Sri Lankan government contemplating reduction in airport fees to make the country more competitive with other Asian countries
Sri Lanka’s Tourism Development Minister, John Amaratunge has reportedly said that the government is reviewing how to reduce airport fees in order to make the country more competitive with other Asian countries and to make Sri Lanka more attractive to tourists.
“A review is being done as to how best we could reduce the landing charges, fueling charges and airport taxes,” Amaratunge has been quoted as saying in the local media.
The Minister has reportedly admitted that excessive airport fees are being passed on to airline ticket prices to Sri Lanka, making the country less attractive for potential tourists.
According to reports, Sri Lanka has a state monopoly supplying fuel at the airport and there is no competition.
For example in a Colombo-Kuala Lumpur-Colombo ticket sold by Malaysian Airlines for Rs. 34,656, the Colombo Malaysia leg is Rs. 19,918 and the KL-Sri Lanka leg is Rs. 14,738.
Airport embarkation fees and taxes in Malaysia is Rs. 2,874 and in Sri Lanka Rs. 8,094. Airport taxes are 40 percent of the ticket price in Colombo.
Minister Amaratunge has said discussions are ongoing on other taxes as well.
OSL take:
The government of Sri Lanka has placed much importance in the promotion of tourism to the country due to the continuous growth recorded by the sector. As stated by Sri Lanka’s Tourism Development Minister a reduction in airport fees and other related taxes would make Sri Lanka competitive with other Asian countries and attract more tourists as well. Given the many developments in the leisure and hospitality sectors in Sri Lanka, foreign businesses could explore business opportunities in the country’s tourism sector.
| Article Code : | VBS/AT/04092018/Z_2 |