How is Sri Lankan tourism sailing through the different challenging times

  

The Easter Attack  ,

Sri Lanka is known as the Pearl of Indian Ocean as her breathtaking beauty surrounded by mesmerizing soft sand beaches and her spirit enchanted with unique cultural diversities. As such it becomes a popular destination among many tourists worldwide. In result, tourism industry of Sri Lanka represents the major contribution by being 3rd large foreign exchange earner.  

According to Sri Lankan Tourism Development Authority, the industry has developed tremendously. In 2018, SLTDA annual report emphasis, the direct contribution to GDP was 4.9% with the 2 332 796 international tourist that gained us$ 3 666.9 million foreign exchange earnings and the total employment generation was 402 607.

In April 2019, following the terrorist attack on Easter Sunday made significant negative impact on tourists for the first time after the decades of civil war. Three main large hotels in heart of the Sri Lanka were attacked by suicide bombers and it created huge challenges for the security aspects of travelers. Many reservations had been cancelled and the entire industry was petrified from unprecedented drawbacks. The arrivals of tourists dropped drastically challenging the international and domestic air transportation.  

  Before The Easter Attack And 2019, Easter Attack ,

	2018	2019 ( Easter Sunday attack on 21st April)	Compared to 2018,
Number Of International Tourists to Sri Lanka	2 333 796	1 913 702	Declined in 18.01%
Foreign Exchange Earning	Rs. 712 027 million US$ 4380.6 million	RS.646 362.3 million US$ 3 606.9 million	Declined in 9.23%
Direct Contribution Of GDP	4.9%	4.3%	Declined in 0.6%
Foreign Exchange Receipts Per Tourist Per Day	US$ 173.8	US$ 181.2	Increased in 4.25%
Average Duration of Stay	10.8	10.4	Declined in 3.41%
Total Foreign Guest Night	25 204 996	19 902 501	Declined in 21.04%
Room Occupancy Rate of Graded Accommodation	72.77%	57.09%	Declined in 15.68%
Total Employment Generation	388 487	402 607	Increased in 3.63%
Direct Employment	169 003	173 592	Increased in 2.71%
Indirect Employment	219 489	229 015	Increased in 4.34%
Top 5 Tourist Source Markets To Sri Lanka	India, China, UK German, Australia	India, China, UK German, and France

 

source : Highlights of SLTDA annual reports of 2018, 2019. 

These analyzed data shows how 2019 Easter attack impact on different ways.

There had been many support systems implemented by the government to recover the damage in no time. Many reliefs were given to the tourism industry such as moratorium, grace periods temporary VAT deductions and many fees waived off to invigorate. Many licensed private banks and the Central bank launched several loan schemes to provide capital for those who are in the tourism industry. 

The question is, are we the only country which effected from terrorist attack?  

Many major tourist destinations experienced in similar incidents. The Paris attack in 2015, The Brussels bombing in 2016. These incidents were remarkable and it created huge drawbacks in international tourism. But they eventually recovered. So do Sri Lanka. In end of 2019 tourism industry regained its sustainability and started to function fully. Bellow data shows how Sri Lanka bounced back in reference to international arrivals of tourists.

 source :SLTDA Monthly Tourist Arrivals Reports 2019/2018                               

Though the competition is higher , Sri Lanka has remarkable competitive advantages related to tourism. As I mentioned in my comprehensive overview , Sri Lanka consist of endless attractions surrounded by powerful historic highlights. Nowhere in the world could get the places like Sri Lanka. I believe if we embrace what truly Sri Lanka would lead us to the better tomorrow to rise from the ashes.   

Strike of COVID 19 Outbreak VS Easter Attack,

According to ICAO-WHO Joint statement on COVID 19, On 31st of December 2019, In Wuhan, Hubei province of peoples' republic of China, an unknown outbreak was reported. On 31st January of 2020, the director-General of WHO declared the COVID 19 outbreak with compose to public health emergency worldwide. 

In accordance with WHO health guidelines to safeguard from pandemic, former government-imposed island wide curfew to complete lock-down that led halt to the international arrivals for months due to airport closure in 2020.From thereafter COVID 19 terror slowly started to spread. The prompt actions were taken from the government to address the situation. Unprecedentedly the invisible enemy had reached to the core. Many rules and restrictions imposed for strict compliance on border crossings. Necessity of vaccination and Quarantine requirements had extreme impacts on freedom of travelers.Specially for the leisure and solo travelers.  As an outcome entire industry of tourism produced zero revenue from taxi driver to small food vendors to the high end that declined the GDP in 0.8%. Many tourism organizations retrenched their staff to minimize liquidation of the companies. According to SLTDA annual report 2020, total employment generation was 347 757 in industry of tourism and 80% were hotel and restaurants.

          source :SLTDA Annual report of 2018 ,2019 and 2020       

                

 source :SLTDA Annual report of 2018 ,2019 and 2020

Above two diagrams constructed by using the Data from SLTDA annual reports of 2018, 2019 and 2020 to have a better understanding of how the entire tourism industry changed drastically through the years of COVID 19 outbreak and Easter attack.  

