Tourism Skills

Strategy and TRINCOMALEE Action Plan for Tricomalee BATTICALOA POLONNARUWA

AMPARA Contact Person Simon Barns – Contract Representatives Scope Global 41 Dequetteville Terrace Kent Town SA, 5067, Australia Tel: +61 8 8364 8500 Fax: +61 8 8331 8944 [email protected]

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Version 1 (30 August 2018)

Tourism Skills Stratergy and Action Plan for Trincomalee District 2

Table of Content Table of Content…………………………………………………………………………………………………………………..3 List of Figuers……………………………………………………………………………………………………………………….4 List of Tables………………………………………………………………………………………………………………………..4 List of Abbriviations……………………………………………………………………………………………………………..5 Acknowldgements……………………………………………………………………………………………………………….6 Executive Summary……………………………………………………………………………………………………………..7 Section One: Setting the Scene for the implementation plan ...... 10 1.1 Introduction ...... 10 1.2: Background ...... 12 1.3: Objectives ...... 12 1.4: Approach used to develop the SSAP ...... 12 1.5: Content of the SSAP ...... 13 Second Two: Development Potential and Strategic Direction of the Tourism Sector in the Trincomalee District ...... 14 2.1: Introduction ...... 14 2.2: Background of economic development ...... 14 2.3 Employment trends within Trincomalee ...... 15 2.4 Skill shortages in Trincomalee ...... 17 2.5: Skill Gaps-Quality…………………………………………………………………………………………………….18 2.6 Policy Direction for the Tourism sector: National and District Levels ...... 22 2.7 Institutional support system ...... 23 Section Three: Challenges, Strategies and Action Plan for skills development ...... 26 3.1: Introduction ...... 26 3.2: Skills path being followed by Trincomalee ...... 26 3.3: Challenges and opportunities for skill development ...... 27 3.4: Vision for the skills development of Tourism Sector in Trincomalee District ...... 28 3.5: Strategies and action plan for skills development ...... 29 Section Four: Implementation and progress monitoring ...... 35 4.1: Introduction ...... 35 4.2: Implementation and progress monitoring………………………………………………………………..35 4.3: District Action Committee for the SSAP……………………………………………………………………36

References………………………………………………………………………………………………………………………….38 Annex I: Conducted Stakeholder Consultation Meetings to prepare SSAP-Trincomalee……….39

Tourism Skills Stratergy and Action Plan for Trincomalee District 3

List of Figures Figure 1: Demand for Tourism in Trincomalee District, 2016 Figure 2: Employers Perception to increase female participation in your work-force by District (%) Figure 3: Percentage of respondents with vacancy sub sector Figure 4: Trincomalee Skills Deficits among High Skilled Workers Figure 5: Trincomalee Skills Deficits among Medium Skilled Workers Figure 6: Trincomalee Skills Deficits among Low Skilled Workers Figure 7: Employment Map of Trincomalee Figure 8: Transformative framework for raising the skills equilibrium and moving towards an inclusive growth path

List of Tables Table 1: Student intake & output for Hospitality Trainings in Trincomalee District (Public & Private Trainings) Table 2: Challenges facing Skills Development in Tourism Industry in Trincomalee District Table 3: SWOT analysis on skills development of tourism industry in Trincomalee District Table 4: Tourism sector Skills Development Action Plan for Trincomalee District

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List of Abbreviations

ADB Asian Development Bank BOI Board of Investment CBSL Central Bank of Sri Lanka CGOs Career Guidance Officers CTEC Colombo -Trincomalee Economic Corridor DAC District Action Committee DCC District Coordination Committee DCS Department of Census and Statistics DDP District Development Plan DDPT District Development Plan for Trincomalee EP Eastern Province F&B Food and Beverages GA Government Agent GDP Gross Domestic Product GoSL Government of Sri Lanka HRD Human Resource Development ICT Information Communication Technology MDP Medium Development Plan MDP Medium Term Development Plan MPIU Master Plan Implementation Unit MSME Micro Small and Medium Enterprises NAITA National Industrial Training Authority PWD Persons with Disabilities REACT Recruitment, Employment and Careers in Tourism S4IG Skills for Inclusive Growth SSAP Skills Strategic Action Plan SSDP Skills Sector Development Programme TSP Tourism Strategic Plan TVEC Tertiary, Vocational Education Commission TVET Tertiary, Vocational Education Training VET Vocational Education Training VTA Vocational Training Authority

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Acknowledgments

We would like to thank all the stakeholders who supported the Tourism Skills Strategy and Action Plan (SSAP) Trincomalee by taking part in the discussions, e-mail communications and consultations. We would specifically like to thank Mr. N.A.A. Pushpakumara Govt. Agent/District Secretary, Trincomalee, Mr. K. Aruthavarajah, the Additional District Secretary, Mrs. K. Parameswaran, Director Planning, and all the Divisional Secretariat Officials for their committed interest and administrative support in preparing the Skills Stratergy and Action Plan (SSAP) for Trincomalee District. We would also like to thank the Eastern Province Council Officers, especially for the Eastern Province Tourism Bureau, Provincial Planning Secretariat and Regional Chamber of Commerce & associations of the tourism sector in Trincomalee district, and TVET training institutions and other private institutions in Trincomalee and officials of the Ministry of Science, Technology, Research and Skills Development and Vocational Training & Kandyan Heritage, TVEC and SLTDA in Colombo for sharing information and guiding us throughout the study.

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Executive Summary

Trincomalee has some of the best known beaches in Sri Lanka and tend to be only visited by locals. This situation is beginning to change, and the number of international visitors is starting to rise from traditional markets such Europe, as well as new markets such as Russia, India and China. Away from the beaches there are other destinations that have not been marketed. A recent survey by a regional marketing company found that there are around 32 destinations for tourist to visit, most significant are temples and religious sights, a number of interesting museums, natural hot springs, bird safaris and colonial buildings of interest, including the magnificent

Developments in Trincomalee have been given guided by a series of development plans, most significant of which are a series of 5 year district plans. Most of the past 5-year district plans have given emphasis to agricultural development and infrastructure. More attention has been given to tourism at the provincial level where a budget has been allocated to support improved destination marketing for tourism. A five-year metropolitan plan has been developed for Trincomalee town that identifies the potential for private sector investment up to 2050.

Developments in Trincomalee have been inhibited by market failures, lack of effective regulation of the tourism, a failure to develop to market the destination and a general lack of investments for skills, all of which inhibits growth and development in the sector. There are a lot of supply and demand constraints facing the Trincomalee district, and the key ones are outlined below:

Demand side Supply side • Focused mainly upon back-backers and caters • Few opportunities for workplace experience or for their tastes and income. training • Absence of collective efforts to promote • Inadequate investments in skills development tourism by the private sector or public-players • Narrow programme mix • Fragmented value chain for tourism • A dearth of qualified trainers • Miss-information or lack of destination • Programs that are too lengthy marketing of Trincomalee • Low preference towards tourism sector jobs by new • Low levels of skills of the employed in the entrants to the labour market tourism sector • Absence of local flexibility in delivery • Low awareness on job prospects and career • Low level of resources invested in skills development development opportunities in tourism sector for tourism • Lack of district level framework to guide- • Presence of multi-institutional structure and weak developments in the tourism sector coordination • Failure to implement effective regulation in the • Low enrolment and completion rates of TVET sector trainees due to poverty • Excessive government bureaucracy hindering • Inadequate support for career guidance and operations counselling for the tourism sector

The potential for tourism in Trincomalee are excellent and the key issues facing the sector include the following:

Tourism Skills Stratergy and Action Plan for Trincomalee District 7

• The beaches around Trincomalee are well known. Other attractions are overlooked, most significant of which are Fredrick Fort, the History and Navel Museum, temples and religious worship places, a war cemetery, kanniay hot springs and animal parks, most noticeable of which is the kokkilai bird sanctuary. • There is a need for improved destination marketing, partly to inform potential visitors of the different places to visit and to encourage visitors with higher income. • Most of the stakeholders and government representative have a clear understanding of the main constraints facing the sector, but there is a lack of agreement on how to tackle them or move forward. In part this reflects the lack of an implementation plan or framework for tourism at the district level. • Within the sector there is a failure to tackle effective regulation, particularly around the need for operators to meet certain standards and have insurance. This creates unfair competition and can impact negatively on consumers, especially in terms of the quality of services and meeting H&S standards. • The human resource base is low by international standards and low compared to the other districts in the region. Part of the problem stems from lack of an effective provider to deliver programs for the tourism and hospitality sector. Any development must focus upon raising the human resource base and investing in sector specific skills. • Demand exists for tourism products, but these are focused upon the back-backer and low income sector. This means that the products are geared towards the low end. Overtime this can be expected to improve as a result of the significant investment being proposed under the Trincomalee Master Plan. This is good news, but unless considerable investments are made in skills development it will constraint development over the short and medium term, preventing the district from moving out of a low skill equilibrium.

