Sri Lanka tourist arrivals up by 7.0 percent in February 2019

Mar 10, Colombo: Sri Lanka's tourist arrivals rose 7.0 percent in February 2019 compared to the same period last year, the data released by the Sri Lanka Tourism Development Authority (SLTDA) showed.

The month recorded 252,033 tourists arriving in the country compared to the 235,618 arrived in February 2018.

India, United Kingdom, China, France and Germany were Sri Lanka's top five international tourist generating markets in the month of February this year.

India was the largest source of tourist traffic to Sri Lanka with 13% of the total traffic received in February 2019. United Kingdom accounted for 12% of the total traffic; while China, France and Germany accounted for 11%, 7% and 7% respectively.

Arrivals from North America rose 61.7 percent to 16,280 in February and the arrivals from US rose 61.7 percent to 9,678 during the month while arrivals from Canada increased 61.8 percent.

Tourist arrivals from Europe increased by 11.4 percent with the arrival of 135,934 tourists. Most of the tourists came from UK (29,750), followed by France (17,295), Germany (17,268), and Russian Federation (13,008).

Tourist arrivals from Middle East declined by 5.2 percent with the arrival of 3,691 visitors compared to the 3,894 arrived in February 2018.

Tourist arrivals from Asia & Pacific declined by 3.8 percent with 94,058 arriving in the island. Tourist arrivals from India declined by 1.9 percent with 32,286 visitors arriving while arrivals from China fell by 22.0 percent to record 28,039 arrivals.

Arrivals from Australia recorded 54.8 percent increase with 8,810 visitors entering the country in February 2019.

Source

Addressing the white elephant in Lankan economic development in tourism

In the past, Sri Lanka has focused on increasing the number of tourists coming into the country and showcased the

 increase in tourism without much concentration on the growth of our economy in retrospect. Lonely Planet listed Sri Lanka as the number one tourist destination for 2019 whilst Sri Lanka simultaneously boasted of 2.2 million tourists at the closure of 2018. None of these however focus on the economic growth brought in. To put it simply, there wasn’t much of economic prosperity as a majority of these tourists coming in were backpackers with a weekly spending budget of less than $ 500. The question however lies in why doesn’t Sri Lanka attract tourists with a higher spending power? 

A closer look at the issue

Upon closer inspection and analysis, it was concluded that Sri Lanka does not attract tourists with higher spending power who are willing to spend more than $ 300 per day. This is largely due to our country lacking the proper infrastructure to support this level of tourism and the free availability of ‘affordable’ resources as opposed to having more high-end facilities in the country.

Let’s take a step back and analyse this situation through the eye of a potential tourist. There are currently limited direct flights connecting large countries to Sri Lanka. Any potential visitor must predominantly select between Etihad, Qatar Airways or Emirates when flying to Sri Lanka from North America and Europe, resulting in sometimes lengthy transits before arriving at Bandaranaike International Airport. After a long flight, guests are then succumbed into a six-hour drive should they wish to visit the north of the country or another six-hour drive should they wish to visit the south. The lack of better roadways and alternate methods of travel in Sri Lanka leaves guests only the option of travelling on sub-par roads, adding exhaustion to a tiring journey.

Limited qualifying luxury villas and 5-star accommodations in Sri Lanka

Sri Lanka can currently accommodate guests in up to 4,200 five-star hotel rooms with a total staff count of 250,000 to serve these tourists, out of which only 250 rooms belong to luxury boutique villas and hotels that cater to clients on the higher spectrum of spending power.

Room rates in the Cultural Triangle, North, South and Central regions offer half-board accommodation at a rate of $ 90 (Rs. 16,167) per double room. Once taxes are deducted, the hotel is left with Rs. 12,442 from which once Rs. 3,200 is reduced for two breakfast and dinner meals, the hotel is ultimately left with only Rs. 9,242, which doesn’t provide much of a profit margin for a hotel and the industry to sustain profitably, much less allow the hotel to provide a great customer experience through constant innovation.

Looking ahead and getting proper infrastructure in place

To attract tourists with a higher purchasing power, Sri Lanka must not only grow in number of luxury hotels and villas, but also take an initiative to develop our infrastructure. For a tourist to visit the country, they must at times spend lengthy transit hours since we do not have a direct air carrier who flies directly from America and Europe to Sri Lanka. The many hours spent on transit coupled with the many hours spent travelling to various locations around the country from the airport isn’t attractive for potential tourists. 

