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by U.E. Perera, Tourism Consultant

Tourism - on the mend

Although there had been serious impediments to the forward march of world tourism in 2002, such as the outbreak of Severe Acute Respiratory Syndrome (SARS) unstable situation in Middle East, attacks in Djerba, Bali and Mombassa against foreign visitors and severe repercussions and negative impacts after the attack on the United States of America on September 11, 2001, world tourism industry has shown very successfully that it has the capacity to bounce back with greater resilience and emerging power.

According to a recent report released by the World Tourism Organisation for the first time in history, the number of international tourist arrivals has exceeded the 700 million mark, and despite all the grim expectations and debacles about the crisis, the year ended with a 3.1 per cent increase. The preliminary data received from official sources throughout the world, reveal that almost 715 million international tourist arrivals were registered last year. That is exactly 22 million more than in 2001 or, compared with the 'millennium year' which many experts claim should be taken as the reference, almost 19 million more than in 2000.

Preliminary results

The preliminary results for 2002 show a substantial change in the world tourism map: Europe remains firmly in first place, while Asia and the Pacific claimed the number two spot from the Americas. The international arrivals to African and Middle Eastern destinations are growing slowly above the world's average, but the base remains rather slow.

As Secretary General of World Tourism, Organisation, Francesco Frangialli says, "tourism has always bounced back and has always done so quickly. Secondly, tourism has always come out of turbulent times in much better shape and greater vigour than it has gone into them." Stressing on this subject much further he says that" "The economic and financial crisis in Asia-Pacific and Russia in 1997-1998 were clear examples. These destinations came out of the recessions stronger and more firmly on the road to sustainable development."

Significant achievements

The significant achievements and radical performances of this global industry in recent times have confirmed the previous market analyses of the World Tourism Organisation. The need to travel, for business or leisure is deeply and very firmly ingrained in our societies. These assets and valuable qualities of humanity cannot be easily eradicated or erased.

With the formation of the Untied National Front Government, the tourism industry in Sri Lanka has also recorded a significant leap forward mainly due to the Norwegian broekred peace initiative and aggressive marketing strategies launched by the Ceylon Tourist Board and SriLankan Airlines.

During the term of the People's Alliance, the Ceylon Tourist Board was not able to provide a united leadership to the trade as a whole as the higher management of the Board was primarily involved in litigation and court work as some of the senior officers of the Board who were penalised took the Board to Hulftsdrop on fundamental rights.

Further, a substantial percentage of the funds of the Tourist Board were arbitrarily utilised to pay heavy bills of 'legal eagles' and for other controversial payments.

Promotional work was neglected and handed over to inexperienced hands and even the implementation of the 10-year Tourism Master Plan was sidelined and neglected. The inner stability and the cordial industrial relations prevalent in the Tourist Board now, have encouraged its higher management and also the Ministry of Tourism to devote more time and energy for productive pruposes. Apart from the political stability of the country, the progressive measures initiated by the present Minister of Tourism, Gamini Lokuge has also resulted in ensuring a good harvest for the tourism industry.

Relaxation of visas

As an example, the relaxation of visa requirements for SAARC nationals, has greatly helped the Indian tourists to come here in large numbers. In this connection, there is a good response from Pakistan and Maldives as well.

The promotional campaign initiated by SriLankan Airlines in India, under the flagship, buy one-get one free", created a deep-rooted awareness in the Indian travel market and would certainly have a bigger impact in the long-run in the years to come. A recent survey has revealed that the Indians who have recently come to Sri Lanka have much purchasing and spending power than their predecessors. They visit shops, such as the Nortitake and have proved to be big buyers.

The SriLankan Airlines have participated in promotional events in Japan such as the Marine Diving Fair, UL Products and the destination Sri Lanka confab. Various initiatives taken by the Japanese Government for the political stability of Sri Lanka have also contributed to strengthen the image of Sri Lanka in the lucrative Japanese Travel Market. Leading Japanese tour groups, have confirmed several bookings to Sri Lanka, with the successful holding the Tokyo Donor Conference.

Further, almost all the generating markets in the West, relaxed travel advisories and warnings imposed on Sri Lanka in 2002.

Increased arrivals

As a result of all these measures and mainly due to the prevailing peaceful situation in the country, tourist arrivals have increased by over 15% and the second half of 2002 saw tourist arrivals increase by over 100%. In the year 2001, gross earnings from tourism was US $-213 million and in 2002 it went up to US $-248 million.

The total number of tourist arrivals from January to June 2003 have recorded a figure of 216,144 compared to only 173,136 for the same period in 2002. In January 2002, the arrivals recorded a figure close upon 29,000 but in January this year 40,647 tourists have stepped into Sri Lanka. Arrivals from traditional resource markets such as Untied Kingdom, France, Netherlands and Italy have recorded an increase of over 32.1%, 5.8%, 25.4% and 9.8% respectively. Untied Kingdom continued its position as the second major tourist generating market to Sri Lanka during the month of June too. In June 2003, a total of 31,836 tourists arrived in Sri Lanka, which shows an increase of 20.8% compared to the corresponding month in 2002.