The district government is starting to get a clear understanding of the constraints and opportunities facing the sector, and a number of reforms will provide the foundation for sustainable economic growth and reform in the tourism sector, and these are outlined in the district’s strategic plan for the next 5 years, covering a number of targeted interventions in the areas of skills development, new product development for tourism, providing access to information to tourists about the district, and increased investment in infrastructure facilities. Accompanying these reforms is the need for interventions to tackle the constraints facing the supply of skills, together with measures for generating employment through the expansion of existing businesses and the creation of new ones through entrepreneurship.

The most effective way forward is through a collaborative and inclusive approach to skills development and employment in the tourism sector, across the Trincomalee district. The skills strategy and action plan (SSAP) provides the framework for tackling the constraints, addressing skills and labour shortages, generating jobs and for responding to the opportunities outlined above. The SSAP provides strategic direction for skills development of tourism sector for the next 3 years: 2018 to 2020 and consists of 14 action programmes including possible partner organizations and service providers for implementation.

The SSAP take on board policy directives and action programmes of the government at national, provincial and district levels. Our approach was also guided by the Provincial Skills Plan and Employment Strategy for the Eastern Province. Under this framework, approved by

Tourism Skills Stratergy and Action Plan for Trincomalee District 8 the Ministry of Science, Technology, Research, Skills Development and Vocational Training & Kandyan Heritage, emphasis is given to tackling supply constraints and helping ensure that the right quantity and quality of skills are produced for the regional labour market. The strategy also recognises that focusing upon supply is not enough, and measures are required generating demand to expand existing businesses and create new ones. Accompany supply and demand measures, are initiatives for matching, ensuring that market imperfections are tackled.

A total of 19 action programmes have been identified to elevate the tourism industry in Trincomalee district towards a middle-skilled equilibrium stage by 2020. Some of the key action programmes include:

The low demand for tourism sector jobs will be transformed with the support of several programmes including awareness programmes to educate school leavers on available job opportunities and career prospects in tourism sector, supporting to develop career guidance information for school leavers e.g. leaflets, role models, videos, etc. The action programmes also cover community participation in tourism (e.g. training of surf instructors, bakery skills development), develop information systems, product diversification, multi-skilled training and networking of enrolment relating to tourism related trades. Additional demand will be facilitated through the REACT program that will help young people obtain productive employment in the sector.

The funding for implementation comes from government led initiatives and the government working in partnership with development partners, and employers. The SSAP presents a real opportunity for the district to develop collective responses to its skills and employment challenges, through embracing strong stakeholder partnership. Hence, the SSAP is well placed to consolidate these initiatives with a clear focus on inclusive growth. It is proposed to set up a District Action Committee (DAC) headed by the GA as a mechanism to implement action programmes identified in the SSAP. It also requires well-coordinated collaboration by all the key holders of the tourism industry.

The estimated employment impact of the SSAP would be around 2,500 workers covering both in direct and indirect employment. The quality of employment will be raised in terms of cognitive, non-cognitive and soft skills. In terms of guest nights, the increase would be in the range of 145,000 to 166,000 guest nights in 2020. The incremental income benefit from foreign guests would be in the range of US$ 25 to 28 Mns in 2020. Given the inclusive character of the SSAP, it is expected that these benefit streams would percolate down to a cross section of vulnerable groups in the district and lead to reductions in unemployment, inequity and poverty.

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Section One Setting the Scene for the implementation plan

1.1: Introduction Administratively, the Trincomalee District is divided into 11 Divisional Secretariats representing 230 Grama Niladhari Divisions. Out of the 11 Divisional Secretariats one is an Urban Council and the remaining 10 are Divisional Councils (Pradesha Sabhai or Pradeshiya Sabha). The district is well known for the beaches in Uppuveli on the outskirts of Trincomalee where the majority of hotels and resorts can be found. This is where you can relax on the beach or enjoy water sports. There is also the beach along Niveli , a bit further from the town where you can do excursions to Pigeon Island that has some of the best snorkelling in Sri Lanka. Outside of the beach there is Trincomalee town that has Fredrick Fort, one of the best forts outside of gaul, as well as the History and Navel Museum. Examples of temples and religious worship places can also be found around Trincomalee town. Outside of Trincomalee there is a war cemetery, kanniay hot springs and animal’s parks, most noticeable of which is the kokkilai bird sanctuary where it is possible to see exotic birds specifies unique to Sri Lanka.

Trincomalee covers an area of 2,727 square kilometres and is one of the smallest geographical district of the Eastern Province. The district has one of the smallest population levels in the province, with the numbers increasing from 374,000 in 2010, to 439,000 in 2017, representing a growth of nearly 17%. Compared to other regions it has a high population growth rate. Specific data on human resource development reveal that the pass rate for GCEO levels is 54.8% and the level for GCEA levels is 56.6%. This is not so bad when compared with international trends where the average pass rate for GCES or equivalent in the UK is 58% and for slightly higher average of 70% for A-levels. Despite the good education foundation, the numbers going into tourism related subjects are almost non-existence (see later section) and less then 1% of the population has a degree level qualification. The low skill base and lack of suitable vocational orientated skills are one of the constraints hindering the operation and growth potential of the tourism sector.

Trincomalee district accounts for about 1.4 percent of GDP and 1.6 percent of the total labour force or (e.g. 128,924). The rate of unemployment and underemployment in 2016 were 3.9 and 2.0 percent as against national average of 4.4 and 2.4 percent respectively. The labour force participation is 76.5 and 22.1 percent among male and female workers. The services sector accounts for about 52 percent of its total employment while the rest is distributed among agriculture (25%) and industry sectors (23%). The informal sector share of employment in non-agriculture sector of Trincomalee district is 59.9 percent as against 50.1 percent at national level. Trincomalee district accounts for about 1.6 percent of business establishments in non-agriculture sector and nearly 82 percent are in trade (50%) and services (32%) sub-sectors. The mean household per capita income in Trincomalee district was Rs. 11,721 as against national average of Rs. 16,377 in 2017. It's poverty level (head count index) was10 percent as against national average of 4.1 percent for the same year.

Unlike the other districts in the East there is good foundation for tourism and the potential for growth is significant. Currently, the tourism market is focused upon the lower end of the

Tourism Skills Stratergy and Action Plan for Trincomalee District 10 tourism market and dominated by pack-packers. As a consequence the majority of accommodation is unregistered, consisting of guest houses geared towards the lower end market. On the international accommodation webpages there are only two four star hotels and outside of these establishments there appears to be only one restaurant that offers international cuisine of the type they would get back home. The majority of restaurants are very basic, offer tourism curry and rice, or budget level meals, such as pizza or burgers.

The tourism value chain in Trincomalee show signs of development and sub-sectors around water sports, tour guides, restaurants and tour operators are more developed than in other districts. Backwards and forward linkages still depend on Colombo, but the opportunities for building local linkages are good. A number of factors are constructing these linkages, one of these is the regulation of the sector and how it is enforced. Most stakeholders complained that they have to register with 6 or 7 government departments to operate. On top of this registration, operators are required to have liability and insurance cover, all of which increases their operating costs. Regulation is good for the sector, but the lack of regulation means that many operators lack insurance and operate informally. This creates unfair competition and a situation in which the safety of tourists can be put at risks, all of which reflects badly on tourism in Trincomalee. Another area where more effective government regulation is required is the environment. Many operators complaint about the litter on the beaches and the growing waste in the sea, and the corresponding negative impact this could have on tourism. However, nobody could agree who was responsible for this issue and only isolated examples could be found of where private sector operators were taking responsibility for this issue.

