Elevating tourism beyond ‘So Sri Lanka’: Strategies to make it happen

Sri Lanka’s tourism revival must be strategic, data-driven, and inclusive

Introduction

Tourism has long been envisioned as a key driver of economic growth in Sri Lanka, offering immense potential for employment, foreign exchange earnings, and regional development. The end of the civil war in 2009 sparked optimism, leading to steady tourism growth despite infrastructure challenges, human resource shortages, and gaps in destination marketing. However, setbacks such as the Easter attacks in 2019 and the COVID-19 pandemic reversed progress, crippling a sector that was on the verge of major expansion. 

The previous Government aimed to attract seven million tourists, creating over 60,000 jobs, yet global uncertainties derailed these ambitious targets. Despite these challenges, Sri Lanka—blessed with a rich cultural heritage, breathtaking landscapes, and a warm, hospitable community—retains tremendous potential for tourism recovery and growth.

To achieve and surpass the 3-million-visitor target, Sri Lanka must move beyond traditional marketing approaches, adopting data-driven, innovative, and collaborative tourism strategies. Countries such as Thailand, Malaysia, Singapore, and Greece have successfully recovered their tourism sectors through policy innovation, digital transformation, and private sector partnerships. Sri Lanka must leverage local resources, tap into emerging tourism trends, and apply global best practices to transform itself into a resilient, competitive tourism destination.

Reviving domestic tourism: the first step toward recovery

A key lesson from successful post-pandemic tourism recoveries is the importance of domestic travel as a stabilising force. Countries such as Japan and Australia have invested heavily in domestic tourism, ensuring that local travel remains strong even when international arrivals fluctuate. Sri Lanka must adopt a similar ‘Celebrate Sri Lanka’ approach, where locals are encouraged to explore their own country, sustain tourism businesses, and generate positive word-of-mouth marketing. 

A Government-led domestic travel incentive program can offer discounted stays, transport subsidies, and special packages for Sri Lankans, creating a vibrant local tourism economy. Thailand’s ‘We Travel Together’ program, which covered 30% of domestic tourism expenses, significantly boosted local travel and helped businesses stay afloat. Encouraging Sri Lankans to share travel experiences on social media can generate organic global interest, reinforcing the message that Sri Lanka remains one of the world’s most beautiful destinations.

Developing unique experiences with data-driven strategies

To compete with top-tier tourism destinations, Sri Lanka must prioritise experience-based tourism that aligns with visitor preferences. Dubai and Singapore use big data analytics and AI-powered travel recommendations to personalise visitor experiences. Sri Lanka should establish a Tourism Data Hub, leveraging information from booking platforms, social media, and industry stakeholders to identify high-value customer segments and emerging travel trends. A national tourism task force involving universities and IT experts could analyse data to develop customised, high-impact tourism offerings.

For example, there is growing demand for sustainable tourism, digital nomad programs, and wellness retreats. Countries like Costa Rica have built strong eco-tourism brands, while Bali and Thailand attract long-term visitors with ‘Work-from-Paradise’ incentives. Sri Lanka must integrate these trends into its strategy, developing eco-friendly lodges, co-working tourism hubs, and immersive cultural experiences. By using data insights to tailor tourism offerings, Sri Lanka can increase visitor satisfaction, repeat visits, and word-of-mouth recommendations.

Encouraging innovation and startups in tourism

Tourism needs constant reinvention to stay relevant in the global market. Countries like Malaysia and Singapore encourage innovation in tourism startups through grants, business incubators, and startup accelerators. Sri Lanka must create an enabling environment for tourism entrepreneurs, offering funding support, mentorship programs, and access to international markets.

New tourism experiences, such as immersive digital tours, adventure sports, and cultural homestays, can expand Sri Lanka’s appeal. The Government should partner with INGOs and corporate investors to provide funding for novel tourism ventures. Malaysia’s Tourism Recovery Fund, which provides matching grants for private sector-led marketing campaigns, can serve as a model. With public-private partnerships (PPPs), Sri Lanka can stimulate innovation, create jobs, and introduce fresh, high-value tourism products.

Optimising resources and competitive pricing

One of the biggest challenges Sri Lanka faces is high tourism costs compared to neighbouring destinations. Hotel rates, transportation fees, and tour packages must remain affordable to compete with India, Thailand, and Indonesia. Strategic resource optimisation—such as reducing operational costs, promoting off-peak travel, and increasing occupancy rates—can lower costs without compromising profitability.

Thailand and Malaysia have successfully offered tax incentives for hotels that lower prices, resulting in higher occupancy rates and extended visitor stays. Sri Lanka should introduce a Government-backed price stabilisation mechanism to ensure that pricing remains regionally competitive. Increasing the average length of stay through discounted long-term packages for digital nomads, retirees, and business travellers can maximise revenue per visitor while keeping costs manageable.

Strengthening the workforce and building industry pride

A skilled workforce is the foundation of a world-class tourism industry. Countries like Singapore and Germany invest heavily in tourism education, ensuring that employees receive continuous training and professional development. Sri Lanka must revitalise tourism training programs, integrating hospitality courses into secondary education, offering NVQ certifications, and providing scholarships for aspiring tourism professionals.

Introducing a national tourism employment scheme—including insurance, career advancement programs, and incentives for young professionals—can attract and retain talent. Rebuilding confidence in tourism careers is essential for long-term industry growth and sustainability.

Strengthening regulations and eliminating unethical practices

Tourism reputation management is critical. Countries like Thailand and Spain enforce strict tourism quality control measures to prevent scams, overpricing, and unethical competition. Sri Lanka must introduce a Zero-Tolerance Policy for issues such as fraudulent transactions, harassment, and environmental violations. A national tourism regulatory council should monitor and enforce quality standards, ensuring a safe and welcoming environment for visitors.

Encouraging greater collaboration between government, corporates, and SMEs can reduce internal competition, fostering industry-wide cooperation instead of price undercutting. A fair and transparent tourism ecosystem will enhance Sri Lanka’s global reputation, making it a trusted and attractive destination.

Digital transformation and private sector-led marketing

Most Sri Lankan tourism businesses rely on third-party booking platforms, leading to high commissions and lost revenue. Developing a national digital booking system—like India’s ‘Incredible India’ initiative—can help local operators regain market share. The government should provide digital literacy training to SMEs, enabling them to market directly to consumers and increase profitability.

Furthermore, Malaysia’s compensated marketing model, which funds private tourism promotions, could be replicated in Sri Lanka. Incentivising tourism operators to invest in global marketing will enhance destination visibility and competitiveness.

A roadmap for success

Sri Lanka’s tourism revival must be strategic, data-driven, and inclusive. By adopting global best practices, focusing on local resources, and implementing collaborative policies, the country can attract millions of tourists, create employment, and position itself as a leading global destination. Now is the time for Sri Lanka’s tourism sector to evolve, innovate, and thrive beyond ‘So Sri Lanka’.

The future of Sri Lankan tourism is in our hands—let’s make it happen! 

(The writer is a Consultant/Strategist.)