In June 2003, arrivals from South Asia and East Asia recorded increases of 37.4% and 8.7% respectively, when compared to the figures of the same month in 2002. Considering the major markets of this region, India showed an increase of 25.6 and continued its position as the major tourist generating market to Sri Lanka during this month. Malaysia, Singapore, Taiwan, Thailand, Maldives and Pakistan have also recorded increases in tourist arrivals to Sri Lanka.

Overall occupancy

The overall occupancy rate of tourist hotels increased by 3.6 percentage points reaching 39.3 per cent as against 35.7 per cent in the same month last year.

As a result of this gigantic upsurge of the tourism potential of the island, the industry ensured direct employment avenues to 38,821 people and indirect employment avenues to 54,349 people in 2002. Total arrival figure was close upon 400,000 in 2002.

The Sri Lanka Convention Bureau had sponsored 38 conferences last year and MICe related travel activities have generated US$ 54 million in foreign exchange in 2002 compared to US$ 31 million in 2001. The increase is 71.3 per cent. It is reported that the Convention Bureau is now planning to launch a promotional campaign overseas under the banner 'Meet in Sri Lanka'.

Sri Lanka can be marketed throughout the year. In short, tourism in Sri Lanka should not be a seasonal one, it should be a year around phenomenon. East coast can be promoted from May to October and the south coast from November to April. World renowned tourism specialists accept that we have the best unpolluted beaches, approximately 1,600 kilometres of coastline on which lies a wealth of reefs.

If organised we can even offer whale watching on the east coast. If we want to move the tourism industry forward, priority consideration should be given for the rapid development of the east coast, where rock formations offer a wealth of under-water vistas, cliffs, caves, strewn valleys, large fish and penetrating shells.

Very recently, the Discovery Channel highlighted Unawatuna as one of the hottest beach destinations in the world.

We should aim at 1 million arrivals and if properly organised tourism should be the No. 1 foreign exchange earner in the years to come. However, there are a number of obstacles and impediments to achieve this objective:

(a) Permanent peace: There should be permanent peace in the country. Tourists are very sensitive to disturbances. Therefore, it is the prime duty of the main political forces in the country to get together and offer a political package widely acceptable to the Tamil militants and to the whole nation. Undoubtedly the joint political package should safeguard the territorial integrity of Sri Lanka.

(b) Infrastructure development: There should be all round development of highways, airports, post offices, communication centres, hospitals and other facilities needed for the tourists, should be provided. Most of the highways and roads in Sri Lanka are in a deplorable condition. There is absolutely no discipline on the road. The drivers have taken the law into their own hands and almost daily fatal accidents are taking place on highways. Automobiles on the road generate environmental pollution.

(c) Another international airport: After 55 years of independence, we have only one international airport. In short, one entry point and one exit point. After the attack on the United States of America on September 11, 2001, most of the tourists think twice before they come to a destination which has only one entry point and one exit point. Even the architects of the 10 year Tourism Master Plan have recommended another international airport but all these years, this proposal has been grossly neglected.

(d) Marketing Bureau: The proposed Tourism Marketing Bureau should see the light of day. If this is organised on an impartial basis, giving priority to the requirements of the trade only, resources of the hoteliers, investors, travel agents and tour operators could be harnessed even to finance selected promotional campaigns. Some of the Tourist Board officials who were selected and appointed to foreign offices during the People's Alliance regime for political reasons proved to be careerists; they were never professionals in the true sense of the world.

(e) Refurbishing of hotels: Refurbishing of hotels is a must. In this field, the Ministry of Tourism should take the first step to harness financial resources for the implementation of this proposal as a lot of donor agencies have pledged to supply funds for the economic development of the country.

For the rapid economic development of the country, tourism sector should get the first deal. During times of difficulties in the past, successive governments offered soft loans to the hoteliers and this facility can be extended again to the hospitality trade, as most of the hotels have planned to refurbish their properties in anticipation of a big tourist boom next year with the forward march of the peace process. Duty free concessions can also be offered to the hospitality trade for refurbishing purposes.

In Thailand, Indonesia and Malaysia all the 3-star hotels have provided TVs to their rooms. It is considered a standard.

(f) Handicrafts: Handicraft industry in Sri Lanka should be revived and encouraged to produce souvenirs for the tourism industry on a large scale. As an example, replicas of Dalada Maligawa and Sigiriya should be produced and made available to the tourists, as it will convey a message through the tourists that Sri Lanka has lot to offer as a culture orientated destination.

Tourism is the No. 1 industry in the world. However, the respective governments and national tourism authorities must be proactive in anticipating possible crises that can affect the tourism industry and devise mechanisms for mitigating the negative impacts.

Uncertainty has become a chronic disease of our times and therefore knowledge and leadership skills to deal with a crisis should become a permanent component of tourism management.

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