Lack of information or effective marketing of tourism in Trincomalee is the most significant constraint impacting on tourism and the development of backward and forward linkages in the sector. There is also a lack of destination marketing on tourism in Trincomalee, in terms of electronic media, pamphlets or a physical office in Trincomalee. Given the predominance of misinformation or lack of lack of information tourists are unable to decide whether they should visit Trincomalee or not. The recently established Tourism Bureau is in the process of establishing a multimedia strategy and this must be accompanied by the setting up of a physical office in Trincomalee. The proposed physical office is more geared towards national tourists and will provide information about destinations, as well as washing facilities for tourists who have driven from Colombo.

The government and stakeholders have a clear understanding about the nature and extent of the constraints facing skills development and employment in the tourism sector. What is not so clear is who should take responsibility for tackling them and moving forward. Part of the reason for this situation is because of the existence of a national tourism plan and a lack of implementation arrangements on the ground in Trincomalee. The District government has a 5 year implementation, but limited reference is made to tourism or skills for that sector. The only activities around tourism have tended to come through the Provincial level office and this has focused upon infrastructure. This situation is likely to change through. The work being undertaken on the current skills implementation plan and the fact that the Eastern Tourism Bureau is being established should help move forward the agenda on tourism. However, it will be important that the agenda focus on the district, as well as the regional agenda for skills and employment in the sector.

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1.2: Background The Skills for Inclusive Growth (S4IG) program is an initiative of the Australian Government’s aid program and is implemented in collaboration with the Ministry of Skills Development and Vocational Training (MSDVT), Tourism Authorities, Provincial and District Level Administration, Industry and Community Organizations and the donor community. The Program will improve the tourism value chain in Trincomalee district through an integrated approach to skills development. The main focus of the S4IG is to create sustainable jobs and to enhance income of marginalized groups, including the disadvantaged and people with disabilities and women. Its goal is to enhance the capacity of skills development planning at district level, improve coordination, reduce mismatches and generate demand for skills. Further, strategies will be adopted to shift the informal sector towards more formal, and improve productivity in the tourism value chain, leading to inclusive growth and sustainability.

1.3: Objectives The main objective of the Skills Strategy and Action Plan (SSAP) for Trincomalee district is to promote inclusive growth in the district economy by transforming ongoing development efforts to create a sustainable, dynamic, entrepreneurial and innovative culture, responsive to future business opportunities. More specific objectives are:

• To identify the main challenges facing skills development of Tourism and related value chain sectors in the district. • To consolidate strategic direction of skills development of the tourism industry in line with national, provincial and district level stakeholders. • To develop an action plan to promote skills development of tourism industry using collaborative and inclusive approach.

1.4: Approach used to develop the SSAP The analysis for the SSAP is based on existing body of data and research evidence on growth performance and skills development of tourism industry at the national, provincial and district level. In terms of policy direction, it is guided by the following policy documents used at national, provincial and district level:

National level • Public Investment Programme, 2017-2020 • Tourism Strategic Plan 2017-2020, • Vision 2025, A Country Enriched and • Budget Speech, 2018

Provincial level • Medium Term Development Plan, Eastern Province, 2017-2020 • NECCODEP North East Coastal Community Development Project (2010)3 • VET Plan for the Eastern Province • Eastern Province Strategic Action Plan 2018-2019, S4IG -2017

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District and Divisional Secretariat level • Eastern Province MDP (2017-2020) • 5 Year District Development Plan (2018-2022) for Trincomalee • Master Plan for Trincomalee

The SSAP is also based on consultations with key stakeholder groups such as business owners, policy makers & administrators at national, provincial and district level, training providers (both public and non-public), employees in tourism & related industries and job seekers. The assessment covers status of the tourism industry at district level, challenges in skills development, strategic options and action plan for implementation over the next three years e.g. 2018-2020. The potential beneficiaries of the SSAP include wide cross-section of individuals including females, disabled persons and PWDs.

1.5: Content of the SSAP

The Chapter two provides the foundational knowledge base for strategic direction and preparation of action plans for skills development of tourism sector in Trincomalee district. Chapter 3 presents stage of tourism sector skills development in Trincomalee district, challenges and opportunities, vision and mission, strategies and action programmes. Finally, chapter 4 presents a brief summary of SSAP and the mechanism for implementation and progress monitoring.

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Section Two Development Potential and Strategic Direction of the Tourism Sector in the Trincomalee District

2.1: Introduction

Currently, the economy of Trincomalee is dominated by services, and to a lesser agricultural and fisheries, and this is where the majority of opportunities for development can be found. The majority of services provided in Trincomalee are focused upon: public administration (19%), wholesale and retail trade (16%), transport & storage (7%) and education (4%) sub- sectors. The manufacturing and construction subsectors account for 8 and 5 percent of employment in Trincomalee district. The accommodation and food service sectors account for about 2.1 percent of employment and its capacity to create more job opportunities due to untapped resources base of the district. This untapped potential in tourism will require a considerable investment in skills since the base is low.

2.2: Background of economic development

At the national level projected grow for tourism over the next three years is around 5 percent, partly reflecting government policy initiatives and investment incentives during the post conflict period. Tourism is one of the largest and vibrant industries and important foreign exchange earners in the national economy. At the national level tourist arrivals in 2017 increased by 3.2 percent to 2,116,407 compared to 2016. This upward trend is not reflected in the Eastern Province, particularly, Trincomalee, where the growth in visitors appears much lower compared to the rest of the country.

The tourism sector has emerged as one of the high growth sectors of the national economy during the post-conflict period. Over the past five years (2012-17), tourist arrivals have grown at 22 percent per annum while guest nights have also grown at 26 percent per annum during the same period. The growth potential of tourism sector is very high as there are many unexploited resources with high demand from foreign and domestic guests/tourists. Trincomalee is one of the districts blessed with untapped resources for the development of tourism industry. It’s geographical location, unique natural environment, rich bio diversity, places of cultural value and sandy beaches are key tourist attractions of the district.

The district of Trincomalee attracts around 224,000 guests per annum representing foreign (71%) and domestic (29%) sectors. The foreign demand for the accommodation sector during the peak season is around 13,200 guest nights per month and it drops down to 11,880 during the low season. Its foreign market has grown at a rate of 16 percent between 2014 and 2017 while the domestic guest market grew at a rate of 5 percent per annum during the same period. Both direct and indirect employment generated from the tourism and hospitality sector in Trincomalee district is estimated to be around 5900 and 6700 respectively. The key tourist attractions of Trincomalee district include Koneswaram Temple, War Cemetery (1939- 45), Marble Beach, Sri Pathirakali Amman Temple, Fort Fredrick, Seruwila Mangala RajaMaha Viharaya, Valgam Viharaya, Saint Mary’s Cathedral, Hoods Tower Museum, Knniya Hot

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Springs and Lanka Patuna. The guests also have the opportunity of Dolphin and Whale watching and Scuba and Snorkelling. About 20 new projects have been initiated in Trincomalee district with the objective of increasing room capacity by 540 rooms. In addition, two other mega projects (e.g. Trincomalee Economic Corridors (CTEC) by the ADB and Trincomalee Metro Urban Development Plan by the Urban development Authority) being considered at national level would further enhance growth potential of Trincomalee district.

Figure 1: Demand for Tourism in Trincomalee District -2016

Demand for Tourism in Trincomalee District (2016) 16000 14000 12000 10000 8000 6000 4000 2000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Foreign Local

Source: Annual data, Sri Lanka Tourism Development Authority (SLTDA)

The development potential of tourism industry in Trincomalee district is not fully exploited. During the post-conflict period the tourism industry has emerged as a key growth sector with heavy investments by the private sector to enhance accommodation facilities and public- sector investments in infrastructure development. As stated in National Tourism Strategy, Sri Lanka’s tourism industry lies along the continuum from exploration to development depending on the destination. In this continuum, Trincomalee is at an initial stage of this process. With significant investment infrastructure and continued support by the district and national government, tourism in Trincomalee can be expected to undergo significant changes.

