Tourism industry grows by 2.2% in January

COLOMBO (News 1st) – Data released by the Central Bank of Sri Lanka shows that tourism earnings have increased by 2.2% in January 2019.

The data reveals the country earned nearly USD 458.4mn in January this year, compared to USD 448.5mn during January last year(2018).

Sri Lanka welcomed nearly 244,239 tourists in January 2019, indicating an increase of 2.2% from last year’s 238,924.

In 2019, the Sri Lankan tourism industry expects to attract more than 3 mn foreign tourists as Sri Lanka is ranked number 1 destination to visit in 2019 by Lonely Planet.

To achieve above-mentioned target Sri Lanka needs a growth rate of 28.5% on average. However, the current growth rate is at 2.2%.

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Harnessing the real potential of tourism industry

After much drama, a new head has been installed at the country’s tourism establishment. Corporate leader Kishu Gomes on Monday assumed duties as Chairman of both the Sri Lanka Tourism Development Authority and Sri Lanka Tourism Promotions Bureau (SLTPB). 

During a press conference last Friday, Gomes promised bringing in at least three million tourists to Sri Lanka this year. The country achieved 2.3 million tourists in 2018, about 200,000 short of the target, which was originally set. 

Although Sri Lanka has achieved considerable growth in the tourism industry, in terms of tourist arrivals and earnings in the post-war period, it has been far from the country’s true potential, which was recently named the best destination to travel in 2019 by the world-renowned travel guidebook brand Lonely Planet.

Gomes is a proven business leader in Sri Lanka’s thriving private sector and has over three decades of experience at top management positions. He is probably one of the youngest Sri Lankans to ever head the local operations of a multinational company. The added advantage is that he has a strong marketing background. 

Last week, he proudly told the media that his DNA is marketing and brand communication. The experience and strategies of Gomes as a marketer could become invaluable for the long-delayed global marketing campaign of Sri Lanka tourism. The Tourism Development, Wildlife and Christian Religious Affairs Ministry last week said they would soon present a detailed plan of the said campaign to the Cabinet, after incorporating the views of Gomes.

The soft launch of the campaign is scheduled to take place at the world’s largest tourism trade fair, ITB Berlin, this March. The three-year campaign, which received the SLTPB board approval recently, will focus on promoting Sri Lanka tourism in eight key source markets, with an estimated budget of Rs.3.0 billion.

Sri Lanka has been feeling the need for a proper destination marketing campaign for a while. But the initiatives taken towards it at various times under several tourism ministers were impeded by the country’s toxic politics and procurement scandals.

This probably is the best juncture in Sri Lanka Tourism’s history to launch a massive promotional campaign as the country’s governance structure remains relatively strong and the civil society’s ability to influence the politics is high. 

However, it is vital to come to a consensus on how to position Sri Lanka as a tourism destination before embarking on a major marketing push. Prime Minister Ranil Wickremesinghe on several occasions had said given Sri Lanka’s limited carrying capacity, the country should look at attracting high-end tourists, who spend a considerable amount of money during their stays. 

However, given the rising number of informal accommodation providers, it is clear that Sri Lanka is becoming more of a backpackers’ paradise than a sojourn for high-spending tourists. It is believed that Sri Lanka’s vibrant informal tourism sector played a major role in the country being selected as the best place to travel in 2019 by Lonely Planet. 

Hence, the tourism authorities and the industry should reach a consensus as soon as possible on where to position Sri Lanka as a tourism destination, to give a clear message out to the prospective tourists. Every country that recognizes tourism as a major contributor to its economy must have a tourism identity and Sri Lanka shouldn’t be an exception, despite its diverse tourism product offering. 

It is essential that Sri Lanka creates itself a fine balance between high-spending tourists and backpackers and all the country’s promotional and marketing campaigns should revolve around this notion.

Meanwhile, a proposal has been pushed forward by a group of hospitality sector stakeholders urging the authorities to consider giving the country’s tourism industry the export industry status. Even at the height of the separatist war, the tourism industry was able to attract tourists to the country and earn the much-needed foreign exchange to the economy. 

