Tourism poised for better times

By Shirajiv SIRIMANE

All eyes at the Bandaranaike International Airport last Wednesday were focused on a British passenger who was being accorded a red carpet welcome. People at the Airport were surprised as this passenger was not a celebrity or a VVIP.

However to Sri Lanka tourism Nick Davis was more important than a VVIP as he was the 600,000 tourist to arrive in the country this year.

With the arrival of this guest Sri Lanka recorded an all time high of tourist arrivals of 600,000 on Wednesday.

By the end on November, 567,849 have visited the country, an official of Sri Lanka Tourism Development Authority (SLTDA) said. "We expect more that 25,000 more by the end of December 2010 which would increase the arrivals to over 625,000," he said.

The highest tourist arrivals were recorded in 2002 and that was less than 550,000.

Last year 447,890 tourists visited Sri Lanka.

"We hope to have more than 700,000 visitors next year," said Chairman Sri Lanka Tourism Nalaka Godahewa.

Suisse hotel a star class heritage hotel in Kandy

Cinamon Lake side a five star property in Colombo

Indian tourists topped the list with 111,129 while there were 95,320 tourists from England. The France and the German markets that suffered heavily due to adverse travel bans have shown a major recovery with 28,095 from France and 41,259 from Germany visiting Sri Lanka up to November.

Acting Managing Director, Sri Lanka Tourism Promotion Bureau, Malraj Kiriella said that they would be launching special monthly themes from next year.

Commenting on the World Cup that is to be hosted next year he said that this too would give a lot of coverage for Sri Lanka as a destination. "We are currently working to provide luxury tent accommodation for Hambantota area during the World Cup as there are only limited star class hotels in the area," he said.

He said that in addition to the foreign visitors the Sri Lanka Diaspora too would visit the country in large numbers.

President Tourist Hotels Association of Sri Lanka, Anura Lokuhetty said that reaching the 600,000 mark is no championship of any hotels company, a tour operator or for that matter the Sri Lanka Tourism Development authority. "It is the championship of the three forces, the police and the strong and courageous and commitment of the government ending the war."

"We are happy that in one year we have been able to reach this. With this remarkable achievement, we are confident of reaching over 700,000 in the next year. The current growth factor is around 45.7 percent, this is in spite of the long drawn impact of the global recession."

"We need to be very careful of the yields that we enjoy and should not get too carried away with the number game without looking at the revenue. True enough, we can generate large volumes from Asia but the expected attractive yields will not come from them. Our experience of good yields is always from the west," Lokuhetty who is also the Chairman of Serene Pavilions, said.

Anura Lokuhetty	Nilmin Nanayakkara	Chandra Mohotti

"We also need to be careful of pricing and should not forget that the effects of the recession are still on. Our competitors are going through bad patches. Their supply is well over demand and we do not have that competitive edge any more."

"In our opinion there shouldn't be any government involvement in managing minimum price levels. It should be determined by the supply and demand situation," he said.

"I must also say the tax and other benefits that have been offered through the budget are encouraging and will induce promotions and investment to achieve the required goals.

However, increase in the electricity tariff to hotels in isolation is definitely detrimental to the industry. At the moment even without the increase Sri Lanka's electricity cost is the second highest in the region.

As we have to compete with countries with lesser costs in their overheads we need to be cautious."

Meanwhile President Travel Agents' Association and Managing Director NKar Travels, Nilmin Nanayakkara said that the industry is glad that arrivals surpassed the 600,000 number before the end of the year.

"It is a good indication that our projections as per 'our way forward' document which was prepared almost a year ago have materialised". "We are even happier as the President and the Government has identified tourism as a major thrust industry to develop the economy of Sri Lanka.

As per the President's expectation of achieving 2.5 million tourists by the year 2016 would become a reality if we ensure that tourism industry is not troubled by various other sporadic changes in electricity rates," he added.

"The new tariff structure which has been published by the Public Utility Commission has really put development of tourism in a very difficult situation as proposed rates are almost 111 percent more than the current rates."

"We have requested that we are not expecting any concessions but to treat us as any other industry and extend the same rates that are offered to the other industries. The proposed tariff structure has caused so much of concerns in terms of investing more money for the refurbishments of the hotels and building of new hotels." "As per the President's target of 2.5 million tourists by year 2016, tourism will generate at least 1.2 million jobs directly and in-directly and at least 20 percent of the population will become dependants of this industry. Foreign exchange revenue earnings from tourism would go up to about 2.5 billion dollars by year 2016. Therefore, it is essential that tourism is not troubled by this kind of sporadic changes of tariff."

"The Tourist Hotels' Association of Sri Lanka is happy that we have been able to finalise a tag line 'Wonder of Asia'. We wish and hope that we will be able to continue with this great tag line for the next few years." "Everyone involved in the industry are enthusiastic to refurbish their hotels and build more hotels to make tourism the biggest foreign exchange earner in Sri Lanka by the Year 2016."

With over 38 years in the leisure industry and having worked from the infancy of five star hotel industry, Chandra Mohotti said that 2010 was the year that consolidated the benefits the country gained by the cessation of the war and terrorism.

"The negative publicity that the country suffered with for three decades and the fear psychosis associated with it - which was the greatest impediment to tourism and investment in this country was no longer there in year 2010. Hence, it was the beginning of a virtual new destination aptly called the Miracle of Asia."

Mohotti who is the Senior Vice President of Galle Face Hotel Management Company and General Manger, Galle Face Hotel said that Hotels began enjoying high occupancies and average room rates in certain cases more than trebled compared to previous years. "However, although tourist arrivals increased in 2010 so did other segments such as investor group arrivals and arrivals of Sri Lankan expatriates abroad on an unprecedented scale."

2011 he said would undoubtedly be a boom year for tourism. "In addition, arrivals from other segments of the market such as corporate investors and corporate clients and even the Mice Market would increase. The main reason for this is that Sri Lanka is a safe destination and also that a multitude of development projects have been undertaken."

Commenting on the Group's challenges ahead he said that they are similar to those faced by all tourism related organisations. "The upgrade of all the properties including the flagship Galle Face Hotel is already under way.

The upgrade will include the human resource and training areas in addition to the plant and buildings which did not see much development industrywide over the past years."

With arrivals on the increase the industry is upbeat that the glorious days of tourism is just unfolding.