News
Despite distractions, industry expects more visitors in remaining months
View(s):- The sector affected by visa issues and unregistered businesses run by tourists
By Renishka Fernando
Sri Lanka’s tourism industry has shown remarkable resilience and adaptability in the face of diverse challenges, ranging from the Easter attacks of 2019, the coronavirus global epidemic, and the national economic bankruptcy.
But this year has been promising, with tourist arrivals increasing, although much less compared with 2018, when 2.3 million people visited. That dropped to 1.9 million in 2019.
According to Sri Lanka Tourist Development Authority (SLTDA) data, more than 96,000 tourists have arrived within the first two weeks of this month alone. The target is 2.3 million tourists this year, and so far, arrivals have only exceeded 1 million.
India is the biggest source market, with nearly 25,000 tourists in July making up 25%. There were 9,000 tourists from the UK, contributing 9%. China, Germany, and France occupy the next three spots as leading source markets.
Arrivals were highest in January, February, and March for a combined 200,000 plus tourists. January and February reported 103% and 102% increases, respectively, in comparison to January and February 2023.
“From April onwards, the arrivals have slowed, but this is because of seasonality,” noted Mr. Shanthikumar, president of The Hotels Association of Sri Lanka. However, all tourism stakeholders expect the numbers to increase in the upcoming months, with the winter season approaching.
While recovery is eventual, the sector has had to contend with issues related to visas and unregistered businesses run by visitors.
“Outsourcing of visas to VFS Global has had a significant impact owing to the many glitches,” he said. Higher fees are charged, and Sri Lanka loses out to other competing destinations such as Thailand, the Philippines, and the Maldives.
“The VFS platform has made obtaining a visa very complicated and more expensive. There have been significant delays in getting a visa since the new platform was introduced,” said Nishad Wijetunga, president of the Sri Lanka Association of Inbound Tour Operators (SLAITO). Before it was introduced, SAARC region nationals were issued a visa for US$20, and children under 12 years old did not have to pay a fee. This is now unavailable. All tourists are charged US$50 for a 30-day single-entry visa. Also, the platform offers more categories, adding more complications.
“One of the main issues is the lack of communication prior to the launch. Such news makes Sri Lanka look unprofessional and uncoordinated, with massive impacts on tour operators promoting the country,” said Mr. Wijetunga. Overall, a minimum lead time of two months needs to be given. Even after the launch, communication had still been insufficient.
In response, SLTDA chairman Priantha Fernando said that while the new visa process is a significant issue, the reduction in tourist arrivals is not solely due to it. “Presently we are in the off season, thus arrivals have slowed down.” He said that a committee was appointed by the President last year, and it has compiled a report to be handed to the Cabinet shortly.
“United Nations Tourism advocates for destination countries to take off visas as it would increase tourism openness; thus, we are awaiting a positive response on the visa matter,” Mr. Fernando said.
Stakeholders have been calling for the reinstatement of the Electronic Travel Authorisation. “We are appealing to revert back to the former ETA system that was simple and effective and was one of the best in the region,” noted Mr. Wijethunga.
Meanwhile, an influx of unregistered businesses operating in the south has caused concern. “These unregistered businesses are affecting the brand image of Sri Lanka; every business should be registered and regulated,” Mr. Shanthikumar said.
Senaka De Silva, former president of the Hoteliers of the South, said tourists rent houses and sublet them to other tourists. There needs to be a mechanism through which such activities can be monitored,’ he said. “This is badly affecting small and medium businesses in the area, and we are losing out on revenue.”
In addition to unregistered businesses, there are also unauthorised tour guides.
“There are many unauthorised personnel taking tourists on tours. Within the past four days, I have encountered six groups,” said Janaka Dunusinghe, president of the Sri Lanka Institute of National Tour Guide Lecturers. He raised concerns about the lack of qualifications of unauthorised personnel, noting that the tour guide lecturers undergo a year of professional training. Mr. Dunusinghe believes the guides are not knowledgeable. “These guides are not conveying the historical and cultural significance of the sites they are presenting.”
Despite the Sri Lanka Tourism Act No. 38 of 2005, which regulates tourists and businesses, there are barriers to implementation. Stakeholders have shared these concerns with the SLTDA and the Ministry of Tourism. But progress has been slow.
“It is difficult to take action because some of these businesses are incorporated with local companies. The others are informal businesses operated by tourists with tourist visas,” Mr. Fernando said. Measures are being taken, but progress is slow. He advised caution because of the sensitivities involved.
Stakeholders expect an increase in bookings for August.
“The upcoming perahera season will bring more clients, and we are also expecting high numbers from September onwards due to the winter season bookings,” Mr. Dunusinghe said.
During the winter, tourists mostly go to the south, while in the summer, they choose Trincomalee, Pasikudah, and the North East.
According to Mr. Dunusinghe, 2023 was the best year for businesses in the North East, with many Russian visitors. There is a significant drop in Russian tourists this year.
Mr. Fernando said that while the bookings from August onwards are looking healthy, he is hopeful about Sri Lanka achieving the target of 2.3 million tourists.
The upcoming presidential election is also a concern, Mr. Fernando remarked. “We hope there won’t be any negative impacts from the election that will lead to negative travel warnings and advisories, as that could severely disrupt the recovery.”
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