Sri Lanka is strategically located in the Indian Ocean, providing accessibility to numerous countries whose voyages pass through its waters. Travellers often anchor at the island for a short period before continuing to their next destination. This accessibility has created many opportunities for Sri Lanka, particularly in cruise tourism.
In the current situation, where the Government is intensely focused on elevating the country’s position in tourism, reports suggest that Sri Lanka is anticipated to welcome an increased number of cruise tourism passengers in 2024.
Sri Lanka Tourism Development Authority (SLTDA) Director General Nalin Perera, speaking to The Sunday Morning Business, noted that cruise tourism was a well-organised arrangement as cruises played a major role in promoting tourism.
“Most people who come on a cruise stay for a short period, so we have the opportunity to showcase the country and specific places. When they see just a glimpse of what we offer, we create a desire in them to return. This aspect is advantageous; it’s like a teaser that reveals only a portion of the country, making them want to return. Generally, a cruise visit can be as short as a few hours or a day or two. Therefore, the success rate can be very high, leading to excellent results. This is especially true for Sri Lanka, given its strategic location as an island,” he said.
Perera further noted that a considerable amount of work was currently in the planning stages and several top travel agents were closely collaborating with numerous cruise lines. He said that given the need to streamline specific processes to ensure a smoother exit for cruise ships once they arrived at the port, they were focused on providing the necessary facilities, such as transportation and accommodation, to meet the requirements of tourists.
This carefully-crafted ecosystem aimed to maximise the experience of the tourists during their stay in the country, he noted.
Perera also said that cruise liners strategically positioned their offerings to cater to a mature demographic, given that a significant portion of cruise-goers consisted of retirees who preferred extended voyages.
In addition to these prolonged cruises, there are shorter options that attract younger tourists for brief visits. Perera observed that the majority of Western cruise lines arriving in Sri Lanka primarily targeted mature audiences interested in longer cruise experiences.
“We are working very closely with the Sri Lanka Tourist Police to ensure the protection and safety of tourists visiting Sri Lanka. As a nation, every citizen has the responsibility to treat visitors to our country in a respectful and hospitable manner,” he stressed.
According to reports, the number of tourists who visited Sri Lanka by sea in 2023 was 43,288, with the highest number of tourists having arrived from India, amounting to 9,586.
SLTDA Chairman Priantha Fernando noted that a typical tourist spent around $ 180-185, whereas cruise passengers tended to spend three to four times more, being known for their high spending habits. However, since their stay in Sri Lanka was limited to one or two days, the spending per tourist would be less, he pointed out.
“However, it can do a lot of good for the image of the destination. We have to consider a mix of different tourist segments as we move forward,” he noted.
Benefits for the local community
Fernando observed that the inflow of cruise visitors presented opportunities for local Small and Medium-sized Enterprises (SMEs) at points of arrival: “For instance, at the Colombo Port, these SMEs can operate stalls selling handicrafts, creating a boost in business. This extends to three-wheelers and car rental companies, generating increased economic activity. Our focus is on attracting a diverse range of tourists and we aim to encourage more cruisers to dock in Colombo.”
Meanwhile, Sri Lanka Tourism Promotion Bureau (SLTPB) Director Marketing Dushan Wickramasuriya outlined the promotional activities related to cruise tourism in Sri Lanka: “We have been promoting cruise tourism at events. Sri Lanka Tourism participates in various events, travel fairs, and road shows. During these gatherings, we engage with tour operators and other stakeholders involved in cruise tourism. This is one way we create awareness of the cruise tourism segment.”
He also said that while they had actively participated in such events prior to Covid-19, these promotion efforts needed to be restarted, focusing on events directly related to cruise tourism. Meanwhile, the destination continues to be promoted for cruise tourism through digital social media platforms.
Reception of Cordelia Cruises
Commenting on Cordelia Cruises, which commenced operations this year, SLTDA Chairman Fernando said that discussions had been held with the cruise on strategies to increase cruise calls.
