Ravi Thambaiyah’s take on tourism sector prospects and challenges

The current positive post-war momentum in the tourism industry of Sri Lanka has encouraged optimism and investment in the sector, despite the looming global economic crisis. Although the 31% growth in arrivals to 855,975 tourists in 2011 is encouraging, the Sri Lankan tourism industry is yet to introduce and accelerate initiatives to attract and seize potential tourists, not only to meet the Government’s target of 2.5 million tourist arrivals by 2016,

but to sustain the accommodation products currently in the pipeline. With severe competition from other countries in the Asian region it will be increasingly difficult to divert potential tourists to Sri Lanka without improvements in the tourism product in terms of entertainment to attract high spending tourists and their families.

At this juncture, the public and private sectors need to jointly introduce significant attractions to entertain the diverse needs of today’s tourists. What we need to realise is that, in the hospitality industry, demand changes with time. Despite our country having a unique heritage; if it is not marketed appropriately and adequately, its true benefit in a tourism sense will be minimal. Therefore focus should be on strategic positioning, establishing a unique selling point and investment in promoting our island to enhance its image, not only for its natural beauty but to add value to the tourism experience.

It is timely at this juncture to commend the Government’s initiatives in promoting the tourism industry through better infrastructure. Visible initiatives during the year such as the beautification of Colombo City and many other towns, the introduction of air taxi services to make more areas of the country accessible to both tourists and locals alike, completion of the Southern Highway up to Galle and the initiative to have an additional airport in Hambantota all deserve mention.

Maintaining a good standard of quality is also critical to the hospitality industry. With the accelerated growth of hotel rooms, the demand for skilled and unskilled human resources will appreciate exponentially. Swift action is needed to educate youth from their time in school about the benefits of the hospitality trade with particular mention about the lucrative nature of working in the hospitality industry. Existing members of the trade should also be educated continuously in the new products and services available. (Extracts from the Chairman’s Review in the Renuka City Hotels Plc’s Annual Report for FY2011/12.)