The multi-billion-rupee event management industry yesterday hailed the Government for recognising their trade for the first time ever in a National Budget and for allocating funds to compensate the COVID-hit sector.
“We appreciate the Finance Minister Basil Rajapaksa for recognising our industry, which was built painstakingly over the past 30 years and allocating Rs. 500 million to compensate the losses incurred during the COVID-pandemic,” Event Management Association of Sri Lanka (EMASL) President Roshan Wijeyarathne told the Daily FT.
In the 2022 Budget, under the Special Sectors that lost income during the pandemic, the Finance Minister proposed to allocate Rs. 500 million to the event management industry to facilitate and motivate the sector.
“Our industry was the only sector that was shut for 18 months straight. Although few industries like weddings were allowed from time-to-time, there were absolutely no corporate events — which was a massive hit to all stakeholders,” he pointed out.Events are considered essential to businesses as a vital tool of ‘live communication’, which enables a cross-section of industries to present new products to the market and generate sales. In that context, a high frequency of corporate events often correlates with a healthy economy.
The event management industry is worth over Rs. 30 billion and is part of the Rs. 150 billion worth marketing communication sector. Despite attracting in foreign exchange to the economy, particularly through meetings, incentives, conferences and exhibitions (MICE) events, the industry has provided employment to thousands of people.
EMASL, which has 65-member companies, has provided 130,000 direct jobs and 600,000 livelihoods. However, given the pandemic-induced closure of the industry, Wijeyarathne said most of the trained staff has now moved to different sectors for livelihood.
Most members of the association have made massive investments, ranging from Rs. 10 million to Rs. 800 million per business, on infrastructure, equipment and skills development. With no work for 18 months, these millions-worth equipment and devices malfunctioned or were damaged completely.
“The next step of this progressive decision is to understand with the Government and stakeholders on how the allocations are going to be made,” he said, adding that the members of EMASL are planning to meet on Wednesday (24) to discuss the way forward post-pandemic.
Although the allocation was not sufficient considering its magnitude and losses incurred by the stakeholders, Wijeyarathne said recognition for the first time in the National Budget for the 30-year-old industry amidst the pandemic and economic difficulties, was highly commendable.
“Our industry was first recognised when the Central Bank extended the financial moratorium to COVID-hit sectors. We are extremely grateful to the Government for recognition and for considering our contribution to the national economy in the post-COVID revival process,” he said.
Wijeyarathne also said the event management industry holds great potential to present Sri Lanka as an entertainment hub in South Asia, particularly with the mega Port City project coming up.
“We are a local industry with local talent and investments. Nobody thinks about the entire procedure that goes behind the scenes to put up massive events. It just doesn’t end at the price of a ticket but includes a lot of technical and creative aspects to make a memorable event. All our members are registered and contribute to the Government coffers,” he said.
The two-year-old EMASL is registered with the Sri Lanka Tourism Development Authority (SLTDA) and is also a member of the Federation of Chamber of Commerce of Sri Lanka (FCCISL).
He also said it is imperative that all stakeholders strive to sustain the industry and keep investing and developing to retain the competitive edge and to generate the much-needed foreign exchange to the country.
“With the successive administration of the vaccine against COVID-19 globally, eased travel restrictions and resumption of tourism has given hope for the industry. We hope the industry will bounce back with MICE events, destination weddings and many other corporate events that were restricted for 18 months,” Wijeyarathne said.
(FT)