What we are observing now is an upward shift of the demand curve in the tourist industry mainly as a result of the cessation of the prolonged war. This, of course, is very encouraging. But it is a kind of a once and for all change, because such positive effects will diminish over time in the coming years.
Therefore, the question is whether we can sustain this growth momentum in tourism in the long run. There are many factors that could affect the attraction of a tourist destination.
This includes the country’s capacity to offer an attractive and safe package to potential tourists. In this regard, the quality of the “tourism product” is critically important. It is a composite of activities and contributions of many stakeholders in both private and public sectors.
The tourist industry should be ready to absorb the growing tourist arrivals with more hotel and transport facilities. Larger amounts of investment will be necessary for this purpose. The current investment climate does not seem to be conducive to attract domestic and foreign investments on a large scale. Road and railway transport has not been improved in a tangible way, apart from the ongoing small-scale road development works and a few short flyovers here and there.
Maintenance of law and order is another critical factor that determines tourist arrivals. Needless to say that depletion of civil security has a dampening effect on tourism.
As tourism is a highly competitive industry, it is also important to improve our competitiveness. Obviously, it would be difficult to maintain competitiveness in tourism in an unstable macroeconomic environment that we are experiencing now.
It is well known that rigidity of the exchange rate in the face of inflation deteriorates the country’s competitiveness. Though there are several authorities dealing with tourism, an effective strategic plan to develop the tourist industry does not seem to be forthcoming.
Professor Sirimevan S. Colombage, Open University of Sri Lanka |
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