Even though Sri Lanka’s road infrastructure is yet to reach groundbreaking heights, the Government has taken the right initiative through the Megapolis Ministry that aims on developing roads, railways and the landscape of the city by 2030 with a marina, a cruise centre, a waterfront promenade and housing for an estimate of two million people. 

In addition to roads, railways and the development of the megapolis, Sri Lanka must also look at alternative methods of domestic travel. Currently there are only a few providers offering domestic aircraft carriers, with two of them being large conglomerates in the country. However, these aircraft carriers can only accommodate eight passengers per flight and come at a very high cost making this an unattractive mode of domestic transport, despite the savings in time. 

For tourists looking to visit Sri Lanka and spend a vacation here in luxury, either basking in the misty hills or travelling in the north getting to know about part of our heritage or even enjoy the Southern sea, Sri Lanka’s level of infrastructure and support facilities aren’t attractive enough. Having to travel for six hours to reach the north or south after a tiring plane ride or having to charter an expensive domestic flight with limited travel availability due to their limited flying hours simply isn’t attractive enough to bring in tourists with higher spending power. To bring about economic growth through targeted tourism, it’s time Sri Lanka began developing our urban cities, infrastructure and value added services to attract the right clientele. 

Source

Sri Lanka will grant free visas to tourists

Sri Lanka will grant free visas to tourists from key markets like the United Kingdom, Europe and Asian Buddhist countries like Thailand for six months from 1 April 2019 to encourage visits during months when arrivals usually slump.

The government information office said in a statement the Cabinet of Ministers had approved the proposal by John Amaratunga, Minister of Tourism Development, Wild Life and Christian Religious Affairs this week.

Free visas will be given to tourists from Thailand, United Kingdom, Australia, South Korea, Canada, United States of America, Singapore, Malaysia, New Zealand and countries of the European Union, it said.

The move aims to encourage visits during key Buddhist festivals like Vesak and Poson during this period.

(COLOMBO, February 27, 2019-SB)

Source

Sri Lanka to identify tourism development zones to boost arrivals

Colombo, Feb 21 (newsin.asia) – The Sri Lankan government will identify tourism development zones throughout the island which will concentrate on tourism related activities, a statement from the Sri Lanka Tourism Development Authority (SLTDA) said here Thursday.

The SLTDA embarked on a mutual partnership with the the Urban Development Authority (UDA) to identify the zones which will be set up to avoid ad-hoc tourism development and to avoid undesirable activities.

The zones are likely to be set up in places such as the central highlands of Ella and Nuwara Eliya and Arugam Bay, Kalpitiya, Beruwala, Hikkaduwa and Pinnawala. These areas are popular tourist areas.

“Sri Lanka has been identified as one of the fast-emerging tourist destinations in the South Asian Region. The island’s biodiversity, long lasted culture, historic monuments, exotic beaches, and evergreen environment can be identified as the key attractions for international tourists,” the SLTDA said in the statement.

“However, with the increased tourist arrivals various tourism related or associated activities are mushrooming in around popular tourist destinations. Most of these activities are developed in an irresponsible manner in the absence of proper development guidelines in existing and emerging tourism hubs,” the SLTDA added.

Such developments put invaluable cultural and natural assets at severe risk of degradation. At the same time, there are other locations, of which the potentials have yet to be properly explored for the development of tourism-related activities, the SLTDA further said.

Since the end of the island’s 30 year civil conflict between government troops and Tamil Tiger rebels, which ended in May 2009, Sri Lanka has emerged as one of the leading travel destinations in the world.

Last year, Sri Lanka received 2.3 million tourists while this year it is aiming to welcome 3 million tourists.

Source

Sri Lanka the cynosure at Thai Travel Fair

The 2019 edition of the Thai International Travel Fair was held in Bangkok, Thailand last week. The inauguration was held at the Bangkok Convention Center at Central World Bangkok followed by a gala dinner at Centara Grand. The event was attended by over 500 tourism stakeholders from around the world including Sri Lanka.

