Quality focus

IN an effort to make Sri Lanka a competitive tourist destination, the Government has announced two measures that will challenge the industry into concentrating more on quality. This week the Government announced plans to end the minimum room rate imposed on Colombo hotels by the end of March next year and implement a star system for all hotels around the country. Both measures are aimed at improving the quality of the products on offer. 

Tourism analysts and experts have long pointed out the need to allow market forces to decide the prices of room rates in Colombo. They have insisted that as a destination Sri Lanka is pricing itself higher than competitors including Myanmar, Thailand and Vietnam. 

With the post-war windfall wearing off, the industry will have to strategise differently to attract sustainable numbers of tourists. One sector that might benefit from the lifting of room rates is the exhibition and conference segment where a larger number of rooms can be utilised so revenue can increase significantly during specific periods.    

Even though the industry is likely to experience teething issues as a result of the fresh measures, there is adjustment room at present as growth rates are fairly robust. In the first six months of 2016, tourism arrivals grew by about 16%, giving space for the industry to phase out its changes and use its profits to roll out higher quality products. But they have to be continually supported by the Government as well. 

For starters, one of the key problems repeatedly highlighted by the industry is the lack of accurate data. For years the Government has been releasing numbers that do not differentiate between the formal and informal sectors adequately enough to understand how many foreigners are tourists, where they stay, how much they spend and their level of expectations. Without in-depth data, policymakers cannot understand the direction the industry should take, which affects the entire value chain.

Sans in-depth data, Sri Lanka has been floundering around for years without a solid branding and marketing strategy. Sri Lanka lacks a cohesive marketing strategy and campaign which should be a mutually-agreed private-public partnership. There are various promotional exhibitions that have taken place in foreign capitals in the past but they are not based on a master plan to promote the market destination. There is much more work that needs to be done in this area.  Even target group marketing is lacking and the country’s slogan has veered from ‘Small Miracle’ to ‘Wonder of Asia’ to ‘Land Like No Other’ without clearly communicating the island’s competitive advantage. 

Singapore, for example, changed to ‘Yours Singapore’ to underpin its strengths as a destination. The re-branding was accompanied by a change in the offerings to tourists with the introduction of Formula One racing, casinos, and other night entertainments. The rebranding focused on the experience of a tourist that could be personalised – sound, tastes, sights and user-centricity.

Branding a destination has to be a carefully thought-out exercise based on the competitive strength and strategic position vis-à-vis that of the competitors. It is on this basis that countries have branded their tourism. Moreover, the pulling out of SriLankan Airlines from lucrative routes in Europe could have an impact on tourism, which remains to be seen.  

Sustainable pricing and new products are based on these imperatives and having taken basic steps policymakers now have to tackle the harder goals.