#1A presentation from Consulate of Sri Lanka Delivered by: Kutila Pinto Hon. Consul#2Solomon Islands - Sri Lanka Public Private Partnership (PPP) Provincial Rest House (PRH) Model#3■ ◉ Sri Lankan Tourism Sri Lanka is a tropical island same as Solomon Islands located on the Inter Tropical Convergence Zone Tourism of Sri Lanka is governed by Sri Lanka Tourism Development Authority with a strong policy focused on its further development Sri Lanka has over 2 million (2,050,832) tourists arrivals in 2016, which is an increase of 14 % over last year's 1,798,380 arrivals. Has a highly skilled and quality driven operator base (inclusive of international brands) and service staff#4Rest Houses or Supplementary Establishments in Sri Lanka A Rest House in Sri Lanka is an accommodation unit with 05 or more letting bedrooms with a restaurant in itself and located all through out the country. Normal rate for a rest house is around $25 including a meal while the tourist hotels rates are around $145.#5Tourist Hotels (382) Sri Lankan Accommodation Accommodation Classification facilities Classified Hotels(Star) Supplementary Establishment (1558) Boutique Villas Unclassified Hotels Boutique Hotels Heritage Homes & Bungalows Rented Apartment & Rented Homes Rest Houses#6Accommodation facility growth trends in Sri Lanka 2004 to 2016 1800 1600 1400 1200 1000 800 600 400 200 0 2002 2004 2006 2008 2010 2012 2014 2016 2018 --Number of Tourist Hotels -Number of Supplementary Establishment#7% Relevance of Tourism to National Economy - Sri Lanka Date Value Change, % 12 2016 11.4 5.24 % Total GDP 2015 10.9 11.23% = USD 81Bn or SBD 637Bn 11 2014 9.8 10.43 % Tourism 10 2013 8.8 11.58 % = USD 9.7Bn or SBD 76Bn 2012 7.9 3.32% 2011 7.7 11.64 % 2010 6.9 -3.05 % 2009 7.1 -5.38 % 7 2008 7.5 -5.99 % 2007 8.0 -2.29% 2006 8.1 -0.36% 5 2005 8.2 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015#8140 120 100 88 80 60 60 40 40 20 20 0 Ampara Badulla Anuradhapura Batticaloa Location of Rest Houses by Districts in Sri Lanka yuthu WKS Rameswaram Dhanushkodi Colombo Galle Number of guest houses Gampaha Hambantota Jaffna Kalutara Kandy Kegalle Matale Kurunegala Matara Monaragala Nuwaraeliya Polonnaruwa Puttalam Ratnapura Trincomalee Vanniya Jaffna LAMAt= යාපනය Kilinochchi කිළිනොච්චිය. ulativ 8360 Kumulamana Mannar වරට Pandivichchan Kalpitiya Puttalam Vavuniya වවුනියාව Anuradhapura අනුරාධපුර පෞරාණික නගරය පුත්තලම Tambuttegama Hamilewa Trincomalee තිරිකුණාමළය Saman's Guesthouse LXR6906 Ariya Rest House Batticaloa මඩකලපුව Chilaw Rest House Serendib Guest House LKR5589 Sri Lanka Tourism Development Authority Kitulgala Rest House LKR5420 Chamenka Guest House Golden View Kandy Sri Lanka Guest House LKR2877 Ampara Kalm අම්පාර කල් Zion View Guest House LKR10,713 Belihuloya Rest House LKR6042 Deniyaya Rest House LKR2973 Cape Weligama LXR70 369 Surya Garden Guesthouse Kadolana Guest House Google KR3061 Rest House - Sri Lanka Tourist Boar#9Solomon Islands Island Bounty - The Abundant Delights of the Solomon Islands A mix of dazzling coral reefs and intriguing wrecks makes the seas around the Solomon Islands an underwater wonderland for divers - words of Deborah Dickson-Smith, Virgin Australia In-Flight magazine July 2017 Russel Islands - "Heading west from Guadalcanal, the Russell Islands lack accommodation of any kind"#10Constant 2014 SBDmn 600 500 400 300 200 100 2005 2006 2007 2008 2009 2010 2011 Solomon Islands: Direct Contribution of Travel & Tourism to GDP 2012 2013 2014 2015 2025 0.0 1.0 2.0 3.0 4.0 % of whole economy GDP 5.0 6.0 Source: The Economic Impact of Travel & Tourism of Solomon Islands 2015 - World Travel & Tourism Council https://www.wttc.org/-/media/files/reports/economic%20impact%20research/countries%202015/solomonislands2015.pdf 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2025#11● ● • . • Issues that hinder recognition of SI as a Tourist Destination In the presenters view Expensive Cost of Air Travel compared to cheap airfares to other tourist destinations (both International and Domestic) Lack of rooms availability in Honiara (which drives the daily rates) and lack of accommodation facilities in other provinces and the poor state of