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Q: Against the backdrop of the security
situation in Sri Lanka, how is the travel and tourism industry faring?
A: The
period from the LTTE’s aerial attacks and the subsequent closure of the
international airport has been the worst ever for the industry.
Even the tsunami did not cause as much damage to the industry, because the
flood of NGOs and other volunteers, post-tsunami, ensured that there was
movement of people into hotels – so, some business and income were
generated. But this time round, there has been a 70 to 80 per cent
reduction in tourist arrivals.
Blue-chips and other large companies have
been able to sustain themselves, but small to mid-sized travel and tourism
operators are bearing the brunt of all of this and are presently in dire
straits. At least, an exemption on VAT has been granted for a year, which
provides some relief.
There are faint signs of recovery now, as
interest in the destination is picking up again. British travel operators
have expressed their confidence in the destination and we are wooing the
French travel agents’ association back – so, hopefully, tourist arrivals
in the winter period (November to April) will improve.
Q: Some time ago, there was consensus within the
industry that newer markets must be explored, without depending too much –
as we have been for decades – on European markets, whose governments are
quick to enforce strict travel advisories at the slightest hint of
violence. What has been done in this regard?
A: For
the past 30 years or so, we have been catering to the European market –
so, it takes time to change tack. But the fact is that we are not fully
geared to meet the demands of tourists from China.
For example, we do not serve the kind of
food that they like; nor do we have Chinese-speaking guides. Moreover,
Indians average stays of two to three days, while Europeans visit for
extended periods of 10 days or more, which is where we can benefit from
higher margins. We recorded 90,000 travellers from India recently, but
that probably includes traders as well – not purely leisure travellers.
Tourism arrivals from the Middle East and the Eastern bloc are also
increasing.
Q: How reliable are the figures that are bandied
about to indicate a high number of inbound tourists?
A:
Previously, we relied on figures from the immigration authorities and the
Sri Lanka Tourist Board (SLTB). These numbers even included business
travellers; but now, a system has been put into place by which we can
differentiate leisure from business travellers as well as those
categorised as MICE (Meetings, Incentives, Conferences and Exhibitions).
This will give us a more accurate count of tourist arrivals into the
country.
The interviewee is Director/General Manager of
Hemtours.
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