2.3: Employment trends within Trincomalee

The size of the population in Trincomalee is close to 412,000 people and the smallest in the Eastern Province and represents the pool of labour that can be drawn upon, covering youth who need skills to obtain their first job, the unemployed who need to be re-skilled to re-enter the labour market and those in work who will need up-skilling. A map of employment data for the district is show in figure 7 and key issues for the SSAP include the following:

• The numbers in employment is close to 124,000 out of which 36% work in the formal sector and a much larger 64% can be found in the informal sector. It should be noted

Tourism Skills Stratergy and Action Plan for Trincomalee District 15

that more people are employed in the formal sector in Trincomalee district than other districts in the East. • As occurs in most district there is a considerable gender imbalance, with 78% of those employed males and the remaining 32% females. • Age is an important issue that must be taken on board, with less than 3% of those employed young than 19. Nearly 30% of those in employment are aged between 25 to 29. This highlight which group of the population where emphasis should be given. • The actual number working in the tourist and hospitality sector appears to be very small, highlighting that not much attention has been given by the government or stakeholders to developing this sector. Most of the existing jobs could be expected to be unskilled or low skilled

There barriers to employing women and responses to a recent enterprise survey found that employers in Trincomalee are much more likely to employ a woman than those in other districts (see figure 2). The same survey found more favour attitudes to employing disabled workers, with 26% of respondents in Trincomalee saying that they would consider hiring a disabled person, compared to 5% of employers in Batticaloa.

Figure 2: Employers Perception to increase female participation in your work-force by District (%)

Employers perception to increase female participation in their workforce by District (%)

100% 80% 41% 57% 65% 60% 70% No 40% 59% Yes 43% 20% 30% 35% 0% Batticaloa Trincomalee Ampara Polonnaruwa

Source: Enterprse Survey, 2017, Skills for Inclusive Growth Programme

There are a number of implications of these employment trends. The predominance of the informal sector and lower level occupations means that emphasis must be given to lower level, and possibly middle level skills. Moreover, given that the majority of the labour force are above 25 years of age emphasis should be given to skill upgrading of those in the workforce, as opposed to focusing upon just entry level employees. Both of the former issues have implications for the type of skills developed and the way in which they are delivered. What is encouraging about these trends is the more positive attitudes towards employing women and those with disabilities.

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2.4: Skill shortages in Trincomalee

There are significant skill shortages facing hotels and guest houses in Trincomalee. Skill shortages occur where the demand for a certain occupation outstrips the supply of that occupation. The available evidence from a survey of skill shortages identified that 38 percent of guest houses and 46 percent of hotels are experiencing a vacancy, much larger than in other districts.

The top five vacancies were found in the following occupations: cooks, front office staff managers, waiters, receptionists, and guest house officers. The occupations that are most difficult to recruit (i.e. taking longer than 6 months) can be found the following lower level occupational areas: cleaner, waiters, kitchen stewards, barman, head waiter, front office managers and cooks at all levels. This is a common trend across the Eastern Province and in part reflects the structure of the low skilled labour market. However, shortages in Trincomalee are much more likely to disappear after 6 months than in other districts. In part this probably reflects the fact that more favourable HR conditions exist in the larger hotel for higher level occupations, enabling them to attract occupations in high demand.

A variety of factors influence the demand and supply of labour in Trincomalee, most significant of which are the supply of workers coming onto the labour market. In turn the actual supply is influenced by the willingness of young people to enter the sector, the available opportunities for training, and the time taken to train. First, there is a reluctance of young people to be trained, or to work in the sector, reflecting the low wages paid to young people. Second, there are very few opportunities for training aside from the apprenticeship support by NITA. Third, under the apprenticeship it can take 12 months or more to learn the skills associated with a basic occupation, such as a front desk office. These factors together explain why there is a large number of vacancies in Trincomalee.

Figure 3: Precentage of Respndents with Vacancy Sub-Sector

Percentage of Respondents with Vacancy Sub-Sector

Batticaloa

Ampara

Trincomalee

0 10 20 30 40 50

Hotel with Vacancy Guest House with Vacancy

Source: Enterprse Survey, 2017, Skills for Inclusive Growth Programme

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2.5: Skill gaps- Quality

Skills deficits in qualitative terms were measured in terms of cognitive, non-cognitive and technical skills based on assessments given by the employers of the tourism sector in Trincomalee district. The analysis covered skill deficits by type of occupation (e.g. high1, middle2 and low skill workers3) and by type of establishment (e.g. hotel, guest house etc.). Using these multiple criteria, severity of skill gaps was measured and the evidence reveals serious skill deficits among high, middle and low level employees of tourism industry in Trincomalee district e.g. hotels, guesthouses, homestay and cafeterias.

More specifically, among high-skilled workers, major skill gaps are noticeable in technical (e.g. English language, computer literacy etc.) and non-cognitive skills (e.g. ability to work independently, communication skills, customer service, correctness, team work, punctuality, etc.) (Figure 4). Similarly, over 80 percent of medium-skilled workers lack non-cognitive skills (e.g. team work, integrity and correctness) (Figure 5). Skill deficits among low-skilled workers in Trincomalee tourism industry are evident in the areas of team work, ability to work independently, correctness and reliability (Figure 6). By type of establishment, skill deficits seem to be a key constraint on the development of key sub-sectors (hotels, guest houses, home stay and restaurants) of tourism industry in Trincomalee district. Hence a programme on basic skills targeted at tourism industry in Trincomalee appears to be an urgent and appropriate intervention for the development of tourism sector in the district. Survey evidence of the Asia Foundation (2017) also reported skill gaps in communication, customer orientation, ICT knowledge and various service offerings in hospitality industry. With respect to tourism related services, skill gaps were reported in four major areas: interpersonal skills, insufficient knowledge of tourist places, inadequate communication skills and crisis management. With respect to travel tourism sector, the same survey identified skill deficits in customer service, presentation, people management, and time management.

1 High skilled category includes senior managers, professionals and technicians and associates: Managers, Resident Managers, Food & Beverage Managers, Managers Restaurant & Bar, Rooms Division Manager, Front Office Manager, Stores Managers, Guest House Managers, Therapists, Executive Chefs, Sous Chefs, Pastry Chef, Manager, Chief Kitchen Stewards, Executive House Keeper, Head Waiters, Restaurant Supervisor, Tour Leaders/ Coordinators, Accounts officers, Administrators and Guest Relation Officer. 2 Middle skilled category includes clerks and service workers: Bell Captain, Barman, Tour Guides, Wine Waiter, Bar supervisor, Stewards (Hotels, Restaurants etc.), Cooks, Bakers, Kitchen Stewards, Floor Supervisors, Fast food preparers, Guest House Keepers, Laundry Machine Operators, Receptionist, Telephone Operator, IT Assistant, 1st Commission, Diving Instructor, Divers, Animator/Entertainer, Booking Officer, Travel agent, Gardeners, Recreation Activity Officer, Coordinator and Book Keeper. 3 Low skilled category includes the occupations of craft workers, plant and machine operators and assemblers, and elementary workers: Waiters, Room Attendants/Room Boys, Doorman/ Valet parker, Cleaners, Laundrymen, Bell Boys, Pool Attendants, Helpers, Boat man and Maintenance workers.

