Sri Lanka earned highest revenue from tourism last year:

Political stability pays dividends

by Shirajiv SIRIMANE

The dividend of peace reflected sharply on Sri Lanka’s tourism sector as it recorded the best financial year in 2009 generating US $ 420 million. Yet another accolade for Sri Lanka was when The New York Times identified Sri Lanka as the top destination to visit in 2010 from among 31 other destinations hailing the island nation’s “pristine coastline” and “tropical zoo”-like attractions.

Tourism, the country’s fifth foreign exchange earner saw 447,890 tourists last year which is a 2.1 percent increase compared to the previous year. The tourist arrivals powered by India and UK saw a 16.2 percent leap last December after having a negative 16.2 per cent decline from January to May last year.

This increase will meet the projected 2.5 million tourist arrivals by 2016. Year 2011 has been named the ‘Visit Sri Lanka’ year by President Mahinda Rajapaksa. Sri Lanka Tourism Promotion Bureau (SLTPB) anticipates a revenue of $2 billion by 2016 and tourism to be the third largest source of foreign exchange in the coming years after textile and foreign remittance. The country expects 1.2 million tourist arrivals from Europe and 700,000 Indian tourist arrivals for the “Visit Sri Lanka” program.

President Rajapaksa told the launch of the ‘Visit Sri Lanka’ last year that with terrorism defeated after three decades, people can travel freely in their motherland. “Tourists too should have no fear to visit our attractions. And, I believe, we have ended the need for Travel Advisories that crippled tourism.”

“As we have assisted the Tourism Industry through its most difficult period, I now assure the industry of every effort and all resources to meet a target of 2.5 million tourists by 2016. While developing Hambantota, Kalpitiya and Arugam Bay as major tourist resorts, we can now add Pasikudah and Trincomalee, up to the Kokilai Lagoon in the East, and many locations in the North too, as part of the Uthuru Vasanthaya - the development agenda for the North,” he said.

Tourist ventures

Tourist ventures must draw their strength and contribute to the communities around them. Tourism must move to new opportunities with the people as its partners. “I trust the new direction of Sri Lanka Tourism will position Sri Lanka as a premier tourist destination of Asia. Our commitment to develop tourism shall also be Maathrubhumi First, Second, Third, the true miracle of success,” the President said.

Minister of Tourism Promotion, Faizer Mustapha said that Sri Lanka is aiming to attract one million tourists by the end of 2011 from its current average of 4,500. A construction boom is expected in the tourism industry with over 23,000 new star class hotel rooms expected to be built in the next five years. In addition over 3,000 rooms would be refurbished or upgraded.

The industry also hopes to bring in US 800 million in two years to the country increasing its earnings from the current average of around $ 425 million. The average spent by each tourist per day will be increased to US $ 130 (currently it is around $ 80)

High spenders

He said that due to the 30-year conflict Sri Lanka was marketed as a cheap destination and now the country could attract high spenders. “This is the reason the President decided to launch the visit Sri Lanka program,” he said.

To implement this program Sri Lanka needs additional rooms and this is currently being addressed by the Government and the private sector.

Today Sri Lanka offers 13,000 rooms and the Kalpitiya Tourism zone is expected to offer 1,000 luxury new rooms within the next two years.

“Sri Lanka Tourism has received applications from leading international leisure players to build hotels at the three islands which were advertised last year,” said Chairman of the Sri Lanka Tourism Development Authority (SLTDA) Bernard Gunathilake.

“All these areas were not accessible due to the 30-year war and now investors could make use of this opportunity,” he said.

Director, Sri Lanka Tourism, S. Kaleselvem said that in the Pasikudah area too 13 hotels would be built adding 700 rooms. The Government too has completed the Achuveli tourism master plan in Trincomalee which would add 1,000 rooms to the industry.

Jaffna currently provides 150 rooms and two foreign investors have signed up to build nearly 1000 rooms in the peninsula.

John Keells Holdings PLC will completely refurbish their property Club Oceanic in the Eastern coast of Trincomalee and the property would be re- branded as “Chaaya Blu Trincomalee” and would reopen in May 2010 with 80 rooms.

“In such a short time, since the dawn of peace in Sri Lanka, the East coast has emerged strongly as the country’s new tourism destination,” Executive Vice President of the John Keells Hotels Group and Sector head for Sri Lankan Resorts Jayantissa Kehelpannala said.

Trincomalee in particular is becoming increasingly accessible to local and foreign holiday-makers with the development of the road network, allowing them to enjoy the beautiful beaches of Uppuveli and Nilaveli, some of the best diving and snorkelling spots in the country and a host of other activities including yachting, angling and whale watching.”

“Having been involved in Sri Lanka’s tourism as a group for over 35 years, we are excited and enthused by the emergence of East-coast tourism. We believe that Trincomalee has the potential to become one of the most sought-after destinations in the country and Chaaya Blu Trincomalee with its new retro-chic look will bridge the present deficit for quality 4-star accommodation,” said Deputy Chairman John Keells Holdings and President of the Leisure Group Ajit Gunewardene.

Strategic locations

He said “The John Keells Hotels Group is proud to launch one of the first development projects towards promoting East-coast tourism. This will be a first of many investments in the resort sector in strategic locations around the country”.

Aitken Spence Hotels would too be investing on a 500 room property in Nelaweli, Trincomalee this year.

Managing Director, Aitken Spence Hotels, Malin Hapugoda said that this would be a mixed development hotel project where they would offer luxury Vilas to attract high spenders, standard rooms as well as apartments. “We already have a 100-acre property and I think this is the time to invest in it”, he said. “We are planning to build apartments, sell them and then manage them,” he said.

The construction of the hotel project would get under way next year and is scheduled to be opened in 2012. He also outlined plans of constructing a business hotel in Jaffna next year.

Many new hotels are being built in the South as well and in areas such as Hambantota with new concepts such as apartment type hotels-being built by the Peacock hotel management.

The President’s decision to convert the Galle harbour into the region’s first tourism harbour too came in for high praise from the hoteliers. President of the Hikkaduwa Hotels Association Siri Gunawardane said that this would have a major positive impact on the industry.

Better access

Southern tourism would be further boosted with the Colombo-Matara expressway which would enable a tourist to reach Galle in one hour. In addition improvements to the rail track and the road network too would provide better access to the South.

Due to the increase of the per capita income, people have access to additional luxuries and due to this, the outbound market too is growing with over one million Sri Lankans going overseas.

Their preferred destinations had been the Gulf mainly for employment and India, Thailand, Singapore and Malaysia for shopping and leisure.

To provide an easy and economical passage to this segment the President initiated Mihin Lanka which after one year of operation is now earning profits.

Peace was one of the main components the industry needed to heal the wounds of the bleeding tourism industry which suffered heavily due to two JVP insurrections ethnic war and the devastating tsunami adverse travel advisories that were lifted and political uncertainty too was another setback for the industry and stakeholders are confident that political stability would continue in the future as well.

Airport and harbour development also helped boost the tourist industry.