THASL President lists key focus points for tourism development
Thursday, 31 October 2013 00:19
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New motto for the industry should be ‘Quality and value are the keys to success – product development is how we deliver’
By Cheranka Mendis
The tourism industry must look beyond infrastructure projects and programs as the only pillars on which success can be built and forge ahead with the motto ‘Quality and value are the keys to success – product development is how we deliver,’ while acknowledging the global trends in the market.
The increase in tourism numbers in the recent years as a post-war country has resulted in annual average hotel occupancy rising to 73% over the last three years from the previous 50% position.
For the industry to fully capture this ‘new growth’ and face the mounting competition from the neighbouring countries, it must diversify its source markets and address issues at hand with a continuous focus on improving the current base.
Listing out what more has to be done in order to reach the targeted 2.5 million visitors by 2016, The Hotels Association of Sri Lanka (THASL) President J. Kehelpannala on Monday noted that the industry must work together to put in place necessary measures for development.
Product development
With so many destinations aggressively seeking a slice of the international tourism pie, Sri Lanka can no longer solely depend on its beauty, climate and ‘low cost destination’ tag, he said. “We have to become more professional.”
Kehelpannala assured that the need of the hour is to develop a host of programs that include training and education, culinary development and sustainable tourism for environmental management, among many others – all geared to help Sri Lankan hoteliers increase the quality of their product and their competitiveness.
“Whilst we have delivered on being a friendly and warm destination that is truly welcoming, we need to do more. No longer can we rely on the natural beauty of our land, such as the beaches, the diversity of our landscape and the historical and cultural monuments. There is a new concern for product development.”
Attracting the emerging market
UNWTO has forecasted international tourist arrivals to continue on a growth path to reach 1.6 billion annually by 2020 with travellers spending over US$ 2 trillion.
“I believe that by diversifying our source markets to include the leading emerging economies in Asia, we are on the right path to increase our arrivals to the country,” Kehelpannala said. “These countries will have the greatest impact on the tourism industry in the future.”
It is believed that by 2015, emerging economies will surpass advanced economies in supplying international tourists.
Awareness creation
Through its advocacy efforts, THASL works to sensitise public officials, the communities, and the industry itself, about its role and contribution as a foremost export sector paving the way for a climate conducive for the sustainable development of tourism in the island.
However, awareness and understanding of the tourism industry contribution still remain insufficient. Society must be reminded that “tourism business means jobs” – i.e. jobs not only in hotels but in areas such as taxi drivers, restaurants, farmers and fishermen, seamstresses, crafts people, shopkeepers and manufacturers, etc.
Kehelpannala remarked that the World Travel and Tourism Council (WTTC) estimates have shown that for every 100 direct jobs created in the tourism sector in Sri Lanka, there are some 140 indirect jobs generated in the supply sectors.
“Fortunately, we have a Government that publicly recognises the importance of tourism. For us too, it has the very real potential for economic development. We will continue its advocacy efforts as we face the future.”
Staff retention and expansion
Serious notice must be taken on addressing the current staff shortage that exists in the industry. As more hotels open and competition among hotel operators intensify, the hospitality trade must prepare to face what could be the single biggest challenge of the industry, he said.
In the backdrop of workers choosing to seek jobs overseas and the lack of suitably trained employees, hotels will have to spend more money on marketing to attract new workers and take on the costs of training, Kehelpannala expressed, adding that the industry must also look at attracting international hotel schools to set up shop here.
“While we support our own Institute of Tourism and Hospitality Management School to become a world class education provider, we need to attract more tourism related internationally acclaimed schools to set up in Sri Lanka.”
He warned that unless this is done soon, having more hotels with a lack of experienced workers is bound to be a big squeeze on profitability for the industry.
Shaping the policy debate
Looking ahead, the industry will face increasing global competition, especially from the neighbouring countries.
If Sri Lanka would like a place as one of the world’s leading tourist destinations, the country needs to provide the ‘oxygen’ to the hospitality businesses. The oxygen here are the practical impact assessments, balanced legislation, reduction of red tape, competitive energy tariffs, improved access to finance and lower taxation. These were noted as essential ingredients for speedy growth.
“I think it is essential that we seek to shape the policy debate affecting the hospitality sector in a proactive manner. I believe that the bottom-up approach and the industry-driven initiatives undertaken by THASL and its Member Associations are crucial to achieve this objective.”
“We must continue our focus to improve on our current base and help take a quantum leap for the betterment of our industry. We now need to build on what we have achieved, for tomorrow, for 2016 and beyond!”
Pix by Sameera Wijesinghe
