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Lanka’s tourism push struggles amid internal, external concerns
By MAHADIYA HAMZA
ECONOMYNEXT – Sri Lanka’s tourism revival is facing a challenge in bringing in more high spending foreign visitors due to increasing protests locally while monetary tightening, impacts of Russian invasion into Ukraine, and rising inflation globally.The move is likely to slow the island nation’s recovery from the unprecedented economic crisis as it is unlikely to achieve its expected revised down tourism revenue target of $1.5 billion.
The number of arrivals suffered in September and fell to as low as 29,000, its lowest in 11 months. The tourism authorities have cited “bad publicity” about Sri Lanka in the international media including global reportage of fuel and food scarcity as the key reason for the drop.
Monthly arrivals to the Indian Ocean island nation plummeted in September to around 29,000 from as high as 106,000 in March this year mainly due to the economic crisis which later turned into a political crisis and forced then president, prime minister and the government to resign amid public protests.In October, however, the arrivals rebound by 41 percent from the previous month to 42,000.
The industry was hopeful of cashing in on winter holiday makers during the three months from November and marketing the country as an economical holiday destination amid growing commodity prices in the West after the Ukraine war.The plan was to attract long-haul travelers with sharp depreciation of the rupee causing foreigners to spend more.However, a growing crisis globally will pinch on the island’s tourism sector despite the vigorous efforts the industry has taken to come out of the economic and political crisis this year, industry analysts say.
The tourism authorities’ attempts to promote Sri Lanka among foreigners including in India, Europe, and the United States have yet to see some significant returns.
“Sri Lanka had the Russian airlines issues, the protests in the country and the travel advisory placed on it. But it has fought against all that,” Priyantha Fernando, Chairman of Sri Lanka Tourism Development Authority told EconomyNext, referring to Russian Aeroflot’s decision to suspend Sri Lankan operation over a legal battle.
“However we cannot do anything about the external issues. There are long queues forming in European and Western countries too,” he said referring to gas and fuel queues.
“Those factors cannot be controlled.”
Global tourism industry has grown by 60 percent in the first seven months of this year compared to the previous year, according to a recently published United Nations World Tourism Organization (UNWTO) report.However, it is only “cautiously optimistic” as the global economic environment still has not recovered.
The UNWTO cautions that the combination of tightening monetary policies in all major economies to curb rising inflation, increasing energy and food prices, and the growing prospects of a global recession as indicated by the World Bank, are major threats to the recovery of international tourism through the remainder of 2022 and 2023.”
“The uncertain economic environment seems to have nonetheless reversed prospects for a return to pre-pandemic levels in the near term,” UNWTO said.
“Rising inflation and the spike in oil prices results in higher transport and accommodation costs, while
putting consumer purchasing power and savings under pressure.”
Locally, Sri Lanka is threatened by reemerging protests against increasing taxes, and long delayed reforms, which have become mandatory for an International Monetary Fund (IMF) loan to move away from economic crisis. The IMF backing is now seen as a must for other countries and multilateral creditors to support the island nation to face the economic crisis.
The government has aimed at a revised down $1.8 billion foreign inflow from tourism this year in October after aiming at $2.5 billion in March. However, industry officials now say, they can only reach less than $1,5 billion revenue in 2022.
Sri Lanka so far has generated 568,258 travelers for the first 10-months.After Russia recommenced flights to Sri Lanka in October, four months after suspending the operations following a legal spat, Russian tourist numbers have started to rise compared to the previous months.Many airlines have now resumed flights to Sri Lanka including Russia-based Aeroflot and AZUR as well as Air France in the last one month.
“There’s a slight pick up (hotel booking) with some Indian traffic and Sri Lankan expatriates at the moment. But we believe the actual pick up will start from January next year,” Sanath Ukwatte, immediate-past President of the Hotels Association of Sri Lanka.However, industry experts say Indian tourists usually do not spend much like European tourists, which is the island nation’s key market.
Russia and its neighborhood countries show better arrivals, but they mainly go to resorts, instead of city hotels where the bulk of hotel rooms are available.
“Hotel bookings are averaging around 30% and we hope it to increase to about 40% by December, it is still way below our pre-covid levels,” Ukwatte said.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