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Figure 4: Skill deficits among high skilled workers (%)

Skill deficits among high skilled workers (%)

Computer literacy or IT knowledge 75

Team working skills 76

Communication skills 77

Customer service skills 85

Punctuality/reliability 93

Correctness/integrity 94

English Language 95

Ability to work independently 96

Source: Enterprse Survey, 2017, Skills for Inclusive Growth Programme

Figure 5: Skill deficits among medium skilled workers (%)

Skill deficits among medium skilled workers (%)

English Language 41

Work experience 50

Customer service skills 67

Team working skills 81

Punctuality/reliability 95

Correctness/integrity 95

Source: Enterprse Survey, 2017, Skills for Inclusive Growth Programme

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Figure 6: Skill deficits among low skilled workers (%)

Skill deficits among low skilled workers (%)

Customer service skills 46

Ability to work independently 78

Team working skills 79

Correctness/integrity 89

Punctuality/reliability 95

Source:Enterprse Survey, 2017, Skills for Inclusive Growth Programme

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Figure 7: Employment Map of Trincomalee District

Source: Author’s calculation by using Labour Forcec Data, Department of Census and Statistics ,Sri Lanka

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2.6: Policy Direction for the Tourism sector: National and District Levels There are several policy statements providing policy directions and action programmes for the development of tourism and hospitality sector industries at national, provincial and district level. At national level, policy directives for tourism sector development originate from several agencies including the Department of National Planning, Office of the Prime Minister, Ministry of Finance, Ministry of Tourism Development and Christian Religious Affairs. Among them, the Tourism Strategic Plan (TSP, 2017-2020) is the most comprehensive policy document which emphasizes the need for transforming tourism industry to make Sri Lanka competitive in global travel and tourism market. It also recognizes a highly skilled workforce as crucial to Sri Lanka becoming high-value destination (Chapter 6 of TSP).

Policy directives for the development of tourism industry at provincial level are spelt out in three major documents: a) Hon. Chief Minister’s Policy Statement, b) The Medium-term Development Plan (MDP, 2017-2020) of the EP, and c) Medium-term Agency Results Framework of the Eastern Province Tourism Bureau (2017). Eastern Province MDP (2017- 2020) spells out tourism sector specific development activities under the Tourism Bureau of the Eastern Province. It emphasizes development of tourism infrastructure and human resources and diversification of tourism related products and services as an important thrust area of tourism sector development in the EP.

At district level, the District Development Plan (2018-2022) for Trincomalee (DDPT),4 the government has recognised the huge development potential of tourism sector and until recently has focused more upon improving the infrastructure conditions and supportive industries (as opposed to direct support from Tourism). Currently, the District government is in the process of development their new plan, with anticipation that more attention will be given to tourism.

Vision of the Distrit Development Plan for Trincomalee (DDPT)

To uplift the living conditions of the People in Trincomalee District with efficient and effective Public Service.

Mission To fulfil the needs of the people in the Trincomalee district with efficient , impartial, reasonable and friendly Public Service in line with Government Policy and through a coordination of correct planning and resource deployment.

Another policy that will have implications for tourism is the Master Plan. This is a comprehensive plan that focuses upon the metropolitan area of Trincomalee that integrates different strategies from three sectors of urban development, namely land use, transportation and infrastructure development. Using such an approach the Master Plan projects that by 2050 the prospected population will be 1.24 million and the number of jobs will be 1 million. It is envisaged that the plan will capitalise on the following key opportunities:

4 District Secretariat, Trincomalee (2017).

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• Trincomalee would become “Eastern Export Hub” by creating clean industrial ecosystem that can value add to the rich agriculture, aquaculture, minerals, resources available in its hinterland; • Trincomalee would be repositioned as “Eastern Tourism Hub” with increased regional connectivity, realised through Colombo-Trincomalee Economic Corridor development and proposed Hinguarakgoda international airport; • Trincomalee would be recognised as Eastern Logistic Hub by attracting its share from growing maritime trade in the Bay of Bengal as well as to gain from Sri Lanka’s Free Trade Agreements with South Asian and South East Asian Countries.

Through the capitalisation on the above opportunities the vision is for Trincomalee to become the Eastern Gateway to Sri Lanka. The implementation of the Master Plan is an ambitious task and there are plans to establish a special planning and development authority, call the Master Plan Implementation Unit (MPIU). The specific roles of the MPIU will be planning, coordination and implementation to expedite private sector development projects. It is expected that this shall comprise representatives from: town planning, workers, water and sanitation and the environment. Over the medium term the MPIU will be upgraded to the Trincomalee Metropolitan Planning and Development Authority.

2.7: Institutional support system

The Ministry of Tourism Development and Christian Religious Affairs is the national entity in charge of the tourism sector, beneath which operate the following organisations: Sri Lanka Tourism Development Authority (SLTDA): Sri Lanka Tourism Promotion Bureau (SLTPB); Sri Lanka Institute of Tourism and Hotel Management (SLITHM); Sri Lanka Convention Bureau and the Tourism Advisory Committee (TAC).

For skills, the Ministry of Science, Technology, Research, Skills Development and Vocational Training & Kandyan Heritage functions as the national entity in charge of skills development and operates through an island wide network of training institutions. Table 1 summarises provision in Trincomalee, covering 17 different institutions which are conducting tourism related courses in the district. Most of these formal institutes are focusing on conducting courses receptionists, Housekeeping, steward//waiter, food processing and cookery as traditional courses. These courses mainly focused to offer the NVQ Qualification 3-4.

Only one institution is focusing to conduct the higher national diploma in tourism and hospitality by offering NVQ level 6. Meanwhile, it has observed that there are informal trainings are conducting by different parties specially focussing on diving training and sports, Tourists attractive training programs, sea shell productions/handicraft trainings, Boat service and riding. All these programmes are targeted at school leavers with GCE O/L qualifications. In total for the year 2016 a total of 226 young people received skills training related to tourism. This level is very low, particularly when the number working in the tourism related value. At a conservative estimate this suggests that less than 2% of those working in the tourism value chain have received tourism related training. This situation needs to change if the district wants to move out of the low skilled equilibrium.

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Table 1: Student intake & output for Hospitality trainings in Trincomalee District (Public & Private Training)

Source of Name of Training Programme Intake Passed out Public Male Female Total Male Female Total VTC (Hotel school) Cook 24 8 32 8 0 8 Cook/House NAITA (Hotel Keeping/ Food & School- Beverage/ Front Kanthale) Office 40 0 40 35 0 35 NAITA (Hotel School- Waiters/Steward/ Tricomalee) Room Attendant 80 0 80 68 0 68 PVTI Trincomalee Food Processing 0 0 0 0 0 0 Palmyra Board Food Processing 3 22 25 15 23 38 Ocen University Boat Rider Course 13 2 15 12 2 14 Total-Public Training 160 32 192 138 25 163 Private & NGO related Lanka Jathika Sarvodaya Sangamaya Housekeeping, (SJSS) Steward, Kitchen 47 15 62 44 12 56 Child Development Hotel Not Not Not Not Fund (Pvt)Ltd Management Available Available 1 Available Available 1 Total -Private & NGO related training 67 63 Grand Total 259 226

Source: Training Map Survey, Skills for Inclusive Growth Programme of Sri Lanka, 2016 Stakeholder consultation meeting results in Trincomalee

Consultations with the TVET training providers revealed a number of constraints impacting on the quality of skills, most significant of which include the following:

• Most TVET providers have career guidance materials to inform potential learners about their programs, but limited material exists about the tourism and hospitality sector. Without appropriate career materials young people are not informed about opportunities for this sector; • A large number of TVET providers were reluctant to offer tourism and hospitality programs due to the fact that they were not popular amongst young people. According to managers at TVET providers young people preferred to study for an ICT qualification. Some providers are attempting to overcome this problem through raising the age level for learners.

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• Parents are also reluctant to send their children to study tourism and hospitality due to the negative perceptions towards this sector. Similarly, the low pay of trainees in the sector meant that parents would rather have their children working in a sector that pays more money. Many TVET managers told us that young people could earn four to five time more working as a labourer in the constructor sector (compared to the tourism and hospitality sector). • Visits to TVET providers found that many experience significant capacity constraints, especially around the lack of equipment to impart practical skills. Most providers did not have the capacity or knowledge to use innovative techniques for learning. Moreover, even for basic level skills programs learners have to spend between 6 and 12 months at a trainee. This is too long and acts as a further disincentive for young people attending such programs.

Another important target audience vital in promoting inclusive growth is the disabled persons and women. The evidence of Enterprise Survey revealed an overwhelming 95 percent of enterprises indicating that they were not interested in employing a person with disabilities. With respect to employing female employees however, the attitudes from enterprises are more positive, with 28 percent of employers indicating that they would happily employ more women. By sub-sectors, it was 16 and 12 percent by hotels and guest house sectors.