The Chief Guest at the inauguration was the Tourism Minister of Thailand while the Guest of Honour was the Tourism Minister of Sri Lanka, John Amaratunga who received an enthusiastic welcome from the capacity crowd that was present.

Later on Minister Amaratunga declared opened the Sri Lanka Booth, which was the cynosure at the travel fair. Sri Lanka Tourism Promotion Bureau made use of the opportunity to launch a promotional microsite highlighting the Buddhist trail in Sri Lanka. The microsite consists of the main Buddhist tourism attractions in the country, meditation centres and facilities available to learn Buddhism in Sri Lanka. 

The microsite was launched by Minister Amaratunga along with Sri Lanka’s Ambassador to Thailand, Kshenuka Seneviratne, President of the Thai Travel Agents Association, Thanaphon Cheewarattanaporn and Chairman, Tourism Advisory Committee, Harry Jayawardena.

Meanwhile Minister Amaratunga and the Sri Lankan delegation met President of the Association of Thai Travel Agents, Vichat Prakobgosol on the sidelines of the Travel Fair.

The two parties discussed ways and means of increasing the number of arrivals to Sri Lanka from Thailand. Thai travel agents emphasised that relaxation of visa requirements will help increase arrivals. The Thai travel agents pointed out that outbound traffic from Thailand to Japan increased by over one million when Japan granted visa on arrival to Thai nationals.

Launch of Buddhist Trail micro website

Minister John Amaratunga speaking at the launch of Buddhist trail

Launch of the Sri Lanka booth

Source

Sri Lanka Tourism roadshow in Chandigarh ends on high note

The Sri Lanka Tourism roadshow in Chandigarh, organized by the Sri Lanka Tourism Promotion Bureau (SLTPB), has concluded on a high note with attendance of approximately 150 respected guests and dignitaries, not just from Chandigarh but also from neighboring cities like Ludhiana, Karnal, and others. The event started with B2B meetings, followed by presentations by the Tourism Promotion Bureau and SriLankan Airlines.

The event was attended by Ms. Upekkha Samaratunga, Minister (Commercial) for the Sri Lanka High Commission in New Delhi; Mr. Viranga Bandara, Assistant Director of the Sri Lanka Tourism Promotion Bureau; Mr. Chinthaka Weerasinghe, Manager- Northern India of SriLankan Airlines; and other respected dignitaries. The roadshow in Chandigarh is a part of Sri Lanka Tourism’s 7-city roadshow in India, and Chandigarh is the first city in this series.

eTN Chatroom: Discuss with readers from around the world:

---

Mr. Sutheash Balasubramaniam, Managing Director of the Sri Lanka Tourism Promotion Bureau, shared with media: “Sri Lanka has gained popularity and has experienced robust growth in India. We are organizing these events to explore the unique island of hospitable people to woo travel agents and increase flow of Indians from Chandigarh .The road show would enhance the visibility among the travel, trade, and consumers to position Sri Lanka as the preferred destination in Asia. Ramayana Trail sites widely scattered across the country will be of unique experience, particularly to Indians. We are confident that in 2019 a lot of more Indians will choose Sri Lanka as their preferred holiday destination.”

He further said that currently, Sri Lanka Tourism is exploring new kinds of promotions similar to that of the ongoing MasterCard campaign. Plans are underway to jointly work with airlines and tour operators to promote the destination more aggressively. The participants from Sri Lanka included Apple Holidays, Jetwing Travels (Pvt) Ltd., Asian Adventure Travel Management company, HTCEY Leisure Pvt Ltd., Walkers Tours Limited, Hamoos Travels, Karusan Travels, Luxe Asia, Green Holiday Center, Riu Hotel & Resorts, Bernard Tours (Pvt) Ltd., Lanka Reisen Ceylon (Private) Limited, Exotic Global Holidays, Esna Holidays Pvt Ltd., B.O.C. Travels (Pvt) Ltd., and Travelwind Holiday Pvt Ltd., along with Sri Lanka Tourism officials and SriLankan Airlines’ officials who showcased unique tourism offerings, latest developments, and exclusive products for the India market.

