Tourism plays a significant role globally, serving as a growing industry sector. It has emerged as a crucial component of the Gross Domestic Product in both developing and developed nations and for Sri Lanka, as a developing nation, domestic tourism is indeed important.
The Covid-19 pandemic has prompted stakeholders of Sri Lanka’s tourism industry to recognise both the potential and necessity of domestic tourism.
However, has this potential been properly recognised and enhanced?
TTourism plays a significant role globally, serving as a growing industry sector. It has emerged as a crucial component of the Gross Domestic Product in both developing and developed nations and for Sri Lanka, as a developing nation, domestic tourism is indeed important.
The Covid-19 pandemic has prompted stakeholders of Sri Lanka’s tourism industry to recognise both the potential and necessity of domestic tourism.
However, has this potential been properly recognised and enhanced?
Significant signs of improvement
Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu, speaking to The Sunday Morning Business, said: “We can only monitor international tourism. We cannot monitor local tourism as that can only be done by the private sector as we don’t get the data. We get the details from the Civil Aviation Authority and the Central Bank discusses the revenue in terms of the tourist spend in Sri Lanka. However, monitoring domestic tourism is difficult.”
“Nevertheless, we have heard from hoteliers that local tourists had occupied the hotels during the holidays. For example, on the night of 31 December, hotels were 90% sold out in Colombo, down south, and islandwide. In Colombo, all five-star hotels and dinner buffets were sold out,” he added.
He asserted that both international and local tourism had experienced a significant upward trend during December 2023, with hotels being 100% full from down south to even Dambulla and Sigiriya. Even in Colombo, especially during the last two weeks of December 2023, all five-star hotels had been fully packed, he added.
The SLTPB Chairman noted that international tourism had seen significant improvement compared to the previous years.
“December 2023 was the best month we had in four years. Overall, after the pandemic, it had the best figures,” he said.
Gajabahu revealed that there would be a campaign this year to encourage domestic tourism, which would be a 360-degree campaign intended to both encourage Sri Lankans to travel locally and to also make them understand how important tourism was for the economy.
“Tourism is the second biggest forex earner for the country with a GDP contribution of 4-5% and this year’s target for tourist arrivals is 2.3 million. Therefore, we need to ensure that there is no negative feedback in terms of the tourism industry.
“Despite all the good things, one piece of negative media publicity will harm the country’s image. Therefore, we need to educate people on how important tourism is for the country and to ensure that all Sri Lankans understand the importance of being welcoming and hospitable. It is a national effort,” he concluded.
December 2023 tourism and ongoing initiatives
Meanwhile, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando noted that the bookings for December 2023 had been a mix of international and local tourists, with most resort hotels and other hotels being almost full and locals too making a contribution.
“It will be around 8 or 9 January by the time returns are filed at the hotels, so precise details on the number of rooms booked by locals and foreigners are not available yet. However, locals have been visiting hotels and occupancy levels have been satisfactory. Even domestic tourist resorts registered very good occupancy, such as those in Nuwara Eliya, Bandarawela, Kataragama, and Anuradhapura,” Fernando noted.
Addressing how this compared to previous years, he noted that while details were not available yet, he was confident that the numbers for December 2023 would be an improvement compared to December 2022.
He further stated that they were facilitating initiatives to promote local tourism at a provincial level. Given that there are over 50,000 rooms in the accommodation structure of the formal sector under different categories such as villas, boutique hotels, five-star guest houses, and homestay programmes, there are options to suit the individual budget.
However, when it comes to local tourists, a larger percentage uses guest houses, although there is a certain proportion which occupies higher-end accommodation as well.
“We are encouraging SMEs to cater more towards local demand, especially in places like Kandy, Anuradhapura, Kataragama, and Tissamaharama which are frequently visited by locals. There is great potential in these areas and based on emerging trends, people can even establish and improve homestays to accommodate local tourists,” he noted.
Much to be done
However, speaking to The Sunday Morning Business, The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar said that local tourism levels were almost the same as in December 2022 and that hotels had not seen an upward trend. He also noted that many things could be done to promote local tourism, but that it depended on the affordability of local hotels.
Meanwhile, Sigiriya Tourism Association President O.K.D. Chaminda Jayantha said: “There is no way to calculate how many local tourists contributed in December 2023, because there is no mechanism to do so.”
He however said that given the two separate ticketing systems in Sigiriya for locals and foreigners, the numbers could be calculated, noting that local tourists to Sigiriya had increased.
Jayantha further pointed out that no initiatives were being taken by the authorities to promote local tourism: “Unless locals visit Sigiriya on their own through annual tours, etc., there are no promotions to improve local tourism by the SLTPB or the SLTDA.”
