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Curbing tourism’s black economy

Curbing tourism’s black economy

04 Mar 2024


In Sri Lanka’s quest to recover from the prevailing economic downturn, all forms of revenue is crucial, and the country has been trying to capitalise on whatever resources it can turn into rupees and dollars.

However, revenue, despite being the most important factor in the country’s struggle, is one of many factors that result in the growth which we can call an ‘economic resuscitation’. At a time where many crucial decisions are being taken to get out of the economic crisis, it is important to ensure that we do not tolerate but tactfully handle the adverse impacts of certain profit-making sectors.

This concern should receive more attention in the context of the ongoing discussions surrounding foreign tourists, particularly a group of Russians and Ukrainians, that have remained in Sri Lanka for an extended period, who have been observed to be engaging in unwarranted commercial activity, and there by damaging the fragile small- and medium-scale tourism industry in the island.  During the past few years, a small number of foreign tourists were arrested for overstaying their visas, engaging in online and ATM scams, and increasingly engaging in illegal acts such as the production and sale of illegal drugs. In addition, concerns have been raised about foreigners operating service-providing establishments such as guest houses, and holding parties that are limited to ‘white-skinned’ individuals. The latest of these concerns, which made national headlines unlike the previously mentioned issues, was foreign tourists engaged in sex work.

These concerns, especially the extension of tourist/visit visas without a thorough assessment of the necessity, are not new. They started following the outbreak of the Covid-19 pandemic and then again after the peak of the economic crisis. Sri Lanka wanted foreign tourists to come and stay, and trying to keep them in the country as long as possible seems to have gradually become an informal policy or a practice. It must be noted that during the height of the Covid pandemic, it was mostly Russian and Ukrainian tourists who did visit the island. In this context, a war broke out between Russia and Ukraine in early 2022, resulting in an increased influx of tourists from the two countries, who Sri Lanka targeted initially to revive the tourism sector, visiting Sri Lanka.

This is a concerning yet a tricky situation – on the one hand, the resurgent tourism sector is vital to Sri Lanka, and should not be discouraged, and on the other hand, the country cannot allow illegal acts to be spread through or be joined by foreign tourists. At the same time, if a foreign tourist wishes to stay in Sri Lanka and shows no red flags, especially if their motherland is going through a war, we cannot really deny a visa extension. However, steps need to be taken to address this situation before foreign tourists become a permanent part of illegal activities or fall prey to local criminals.

First and foremost, the Government, or the tourism authorities, need to understand that their usual approach of getting the Police alone to handle matters, will not work in this case. This requires a more subtle and well thought-out plan to encourage foreign tourists to obey the law. For example, if a foreign tourist is caught running an illegal service-providing establishment, the main response should be getting the culprit to register the establishment with the relevant authorities which results in proper monitoring of such establishment’s operations, adherence to standards, and revenue. Unless a serious crime has been committed, a focus on settlement or deportation in line with domestic and international laws, should be considered. The same can be applied to foreign tourists that sell various goods at tourist destinations while staying in Sri Lanka as tourists and without the applicable permits.

It is true that certain deeds, such as prostitution and the sale of illegal drugs, cannot be dealt with in the same manner. They need to be prevented, and the best option is to educate foreign tourists about local laws and punishments applicable for common offences. One approach could be to make it mandatory for foreign tourists that keep extending their visas to learn about basic local laws. At the same time, to prevent foreign tourists from becoming a part of illegal rackets without their knowledge, tourists that stay in the country for extended periods should be educated.

Needless to say, local service providers should also be required to maintain high standards and monitoring systems where necessary and applicable.

In this regard, the relevant authorities should be more active and knowledgeable. One of the first steps that need to be taken is ensuring that those tasked with dealing with foreign tourists directly are proficient in foreign languages, the most basic requirement being English. At the same time, it would be prudent to appoint authorities that are more aware of modern trends to deal with foreign tourists. In a context where a significant part of the country’s economy relies on tourism, we need authorities that can transform the sector into a sustainable and profitable one.

 



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