Sri Lanka’s tourism industry is steadily growing, with two million tourist arrivals expected this year, while 2.5 million visitors for 2025 seems achievable with the current progress. 

However, the set target of three million tourists will need a strong and consistent marketing plan. Experts highlight the importance of starting this campaign early in 2025 in order to attract more visitors and showcase Sri Lanka as a top travel destination. 

In an interview with The Sunday Morning Business, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nalin Jayasundera shared that the association had held discussions and presented a comprehensive set of proposals to the new Chairperson of the Sri Lanka Tourism Development Authority (SLTDA), outlining 13 key points that required attention. 

Jayasundera highlighted that from mid-December onwards, bookings would pick up and continue until Easter next year. He noted that the current bookings were looking promising, especially for beach hotels, which were performing well.  

Following are excerpts:

What is the status of the tourism industry at present and has the global economic slowdown impacted tourist arrivals to Sri Lanka?

Currently, Sri Lanka’s tourism industry is in a positive position and we expect the number of arrivals and the contribution from tourism to increase, especially starting in 2025. The Government has set a target of welcoming three million tourists by 2025. However, this goal can only be achieved with a well-planned and sustained marketing campaign.

Launching an effective marketing campaign at the beginning of 2025 is crucial. While we are likely to see growth in the tourism industry, achieving a 50% increase in arrivals will not be easy. It’s not impossible, but it will require a targeted and consistent marketing effort.

In terms of tourism revenue, we anticipate it to increase proportionally next year commensurate to the number of arrivals. This year, we expect around two million tourist arrivals, but I believe we can easily reach a target of 2.5 million tourists next year. 

However, a leap to three million tourists would require significant effort. A 50% increase can only be accomplished with a proper and sustained marketing strategy, and it is essential to launch it early in 2025.

What are the countries the tourism industry is focusing on if it plans a promotional campaign? 

When planning a promotional campaign, we need to consider both traditional markets and emerging ones. Traditional markets include the UK, Germany, and France, while Russia and the Commonwealth of Independent States (CIS) are emerging markets we are focusing on.

China, though important, has not been delivering the numbers we anticipated, so we need to launch a targeted campaign there as well.

However, the most significant market, especially when it comes to the number of tourists (pax), is India. Being our neighbouring country, India should be a major focus. Moreover, the Indian market is generally risk-averse, so regardless of any issues, they are likely to travel. India’s proximity, growing economy, increasing disposable income, and improved airline connectivity all make it a key market for Sri Lanka.

For example, travel time is only about three hours from New Delhi, around two-and-a-half hours from Mumbai, and just one-and-a-half hours from South India. With a large population and rising disposable income, India is crucial for our tourism growth. Therefore, we need to have a comprehensive plan for the Indian market.

Moreover, SLAITO had discussions and presented a comprehensive set of proposals to the new Chairperson of the SLTDA, outlining 13 key points that require attention. These include enhancing promotional and marketing efforts for Sri Lanka’s tourism sector, implementing regulations to ensure a level playing field for all industry stakeholders, and creating a link and fostering better collaboration among relevant ministries such as Aviation, Ports, and Wildlife as well as the Cultural Affairs Department.

Additionally, we emphasised the need to regulate illegal business activities within the sector to maintain standards and fairness.

From an infrastructure perspective, we highlighted the importance of airport development and expediting the completion of key projects, such as the Kandy highway. Completing the highway is crucial, as it will significantly improve access to the northern, central, and eastern parts of the country. Reducing travel time will enhance the ease of movement and improve the overall travel experience for both locals and tourists.

The Government previously proposed allowing Destination Management Companies (DMCs) and hoteliers to import vehicles for tourism purposes. What is the current status of this initiative?

The previous Government, towards the latter part of its tenure, announced that the tourism industry would be allowed to import vehicles based on specific criteria. DMCs and hoteliers were included in this scheme.

Currently, I believe the orders for these vehicles have been placed and we are awaiting their arrival. The tourism sector urgently needs these vehicles because the ones we are operating now must meet certain international standards expected by tour operators and customers. Without adhering to these standards, it will be challenging for us to compete with other international destinations.

Transportation is a critical component of our overall tourism package since visitors spend significant amounts of time inside these vehicles. They need to be comfortable, technically sound, and meet modern expectations.

In my opinion, we require at least 1,000 vehicles, including buses, vans, cars, and micros, to meet demand. If the country is aiming to reach the 2025 target of three million tourists, having adequate vehicles is essential. 

Additionally, we need to address other factors such as well-trained guides and robust marketing campaigns. While it’s a challenging target, it is achievable if we tackle key issues such as transportation and promotion effectively.

Are industry stakeholders satisfied with Sri Lanka Tourism Promotion Bureau (SLTPB) promotions and the support received from the Government?

The discussions we’ve had so far with the relevant authorities show that their intentions are good. However, the real challenge lies in converting those intentions into action, with implementation being the most significant factor.

When we met with the SLTDA Chairman, he noted that they were planning to launch an effective campaign in the first quarter of next year, covering January, February, and March.

How has the inbound tourism industry in Sri Lanka performed this year compared to previous years? 

There is definitely an increase. In 2023, we had only 1.4 million tourists. This year, we have already reached about 1.8 million, and by the end of December – generally a good month for arrivals – we are likely to come close to two million. Therefore, we will be growing to almost two million from 1.4 million, showing Year-on-Year (YoY) growth.  

