The tourism industry does not seem to be feeling too cosy this winter, after experiencing an influx of tourists during the same period last year, due to a number of factors.
 Inadequate market campaigning for Sri Lanka as a destination internationally; new online visa regulations; lack of communication with the markets on developments in the country; increase in rates at both hotels and entrances to tourist sites; in addition to a drop in the spending pattern among travellers globally are factors likely to affect the industry this winter, industry leaders told the Business Times.
Based on these indications Jetwing Hotels Chairman Hiran Cooray said that all “is not great for Sri Lanka.”
He noted that the influx experienced in 2010 is not felt this year with most upmarket hotels and those that increased their rates not seen to do too well this winter season.
But interestingly, it is noted that occupancies are likely to be in the range of 80-90% although in 2010 hotels experienced 100 % plus in bookings. However, Deputy Economic Affairs Minister Lakshman Yapa Abeywardena said that the dip in arrivals globally is due to a drop in spending because of the financial crisis. He added that Sri Lanka is unlikely to be affected by these developments.
Mr. Abeywardena noted that Sri Lanka is capable of attracting tourists from markets other than Europe like Sweden, Russia, China and India.
It was pointed out that while certain foreign tour operators have entered into agreements with local agencies for a lower rate they were now finding it difficult to make bookings due to price increases, some parts of the country are popular in attracting budget travellers. This is believed to be the reason why some of the southern beach hotels are not likely to attract tourists this winter.
However, Aitken Spence Hotels Managing Director Malin Hapugoda observed that currently “beach hotels are not showing much occupancies” although round-trip hotels are comparatively doing much better.
Although tourist arrivals indicated an increase of 34.3% for this year during the first nine months, the industry complains that this is not reflected in the occupancy levels of hotels in the upper segment.
Tourist Hotels Association President Anura Lokuhetty explained that within the star category the three to four star hotels have better occupancies compared to those above the four star category.
It was further pointed out that Sri Lanka’s pricing strategy has had a reverse effect on the industry as its regional competitors like Malaysia and Thailand are marketing a superior product at a relatively lower price.
In this respect, foreign tour operators have indicated that winter bookings are “not looking great” as the season starts next month, Mr. Lokuhetty noted.
Citing varied reasons like pricing, the recession, competitive destination prices and the new online visa regulation, he said these could have been overcome if the industry initiated an impressive marketing campaign.
He noted, “we would have preferred to have the online visa delayed but then there are certain things we cannot decide on.”
The pricing factor is hurting the industry this winter, which Sri Lanka Inbound Tour Operators (SLAITO) President Nilmin Nanayakkara believes is what the industry should have been cautious about earlier.
With everyone jumping on the tourism bandwagon, he noted is likely to amount to killing the goose that laid the golden egg.
During the period April to September the industry witnessed a slide in occupancies that was a result of the recession affecting Europe. In this respect, tour operators state that bookings are currently slow with Germany being the only market that is relatively stable, Mr. Nanayakkara said.
He asserted that increasing the minimum room rate from US$100-125 within a period of six months was sending out “a lot of wrong signals.”
In this respect, Mr. Nanayakkara opined that it was the increased prices that were responsible for this current situation in the market adding that the introduction of a minimum room rate is a “big mistake.” |
E-mail