Chandigarh is one of the most important cities in terms of the outbound tourism market of India and has one of the highest per capita incomes in the country. This road show is expected to further strengthen tourism relations between travel partners of both countries and aims at increasing the traffic of HNIs and high-affluent Punjab travelers to Sri Lanka.

Sri Lanka has seen substantial growth in tourist arrivals from India in the year 2017, with over 3.84 lakh Indian travelers. This makes India one of the top 5 tourist arrival markets in Sri Lanka. Also, Sri Lanka is one of the top 10 holiday destinations for Indian travelers, so with this roadshow, the Tourism Board is looking forward to extending its reach beyond metro cities of the country.

This 7-city roadshow aims at strengthening tourism relations between travel partners of both countries and is part of SLTPB’s strategic efforts to promote Sri Lanka as the most preferred short-haul holiday destinations for Indian travelers.

Source

Bosnia calls for greater cooperation in tourism with Sri Lanka

Bosnia and Herzegovina and Herzegovina is firmly placing itself on the map in global tourism markets, leaving behind its conflict-ridden past. The country, which maintains high standards in health and education fields, is projected to have the third highest tourism growth rate in the world and is considered one of the fastest growing economies in the region. With longstanding relations with Sri Lanka, Bosnia and Herzegovina Ambassador Dr. Sabit Subasic during a recent visit to Sri Lanka speaking to Daily FT called for improved trade relations focusing on tourism, sharing of resources and knowledge for promotion and exchanges between the two countries. Following are excerpts: 

According to World Tourism Organization, Bosnia is one of the fast-growing destinations in the world. We are third fastest growing tourism destination in the world. I know that tourism in Sri Lanka is booming and it should be improving much more. I think we should have more cooperation in the area of tourism cooperation, more exchange of ideas. Sri Lanka needs more facilities and infrastructure for tourism, so I think it would be better to establish more cooperation in that area to improve tourism promotion in both countries. Apart from that we have to improve tourism exchange to increase the number of Bosnian tourists visiting Sri Lanka and Sri Lankans visiting Bosnia. We have established links with the Sri Lankan tourism industry and in Bosnia we are working towards this and we will see what we can do 

I would like to have more cooperation with the two ministries of the two countries. To create the capacity of the two countries, we have huge potential. We are in discussion with dignitaries with the Sri Lanka tourism industry and I suggested exchanges of officials to explore new ideas between the two countries 

I would love to have more cooperation in the area of education, in terms of student exchanges – that is an excellent instrument for improving bilateral relations; students are excellent ambassadors for countries

Source

Sri Lankan tourist police told to learn Hindi

In addition to English, they should also learn widely used international languages such as Chinese, Hindi and French

In a few years, the tourism sector in Sri Lanka is expected to become the largest foreign exchange earner for the country.

Sri Lankan tourist police told to learn Hindi.In addition to English, they should also learn widely used international languages such as Chinese, Hindi and French

In a few years, the tourism sector in Sri Lanka is expected to become the largest foreign exchange earner for the country. Published: 16:42 August 13, 2018 IANS

Colombo: Sri Lanka's Inspector General of Police Pujith Jayasundara on Monday said 25 new police posts will be set up covering all the main tourist spots across the country for visitors' security. And police personnel have been asked to learn Hindi.

The decision was taken after discussions with the Chairman and senior officials of the Sri Lanka Tourism Development Authority (SLTDA), Xinhua news agency quoted Jayasundara as saying.

"Officers of the Tourist Police Division should pay special attention to language training. In addition to English, they should also learn widely used international languages such as Chinese, Hindi and French," Jayasundara said.

He said a new uniform would be introduced to the Tourist Police Division.

In a few years, the tourism sector was expected to become the largest foreign exchange earner for the country. Therefore, ensuring safety of the foreigners visiting Sri Lanka will be a top priority for the police force, Jayasundara said.

Sri Lanka's tourism industry, once heavily scarred by a 30-year ethnic conflict, has become one of the leading industries after it was dubbed one of the world's greatest tourist hot spots by several international publications.

Source

Sri Lanka mulls cutting excessive airport fees to boost tourism

Sri Lanka Tourism

Sri Lanka is reviewing how to reduce airport fees to make the country more competitive with the rest of Asia and make the country more attractive to tourists Sri Lanka's tourism minister said.

