3.1.3A conducive taxation strategy for tourism
Taxes have been simplified for the benefit of tourism industry. The profit / income are subject to a 12% tax. The upfront cost of investment in leisure and tourism related activities and plant and machinery as well as branded consumer products are subject to low taxes. Duties on vehicles have been reduced to promote tourism related services. Taxes imposed at various levels of government are being consolidated to make an industry friendly tax regime.
3.1.4Development guidelines
The University of Moratuwa has been entrusted with the responsibility of developing a set of national
tourism guidelines to improve the performance standards of the industry.
3.1.5Infrastructure to meet the industry requirements
It is estimated that 2.5 Mn tourist arrivals by 2016 will require around 45,000 hotel rooms catering
to the tourism industry. However as per end 2010 statistics, the country has only 22,735 SLTDA
approved hotel rooms.