Impact of tourism boom spreads to other sectors

Impact of the tourism boom enjoyed by the country after the end of the conflict had spread to the other sectors resulting in a big increase in the production and the services. Internal conflict that prevailed in the country for 30 years was ended in May 2009 and tourist arrivals increased unprecedently since then. As compared to the 438,475 tourist arrivals in 2008, an increase of 95.2 percent was recorded in 2011 increasing the total arrivals to 855,975. Official receipts from tourism increased from Rs. 37,094 mn in 2008 to Rs. 91,926 mn, in 2011 recording a 147.91 percent increase.

In foreign exchange terms that amounted to US$ 319.5 mn in 2008 and US$ 838.9 mn in 2011, an increase of 162.56 percent. In 2008 receipt per tourist per day was US$ 76.7 and it has increased to US$ 98 in 2012. Hotel occupancy rate of the country increased to 77.1 in 2011 from 57.1 in 2008.

Basil Rajapaksa, Minister of Economic Development introduced the Tourism Development Strategy of Sri Lanka in order to facilitate the big boom in the industry and cater to the growing demand for various services. Ministry of Economic Development provided various incentives for the short term and long term investment in the production and services related to the industry.

This boom in the tourist sector has resulted a big increase in the production and services of other economic sectors. Total number of foreign visitors to the museums increased to 31,096 in 2011 from 7,353 in 2008 and the revenue from sale of tickets to them increased from Rs. 4.1 mn in 2008 to Rs. 14.2 mn in 2011. Biggest gain was the Cultural Triangle number of foreign visitors to the Cultural Triangle increased from 12190 in 2008 to 39920 in 2011 increasing the revenue from them from Rs.307.5 mn in 2008 to Rs. 998.3 mn in 2011 recording an increase of more than three fold. Foreign visitors to the zoological gardens increased to 284,898 in 2011 from 153,934 in 2008 bringing Rs. 470.2 mn income in 2011 as compared to the Rs. 114 mn income it received in 2008.

Income of the wildlife parks increased to Rs. 301 mn in 2011 from Rs. 84 mn in 2008. Botanical gardens revenue from foreign visitors increased to Rs. 253 mn in 2011 from Rs. 69 mn in 2008.

Government revenue also increased as a result of increased tourist arrivals. Tourism development levy increased from Rs. 405.2 mn in 2009 to Rs. 649 mn in 2011 while Tourism Development Authority income increased to Rs. 110.1 mn from Rs. 48.9 mn in 2008.

Embarkation tax of the Katunayake Airport increased from Rs. 104 mn in 2008 to Rs. 766 mn in 2011. In 2008, 5,469 visitors came by charter carriers and it increased to 15,123 passengers in 2011 allowing more services other than regular services.

Other than these sectors big growth was recorded in the handy craft, handloom and cottage industries and demand for local vegetable, fruits and fish products from hotel sector has increased tremendously. Local cultural and aesthetic activities aimed at tourists have also increased.