"A review is being done as to how best we could reduce the landing charges, fueling charges and airport taxes," Amaratunga said. 

He admitted that excessive airport fees are being passed on to airline ticket prices to Sri Lanka, making the country less attractive for potential tourists. 

Sri Lanka has a state monopoly supplying fuel at the airport and there is no competition. When fuel supply is competitive if there are procurement irregularities and the petroleum firm pays high prices to buy fuel, it will lose out to competition. 

While many East Asian airports are also state-run, their fees are lower.

For example in a Colombo-Kuala Lumpur Colombo ticket sold by Malaysian Airlines for 34,656 rupees, the Colombo Malaysia leg is 19,918 rupees and the KL Sri Lanka leg is 14,738 rupees.

Airport embarkation fees and taxes in Malaysia is 2,874 rupees and in Sri Lanka 8,094 rupees. Airport taxes are 40 percent of the ticket price in Colombo. 

On Malindo Air, in a ticket priced at 41,348 rupees, out of taxes of 10,968 rupees, 8,094 are for Sri Lanka. 

Meanwhile Amaratunga said discussions are ongoing on other taxes as well. 

Sri Lanka also has value added tax and nation building tax on tourist products, which however is a reasonable given the need to broadbase taxes and end exemptions. 

However in many countries VAT paid by tourists is reclaimable. 

There is however a need to collect tax from the sector as many of the larger hotels that have come up have tax holidays and taxes like the NBT are simple to collect especially if booking engines could remit them directly to the state. 

Source

Survey finds Indian, Western tourists in Sri Lanka satisfied with hotel stays

ECONOMYNEXT- Most Indian and Western tourists visiting Sri Lanka are satisfied with their stays in hotels, according to the latest airport survey done by the Sri Lanka Tourism Development Authority.

Of the over 1,000 tourists who answered questions in the survey, 63 percent had stayed in hotels. Another 16 percent stayed in guest houses, and 8 percent stayed in boutique hotels.

The highest number of respondents in the survey were from India, Germany, UK, Australia and Russia, aged between 20-29 and were male.

Around 60 percent of the tourists thought that the quality of rooms in Sri Lanka were excellent or very good, and only 9 percent of them had rated the rooms poor.

Fifty-six percent of the tourists rated the quality of food highly, while 11 percent thought the opposite. There was a nearly identical split in opinion over the quality of service.

The survey was done through two touch screens at self-service kiosks at the Katunayake Airport. (COLOMBO, July 12, 2018)

Source

ADB, China leads Sri Lanka foreign financing in early 2018

ECONOMYNEXT – The Asian Development Bank and China were the biggest lenders to Sri Lanka's in the first four months of 2018 followed by Japan, while China also made most of the new commitments, official data shows. 

Out of 512.12 million dollars of bilateral and multilateral financing used in public investment in the first four months of the year, ADB disbursed 228.85 million dollars in loans and 0.74 million in grants. 

China disbursed 90.83 million dollars, Japan 54.9 million dollars and the World Bank 48.83 million dollars. 

China also pledged most of the new project loans, comitting 79.8 million dollars out of a total of 266.2 million US dollars where 10 new agreements were signed. 

After the reporting period, China Development Bank also won a bid to syndicate a billion dollar loan to Sri Lasnka. 

The Asian Development Bank committed 75 millon US dollars followed by India with 45.3 million dollars. 

A total of 219.2 million dollars were pledged as and 46.9 million as grants and technical assistance in the first four month of 2018.

Others who committed new loans were were Australia (25.0 million dollars), USA (17.9 million), Austria (13.0 million), International Fund for Agricultural Development (6.2 million), United Nations Population Fund (4.0 million) and United Nations High Commissioner for Refugees (0.01 million).

Of the commitments made the highest amount was committed for the railway sector with 79.8 million. 

The small and medium enterprises sector received the second highest commitment of 75.0 million.

Separately Sri Lanka also raised 2.5 billion US dollars thorugh international sovereign bonds. 

Sri Lanka is now raising foreign loans mostly to repay maturing older loans, as part of a debt re-structuring effort. In the first four months, Sri Lanka had settled 715.6 million US dollars out of which 325.4 million dollars was interest. (COLOMBO, July 02, 2018)

Source