki] - Heritage Resort with temples

32. Nuwara Eliya [Wiki] - Hill Country Resort in cool climate

33. Bandarawela [Wiki] - Hill Country Resort with water falls

34. Maskeliya - Hill Country Resort with tea gardens

35. Polonnaruwa [Wiki] - Heritage Resort with ruins of 11 and12 AD

36. Habarana [Wiki] - Urban city in close proximity to the heritage sites

37. Anuradhapura [Wiki] - Heritage Resort with ruins of 3BC to 11 AD

38. Victoria [Wiki] - Hill Country Resort with a reservoir

39. Matale [Wiki] - Hill country with sp ice gardens

40. Dambulla [Wiki] - Sacred Buddhist City

41. Sigiriya [Wiki] - Heritage resort of Rock Fortress

42. Giritale - Heritage Resort bordering a Lake

43. Udawalawa [Wiki] - Wild life park with a reservoir

44. Wasgamuwa [Wiki] - Wild life park

45. Ratnapura [Wiki] - Gem City