To overcome the burden upon tourism, the liable authorizations of the government had given many concessions to regain the sustainability of the industry.  Many reliefs were continued after the Easter attack till the end of COVID. Even managed to endowed with World Travel and Tourism Council's Safe Travels Stamp to established travelers' safety domestically and internationally. Strategic approach was taken to support the industry in a responsible way by introducing bio bubble concept. Hotels were given for the quarantine centers for locals and international travelers. The beginning of 2021, Sri Lanka manage to open its airport for international travels providing PCR test results. Under several waves of COVID 19, many cross functional operations continue for cope with new normal.     

Post COVID And Political Instability,

 

The international and domestic traveler's perception of travelling became more sophisticated with COVID 19 protocols and travel bands. Instated of physicals contacts, the travel procedures became more digital. Due to resuming of airport operations, international travelers gradually arrived. From 2021 till beginning of 2022, there have been small improvement in tourism industry. According to the SLTDA annual statistics, the total arrival of tourist in 2021 was 194 495.  Compared with pre COVID year 2019, the declination was 89.84%. In addition to this the tourism revenue in 2021 was 506.9 US$ Million and receipt per tourist was 172.6 US$ and Annual occupancy rate was 18.96%.

 

 

 

source : SLTDA year in review 2021

Due to the mismanagement of government, many debts and COVID 19 pandemic led to the drastic economic setbacks. The increase of unemployment of migrant workers during COVID 19 pandemic, resulted to reduce remittance and unexpected collapsed of tourism industry caused zero revenues. 

Without long term strategic plan during Easter attack and pandemic, government happened to reduce taxations to stimulate the economy of the country. which unexpectedly increased domestics expenditures like for fuel, LP gas, medicine, food, electricity etc. than the total national income hence the large foreign exchange earners were not in expected potential. 

By printing money and unable to stabilize exchange rates could cause the inflation in the country that passed its’ peak point by haunting the entire society to rise up for the antigovernment protest call " go home Gota", Main hub for the protesters was Colombo, the commercial capital. Because of the instability of political, economic crisis and protests, international travelers were reluctant to visit Sri Lanka. Mainly because of fuel shortage caused difficulty in travelling inside the island and experienced in several power cuts through the day. According to the SLTDA statistics, Monthly tourist arrival report 2020, the number of tourists has arrived as follows,

source :SLTDA Annual report of 2021 and Monthly tourist arrival report 2020

conclusion , 
 

By carefully consider each challenge, there are many things that could have been done many years ago. According to my analysis and the brief discussions, Lack of proper exposure to the industry is one main point. To have a better understanding of product cycle is crucial. By studying of the theoretical concept of Butler's Tourism Area Life Cycle Model,1980, each aspect which are exploration, involvement, development, consolidations, stagnation and decline/ rejuvenation should carefully consider. Looking in to the statistical data of SLTDA, tourist arrivals, 2018,2019,2020,2021 and 2022 (monthly arrivals) the product growths as follows.

 

source :The statistic data of SLTDA , Tourist arrivals, 2018,2019,2020,2021 and 2022 ( monthly arrivals) 

This emphasize, as a destination, Sri Lanka was in stagnation level before the covid 19 and after the economical downfalls and how the product has drastically declined.  According to the world bank data of literacy rate, Sri Lanka has 92% in 2020 and continuously increasing. Another challenge could concern which effects on knowledge dissemination. The free education is granted everyone for better future. According to my point of view the benefits of free education are not remain within the country because of brain drain. Unavailability of standardized system and political influence, skilled and professionals try to find their carrier in foreign territories causing knowledge vacuum in all streams. It is vital that relevant professionals should be there to guide and supervise people in the tourism industry.  

As I mentioned earlier, we are not the only country that experienced terrorist attacks, COVID and economic crisis and political instability. If decision makers of the country were proactive rather than reactive could have avoid many dilemmas. The contingency plans are vital for inevitable situations. As a tourist destination we have many advantages in historically and geographically. None of the bodies of the industry do not get countries' true potential. Restructuring the organizations and Privatization are solutions given but the vibes are not always positive.It cannot be done overnight and may create monopolistic atmospheres. Unwittingly will experience unemployment and turnovers. When it comes to the tourism industry, people will start losing interest in micro and macro levels that could slow down the evolve of industry. The responsible bodies must understand the importance of local market and Asian market such as India, China rather Europe.

reference,  

Mandira Wijeratne, Sunday Observer (2019 June 2).Tourists to help boost Lankan tourism. Available at https://www.sundayobserver.lk/2019/06/02/news-features/tourists-help-boost-lankan-tourism

SLTDA Annual report (2018,2019,2021,2022); highlights. Available at https://www.sltda.gov.lk/en/statistics

SLTDA Monthly tourist arrival reports (2018,2019,2020,2021).  Available at https://www.sltda.gov.lk/en/statistics

SLTDA Year in review (2021). Available at https://www.sltda.gov.lk/en/statistics

SLTDA Statistic data (2022) : Monthly tourist arrivals .Available at https://www.sltda.gov.lk/en/statistics