The tourism industry heaved a sigh of relief ever since political stability returned to Sri Lanka this week and it is now believed that the adverse travel advisories would be softened and expected earnings will top close to US$3.5 billion and arrivals will be 2.2 million by the end of 2018. “Things are looking good [...]

Business Times

Stability is now “So Sri Lanka” chimes industry

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The tourism industry heaved a sigh of relief ever since political stability returned to Sri Lanka this week and it is now believed that the adverse travel advisories would be softened and expected earnings will top close to US$3.5 billion and arrivals will be 2.2 million by the end of 2018.

“Things are looking good with Mr. Ranil Wickremesinghe appointed Prime Minister and former Tourism Development Minister John Amaratunga back … all are looking very stable,” Tourist Hotels Association of Sri Lanka (THASL) President Sanath Ukwatte told the Business Times on Thursday.

He noted that the industry could continue the good work they were planning and that they could meet their deadlines for the global marketing campaign as well.

Moreover, Mr. Ukwatte pointed out 2019 is looking “very optimistic” with a bumper year for tourism expected more so since Lonely Planet has endorsed Sri Lanka as one of the best places to travel to next year.

He said that due to the crisis and other issues the industry’s targets would be missed this year and that the revenue earnings were expected to come close to the US$3.5 billion and about 2.2 million in arrivals compared to the 2.5 million target for this year.

Sri Lanka achieved US$3.9 billion in earnings last year compared to US$3.5 billion in 2016. Total tourist arrivals in 2017 were 2.1 million arrivals, up by 3.2 per cent from to 2016.

Mr. Ukwatte said that the travel advisories were likely to be relaxed now and that a slowdown in bookings has been the trend lately.

He noted that hotels even in the Maldives were expecting a slowdown in guests as a general trend has set in that people do not travel till Christmas is over and due to high airfares.

On the other hand, forward bookings for January to March are picking up, the THASL President said adding that this was particularly so in the leisure sector. Moreover, there has been a surge in demand for charter bookings as a result of which Edelweiss is expected to extend its operations until April which was previously set to operate only during the winter season.

However, he pointed out that authorities should be aware that certain bottlenecks should be addressed like manning all immigration counters at the airport in a bid to ensure that holidaymakers will not be delayed when they arrive on the island.

The situation in the country is currently “slightly better,” Sri Lanka Association of Inbound Tour Operators President Harith Perera said noting that the whole political turmoil did not escalate which proved well.

In fact, he noted that some hotels have said there has been a pick up from corporate houses with incentive travel on the surge.

Since last week there had been a change, he said noting that there is no news currently concerning the political turmoil as a result of which it is observed by foreign tour operators and travel agents to believe there is stability in the country.

The industry expects the Foreign Ministry to now take up the issue of travel advisories with the respective diplomats in a bid to soften them and ensure more travellers would continue to visit Sri Lanka.

With most travellers moving into the resorts only a few are likely to stay in the city hotels, however, the pace of bookings has picked up, Mr. Perera noted.

The industry has engaged with foreign tour operators and travel agents regarding the change in the political developments as a result of which the situation is returning to normal, Mr. Perera said.

He noted that they hope to now take up some of the work that was stalled relating to the resumption of some of the “So Sri Lanka” campaign post launch activities.

Another matter of concern was whether the boards of the respective state tourism institutions would function under the current set up or whether they would be changed.

The online travel agents business that had been adversely impacted due to the political turmoil is likely to regain momentum and it is believed that winter will go through peacefully.

Moreover, new bookings were impacted due to the increase in the insurance component that was likely to have gone up by about US$50-100.

The industry opines that despite the travel advisories since there is no news out pertaining to Sri Lanka in international media they expect bookings to increase and also in light of the fact that the Chinese New Year is coming up from January 13.

Industry experts point out that they hope there would not be any elections held (anytime soon) and believed this would ensure stability prevails.

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