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Section Three Challenges, Strategies and Action Plan for skills development

3.1: Introduction The skill pathway being followed in Trincomalee is unique and shaped by the nature of the districts development, the cultural the geographical location of the district, as well as the landscape and natural resources. Understanding this skills path helps identify the challenges and opportunities facing inclusive growth for Trincomalee and develop a vision and mission for skills development and employment in the tourism sector, over the next three years.

3.2: Skills path being followed by Trincomalee The pathway for skills development in Trincomalee is determined by the interaction of the forces of demand and supply. Together these shape the type of work taking place, as well as the skills people require to perform their jobs. On the demand-side a significant proportion of those working in tourism are engaged in the food and beverage related activities, covering agro-processing, the supply of materials and trade. When people work in the accommodation sector, they are based in small guest houses or home stays. Unlike other districts there is a significant growth in parts of the value chain, including water sports, restaurants, tour operators and the retail sector.

Evidence from the skills gaps illustrate that the demand for workers in the tourism sector is much higher in Trincomalee than in other districts. The implementation of the proposed Master Plan is likely to have a significant impact on demand for workers in the tourism sector, but this will take a long time to trickle down to the tourism in Trincomalee and the surrounding areas. What is important over the short to medium period is effective destination marketing is introduced to expand the number of domestic and international visitors. This must be accompanied by more effective regulation, ensuring that competition in the sector is fair and that minimal standards are achieved. More effective partnership between stakeholders and the government are required to ensure that improved marketing and regulation occurs. Only through such a framework is it possible to improve confidence in the sector and move towards a higher demand over the short to medium period.

The supply side is confronted with several barriers in responding to market demand for skilled workers in the tourism industry. Some of the major barriers to training include limited access to training services, lack of appropriate training to meet job specific skills and high levels of staff turnover. Compared to other districts the number of formal TVET providers in Trincomalee is small and even if expansion occurred there would be a minimum number of enterprises that could offer workplace training. To make matters worse the perceptions and attitudes of young people towards the sector is poor.

The situation in Trincomalee can be characterised by a lack of supply and an anticipation that demand will start to increase over the short-term. The equilibrium can be viewed as experiencing a medium demand, with severe skill shortages and gaps. If the supply can be increased through tackling the constraints outlined earlier and demand is facilitated through

Tourism Skills Stratergy and Action Plan for Trincomalee District 26 improved marketing and regulation, then the district would move towards a medium-level skill equilibrium. Over the medium to longer term, once the impact of the Master Plan starts to trickle down there are opportunities to move towards a high skilled equilibrium, provided that effective partnerships between the public and private sectors at different levels are established.

3.3: Challenges and opportunities for skill development Earlier sections touched upon the challenges faced by skills development and employment in Trincomalee. The key demand and supply challenges are summarised in Table 2 , some of the key demand challenges relate to structural features of tourism industry e.g. dominance of MSMEs, fragmented character of the industry and general lack of public-investment. On the supply side, some of the key challenges stem from weak institutional support system and resource constraints. The SWOT analysis presented in table 3. further elaborates challenges and opportunities for skills development taking into account internal and external factors.

Table 2: Challenges facing Skills development in tourism industry in Trincomalee District

Demand side Supply side • Focused mainly upon back-backers and • Few opportunities for workplace experience or caters for their tastes and income. training • Absence of collective efforts to promote • Inadequate investments in skills development tourism by the private sector or public- • Narrow programme mix players • A dearth of qualified trainers • Fragmented value chain for tourism • Programs that are too lengthy • Miss-information or lack of destination • Low preference towards tourism sector jobs by marketing of Trincomalee new entrants to the labour market • Low levels of skills of the employed in the • Absence of local flexibility in delivery tourism sector • Low level of resources invested in skills • Low awareness on job prospects and career development for tourism development opportunities in tourism sector • Presence of multi-institutional structure and • Lack of district level framework to guide- weak coordination developments in the tourism sector • Low enrolment and completion rates of TVET • Failure to implement effective regulation in trainees due to poverty the sector • Inadequate support for career guidance and • Excessive government bureaucracy hindering counselling for the tourism sector operations

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Table 3 : SWOT analysis on Skills development of tourism industry in Trincomalee district

Strengths Weaknesses • A market exists for tourism and the district • Effective partnership between government has and stakeholders are poor a number of unexploited tourism related • Lack of coordination among investors assets e.g. Beach, Fort, Bird Parks, Religious involved in the tourism sector Places etc. • There are no agreed upon implementation • High demand for tourism during the existing plan with confirmed budget to support short-season developments in the sector • Existence of backward and forward linkages • Poor training facilities & narrow programme within the value chain, particularly in mix agriculture to other districts parts of the • Stigma attached to women working in the value chain are in place hotel sector • There is a collective agreements amongst • limited tourism promotional & marketing stakeholders over the constraints facing the strategies sector • An embryonic private sector that is organised and can voice their concerns Opportunities Threats • High growth potential of the district with an • Presence of skill gaps at industry level opportunity to expand numbers and increase • Capacity limitations of public sector training the number of visitor with higher incomes. providers • Pro- private sector policy of the government • Conflict between fisherman and tourism over • Potential for linkages with the rest of Sri Lank beach access and the region to increase market prices and • Presence of complex multi-institutional rise incomes of workers system of development administration • Expected high public investments in • Potential longer term negative impact on the infrastructure development over the medium environment of tourism term

3.4: Vision for the skills development of Tourism Sector in Trincomalee District Vision

TO FACILITATE TRINCOMALEE ONTO A MEDIUM AND EVENTUALLY A HIGH SKILLED EQUILIBRIUM

In the context of the SSAP we set out skills development mission as follows: TO RAISE THE TOURISM SECTOR FROM A LOW TO A HIGH SKILLED EQUILIBRIUM THROUGH THE CREATION OF HIGHER VALUE JOBS IN TOURISM VALUE CHAIN BY ADDRESSING BARRIERS TO TRAINING, DEVELOPING EMPLOYABLITY SKILL, PROGRESSION PATHWAYS AND INCLUSIVE GROWTH

Tourism Skills Stratergy and Action Plan for Trincomalee District 28

3.5: Strategies and action plan for skills development Three major planning frameworks will impact directly or indirectly on the tourism sector in the district, including the District Development Plan (2018 to 2022); the Trincomalee Master Plan, and the Action Plan produced under the Eastern Tourism Bureau. Collectively, these frameworks will help elevate the status of tourism from a low to a medium, and eventually higher skilled path to development. Together the plan will provide the basis for:

• The setting-up or construction of sector specific training centres • Increased utilisation of existing training centres/providers • The encouragement of youth to train for tourism • Increased support for tourism entrepreneurs • Increased livelihoods employment of those with TVET qualifications • Raise skills and competencies of managers working in the hotel sector • Increased foreign languages skills of those working in the sector

Other activities deal with creating awareness, improving access to information on tourism, communication facilities, access to products, entrepreneurship development, e-marketing and tourism value chain support services.

The transformative framework for moving the Trincomalee district from a low skill equilibrium to a middle skilled equilibrium, and possibly a higher skilled equilibrium over the medium to longer term, is shown in figure 8. The key to moving forward is for the government, together with stakeholders, is to encourage and facilitate demand in the tourism sector, support and expand responsive supply, and ensure that improved matching is achieved between the demand and supply of skills. As outlined earlier, this will entail a collaborative approach between government and stakeholders at national, provincial and district levels. Only through such an approach is it possible to tackle market and institutional failures, raise the skill equilibrium and move towards a more inclusive growth path.

Figure 8: Transformative framework for raising the skill equilibrium and moving towards an inclusive growth path

Source: Author’s developed conceptual framework

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The SSAP addresses market and institutional failures for supply, demand and matching. The efforts towards demand creation and human capital development should lead to significant improvements in skills development of the tourism industry. For example, less diversified nature of tourism industry and absence of value chain benefits of tourism to local community retards inclusive local economic development. Action programmes on business development, sustainable development and social marketing should improve the investment climate for tourism industry in Batticaloa district. The interventions on female participation and empowerment of persons with disability make the entire action plan inclusive and well balanced. Similarly, the action programmes targeted at strengthening of institutional support system should improve the efficiency of service delivery and inter-institutional coordination of development work at district level. At present, District Secretariat and Divisional Secretariats carry out development administration without a proper linkage to the provincial council system (MDP, p.15).

