Comment

Tourism boom

Barely two months after the war ended with the liberation of the entire Northern Province, Sri Lanka's tourist arrivals have already recorded a significant increase. Arrivals rose 8.1 percent in June from a year ago, the first such rise since May last year.

This is a significant achievement that indicates that the tourism industry will receive a boost in peacetime. Sri Lanka received 438,475 visitors in 2008 and all indications are that this number would be exceeded by a comfortable margin this year and next year. The revenue from tourism, US$ 342 million in 2008, is also likely to go up.

In fact, by 2010 the tourism authorities expect to attract half a million tourists. Many in the industry have expressed confidence that Sri Lanka could soon look forward to hosting around 2.5 million tourists a year.

This is still a fraction of the tourism pie of many Asian countries, but the potential for expansion remains. The relaxation of travel advisories on Sri Lanka in major tourism markets in the West has contributed immensely to this status quo.

These numbers look even more impressive when one considers that there is a recession in the West.

This is another reason why we should look at South Asia and Asia as major tourism markets. Indians are already leading the tourism statistics. Asians are becoming increasingly affluent with a considerable disposable income that can be used for travel. Sri Lanka should promote itself as a remarkable yet affordable destination for South Asians. Domestic tourism too should not be neglected, with more locals travelling to previously inaccessible places.

Indeed, the re-opening of the North and the East for tourism is a major milestone in Sri Lanka's tourism saga. Tourists are already flocking to major Eastern destinations such as Arugam Bay and Trincomalee. The East needs more hotel rooms and infrastructure facilities to cater to the demands of these tourists.

It is not only the East that needs to revamp the tourism infrastructure - it should be an islandwide process. There are around 14,700 rooms of all types across the island and a bigger influx of tourists would necessarily lead to a demand for more rooms. Nevertheless, investing in even a small 'boutique' hotel is not easy. The Government should grant all possible concessions and incentives to local and foreign investors willing to take the plunge.

An expanding tourism industry will need more employees. Already there are around 65,000 people who are directly employed by the industry. It has been estimated that nearly 180,000 more people are indirectly involved in the tourism industry, such as food suppliers and transport providers. The tourism industry thus has the potential to address the unemployment problem as well.

The authorities should resolve some other outstanding issues before tourism can take off in an even bigger way. There is a shortage of airline seats into Colombo which could result in more tourists staying away. This is being gradually addressed as several new airlines are flying into Colombo and existing operators are raising the number of flights per week. But the authorities should encourage several prestigious airlines which earlier withdrew from Colombo to recommence flights, to give a wider choice to travellers. The same goes for internal fights - we need more domestic flights to lure tourists to far-flung destinations.

There should also be an effective marketing campaign, especially in emerging markets such as Eastern Europe, Middle East and South East Asia to put Sri Lanka firmly on the tourism map. We have seen such campaigns by several Asian countries in Sri Lankan newspapers and on television. Our missions and tourism bureaus in foreign capitals should play a more pro-active role in this regard.

Sri Lankan authorities should also make use of feature films which have been shot here, to attract more tourists. For example, many among the audiences seeing Ram Gopal Varma's latest creation Agyaat would want to visit the locations shown in the film, shot almost entirely in the jungles of Sri Lanka.

Above all, the message that Sri Lanka is now free of terrorism should be heard loud and clear all over the world. That is the biggest incentive for any potential tourist. Tourism could be among the biggest beneficiaries of the country's peace dividend.