However, we still haven’t reached the 2018 level, which was the best year with 2.3 million tourists. If we don’t launch a proper marketing campaign, we might reach about 2.5 million next year due to organic or normal growth. But with an effective marketing campaign and everything in order, we can achieve even higher numbers.

Do you see the winter bookings progressing well?   

Yes, from mid-December onwards, bookings will pick up and continue until Easter next year. The current bookings are looking very promising, especially for beach hotels, which are performing exceptionally well.  

The Russian market will be the main driver during the winter season, with strong demand supported by charter flights. Markets like the UK, Germany, and France will also show significant growth, followed by the CIS and Eastern European regions. Meanwhile, India will maintain its steady growth as usual. Overall, Russia will be a key player this season.

What are SLAITO’s key strategies to boost inbound tourism in the coming years? 

SLAITO consists of around 200 members and is one of three associations recognised under the Tourism Act, alongside The Hotels Association of Sri Lanka (THASL) and the Travel Agents’ Association of Sri Lanka (TAASL). When it comes to inbound tourism, SLAITO plays a major role.

This year, SLAITO members collectively incurred a cost of about Rs. 2 billion to promote Sri Lanka as a destination. This is in addition to the Tourism Development Levy (TDL) we pay to the Government. Our members have individually promoted the destination through their own efforts.

Additionally, SLAITO has worked collectively with the SLTPB to attend travel fairs, organise roadshows, and host influencers and bloggers. These initiatives have been crucial in boosting visibility for the destination.

One major issue we faced was with visa-related matters, which has now been resolved. Moving forward, we expect tourist numbers to increase. However, I must emphasise the importance of launching a proper, effective, and sustained marketing campaign to maximise our potential.

What improvements in infrastructure or Government policies are crucial for the growth of inbound tourism? 

Firstly, the Bandaranaike International Airport (BIA) expansion programme is critical. The BIA was designed to cater to a certain number of travellers, but with increased arrivals, it is no longer adequate. The first and last impression for any traveller is at the airport, so if it’s not up to standard, it reflects poorly on tourism. This expansion needs to be expedited.

Secondly, we are requesting the completion of the Kandy highway. Only one stage has been completed, but once fully constructed, it will significantly improve accessibility to key tourist regions, including the north-central, eastern, and central parts of the country. This will be a major boost for tourism.

Additionally, we are requesting the Government to establish a scheduled air service to the eastern coast. Currently, there are seaplanes, but they are too expensive. A more cost-effective option would be fixed-wing aircraft with a capacity of around 50 passengers, operating on a regular schedule.

Regarding SriLankan Airlines, there are ongoing discussions about whether it should be privatised or remain with the Government. Our view is that the airline must increase its fleet size to be more effective. This would enable it to expand its network and increase flight frequency, which is crucial for tourism. For example, while it operates to Germany, France, and the UK, it does not cover many other European destinations or regions like Russia.

SriLankan Airlines and Sri Lanka Tourism need to work closely together to maximise synergies. While privatisation is a decision for the Government, collaborating with the private sector or investors could help address financial constraints and expand the airline’s capacity and reach.

We recognise the challenges posed by the current economic crisis and the International Monetary Fund (IMF) situation, but our wish list includes more aircraft, an expanded network, and stronger partnerships with other airlines to improve connectivity and boost tourism.

What is Sri Lanka’s potential for high-end tourism? Have we surpassed our tourism target for this year?

Sri Lanka has great potential to be a sought-after destination for high-end clients because we have the right product in place. By ‘product,’ I mean the range of activities and experiences we offer, which are attractive to high-end travellers.

For high-end tourism, the room capacity is adequate during certain periods, like the winter season, when demand is high. However, it’s not a year-round situation. To truly capitalise on high-end tourism, Sri Lanka must be marketed as a year-round destination.

Our strategy should focus on identifying and targeting source markets that travel during the off-season. For example, during the European summer, we can promote the east coast of Sri Lanka, which offers great beaches. However, accessibility remains a challenge, as travellers don’t like to spend 6-7 hours on the road. Improved infrastructure and reasonably priced activities in these areas could make them more appealing to high-end tourists.

Sri Lanka will not achieve the target of 2.5 million arrivals set by Sri Lanka Tourism for this year. We are likely to end up with about two million arrivals. Several issues, such as visa challenges, frequent elections, and insufficient promotional campaigns, have impacted our ability to meet this target.

With tourists moving out of Colombo City due to limited entertainment, are there plans to make the city more appealing?

Currently, there is no shortage of rooms in Colombo. The issue lies in the lack of a proper calendar of events and effective marketing. This is something we have requested the tourism authorities and city hoteliers to work on together. A well-planned calendar of events is essential to attract tourists to Colombo.

For example, there could be regular events like concerts or unique cultural activities. Even something as simple as bar-hopping nights can be marketed effectively. On a larger scale, we could invite megastars to perform or host international shows. Events like these would create buzz and draw people to the city.

With proper planning and collaboration, these events can be managed cost-effectively. For example, once events gain popularity and tourists know about them in advance, they would naturally attract a larger audience, covering the costs and even generating revenue.

Moreover, we have the potential to attract more Meetings, Incentives, Conferences, and Exhibitions (MICE) business, and we are already seeing an increase in inquiries from various countries. Colombo has excellent facilities for MICE events, but with better marketing and more targeted efforts, we can maximise this potential and establish the city as a key MICE destination.

PHOTO ISHAN SANJEEWA