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Carrying tourism through a pandemic

30 Jun 2021

  • Tourism industry looks ahead amidst Covid-19

By Sumudu Chamara   Instead of the ideal of returning to complete normalcy in a Covid-19 free environment, the world is now focusing more on embracing what has come to be known as “the new normal”, as that is identified by most as the way out of the crisis begotten by the Covid-19 pandemic.  Adapting to the new normal is also the way forward for Sri Lanka’s tourism industry, according to both industry employees as well as relevant authorities, and this would make the industry’s survival possible, in a context where there is no assurance of its revival. The impact the pandemic has on the tourism industry, and also on the country’s economy, has been a topic of discussion in the past few months, especially due to the tourism industry being one of the foremost sources of foreign exchange for Sri Lanka. This discussion, however, is evolving with the pandemic situation, and it is obvious that changing the ways used to address this situation is the key to overcoming it. To look into the state of Sri Lanka’s tourism industry, and how soon and in what ways it can be revived, The Morning spoke to several persons who play key roles in the industry.   Impact on industry and economy The impact the pandemic has had on Sri Lanka’s tourism industry, which is the bread and butter of approximately 3 million Sri Lankans employed in the sector, both directly and indirectly, has been devastating, according to the country’s tourism regulator, the Sri Lanka Tourism Development Authority (SLTDA). The industry includes a large number of stakeholders including accommodation providers from five-star hotels to home-stay operators, travel agents, restaurants, shops, event management companies, meetings, incentives, conferences, and exhibitions (MICE) service providers, artists, wellness and adventure-related service providers, tour guides, drivers, and informal sector workers. According to SLTDA Chairperson Kimarli Fernando, the industry has faced a double whammy from the Easter Sunday attacks in 2019, and the pandemic that started in early 2020, being directly and heavily impacted by both events. She added that the tourism industry, unlike other industries, provides foreign exchange that has a positive impact on the ret of the economy, from the biggest corporates to small and medium enterprises (SMEs), and the impact on the industry has therefore been felt badly by those who have directly invested in the industry and the many providers of products and services, including Government agencies depending on tourism. The implementation of the concept called the “travel biological bubble”, which attracted both appreciation and opposition from various parties, is one of the measures the SLTDA implemented in a bid to lessen the impact experienced by the tourism industry, according to Fernando. She explained: “However, despite the huge support given to the industry, we are well aware of the devastating impact caused by the Easter Sunday bombings and the subsequent pandemic. To support our citizens and our industry, we created a ‘travel bio bubble’ concept, and the idea was to open up the industry in a responsible manner, which enables international travellers to visit and travel the island while remaining in a bubble.  “The travel bio-bubble concept in fact enabled Sri Lanka to be recognised by the world travel and tourism sector, and Sri Lanka received the ‘Safe Travel Stamp’ as well. In fact, Sri Lanka was the first in this part of the world to receive it, and international media too recognised the use of this unique concept.” Adding that even though the travel bio-bubble concept was introduced by the country’s tourism authorities, all other health guidelines that the tourists were required to adhere to were set by the Health Ministry, she said: “Health guidelines, however, have to be distinguished from the travel bio-bubble concept. Various aspects of the health guidelines, such as PCR tests, the length of the quarantine period, and requirements pertaining to vaccination were decided by the Health Ministry, and not by the SLTDA. The SLTDA, however, took decisions regarding travel-related aspects.” The travel bio-bubble concept was welcomed as a positive move by foremost tourism industry professionals, such as The Hotels Association of Sri Lanka (THASL) President Sanath Ukwatte, who observed that it is a very unique, safe, and secure way of promoting tourism. He added: “This concept was developed by the SLTDA to open Sri Lanka’s doors to the world under what is known as the ‘new normal’. We were one of the countries that pioneered this system, and today, a number of other countries are also following the same method. After almost six months, Sri Lanka has had less than 1% of the total Covid-19 positive cases due to this, and those cases too have been successfully managed through measures such as quarantine. Also, we have no evidence whatsoever to suggest that the tourism industry has caused a spread of the virus in the country.” “The Government should look at long term plans for conducting day to day business amidst the pandemic. The virus is very unlikely to disappear for years to come, and we have to accept it, and we have to therefore look for ways as to how we can continue with our lives and businesses, and learn to live with it. A few countries have opened up for tourism and are managing the outbreak, while most other countries remain closed. I believe that Sri Lanka will be able to successfully welcome tourists under the bubble concept to revive the industry, while adhering to all safety measures very strictly and giving utmost priority to the safety of the community.”   