Tourist Industry flourishes fast

By Shirajiv SIRIMANE

The golden era in the tourist industry is set to unfold soon with highest number of tourist arrivals to be recorded by the end of the year. Revenue from the industry too will hit a record high.

Signs of what lies ahead is already on the air with arrivals increasing by over 50 percent as against the corresponding period of last year.

Tourism is the fifth foreign exchange earner to Sri Lanka and the Chairman Sri Lanka Tourism, Dr. Nalaka Godahewa says that it would move up the ladder to the fourth position in two years.

Godahewa is confident that the industry can look forward to revenue in the excess of US $2.4 billion in four years.

Positive sign

The current annual average of arrivals which is around 450,000 is also expected to reach the illusive one million mark by 2012. “This is not a tall order as Sri Lanka has the resources to attract large number of tourists,” he said.

Commenting on one other key aspect of tourism he says, that the current employment generation which is at around 150,000 can go up to over 450,000 in five years. The country will also see the addition of over 15,000 rooms in the future. The present 14,700 star class rooms would increase to over 26,000 by 2016.

One of the biggest stumbling blocks for the industry was the war which resulted in adverse travel advisories stamped against the country especially by European nations and USA.

Dr. Nalaka Godahewa

Anura Lokuhetty

Chandra Mohotti

When adverse travel advisories were in place tourists were charged high insurance fees and governments of relevant countries even went to the extent of discouraging their citizens from visiting Sri Lanka.

With the ending of the war these travel advisories were gradually relaxed and finally they were completely taken off. This was one of the biggest plus points that led to the increase of tourist arrivals and also most importantly to drive in foreign investments to the country.

The biggest development projects that have taken off the ground is the Kalpitiya integrated tourism development project which has opened up a new area for tourism in the Puttlam district.

Sri Lanka Tourism hopes to convert the area to an up market destination with golf courses, cable cars, amusement parks, water sports and night entertainment facilities and is hoping to create 15,000 direct employment opportunities and 50,000 indirect employment opportunities.

In addition plans are also under way to construct South Asia’s biggest under water viewing gallery in the lagoon.

The project when completed would attract high spending tourists with minimum room rate per night to be over US $ 400. The current average spending of a tourist is less than US $ 95.

Godahewa said that investors have signed agreements for two islands and this is a very positive sign. “They are Swiss, Indian, Maldivian and Lanka investors and the value of the projects would be in the excess of US $ four billion,” he added.

Kalpitiya Tourism promotion zone, took off the ground when ‘Dutch Bay Resorts’ laid the foundation stone for an 80-villa luxury resort in Kalpitiya, recently.

One of the leading hotel chains in the world, Six Senses Group has come forward to manage this property which would be one of Sri Lanka’s most expensive hotels stamping investor confidence for the industry. Dutch Bay Resorts would be investing US $ 175 million for the project with $ 75 million being invested for the phase one which includes the construction of 75 luxury boutique chalets.

In addition, activating the Kalpitiya Project, Qube Lanka Leisure (Pvt) Ltd signed a lease agreement for two islands in Kalpitiya to develop accommodation facilities for tourists. Total investment for the resort construction on these two islands is a Rs. 2.9 billion. This project intends to provide direct employment opportunities to 1315 people.

The Wilpattu National Park which was opened recently would add value to Kalpitiya as a destination due to its close proximity location.

Godahewa said that one of the biggest advantages the industry received this year was a powerful Minister, Basil Rajapaksa to drive them forward. “He is heading several other Ministries which would help to iron out Red tape and also have a better coordination among the line Ministries,” he said.

Chairman also said that in addition to Kalpitiya several other tourism development zones have been identified. Pasikudah in Trincomalee will see 13 new star class hotels being built and some of the hotels have already begun construction work.

Kuchchaveli is another area that has been identified and a 500 acre land is year marked for tourism development. “This again would be for top end tourists,” he said.

He said that while developing the up market tourism, rest houses too would be upgraded. “We want to create a good mix and this would also help the domestic tourism,” he added.

Stakeholders happy

Tourists in Sri Lanka

President tourist Hotels Association Sri Lanka, (THASL) Anura Lokuhetty said that they must first thank the government for restoring the peace and thereby helping the tourism industry to grow at a higher rate. “To maximize the advantage of the increased tourist arrivals it is important for the industry to take certain urgent initiatives with the support of the government.”

He said that as a short term measure the Fort Railway Station should be developed and should have a more frequent train system between airport and the Hilton Railway Station.

More awareness should be created on the activities in the city, such as Colombo by night programs. “This has to be done by starting a bus service going to every city hotel and collecting the guest taking them around Colombo, showing the Old Parliament, Victoria Park, Museum, Colombo Harbour, Temple Trees, Presidential Palace and then take them to the new parliament, take them to the ‘Jathika Shilpa Saba’ outlet and show them a cultural show and tropical Sri Lankan dinner displaying the traditional handicrafts and creating a market for the cottage industry,” he explained. “Later they can be taken to Casinos or drop them at the hotels. This has to be marketed through the hotels.”

He requested that the Museums be re-developed and extend the opening hours and also open the Museum on weekends. It should also have a guided tour done by tour guides who can speak foreign languages or have a sound system for that effect,” he added.

He said eating out too is a major revenue earner especially in countries like Singapore and for this Beire Lake area should have some food stalls to be operated in the night and offer dining facilities on a boat.

“If we really start marketing our Zoo, it will be able to earn better revenue and would find sufficient funds to maintain the Zoo to higher standards. Steps should also be taken to remove haphazard hoardings and shouldn’t allow various banners and posters to come up other than on Bill boards.”

One of the most important things that would benefit both local and foreigners would be to introduce taxis with Meters as tourists and the public often complain that there being charged high amounts as per the whims and fancies of the drivers.

Lokuhetty who is also the Deputy Chairman cum Chief Executive, Serene Pavilions, said that some of the resort hotels require urgent refurbishment and extend BOI facilities to import essential items for refurbishments for a specific period.

“Harassment has become a major issue in resorts and selling any items on the beach must be stopped and tourist must be allowed to freely walk on the beaches. In order to do this it is necessary to create community centres in all resorts and provide current beach vendors to have their stalls in those community centres. Make them more attractive by having some food stalls and cultural shows so that it will provide more atmosphere for the customer to mingle with the area people. This will also help the cottage industry.”

Invested at the right time

Kalpitiya

One of the stalwarts in the tourism industry and Vice President, Galle Face Hotels Leisure Arm, Chandra Mohotty said that tourism is on the right track and the groups investments that were made during the bad times are now starting to pay dividends, “We purchased Hotels Corporation during tourism lean stretch and up graded them and today are in a position to market them not only to locals but to international tourists as well. He said that the Ambeypussa Rest House was upgraded to international standards and similarly Tissa Rest House too would be converted to a four star plus property.

“We are also refurbishing other properties spread in the entire length and breath of the country,” he added.

He said the Galle Face Hotel (GFH) won the Flag ship property of the group, won the heritage award at the recently concluded Presidential Tourism Awards ceremony and would keep on maintaining the high standards it is synonymous for centuries.

He also said despite being a relatively small hotel staff of GFH had over Rs. 20,000 as service charge.

He also said that the country is blessed with an abundance of human recourses and this too is a major plus for the industry.

The industry is upbeat as they know that nothing could stop its forward march towards reaching President Mahinda Rajapaksa goal of 2.5 million tourists by 2016.