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Table 4: Tourism Sector Skill Development Action Plan for Trincomalee District: 2018-2020

S/N Activity Description Target Group Duration Expected Outcome/ Results Responsible Agency 01 Develop and Existing Workforce in 2018-2020 Produce a demand driven Training and Recruitment Academy (TRAc)- Implement the Work Hospitality Sector flexible training package Developing Learning material Place Based Basic New entrants to the Skills Development Sector Develop work-based training Rala Creation: Developing Video Program approach where enterprises can FCCISL: National level implementation deliver training and assess Partner workforce skills Trincomalee District Chamber of Commerce: District Implementation partner with S4IG 02 Implement the Pilot Existing Workforce in 2018-2020 Improve the standard of Nucleus Foundation, S4IG program of Guest the selected 12 Guest selected Guest Houses House Improvement House Increase the Profit Project Employment creation through expanding business 03 Improving Beauty Existing saloon Owners, 2018-2020 Improve the standard of Sarvodaya Foundation, S4IG Therapy Services in Managers, Staff of selected Saloons the Tourism and Saloon Link with Hospitality sector Hospitality Industry 04 Conducting the Social Men & Women, 2018-2019 Create a positive image of Emotional Intelligence, S4IG Marketing Campaign Disadvantage groups, Tourism sector unemployed people, Public Generate interest and Develop a pool of trainees for training and job placement 05 Developing and Career Guidance 2018-2020 Develop an industry validated Skills International, Local Service Provider, Implementing Career Officers, Men & Occupational Fact Sheet and S4IG Guidance and Women, Disadvantage Career Guidance & counselling Counselling Resource groups, School leavers, Resource Kit Unemployed youth

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Kit for tourism and Train the existing career hospitality Industry Guidance officers in the District Promote tourism and hospitality jobs and career opportunities

06 Vocational English for Participants from 2018-2019 Develop the Occupational Headway Institute, S4IG Tourism and Hospitality and Tourism English Language Skills of Hospitality Related Training courses training participants and the existing workforce 07 Upskilling the skills of Middle level staff in 2018-2020 Create a mobile training unit NAITA, S4IG middle level existing tourism sector with all the facilities workforce through Certify and develop the skills of Mobile Training the existing workforce to Program improve quality and productivity 08 Conducting the Interested trainees in 2018-2020 Promote the high skills entrants TRAc, S4IG Master Chef Program the area Improve cookery skills and promote cookery as a career 09 Recruitment, New trainees, 2018-2020 Train the middle level new Service Provider, S4IG Employment and Unemployed youth, entrants Careers in Tourism- Disadvantage youths Develop a successful (REACT) recruitment, training and (Number of identified Employment Model middle level skills development programs will come under this)

10 Strengthening Skills Development 2018 Empower the officers engage S4IG Capacity Building of Officers, Human into the Skills Development District Officers and Resource Development activities in the Tourism Sector facilitate the District Officers, Career Tourism Sector Job Guidance Officers,

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Fair and Job Matching Public Employment Strengthen their capacity to System Service Center Officers collect ground level labour in the Trincomalee market Data District 11 Water base training Existing and new 2018-2020 Develop capacity of new Ocean University, S4IG Programme entrants and existing about the water-based activities 12 Develop opportunities Persons with Disability 2019 Facilitation of PWDs into Service Provider, S4IG for PWD to engage in people including training and the tourism and tourism sector women & rehabilitators hospitality sector

13 Bakery Skills Potential new entrants 2018-2020 Facilitate men, women EN Manpower, S4IG Development to the interested field including PWD participation household women, war into training and employment widows, Persons with through the bakery skills Disability, women seeking employment 14 Prepare an Selected TVET Training 2018 Institutional Capacity Building IDEAS InfoTech, S4IG Institutional Providers Strategy with identified needs Development Strategy to Support the Tourism and Hospitality Industry in the Trincomalee District

15 Support for women’s A number of 2019 Facilitate access to training and Working with Women District Coordinator cooperatives, partnership have been advice on marketing, as well from Trincomalee district office particularly around identified for support for product design the revitalization of collaboration with the traditional crafts and district social services. food processing

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16 Support the The provisional 2018 Indicator need to be identified S4IG team to support this process provincial government is working for monitoring and an government’s with the UNDP on a identification where data can be digitization program digitization program to sources. A template will need to Work with the gather data for be developed to support this provincial government measuring progress process to improve data towards SDGs. collection for the districts 17 Identify opportunities There is a lack of 2019 Presidents’ offices have The S4IG can help identify areas for training for foreign employment requested that this issue be and support the accreditation processes for employment. opportunities for youth tackled through supporting training, ensuring that qualifications are Support improved in the East overseas employment A review recognized overseas employment for youth needs to take place of most across different appropriate opportunities districts in the East overseas, particularly in what skill areas and where 18 Pilot program to There are a number of 2019 A program needs to be A relevant provider needs to be identified update restaurants to small informal developed to help upgrade the meet international restaurants that serve restaurants standards international food, but the quality is low 19 Setting up of a forum There are severe 2018 A forum needs to be developed S4IG team in Trincomalee for skills bottlenecks to sector to bring together providers and development in the skills. employers tourism sector

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Section Four Implementation and Progress Monitoring

4.1: Introduction

Most of sub-sector specific development activities in Trincomalee district take place under the direct supervision of the District Secretariat and it receives around Rs. 2715 Mns per annum from four main sources: a) Presidential Secretariat, b) Prime Minister Office, c) 15-line ministries and d) 5 departments per annum.

In order to transform skills development of tourism sector in Trincomalee district, the SSAP has developed with a clear vision of transforming the tourism sector towards a middle skills equilibrium stage.

4.2: Implementation and progress monitoring The Skills Strategic Action Plan (SSAP) is implementing in the Trincomalee district through the closely working with district secretariat. It is expected that the implementation of the proposed action plan would lead to an increase in employment both direct and indirect terms. The quality of employment would also be improved in terms of cognitive, non-cognitive and soft skills. As a result, the tourism industry in Trincomalee district would be more competitive and generate more socio-economic benefits to wide cross section of individuals in the district. In the long-run, it would lead to reductions in unemployment, inequity and poverty. This is the final aim of inclusive growth.

The SSAP sets out key roles for district level skills development partnerships. It presents a real opportunity for the district to develop collective responses to its skills and employment challenges, through embracing strong stakeholder partnership. Some of the donors have already made firm commitments towards skill development efforts at district level.

The SSAP focuses on providing an integrated and accessible employment and skills development opportunities for a cross-section of target beneficiaries in the district. It shifts the emphasis from standard government-led skills investment to one that is led and co- invested by employers, NGOs and development partners. The government will be taking collective responsibility for investment in skills development and the district level providers of education and training will be operating in this new climate.

By working together, the district administration has the capacity to improve capabilities and aspirations of young people, employers, employees and vulnerable groups. This presents a real opportunity for the district to develop collective responses to its skills and employment challenges, through embracing strong stakeholder partnership.

Tourism Skills Stratergy and Action Plan for Trincomalee District 35

The SSAP is a mechanism by which inclusive growth and sustainable jobs will be supported and monitored in the district both in the short and medium term. Feeding into these programs are the key functions of policy makers, administrators and other stakeholders of the district. The implementation of proposed action programs requires strong partnerships with private sector organizations, non-government organizations and the donor community. The district level administration however, has little experience in this respect, particularly in skills development. Similarly, the non- government sector service providers also require capacity building support particularly in integration of vulnerable groups in to the main-stream work force.

The skills development approach of SSDP is multi-institutional and inclusive. There would be two types of funding: a) Government-led - which focuses on areas of economic and social return to education and training, equity and poverty and b) Joint action - which focuses on delivering flexible and market responsive solutions to skills needs, where government resources add value to the investment being made by employers, NGOs and development partners.

