Tourism Sector Opportunities

Tourism is the country's third-largest foreign currency earner. With over 2.3 million visitors coming into the country, Sri Lanka registered its highest-ever arrivals in 2018. In 2018, the sector was estimated to have earned around $4.3 billion, 11 per cent higher than last year. Sri Lanka provides a combination of beaches, wildlife parks, rain forests, tea plantations, ancient ruins, Buddhist cultural sites, and festivals. Sri Lanka is ranked 64th in the World Economic Forum's 2018 Travel & Tourism Competitiveness Report. The government is planning to increase visitor arrivals in 2019 to 3 million, while the terrorist attacks of April 21 have dampened expectations for 2019 and 2010. (Data Source: World Bank Data Portal)

Hence the newly appointment government aims to identify new attractions of the country for foreign tourists. Theme parks, religious, cultural, and national heritage sites, opportunities for adventure, attractive agricultural and forest sites, domestic Ayurvedic treatment centres will thus be developed to attract tourists. Priority will be given to provide investment and other facilities to the private sector to promote tourism on these lines. Possibilities to attract tourists to hold business conferences, festivals, exhibitions, seminars, and meetings in Sri Lanka will be utilised, using the facilities available, particularly in Colombo and Hambantota. The private sector will be facilitated to attract tourists for these purposes.

The immigration and emigration process in Colombo and Hambantota airports will be made more efficient. The government will create two terminals for domestic travel. Private airports will be modernised to develop local air services, making it easier for tourists to travel from one location to another inside the country. Tourism training schools will establish in the main tourist cities. In addition to the currently available tourism courses, an introductory diploma course will be initiated to train the youth – presently engaged in tour services and those interested in joining the field – who do not have the O-level qualifications demanded by existing diplomas.

The tourism industry will have to double the number of hotel rooms currently available. Incentives will also be provided to set up high-quality tourist hotels. To facilitate the reservation of hotels, transport, guides, domestic air tickets, and admission cards to tourist sites through the Internet, a single booking software system will be installed. Automatic gate systems will be installed in places providing tourist accommodation. Tourism offers incentives for both growth and trade. The government includes beach land and islets for the growth of tourism.

OSL Take: Sri Lankan government has committed significant resources towards the uplifting tourism industry in Sri Lanka and has shown an increasing willingness to engage with the critical stakeholders in the private sector in the tourism industry. Sri Lanka’s tourism authorities have commenced promotional campaigns to attract visitors to the country following the setback faced by the tourism sector following the Easter Sunday attacks.

The government of Sri Lanka has already introduced a relief package to the tourism sector. Given all these developments, the country’s tourism industry is showing signs of revival. Many foreign investors have already expressed confidence in the country’s tourism industry, and it’s growth potential. Therefore, international businesses/investors could explore business/investment opportunities in Sri Lanka’s tourism sector.

VBS/AT/06122019/Z_TB3