Tourism industry’s growth hit by visa issuance crisis

• First 23 days of September draw 92,639 tourists, pushing YTD figure to over 1.45 m visitors
• Over 30% decline in arrivals during first 23 days of September compared to same period in August and July
• Average daily arrivals drop from over 6,000 in previous two months to 4,028 in September

By Charumini de Silva

Sri Lanka’s tourism industry has been grappling with a significant decline in arrivals due to the recent crisis over the visa issuance process. According to the latest data released by the Sri Lanka Tourism Development Authority (SLTDA), the country welcomed 92,639 tourists during the first 23 days of September, pushing the year-to-date (YTD) figure to over 1.45 million arrivals. 

However, this marks a sharp decrease compared to the same period of the previous two months, with arrivals dropping by over 30%.

The first 23 days of August saw 135,839 visitors, while in the same period of July registered 139,927 tourists, representing 32% and 34% decrease respectively.

The data also show a drop in average daily arrivals from over 6,000 in previous months to just 4,028 in the first 23 days of September. For September, SLTDA is targeting 150,983 tourists. However, the monthly targets were not achieved during the last eight months.

Tourism industry stakeholders estimate that Sri Lanka may have lost around 100,000 potential visitors since last month, leading to an economic loss of over $ 200 million. Adding to the industry’s woes, over 60% of forward bookings have been cancelled following the visa process confusion, severely impacting the expectations for the upcoming winter season.

Stakeholders attribute the crisis to the Department of Immigration and Emigration’s (DIE) failure to comply with the Supreme Court’s ruling on 2 August to reinstate the Electronic Travel Authorisation (ETA) system. “This confusion over visa issuance made it difficult to reassure our agents and clients abroad,” they lamented.

Some tourists reached out to the Daily FT and shared their frustration about the inconveniences faced at the on-arrival visa counters at the Bandaranaike International Airport (BIA).

“When I handed over my card, they asked to make cash payment. There was no signage that it was only possible to pay for visa via cash,” said an irritated traveller from the UK, adding that the process was particularly inconvenient after a long haul flight.

Another visitor described the long wait times to get a visa as “absurd”.

A family travelling to Sri Lanka noted that their toddlers, who are under 12 years old, were required to pay $ 100 for visas ̶ an unexpected expense. They also claimed that the receipt they received stated as “ETA processing fees”, when there was no such system in place. Under measures announced yesterday, children under 12 will not be required to pay for their visa.

“If Sri Lanka plans to develop tourism, it needs better facilitation,” said the parent, noting that their first impression about Sri Lanka was far from ideal.

During the first 23 days of September, India continued lead the tourist traffic with 19,646 arrivals, followed by the UK with 7,041 and Germany with 6,593. India remains the largest source market YTD, with a total of 278,318 arrivals, followed by the UK with 134,817 tourists while Russia occupies the third spot with 126,240 visitors.

For 2024, Sri Lanka aims to draw 2.3 million tourists and generate over $ 4 billion in revenue. “If the situation persists, it will be impossible to meet its 2.3 arrivals goal or at least get 2 million tourists by the end of 2024,” industry stakeholders said.