the facilities Available facilities only cater "business tourist" and shortage of holiday or recreational type accommodation facilities The available recreational type accommodation facilities are not strategically located and/or commuting to and from these facilities are cumbersome and expensive Lack of adequately skilled service operators and service staff not up to standards Lack of focus in promoting "Go to" places in Solomon Islands Non attractiveness of the industry for investors due to lack of policy support and encouraging framework Tourism not listed as a high priority in the country's GDP growth agenda? · Overall lack of focus#12. . . . ● Basic changes to elevate the Tourism sector and gain momentous increases in Tourist inflows - Basis to the subsequent proposal Discuss, Negotiate and Approve a robust Tourism Framework at Government and Provincial level (A Robust Tourism Policy Framework; from Central Government (HUB) to Provincial Governments (SPOKE) Assist, subsidise and promote strategic accommodation facilities at Central Government level Direct [a substantial amount] International Grants towards making impact and driving outcome on the Tourism Framework outcomes and/or its governance Further develop and enhance the skills capacity of the operators and the service staff Develop educational facilities that ensures the sustainability of the sector Strategically promote Tourism related investments both Internationally and locally Develop/further diplomatic relationships with countries that have a population eager to travel and explore the world#13- Solomon Islands – Sri Lanka : Development of a Public Private Partnership (PPP) Provincial Rest House (PRH) Model SI Ministry of Tourism SI Tourism Authority (SITA) SI Visitors Bureau (SIVB) SI Hotel School (SIHS) SI Tourism Investment PRH AUKI PRH GIZO PRH TARO PRH XXXXX Company (SITIC) Operator: Private Investor - Sector Expert Ownership Structure: 1/3 SI Government 1/3 Malaita Provincial Government 1/3 Private Investor - Sector Expert#14PRH Support Model - Creation of a Local sustainable economy Local Suppliers SIHS SIVB External Tourism Operators PRH AUKI (HUB) Smaller Lodge Operators in sought after locations (Spoke) SITIC Local Tour Operators#15Form of shareholder contribution • 1/3 SI Government 1/3 of the Actual cash contribution Grant Full FIB status to the project (e.g. Tax Free periods, duty exemptions etc.) 1/3 Provincial Government Provide legal land parcel in an attractive location Assist the Sector Expert with necessary logistical and local procurement needs Assign the project with NIL local Government taxes and duties 1/3 Private Investor - Sector Expert 1/3 of the Actual cash contribution Select and appoint sector expert Manager to the PRH Manage budgets, cash flow, HR, promotions and future investments Make the investment commercially viable and ready for either outright purchase or for a technical transfer to the SITA#16Bi Lateral partnership responsibilities of PPP - PRH Model Government of Sri Lanka Select and assign Qualified Hotel School trainers on a 6 – 12 months assignment to Solomon Islands on a Train the Trainer basis Impart well established "Rest House" Operating model to SI Ministry of Tourism Officials Provide on going support to select Sector Experts and screen them for "Right Fit" to be part of the PPP PRH Model Assist with Policy and Technical formulation to establish SITA and inclusions to assist foreign investor operator assistance in to FIB (Foreign Investment Bureau) Government of Solomon Islands Show willingness to develop a sustainable in country tourism sector Provide key officials from relevant ministries to formulate suitable technical and policy framework to accommodate PPP PRH model Provide and facilitate required infrastructure and framework to establish SIHS Strategically negotiate and include provincial governments in operationalizing the PPP PRH model#17Thank you and I will leave you with this beautiful video that captures the beauty of Sri Lanka. The most encouraging conclusion is, Solomon Islands share almost exact Flora, Fauna and topography. Well surrounded by attractive sea that is breathtaking!#18Empty