One-way ticket to paradise

With the Maldivian National carrier set to commence direct flights from Ratmalana to Male, Youth and Sports Affairs Minister Namal Rajapaksa unveiled the ‘Paradise Visa’. Replacing the ‘golden’ paradise visa that was proposed by the Ministry of Tourism, and received Cabinet green light weeks prior; the relegation of the visa name is justified in hindsight, with the latest update to the flight. The Maldivian international flight to Ratmalana has been grounded four days after with a Rs. 6 million bill spent on the event launch. 

It is believed that this route was suggested without proper assessment into its feasibility by top officials. In the midst of an economic and quasi-political crisis, such events are reminiscent of the plight of our nation – bad management, poor execution and worse accountability. Only three years ago, Lonely Planet ranked Sri Lanka as the top destination for international travel, and now, while the tourism industry pulls itself up by the bootstraps, the margin for error is very slim. 

Tourism which roughly accounted for 10.4% of Sri Lanka, Gross Domestic Product in 2019, according to the World Travel and Tourism Council, took a dive in the years after, and is now ripe for a recovery. In the aftermath of the 2018 political coup, the 2019 terrorist attack and the 2020 global pandemic, the island nation was quick to act in order to safeguard the coveted foreign currency earning industry. 

Through the reduction of various taxes, introduction of loan moratoriums – that is, extensions on the repayment of borrowings taken out by companies without additional penalties – and tourism-friendly COVID plans, the jabs dealt to the industry were less severe. Even at the expense of compromising the health of local citizens this paid off as the industry held its ground. 

Local vacation goers are to thank. Local inbound visits continuously filled in the gaps and is estimated to have made up 90% of occupancy, keeping hotel doors open during non-travel restriction times. This pent-up demand has been referred to as revenge tourism, wherein people wish to break free from mundane life of the new normal and opt to travel. 

This is expected to come from abroad in greater strides in the following years, even with setbacks such as the Russia-Ukraine conflict and severe domestic inflation. Tapping into the Indian and Chinese bases has been aptly targeted, to the credit of the Sri Lanka Tourism Development Authority, and rupee depreciation is set to make Sri Lanka a more wallet-friendly hotspot.

While private enterprise appears to beat the odds and perform, the public sector support misses the mark substantially. White elephant investments such as the Mattala airport and the Suriyawewa Cricket Stadium that have some potential to be tourist pass-through points, are not thought out nor operationalised to generate the required returns. More often than not, these continue to make losses, contribute to being environmental hazards and eye sores, failing to address any market need.

It is questionable if any real valuation was considered before offering this special visa to ‘long-term travellers’ who are unlikely to be major spenders. The visa is rumoured to be brought in line with paid citizenship that is available for some countries. For example, Dominica and Saint Kitts and Nevis are currently international territories that offer citizenship for the price of $ 100,000 to 150,000 respectively. 

While these countries are much smaller in land size and in GDP terms, they are known for having a strong passport and providing its citizens with basic amenities such as fuel, electricity and gas. In conclusion, instead of rolling out shiny new visas there is always the option to seek expert opinions and valuations and work towards a ‘functioning economy’ visa instead – for the benefit of tourism and local industry alike.