Government support The authorities have already taken a number of measures to support the tourism industry, and they include extended debt moratoriums, relief for utility payments, the extension of liquor licenses, small grants for tour guides and drivers, the reduction of registration fees and renewal fees (applicable to those in the industry), and the implementation of a provincial licence scheme. However, the growth of the industry has been a question for many in the industry. When queried about the measures that are being implemented and/or planned for the foreseeable future of the tourism industry, Fernando noted: “Going forward, global promotion is going to be launched, and it is happening in a context where Sri Lanka has not had an integrated global promotion campaign for around 10 years. It is very important for a country to focus on branding in order to position our brand, and we have not done that for many years.  “It takes time and it is really essential that we brand ourselves in an authentic and consistent manner. A travel app has also been launched. For the first time in Sri Lanka, we have identified over 5,000 tourist sites islandwide, using modern technology, and they all will be included in the app. Ticket purchases, surveys, complaint management, guide rating and the uploading of pictures, among other things, will be available on the app, and I think that it will be quite effective.  “In addition, Sri Lanka has not promoted indigenous and Ayurveda practices, and we are looking into promoting such services as well. The older generations would want to stay longer; so we are seeking the support of the Immigration and Emigration Department to get them six-month visas. Also, we are working with the Tourist Police to expand their presence, because of the safety issues in some situations. The SLTDA is also working with the Tourism Ministry to help develop certain areas in Arugam Bay, Ella, and Nuwara Eliya in particular, together with the Urban Development Authority. We are going forward with all these initiatives.” Ukwatte is of the opinion that even though the Government has already taken a number of measures to support the Covid-19-hit tourism industry, there are more measures that should be taken. Continued Government support, according to him, is of great importance. He noted: “The Government has taken proactive measures to revive the industry. It has offered a temporary lifeline for the industry by freezing our debt servicing, introducing moratoriums, and giving us soft loans to meet our recurring costs during airport closures, initially. Now, with the current third wave, our businesses have come to a standstill, mainly because the locals are also unable to travel these days.” Speaking of more financial support from financial institutions, a point Fernando too raised, Ukwatte said: “Once again, we request the Government to help us with our request, to restructure our debts through a long term mechanism. Also, we request the Government to put aside the interest component of our debts for a period of three years, and this can be done. We have given various options, and one of the options we are discussing is by way of long-term Government-backed discounted bonds, where the banking sector will also be happy with this kind of arrangement, hopefully.  “Also, we can restructure our capital for a period of 10 years at a concessional interest rate thereafter. Furthermore, we request the implementation of the Cabinet-approved wage support scheme, which had been approved sometime back, so that we can at least safeguard the jobs in the interim period. We also urge the Government to implement the vaccination of those in the tourism industry, and to give it more priority.  “Such a move will tremendously help us to resume the industry and manage the situation, at least for the time being, so that the staff would be able to come to work freely without fear. The real recovery will only be possible when international tourism returns to normalcy, and the survival of our industry is the key at the moment, and it is only possible with continued Government support.” Meanwhile, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Mahen Kariyawasam said that the procedures used in the tourism industry after the outbreak of the pandemic should be relaxed as it would encourage tourists to visit the country.  “I think the Government should seriously look into this process, supposing we have tourists coming in. When they come, they have to first do visa-related activities online, then tell the local agent/hotel (in Sri Lanka) to make a reservation, and have to pay $ 40 for PCR tests, which is fairly expensive. If we go to a hotel directly, we have to pay only around Rs. 6,500-7,000 for a PCR test. But when charged in US dollars, it is around Rs. 8,000 with today’s exchange rates.  “These are things we have to iron out, and if arrangements are made to pay a hospital directly, it might be cheaper for us. Also, having to verify the payments that have been made, including for other related activities, is a long process. For a client to get everything approved, it takes around 48 hours. The most important thing is that we have to pay attention to recognising the people who are coming after getting the vaccine, with documents confirming it, and they should be allowed to visit the country after an initial PCR test,” he added.   Revival of the tourism industry In fact, the question everyone in the tourism industry has is, when will the industry revive and what factors affect how long it takes. Both the Tourism Associations, The Morning spoke to said that even though the status quo is not very stable, they see promising signs. According to Ukwatte, in addition to the measures taken already, Sri Lanka has to embark on an effective global campaign to revive the industry, and the success and speed of the vaccination drive plays a huge role in reviving the industry. He opined: “I believe that we have to take it season by season. We are running out of time for the coming winter season, and perhaps by mid next year, we would be able to have at least a fair number of the population vaccinated and we can open our borders accordingly. It can help the resumption of the industry’s activities. I believe that it will take at least another two years for the industry to completely get back to its former state.  “These are very uncertain times for Sri Lanka’s tourism industry, as it is the hardest hit sector by the pandemic. There are nearly 3 million people depending on this industry, and also hundreds of thousands of self-employed people who are a part of it. Today, they are in a state where they have to struggle to maintain their day-to-day lives.  “However, we are confident of the future, as we see encouraging news around the world; owing to the worldwide vaccination programme, especially, and because countries remain optimistic about opening up their borders. In this context, we too are very confident that in the months to come, Sri Lanka’s tourism industry will start recovering in a more effective manner.” Kariyawasam also expressed similar sentiments, and expressed hope that with increased support from the tourism authorities, the tourism industry can revive.  Adding that this process, however, is going to take some time and more planning, he said: “I think it will take more than a year for us to return to normalcy. Even if Sri Lanka’s Covid-19 situation gets better, as far as other major generative markets for us are concerned, the pandemic situation is still a problem, especially in the European market.  “We have to learn to live with it, and also, we should learn to move forward under the ‘new normal’ conditions, especially when it comes to travelling. It is very important that the mindset of Sri Lankans also changes so as to accept tourists, and this is what is happening in other countries such as Thailand, the Maldives, and Singapore.” In addition to the decreased risk of Covid-19, the revival of the tourism industry also requires a lot of support, especially monetary support, and ensuring the sustainability of the industry, especially in the SME sector, is very important, according to Kariyawasam. He noted that granting debt moratoriums is not a long term solution because the industry has to pay massive interest rates, and that the authorities should, therefore, consider granting credit lines as soon as possible. “We request the Government to facilitate a credit line scheme for us through an international agency so that the industry can continue, and we are not asking for money from the Government. Maybe, we would ask for a two-year grace period, and pay the loans back in another six to eight years’ time. That is the kind of support we seek from the Government.” The revival of the tourism industry, to a great extent, depends on the global pandemic and vaccination situation, as well as the vaccination of Sri Lankans, according to Fernando. “There is clearly a pent-up demand for travel; therefore, when borders reopen, at least in our key markets, travellers will arrive, and we have received a lot of requests and inquiries about the same,” Fernando noted. Speaking of the factors affecting the resumption of the tourism sector, Fernando explained: “First, the most critical factor is that the industry needs to sustain financially. We need to give them financial support to sustain and survive this difficult time, and be there when we restart.  “The support can take many forms; it could even be providing facilities such as vehicle leasing, loans and subsidies, from banks and non bank institutions. We appeal to the country’s banking system to extend their support, because Sri Lanka will rise again, and we are making so many other changes so that we will have a better positioning.” She noted that the country’s tourism industry too needs to understand and accommodate the demands of tourists in the post Covid-19 context. She explained: “From an industry perspective, I think that we need to embrace new post-Covid-19 travellers, especially what they will possibly look at when it comes to travelling. They are likely to look at ways to connect with nature, space, and health and wellbeing related aspects, such as Ayurveda and indigenous medicine related services.  “I believe that Sri Lanka really has everything a post-Covid-19 traveller may be looking for, and nature has given it to us. So it is up to us and the private sector to boost providing services and products to realign themselves, and meet the needs of the new consumers. In fact, we all have changed after the pandemic and I think that international travellers too have changed.” Fernando also noted that in addition to the aforementioned concerns, Sri Lanka’s airline connectivity will also be extremely important in the post-Covid-19 context. She observed that since transit passengers may not like to remain in transit, direct flights will really have a positive impact on tourism going forward. Meanwhile, speaking of the situation in other countries that heavily depend on tourism, Fernando said that many countries have not revived their tourism sectors significantly. She said that, taking into account the challenges Sri Lanka is facing, as far as attracting tourists is concerned, Sri Lanka needs to focus on the Commonwealth of Independent Countries (CIS) countries and the US. She added: “Thailand has not opened its borders for tourism even though we did so months ago. The tourism authorities of Thailand announced recently that Phuket will be the first destination to reopen for vaccinated foreigners without quarantine requirements with effect from today (1). But, that is not the entire country. Indonesia is planning to reopen; but has not actually implemented it. The Philippines is not opened for tourism at all. That is the market we are competing with, and most of them are not open for tourists.” The decline of the tourism industry is not an issue that only affects those employed in the industry, it equally affects the many people who provide services for the industry indirectly. Also, it is a national level issue, as it directly affects the country’s economy, especially foreign reserves which are at a very low level currently. As those who spoke with The Morning noted, even though how soon Sri Lanka’s pandemic situation gets better has a direct impact on the tourism industry’s revival, waiting for this to happen is not an option, simply because there is no assurance as to when the pandemic would end.


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