Expectations for Tourism at the Pearl of Indian Ocean

Its unique beauty earned the name “Taprobane”, while the name “Serendipity” came to being in view of its tranquility, its size drew the name ‘Pearl of the Indian Ocean’, Sri Lanka an Island like no other.

In times past Sri Lanka have always been a tourist destination and a popular trading centre due to its strategic location. Sri Lankan tourism industry has tremendous potential with the land alone having so much natural resources and attractions.

It possesses a product with so much diversity and depth, very rich culture and historical background, hot and cold climate conditions with minimum travel, ayurvedic/herbal medicine, paradise for shoppers, surfing, wildlife safaris, eco-tourism, snorkeling and adventure, nature and tranquil beaches.

However due to the 30-year long civil war Sri Lanka has been performing well below its true potential in almost every trade. Now this concluded conflict, has propose to interchange high prospects and an upward trend to just about every sector in Sri Lanka.

Especially the confident levels are very positive in “Hotels and Travels”. This was proven with the sector in the Colombo Stock Market reaching almost 475 per cent growth in just three quarters ending December 2009, which according to most of the investors and analysts is just the beginning of a turnaround in the leisure segment.

Getting into the tussle to take advantage of the potential in Hotels and Travels, most of the listed companies at the Colombo Stock Market have come up with strategies, the most recent being conglomerate Hayleys which bought Ceylon Continental’s majority (51 per cent) a 5-Star hotel in the island’s commercial capital city. Several of the larger hotels are also undertaking upgrading and refurbishing programmes. A survey conducted recently indicates that approximately 1,000 rooms will be undergoing refurbishing during May to October 2010. The investment for this exercise is estimated to be $30 million.

Sri Lankan leisure sector will experience large earnings, with the expected boom in tourist’s arrivals than before. Hotels situated in Colombo city limits, the island’s commercial capital will perform to begin with business clients. Whilst the highly potential east and down south hotels are expected to perform from the middle of the year with tourist arrivals, mainly from the European and the neighbouring Asian countries and generally comprise of “packages” for round tours, covering either beaches, historical and cultural or a combination.

As evidenced by the comparative figures released by the Sri Lanka Tourism Development Authority for January and February, it would appear that an appreciable increase has already been experienced. As at February 2010, arrivals were 63,030 against 25,212 in February 2009 and 50,424 arrivals in January 2010 against 37,818 in January 2009 in addition to the consistency 52,352 arrivals were recorded in March 2010 against 34,065 in March 2009. Adding to it the next winter season is expected to be quite strong, riding on a build up demand for the destination which will force strong occupancy levels.

The analysts say the government of Sri Lanka should take on zoned large scale tourism development in selected areas under strict environmentally sustainable guidelines. The government has taken steps to drive the industry forward on the fast track, provide attractive incentives including preferential interest bearing loans, investment relief for hotel development. Another priority for the government should be to embark on rapid tourism infrastructure development including roadways, international air traffic and railways.

Several foreign investors have shown interest in the Sri Lankan tourism sector although high entry barriers such as land acquisition costs and red tape from project approval bureaucracies may be preventing any firm plans so far.

The potential grows further with the opening up of two-thirds of the coastline and land with the dawn of peace. But unless and until its marketed has a BRAND, the land will not be able to achieve commercial objectives. In order to build a sustainable industry with injection of huge capital required to elevate the standards of the industry, the right policy framework, infrastructure facilities and stakeholder focus and commitments are of vital importance.

Conventional working surroundings in terms of industry fundamentals is essential to make the correct begin to build a sustainable long term business in the midst of ever mounting competition in the region with more and more countries having tactical focus on their tourism. To do this Sri Lanka should build its capacity to offer an attractive and safe package to potential tourists. The industry also should be ready to absorb the growing tourist arrivals with more hotel and transport facilities. In this view, the quality of the “tourism product” is significantly important. It is a composite of activities and contributions of many stakeholders in both private and public sectors.

Sri Lanka will probably get 500,000 to 600,000 tourists in the whole of 2010. Weigh against with Singapore which got 950,000 in the month of January 2010. Maldives, Thailand and Malaysia all provide equally fabulous service and hospitality and this is a competition.

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