Q: Sri Lanka’s tourism industry has enjoyed good times and much of the success is being attributed to peace. What are your views on this?

A: Peace has merely levelled the playing field. Good service and charming people have been our greatest assets. Even though there was no peace at one point in time, I don’t think the industry ever stopped promoting the country. In that sense, the industry had created sufficient awareness – albeit in a limited way, because resources were hard to come by. By resources, I mean money and people. And we must never forget our local tourists – their advantage is that they can create last-minute demand. The criterion, at the end of the day, should be yield.

Q: Some popular hotel chains were turning down even their loyal local clientele in anticipation of foreign guests in the run-up to the peak season. Is there no industry consensus with regard to honouring local tourists?

A: As the market develops, demand increases; and with that, some markets are shut out. I don’t think it’s a case of shutting locals out – it’s more a case of segmentation and price. Some hotels are consciously looking at particular market segments and yields to sustain much-needed investment. Rather than it being a question of local or foreign, it is more a question of yield – and by this yardstick, both local and foreign clients are being shut out.

Q: The industry has developed new products in health, nature and adventure, and eco-tourism. How could we further enhance these products?

A: By targeted promotions aimed at these segments. But these are niche markets and will remain so; and we will never be the number-one adventure destination. We can’t really translate related arrivals into big numbers – simply because the product on offer is limited. As long as we focus and do not over-promise, we can deliver a reasonable product. We have to realise our limitations.

Q: Sri Lanka’s room rates have increased – but it is felt that there is still some room for product improvement. How can we achieve this?

A: Rates have increased in some areas incrementally; and in other, more than marginally. But to increase rates, we must remember that the product must be upgraded. Rates go up in relation to market segments and some tour operators have increased rates by over 25 per cent.
Over the last 15 years, the bulk operators – with price advantages – supported Sri Lanka during times of trouble; and unfortunately, this meant they had bargaining power.
So price suffered in our bid to fill rooms. Multiple pricing is also a fact of life and there is a lot of segmentation by timing taking place.

Q: There has been some concern expressed over the lack of adequate tourist coaches and trained guides. Has any progress been made in this regard?

A: The problem still persists; but to be fair by the various associations, this aspect has been affected badly by the conflict in the past. Now the time has come to plan forward and invest. And people who are entering the industry must be willing to learn the language, lifestyle and habits of their clientele. In terms of the lack of coach services, the supply-demand cycle will set the imbalance right.

Q: What new areas can Sri Lanka explore in terms of tourism development?

A: Sri Lanka has some fantastic upmarket niche products. With domestic air travel coming into effect, we will have improved infrastructure. There are beautiful villas and bungalows, and small operator or resident-owner properties – exactly what the upmarket clientele want. This is a segment we should be looking at.

Q: There has been talk of promoting Sri Lanka as a destination globally, but no real progress is visible. Why don’t industry players take on this task?

A: In times of trouble, the first thing that most companies do, unfortunately, is to cut promotional budgets – and this has been detrimental to the industry. A Tourism Promotion Authority is being set up, and the Sri Lanka Tourist Board and the industry are trying to devise a plan of action. So there are the beginnings of a focussed campaign in the making – but yes, much more needs to be done.

Q: Some doubts have been expressed about whether Sri Lanka’s five-star hotels do, in fact, offer a five-star service. What is your perspective on this?

A: By and large, our five stars are not up to the mark, in terms of both the service and products. A lot more can be done. Some hotels have spent a lot on public areas but not on rooms. Now, however, some of the bigger companies have begun to invest in these areas – and things are improving.