It is expected that the implementation of the proposed action plan would lead to an increase in employment both direct and indirect terms. The quality of employment would also be improved in terms of cognitive, non-cognitive and soft skills. As a result, the tourism industry in Batticaloa district would be more competitive and generate more socio-economic benefits to wide cross section of individuals in the district. In the long-run, it would lead to reductions in unemployment, inequity and poverty. This is the final aim of inclusive growth.

4.3: District Action Committee (DAC) for the SSAP

However, merely having a Skills Strategic Action Plan (SSAP) is not going to help achieve the planned skills development targets of the district. It requires a well-coordinated effort by all stakeholder groups particularly in the areas of advice, guidance, and leadership and resource inputs.

Thus, we propose to set up a Coordinating Committee as a mechanism to implement the action programs listed for the next three years- 2018-2020. The GA, Trincomalee district should be the Chair Person of the DAC and he/she should decide the size and representation of different stakeholder groups. The Coordinating Secretary of the Committee should be the S4IG District Coordinator in Trincomalee and she will be assisted by the Social Inclusion Officer and District Skills Officer of the S4IG project in Trincomalee.

The functions of the DAC are spelt out below: a) Prioritization of action programs listed in SSAP b) Coordination of resources for skills development from different sources c) Progress monitoring of Action Programs at regular intervals

Tourism Skills Stratergy and Action Plan for Trincomalee District 36 d) Suggest necessary changes/ amendments to the Action program in response to changes in the tourism industry and changes in policy directives and administrative procedures at district, provincial and national level and e) Ensure continuity of skills development work of tourism sub-sector through integration of core activities of the SSAP to budget items of line ministries.

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References: 1. Asia Foundation, 2017 Report of the Political Economy Analysis for the Skills for Inclusive Growth (S4IG) Programme, Colombo. 2. Butler, R.W. 1980. The Concept of Tourist Area Cycle of Evolution: Implications for Management of Resources, Canadian Geographer, XXIV, 1: 5-12. 3. Central Bank of Sri Lanka, 2016. Annual Report 2016. Central Bank of Sri Lanka, Colombo. 4. CEPA, 2017.Tracer Study on Technical and Vocational Education Graduates’ Employment in Sri Lanka. Unpublished Report submitted to the ADB, Ministry of Skills Development and TVEC. Colombo. 5. Department of Census and Statistics, 2017. Labour Demand Survey, 2017. Colombo. 6. Department of Census and Statistics, Quarterly Labour Force Survey – Various Issues. 7. Dunder, H., Milliot B., Roboud, M., Shojo, M., Athurupne, A., Goyal, S. and Rajah, D. 2017. Sri Lanka Education Sector Assessment, World Bank, Washington D.C. 8. Dunder, H., B. Millot, Y. Savchenko, H. Aturupane, T. Pismire. 2014. Building the Skills for Economic Growth and Competitiveness in Sri Lanka, DC: World Bank Group, Washington, D.C. 9. ILO, 2015. Skill Gaps in Selected For Industry Sectors: A Literature and Data Review, Colombo. Available at www.ilo.org/wcmsp5/groups/public/---asia/---ro.../--- ilo.../wcms_359346.pdf 10. Ministry of Finance, 2017. Budget Speech – 2018, Colombo.

11. Ministry of Tourism Development and Christian Religious Affairs, 2017. Tourism Strategic Plan 2017-2020, Colombo. 12. Ministry of Home Affairs District Secretariat –Annual Performance Report & Accounts - 2016. 13. National Planning Department (NPD), 2016. Public Investment Program, 2017-2020, Ministry of Economic Policies and National Affairs, Colombo. 14. Office of the Prime Minister, 2017. Vision 2025, A Country Enriched. Colombo. 15. Provincial Planning Secretariat, 2017. Medium Term Development Plan, Eastern Province, 2017-2020, Trincomalee. 16. Scope Global Pvt. Ltd. 2017a. Rapid Assessment, Kent Town SA, 5067. 17. Scope Global Pvt. Ltd. 2017b. Enterprise Survey, Kent Town SA, 5067. 18. Scope Global Pvt. Ltd., 2017c. Disability Inclusion Strategy. Kent Town SA, 5067. 19. Scope Global Pvt. Ltd. 2017d, Gender Inclusive Strategy, Kent Town SA, 5067.

20. Scope Global Pvt. Ltd. 2017e, Map of Training Providers for the Tourism Supply Chain, Kent Town SA, 5067.

21. Scope Global Pvt. Ltd. 2017e, Map of Training Providers for the Tourism Supply Chain, Kent Town SA, 5067.

22. S4IG, 2017a. Eastern Province Strategic Action Plan, 2018-2020.(Tentative draft). 23. WUSC, 2016.Youth Employment and Vocational Survey, WUSC, Colombo.

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Annex 1: Conducted Stakeholder Consultation Meetings to prepare SSAP-Trincomalee

Type of Date Name Designation Authorized Institution/ Organisation Organisation 6/18/2018 Mr. S.Ayinkaran Skill Development Officer/DCG Secretary Town & Gravets Divisional Secretary Public Sector Chamber of Commerce and Industries 6/18/2018 Mr.K. Kulatheepan Chairman Trincomalee District Private Sector Public Sector- 6/18/2018 Mr. S.M.S.B. Samarakone Asisstant Director VTA - Kantalai Training Public Sector- 6/19/2018 Dr. R. Gnanasekaram General Manager Eastern Province Tourism Bureau Tourism Public Sector- 6/19/2018 Mr. Chathuranga Officer In Charge (OIC) Hotel Management School ,Kuchchaveli Tourism 6/19/2018 Mrs. A.M. Theepani District Women Development Officer District Secretariat - Trincomalee Public Sector Provincial Social Service Department - 6/19/2018 Mr. Aliyar Provincial Social Service Officer (HQ) Trincomalee Public Sector 6/19/2018 Mrs. Prakala Distric Social Service Officer District Social Services Office -Trincomalee Public Sector Public Sector - 6/20/2018 Mr. G. Gamlathge Vice Principal Trincomalee Govt Technical College Training Private Sector - 6/20/2018 Rev. Bro. christy Director St. Joseph Technical College Training Private Sector- 6/20/2018 Mr. K.Kulendrarajah Chairman Trincomalee Hoteliers Association Tourism

6/21/2018 Mr. N.A.A. Pushpakumara Govt. Agent/ District Secretary District Secretariat - Trincomalee Public Sector 6/21/2018 Mr. K. Aruthavarajah Addl. Govt. Agent/Addl. Dist. Secretary District Secretariat - Trincomalee Public Sector 6/21/2018 Mrs. K. Parameswaran Director of Planning District Secretariat - Trincomalee Public Sector 6/21/2018 Mr. M. Kalaignanasundram Chief Accountant District Secretariat - Trincomalee Public Sector Public Sector- Mr. K. Pathmanathan District Manager 6/22/2018 NAITA - Trincmalee Training

Tourism Skills Stratergy and Action Plan for Trincomalee District 39

Provincial Planning Secretariat, 7/19/2018 Mr.Munazeer Asst. Director of Planning Eastern Province Trincomalee Public Sector Eastern Province Tourism Bureau, Public Sector- 7/19/2018 Dr. R. Gnanasekaram General Manager Trincomalee Tourism JKAB Park Hotel & Beach Resort, Public Sector- 7/19/2018 Mr. Philip Manuel Senior Front Office Manager Trincomalee Tourism Public Sector- 7/19/2018 Ms. Carmalin HR Manager Amaranthe Bay Resort, Trincomalee Tourism 7/20/2018 Dr. G. Ganagunalan Chairman Prdeshiyasaba, Uppuveli- Trincomalee Public Sector Blue Water sports, Court Road Private Sector- 7/21/2018 Mr. Jeyaseelan Owner of Blue Water sports Trincomalee Tourism Public Sector - 7/21/2018 Mr. Samantha Asst. Director Ocean University - Trincomalee Training 7/23/2018 Mr. Pascal Gravetto Senior Advisor - Tourism S4IG Office - Trincomalee Private Sector Private Sector - 7/23/2018 Mr. Seron Travel Agent Trincomalee Tourism

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