Elevating tourism into greater heights

Sri Lanka’s tourism industry made a commendable recovery last year, recording 1.48 million tourist arrivals (an impressive YOY gain of 106.6%), aided by the political and economic stability prevalent in the country. The revival’s significance is amplified, as the years between 2020 and 2022 coincided with probably the worst period of the travel and leisure field in the island’s history. It must be noted, however, that the number of arrivals was substantially less than the 2.3 million arrivals recorded in 2018, the year prior to the Easter Sunday attack.

In what appears to be an overenthusiasm about the upturn in tourist arrivals, certain misleading comparisons were made about the performance of the industry with that of the premier tourism hotspot – the Maldives – particularly via social media. People were seen celebrating about the country recording more tourist arrivals (210,352) than the famous vacation spot (194,696) during last month. Such interpretations are not accurate as the dynamics of the tourism sectors of the two countries are at a considerable variance. 

The truth of the matter is the archipelago is a pure holiday destination while it attracts high-spending travelers unlike Sri Lanka. A visitor who travels to the Maldives spends $ 600 per day, whereas the daily spending of a tourist who comes to Sri Lanka is only between $ 160 and $ 180. The other notable disparity lies in the purpose of visitors, with the arrivals to Sri Lanka representing a fair number of expatriates who visit the shores to reconnect with their families and relatives. According to the Statistical Bulletin of the SLTDA for last month, almost half of the visitors to Sri Lanka from both Canada and Australia intended to spend time with their loved ones.

The success of the leisure industry should not be measured by counting the number of heads, but rather by the monetary value of tourism receipts it is able to muster. Earnings from tourism during January to November 2023 amounted to $ 1,799 million, compared to $ 1,009 million in the corresponding period of 2022. For Sri Lanka to become a sought-after destination by high-spending travelers, the diversity of offerings needs to be expanded without being inhibited by cultural and moral taboos or so-called middle-class values. Quality entertainment and top-class casinos are critical in terms of attracting tourists with high disposable incomes from neighbouring China and India. 

Sri Lanka can be marketed as a tempting place to visit in the South Asian region provided that steps are taken to establish top-level casinos as well as premium night clubs. Two years ago, plans were announced to establish a new authority to develop a string of small islands across the mainland into tourist resorts, based on the successful tourism model in the Maldives. Such a course of action would add a new dimension to the country’s profile as a tourist destination apart from aiding the task of attracting wealthy holidaymakers, which would be instrumental in increasing the per-head tourist spending. Unfortunately, the policy makers and officials have a reputation for devising excellent blueprints, but the successive administrations have been accused of being extremely lethargic in terms of putting such plans into action.

“One island, One resort” concept has enabled the Maldives to position it as a luxury tourist destination, attracting celebrity honeymooners from Europe. The success of its leisure industry is attributed to the strategic acumen and visionary foresight of their political and business leaders, which is seriously lacking in Sri Lanka. It is such a shame that a pragmatic and thoughtful strategic plan was not developed by the authorities to position the country as a premier tourist destination over the decade after the war ended in 2009. Regrettably, the presence of outdated and archaic views on the grounds of preserving the so called 2,500-year-old culture stands as a huge obstacle in developing Sri Lanka as a top-notch travel destination.