Has Sri Lanka tourism got its growth strategy right?

 The Government should consider a moratorium on new hotel construction especially where such construction is on land close to wildlife parks and both land and marine reservations – Pic by Shehan Gunasekara

By Dr. Sarala Fernando

A visiting foreign friend scanning our newspapers looked bemused. He pointed to one item where Deputy Minister of Tourism was inviting foreign investors to take advantage of available land and even islands for building new hotels; alongside there was another item from the local hotels association bewailing the bankruptcy of hotels after 21 April and the coronavirus, now appealing for Government financial support! So what is the reality – do we really need more hotels?

To add to my confusion, a few days later there was another item publicising an agreement between the BOI and the Tourism Board to ‘fast-track’ new hotel approvals so this is evidently official Government policy. 

This may explain the announcement recently by one of Sri Lanka’s flagship companies of its intention to build with international brands two new 600-room hotels in Mirissa and Kalpitiya where whales and dolphins are found. Do they not know that the dolphins in Kalpitiya are already under threat with too many speedboats running them down for tourists so that the super-pod is said to have moved away? 

Conservationists are also worried about pollution from new ship regulations and ship strikes in busy sea-lanes off Mirissa where whales have gathered since ancient times. So what is this rush to build new hotels in sensitive coastal areas given the global financial crisis and the COVID 19 pandemic sending tourism into a spin? Is the real interest to lock up valuable blocks of land?

The real value of tourism

In the early days, Central Bank research had questioned the real value of tourism, pointing to the need for many imported items draining valuable foreign exchange earnings and fears that international travel companies would retain overseas booking payments releasing only a portion for local hotel expenses. This argument is valid even today in Sri Lanka where basics like toilet paper are imported in bulk paper rolls from China and only cut and rolled here. 

However, globalisation promoted tourism as a leading driver of growth, opening borders, freeing movement of peoples and finances while stimulating jobs and allied local services. Yet now the world is confronted with problems like pandemics and extreme climate events leading to tighter border controls and inward looking policies. 

Globalisation has also not delivered on its economic promise and has spurred rising nationalism everywhere, calling for support to established local brands as against the international brands which migrate easily. Are these international brands growing the cake or just making the share of the existing hotels smaller? 

Has our Tourism Board made a recent needs assessment based on the carrying capacity of the island and its natural resources? There is an obvious contradiction between oversupply of condominiums today where many absentee owners are offering rooms on AirBnB basis which is cutting into the demand for hotel rooms. 

It is said that at least 25% of Sri Lanka’s visitors are on AirBnB basis or home stays. Perhaps a reflection of this trend is that one leading local chain has put up its old hotels for sale and is now promoting its new mixed construction of apartments, offices and mall.

Plan our national development

In international opinion, Sri Lanka, despite its natural beauty and heritage assets, is classified as a country vulnerable to both manmade and natural disasters. Having faced unprecedented challenges, from terrorism attacks to the tsunami, should we not plan our national development accordingly? 

Shouldn’t our tourism development be balanced with environmental protection and societal norms like in Bhutan rather than going for an infrastructure-led model like Singapore or Thailand aiming to attract mass tourism? Let’s also not forget our Sri Lankan resilience and local visitors who have taken up the slack, even during the many periods of political instability.

There is another problem and that is the long-term impact of all this hotel construction hooked onto our mains for supply of electricity, water and sewerage. In Seychelles, for example, all new hotels have to generate their own electricity, water and sewerage provision including resort to rainwater harvesting and renewable energy. However there is no such policy in Sri Lanka and as a result we see in the newspapers from time to time officials from the Water Board asking how they can provide enough water for all these new high-rise constructions while maintaining supply for local residents.

The CEB has somehow persuaded the Government to allow a new third coal power plant at Norochcholai despite the complaints from local residents who have now taken the matter to Court where it is expected they will find redress as did the residents around the Chunnakam power plant. These legal cases are creating a sheaf of environmental precedents with added costs to the developers.

Impact of climate change

At the centre of the dilemma for Sri Lanka tourism policy planners is the impact of climate change, which is expected to see rising sea levels, beach erosion and added stress on existing resources of land, forests and water. 

Is it not ironic that our tourism promotion displays herds of elephants when it seems even iconic events like ‘The Gathering’ did not occur this year because of the need to release more water early at Minneriya? Should not the tourism authorities show their concern for the abuse of domestic elephants which is so damaging to our image overseas thanks to the rapid spread of information through the internet? 

Where our officials have lagged behind, it is our leading domestic hoteliers who have led the eco-tourism efforts nurturing the natural surroundings and working with local communities, quite in contrary of international brands which project their luxury hotel rooms with ocean view and plunge pools.

Moratorium on new hotel construction

For all these reasons, I argue that the Government should consider a moratorium on new hotel construction especially where such construction is on land close to wildlife parks and both land and marine reservations. 

Despite the well-known problem of overcrowding at Yala and the encroachment at Wilpattu, permission has apparently been given for more new hotel construction on their outskirts. Some ask if there will be a Yala in 10 years’ time. Oversupply of hotels is already destroying the charm of Ella. Nuwara Eliya, beset with new hotels, needs a good environmental clean-up. Shouldn’t the Tourism Board focus on these problems before they promote more construction?

Indian example

There are many benefits when flagship conservation projects are launched under the patronage of political leaders like in neighbouring India where Prime Minister Modi is leading the ‘Save the Tiger’ campaign with good results, empowering wildlife officials to strictly control visitors to parks and even permit the closing of some roads to the public after dusk to protect the animals. 

PM Modi has also launched a campaign to clean up the Ganges, an effort that we can well stimulate for our much-polluted Mahaweli or even Kelani rivers. All these campaigns are bringing rich dividends in terms of favourable publicity to India at little cost.

One suggestion is for President Rajapaksa to launch a new campaign targeting the promotion of life on land or life under water (Goals 17 and 18 of the Sustainable Development Goals), building on ongoing efforts to restore forests, cleaning rivers, protecting the watershed and maritime resources. We could even think of a joint project with India incorporating the Mannar maritime sanctuary where Indian conservationists are already working to protect their side of the Adams Bridge islands, restoring corals, planting mangroves and sea grass, etc. around Vaan Island, as recently featured on BBC, great free publicity. 

MP Namal Rajapaksa seems to have gauged the enormous interest of young people in environmental protection and is helping clean up at Sri Pada this year along with private sector companies and organisations which have for years called for authorities to manage this unique site in a proper manner.

Tourism development is not only about building new hotels and canvassing tourist arrivals but should promote sustainable principles that are strictly observed in many destinations which is turn will raise the brand image of the country.