“Initially, Cordelia Cruises had designated specific times of the year for cruise calls. They planned about three or four calls for last year, which were completed successfully, and they are set to resume this year,” he said.
“While the income from Cordelia Cruises was good, it didn’t match the magnitude of income from European or American cruise liners that handle calls and excursions. However, considering that this is the initial phase, with direct routes from Chennai to Hambantota and Trincomalee, it marks a promising start,” Fernando said.
“We aim to make the excursions equally memorable for cruise passengers. We collaborate closely with local Destination Management Companies (DMC) engaged in the cruise tourism segment, providing support in terms of welcoming the cruise passengers,” he said.
“To attract more cruise liners to Sri Lanka, we need to focus on establishing connections with operators such as Condé Nast or Cordelia,” Fernando said.
According to him, the main target markets to promote cruise tours to Sri Lanka are India, the US, the UK, Germany, and Busan, Korea, with Busan being a significant hub for cruise tourism.
Moreover, Fernando assured that there was a demand for cruise tourism to Sri Lanka, since even after the pandemic and the economic crisis – not even 12 months later – they had witnessed an increase in coastal calls to Sri Lanka.
“In December alone there were four cruise liners that arrived in Sri Lanka. There is definitely a demand and it’s also good for the local operators because they are involved in the excursions. That has an indirect impact on the tourist arrivals and revenue in Sri Lanka. Although they’re short stays, the visitors belong to the high-income category of those who will spend money in Sri Lanka,” Fernando said.
According to reports, Celebrity Millennium, Island Princess, Resilient Lady, AIDAstella, Mein Schiff 5, and Mein Schiff 6 are the main cruise ships expected to carry a majority of passengers – more than 2,000 individuals each – to Sri Lanka in 2024.
Plans for port extensions
Speaking to The Sunday Morning Business, Aitken Spence Travels General Manager Dilakshan Perera outlined the inclusion of additional ports such as Hambantota and Trincomalee, in addition to Colombo, for the cruises, with this expansion aiming to enhance both the excursions and the duration of passengers’ stays.
“Before the Covid-19 pandemic and the subsequent economic crisis, we actively pursued cruise operators to visit Sri Lanka. Initially, our focus was on the Colombo Port and our primary strategy involved attracting passenger cruises. We have successfully expanded our efforts to include other ports such as Hambantota and Trincomalee, distributing the benefits of the business across the country and showcasing Sri Lanka,” Perera said.
He noted that the target for 2024 was to have around 80% of the cruises arriving in Sri Lanka calling at one additional port: “In the pre-pandemic era, the majority were centred in Colombo, but our success has grown since then. For instance, in 2023, about 50% of our cruisers were already calling at one more port at least and we aim to increase this percentage significantly by 2024.”
Plans for extended excursions
Perera also highlighted the importance of encouraging cruise passengers to extend their stay. While tourists typically engaged in one-day activities, Perera noted that the goal was to persuade them to stay overnight, which had been achieved with a certain degree of success, with tourists now opting to stay overnight in Colombo and Hambantota.
“Typically, around 60% of passengers onboard book pre-excursions. However, we’ve successfully increased that percentage to about 80% and it reflects a well-organised arrangement on our part. Additionally, the spending power of cruise passengers has seen a significant rise,” he revealed.
Another strategy involves refining the product offerings (tours), with Perera noting that they prioritised sustainable products and aimed to diversify their portfolio to better align with the company’s offerings.
“In 2024, we expect to have over 55-60 cruise calls, accommodating more than 30,000 visitors. Following the pandemic, we seized the opportunity to meet with cruise operators, convincing them to choose our destination. This proactive approach demonstrated leadership, instilling confidence in operators to collaborate with us,” he noted.
According to the anticipated schedule for 2024, Oceania Riviera is expected to bring 1,447 passengers on 31 December.
