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by Ravi Ladduwahetty

Sri Lanka could reach the 800,000 tourist arrivals target with the requisite promotions and the restoration of airline seats, Chairman of the Sri Lanka Association of Inbound Tour Operators (SLAITO) Gehan Perera told the Daily News in an interview.

Perera who is also a Director of Aitken Spence Travels Ltd, said that the biggest drawback of the Sri Lankan tourism industry was the lack of funds for promotions and also the lacuna in airline seats.

He will be taking over the reins as Managing Director of Aitken Spence Travels next month with the retirement of Manil De Mel.

He said that there were tremendous improvements in terms of tourism infrastructure such as theme parks and other entertainment facilities which were needed for the development of the industry through value addition.

The interview:

Q: What are the sentiments currently of the industry in terms of arrivals in the backdrop of the peace overtures?

A: We are certainly experiencing a growth over last year. But, this is not a true indication of last year ( 2001) as that was a very poor year by any standards and a very poor indicator. So, we should be comparing ourselves with 2000, which was a reasonable year.

I think we will get up to those figures this year. We will, in all probability, reach 400,000 tourists this year, which is more or less what we got in 2000.

Q: Don't you think that there is a possibility of improvement of over 2000 with the current peace initiatives widely believed to be on the right track?

A: Technically, it should be very much more. But, the real constraint, is the lack of airline seats and the lack of demand for Sri Lanka. We have not been doing any promotional marketing for Sri Lanka due to lack of funds. Therefore, no demand and no capacity.

If these two factors are handled properly, arrivals can be doubled to 800,000 with consummate ease. Then we have to go to SriLankan Airlines and other airlines and tell them that we need airline seats. The other burning problem is that none of the other international airlines in Europe come to Sri Lanka. This includes British Airways, KLM Royal Dutch Airlines and Swiss Air among others.

Q: So, have you made representations to the Government in this regard as a corporate entity?

A: The constraint that the Government has is the lack of funds.

Q: But why is it that the Government need to have funds to have British Airways and KLM to fly Colombo?

A: It is a question of demand. This is the situation that any airline would target prior to flying to any destination or route. Sri Lanka is small and we have to create demand for viability.

Q: Don't you think that it is more prudent to go for the up market tourist arrivals rather than mere head counts in terms of numbers?

A: Yes. It is good theoretically. If the private sector had any choice, we would definitely go up market or any other segment. But, for this, we must have the right product.

Today, if an up market tourist arrives in Colombo, it takes three and a half hours to get to the closest beach resort. We have to have the right mix of highways, helicopter services and exclusive hotels. We have to reach out to those people. It is a long haul.

Q: How long do you think it will take for the authorities to get the infrastructure right? Will it be around an year?

A: It can be done in one year. Marketing must be done together. Then we can manage.

Q: What does this proposed Tourism Law entail?

A: This is a very good move in the right direction where it will be private sector driven. We will be able to run it without too much state interference. What it means is that the existing law will be scrapped, and where three units will be formed.

It will be the Tourism Council, the Tourism Marketing Bureau and the Tourism Institute which will look after the human resources component. The fourth will be the one to manage the Regulatory Functions. It will be in the hands of the private sector with Government inputs as well.

The Tourism Council will be the umbrella body. The Regulatory function will remain with the Government.

Q: The members of the Sri Lanka Association of Inbound Tour Operators are the agents of some of the biggest global tour operators such as Tjaereborg, TUI and Thomas Cook Neckermann. With the recent acquisition of SITA in India and the GOSL deciding to open the economy, do you see these giants gobbling up the local industry and setting up their own offices here?

A: It is possible in theory.

Q: There has been the merging of the bigger operators such as Tjaereborg, TUI, Thomas Cook Neckermann and they are buying the smaller operators there. These merged companies are said to be bargaining their prices in Sri Lanka, which is of current concern to the industry. How do you see this ? What are your remedial measures?

A: The industry is getting bigger and bigger and the big ones are buying the small ones. This happens in petroleum, motor cars and pharmaceuticals.

This will make them have better marketing and bargaining powers while having more effective synergies.

This is more positive than negative. On the other hand, if we can tie up with these mega-operators, then Sri Lanka will also stand to benefit tremendously in getting the desired numbers into the country. Having said that, I must also say that we must get tourists of all the segments. This is a lot of hype of upmarket tourism which is very integral. All segments of the market need to be developed.

Q: There is concern about the beach boy menace. Tourism Minister Gamini Lokuge said in a interview with this newspaper (Daily News - July 9) that there should be a sustained program so that incomes are equitably distributed. He advocated the setting up of studios for tourists and other value added services such as boat rides, without merely supplying pineapples. How do you see this?

A: This is certainly the most burning issue in the industry which is as worse as the effects of war. Tourists who are harassed, do not speak well of Sri Lanka when they return. It begins from the time of arrival at the hands of illegal porters.

Q: There is much speculation that this menace has infiltrated into Polonnaruwa and Sigiriya. Is this true?

A: Yes. That is true. They do not come here to be harassed. The social problems need to be addressed.

This is where the Maldives scores over Sri Lanka. There are two components. One is the need to policing and that through the law. The social problems such as unemployment also have to be handled. There is basically thuggery. There are the genuine cases as well where they need incomes. Studios and other promotional infrastructure such as that should help.

Q: What do you think about promotions of Indian and Chinese tourists?

A: Indian tourists should be a big market to the tourism of any country. We are right at the doorstep.

Tourists come from neighbouring countries to any part of the world. The Air Services Agreement should be strengthened and we should get more seats. India should have phenomenal growth. China should be a good market but the infrastructure should be improved in terms of entertainment infrastructure.

Q: There is a lot of criticism that Sri Lanka is inadequate in entertainment infrastructure, other than a few beaches and boat rides which is a deterrent to the growth of the market. Your comments ?

A: That is an issue which has to be addressed very soon not only for foreign tourists, but also for locals. We must have good entertainment complexes where people can go and have access to bowling alleys, restaurants, theme parks, shopping, water sports and others. There is a dearth there.

Q: The biggest tour operators in this country are the John Keells Holdings and the Aitken Spence Groups, which have made substantial investments into these sectors. What about more leisure based tourism investments?

A: One of the major areas is theme parks, We have to fortify these with internal flights, hovercrafts and others.

Q: It is said that even these tourists are the lower rung of the market. Your comments?

A: Not really. There are the rich and the middle segment coming here. It is a mixture.

Q: Don't you think that religious tourism will be an integral part of this, as India and China are predominantly Buddhist countries?

A: That is a very small segment of the market. People travel on holiday basically to enjoy themselves.

Q: Your Aitken Spence Group also has a wholly owned subsidiary by the name of Ace Conventions (Pvt) Ltd which has been formed to promote meetings, conventions, incentive based tourism and for employees and also for exhibitions. How do you see the promotions of the MICE tourism with that in your capacity as SLAITO Chairman ?

A: I am sure that India will look at the Sri Lankan market very favourably with peace coming to Sri Lanka. This type of traffic has a very long lead time.

About two or three years. No they will have us in mind, with peace returning. The advantages are that it is cheaper here and the travel possibility of tourism is also there. India's domestic travelling by air is not cheap.

Q: How do you see the development of the industry in the East Coast and in the North?

A: Prospects look good. But the private sector would like to have peace on a firm footing before they put their money in. It is a wait- and- see attitude.

Q: What are your perceptions of Winter 2002?

A: It is not the most positive now globally after what happened in Bali. People are very apprehensive in travelling especially to long haul destinations.

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