When the tsunami wrecked havoc in the southern and eastern coasts of Sri Lanka, the industry was able to rise from wreckage within a very short time, showing its resilience. Hence, the government should seriously look at including tourism into its export strategy and provide the necessary concession, similar to the other export industries.

Also, the suggestion to establish tourism trade zones, similar to that of export processing zones, could also be a very innovative approach to develop some of the underdeveloped tourism hot spots in the eastern and northern parts of the island.

All in all, what is needed as far as the country’s tourism sector is concerned, is a new approach—be it promoting the country through a global marketing campaign or providing the industry with the much-needed impetus by recognizing their efforts throughout the years. 

One thing we should always keep in mind as Sri Lankans is that worker remittances still remain the highest foreign exchange earner, despite the country having such potential for tourism. Isn’t this anything short of a national embarrassment? 

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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.

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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.

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Sri Lanka tourism industry in drive to fill 100,000 worker shortfall

ECONOMYNEXT- Sri Lanka’s leisure industry says it will carry out a five year program to boost the output of skilled trainees and make the sector attractive to school leavers and females as a worker shortfall worsens amid a tourism boom. 

Sri Lanka Tourism and Hospitality Workforce Competitiveness Roadmap 2018-2023, devised by a skills development committee made up of key leisure sector companies said there is an annual shortfall of up to 20,000 workers. 

“[W]e need more and better trained people entering the industry,” Malik Fernando, from Sri Lanka’s Dilmah group, who chairs the Private Sector Tourism Skills Committee, which devised the 5-year plan. 

“We need 100,000. The Tourist Board thinks it’s closer to 90,000, but that doesn’t include the informal sector.” 

According to the roadmap, only 10,000 trainees come out of hotel schools in the country annually.

But about 25,000 to 30,000 are needed each year to staff new hotels and related businesses and also to fill positions falling vacant as older workers retire and others migrate to greener pastures.

Sri Lanka has a falling rupee, making foreign jobs in countries with sounder central banks which provide stronger currencies such as the Maldives and the Middle East, more attractive. 

“We cannot standby and watch anymore. Our complacency will kill the industry,” Fernando said.

“We hope others will join us, but we don’t intend to wait.” 

The skills committee which includes tourism player like Jetwing, John Keells, Dilmah, and Shangri-La is backed by the Sri Lanka Tourism Development Authority (SLTDA), the Ceylon Hotel School, the Ceylon Chamber of Commerce, the Technical and Vocational Education Commission and the US Agency for International Development. 

Sri Lanka’s tourism sector is growing rapidly, with the tourism authority estimating that 20,720 rooms will be added to Sri Lanka’s inventory by 2020. 

By end 2017, 35,986 rooms were officially registered with the tourism authority in graded hotels and supplementary units such as guest houses. There are also hundreds of unregistered hotels and guest houses 

A quarter of the tourists visiting the country stayed at unregistered properties, the SLTDA said.

The 5-year plan developed by the skills committee, will revamp curricula in hotel schools and start more three and six month courses to churn out workers faster. 

Additional modules can then be taken while working creating an environment of flexible carreer development and training. 

A train-the-trainers programme on the new curricula will train 200 instructors in vocational training institutes. 

A 4-6 week internship program will be introduced. 

Fernando said that the plan will also increase training on niche areas such as naturalists and wellness professionals, who are increasingly in demand. 

Secondary school teachers will also be trained to provide tourism and hospitality training in such schools under the roadmap. 

Fernando says some young people are not joining the industry due to negative perceptions and some parents oppose female children in particular from joining the industry, which will be adressed by increasing awareness. 

“We want to reach out to the youth, parents and the community,” he said. 

There is also a potential pool of workers in the military who may want to leave and join the hospitality industry, officials said. 

A research unit will also be set up to get up to date information on local and international trends to help better decision-making.

“A lot of our statistics are guesstimates and many of them are plain wrong,” Fernando said. “The data is simply not available and speculative.” (Colombo/July02/2018) 

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