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| Friday, 10 September 2004 |
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'High spenders destination' status for Lanka in tourism re-think by Chandani Jayatilleke
Tourism has created thousands of direct and indirect employment opportunities while nurturing millions of households whose only income is earned through the industries related to travel and tourism. Sri Lankan Tourism is being upgraded as a product and as a destination in many different ways to benefit a large number of people including tourists and the industry dependents. Chairman, Sri Lanka Tourist Board, Udaya Nanayakkara says that he intends to upgrade Sri Lanka to help classify it as a high spenders' destination while improving the infrastructure and the quality of service by way of providing unique theme holidays. "Our aim is to make tourism the number one foreign exchange earning industry at the turn of this decade," he says. Already, Sri Lanka is becoming a year-out destination, with many tourists opting to visit the country even during the off-peak season. "We have lined up a series of ambitious promotional campaigns overseas throughout the year and are hoping to bring more high-spending tourists into the country in the future," Nanayakkara told the Daily News in an interview. Following are excerpts from the interview: "Having recorded an increased number of arrivals from India, UK, France and the Far East over the first eight months of the year, Sri Lanka is hoping to exceed its targeted number of arrivals of 550,000 at the end of the year. "June, July were good months and we are encouraged to note that our traditional off season is turning into quite a fruitful season. And our dream to make Sri Lanka a year-out destination is becoming a reality." Number of arrivals As for the arrivals, Sri Lankan Tourism no longer worries about the numbers. "That's not the right perspective for the industry. According to our present infrastructure, we can't accommodate more than 750,000. Moreover, we need to rehabilitate the current infrastructure prior to getting down tourists in large numbers. However, in my opinion, we need to focus on getting down tourists of special categories, who are known as high spenders." "Our intention is to gradually increase room yield. For example, we did a study in July in Kandy and found out that better quality (higher prices) hotels have higher occupancy and in more demand than the low quality ones. This is the same scenario in Colombo and all over the country. This means that tourists prefer better facilities even at a higher price. "As I said earlier, we need high spenders, and our vision is to get tourists to spend $100 a day. Currently, it is something like $ 68 a day. That's more lucrative and advantageous than the numbers." New Resorts There are many inquiries for new investments. The East Coast is getting a prominent place in the tourist map and Pasi Kudah is being developed in a big way and about 150 beds will be added into the area early next year. There's lot of potential there and we are positioning the east coast as an emerging destination. When it comes to resorts and hotels we need in the future, we are encouraging four star and plus hotels. However, the Tourist Board has taken a firm decision to ban all inclusive hotels from next year. "We discourage all inclusive hotels. We have asked such hotel owners to migrate from such concepts - because they don't bring the desired flow of benefits to the community. It affects a lot of people, living in tourism areas." On the international scene, Sri Lanka is getting out of the 'high risk' perception that the country has had in the past. Thanks to a very effective public relations (PR) campaign undertaken by a Singapore based company. Promotions abroad "We have identified 12 source markets where this PR company has global partners in and in these 12 markets, we are working very closely with the PR company and disseminating information such as tourism market, its products on a daily basis.
We get down journalists from various countries from time to time who in turn write the truth about the country. Through this campaign we were able to erase many negative incidents such as the Kollupitiya bomb incident from the minds of the people." Overseas promotions take a distinctive place on the tourism agenda. Already the Board has finalised ambitious programs to carry out promotional activities in many countries in Europe and Asia. "We have lined up a lot of promotions/marketing activities. We have started consumer awareness programs in growing markets, by participating in large consumer fairs where people gather in large numbers. "In China, we had our first major activity in June. We are launching the second major program in collaboration with the SriLankan Airlines when it would start flights to that country in November. "Our next destination for promotions is Japan. In Japan, we have chosen three cities Tokyo, Osaka and Fukuoka - in Tokyo we do promotions in collaboration with SriLankan Airlines. In Osaka and Fukuoka it will be with Singapore Airlines and Cathay Pacific. After Japan, the Board will go to Moscow, Russia in November and promotions will be conducted in collaboration with Emirates. The Middle East has also been identified as a top market for tourism. "We are also planning to do promotions in Tel Aviv, Israel which is a potential market and the ground work in this connection has already been done. Also Middle East as a whole is a potential market. We've already done a promotional activity in Dubai. Many people in the Middle East have focused holidays in Asia and Malaysia and Thailand are already in their preferred destinations, we believe that the ME has much potential as a tourist market." Service apartments Service apartment is another novel tourism concept that has been identified. "Businessmen and families could come and stay in fully serviced apartments such as JAIC Hilton and Crescat under this concept." WTM or the World Tourism Mart held in London in November is the largest and most prominent tourism promotional activity in the world. Sri Lanka also continuously takes part in this event. This year, Sri Lank's presence at the WTM will have a greater impact and over 50 companies have already confirmed their participation. Cricket and tourism This year's theme will be the Yapahuwa kingdom and emphasis will also be given to the traditional beach concept, cultural tourism and eco concept. There will be cultural dance performances at the steps of the Yapahuwa structure. In the background will be the beach theme with a life size catamaran, while Ceylon tea will be served to all visitors to the stall. "We will spend money for our focused target but have cut down unnecessary expenses such as parties in big hotels." Sri Lankan cricketers led by former captain and Deputy Minister of Tourism Arjuna Ranatunga, Muttaih Muralidaran, Sanath Jayasuriya and Chaminda Vaas have agreed to come along with us to India for a promotional program. The Sri Lanka Tourist Board has been upgraded to a Grade A Government organisation category from Grade B category which means its staff would get better facilities and benefits. Today, the Board has only a limited number of staff. Many have retired under the VRS offered by the previous regime as part of transferring the Tourist Board to an Authority. However the Chairman says the present staff is very efficient and result oriented. They work as a group. The Tourist Board spends Rs. 300 million per annum for its PR campaign. The industry contributes Rs. 200 million by way of the Tourism Development Fund. The balance is received through the embarkation tax collection. From next year, the Tourist Board Plans to use a good part of embarkation tax to develop new resorts and develop infrastructure for new hotels. New projects The Board has already paid Rs. 32 million to the Divisional Secretariat in Bentota to acquire 2,000 acres of land in Dedduwa for a development program. During the next 12 months we have undertaken to develop many resort sites including Dedduwa stage I, 80 acres in Sigiriya, 500 acres in Kandy and 2,500 acres in Kalpitiya. There will be several other projects of small acreage. Once the town planning and infrastructure facilities are provided, the Board will call for investors through the BOI. "This activity is somewhat similar to what the Tourist Board had done some 40 years ago. That's how Bentota was done and about 110 acres were developed under that project where there are about six hotels now. We have also taken measures to upgrade the infrastructure in Bentota resort area next month." Tourist Board also plans to invest in a few key tourism projects, including a innovative, eco-tourism venture planned out by the tourism cluster in Sri Lanka. The Board in collaboration with the Wild Life Department has launched a program to reposition Wilpattu wild life park, with funds from the EU. EU has already approved a draft proposal in this connection. Last year, tourism was the fourth largest forex earner in the country. "We are hoping that we could gain the third position soon. And our plan for the next year is to reach the second position and as at the turn of this decade to be the number one forex earner in the country. This is an achievable target. "Tourism is the only industry that can give the fastest return. It can be done as long as peace prevails. Peace is the vital ingredient for tourism," he concludes. |
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