Tourism industry, an effective solution to SL’s economic crisis – Dr. Malraj Kiriella

By Ifham Nizam

Sri Lanka is in the grip of an economic crisis with an uncertain future looming, but the tourism industry represents one effective solution to the economic downturn, tourism expert Dr. Malraj Kiriella said.

Speaking at a public forum recently on the tourism sector in Sri Lanka, Kiriella said that tourism not only generates much-needed foreign exchange but also brings about revenue that filters down to the periphery.

The forum, a 20th round table discussion, was organized by the Gamani Corea Foundation and was held at the BMICH. The discussion centered on an issues paper on the ‘Tourism Sector’ which was authored and presented by Kiriella.

Kiriella is a multi-disciplinary expert, having over 30 years of professional work experience in the travel and tourism industry. He has worked in different capacities at senior management level in national tourism administration, research and planning, marketing and promotions, compliance and standardization, international relations and sustainable development. He is the Founder/Owner of South Asia Multidisciplinary Advisory Services (SAMAS).

Kiriella also said that the government is putting in numerous efforts to get the tourism industry off to a great start.

Kiriella added: “Tourism will be core to Sri Lanka’s future growth. The economic potential of the industry is gigantic. Without a doubt, it requires a focused and holistic approach and realistic goals in order to reach its full potential.

‘The lack of a Tourism Satellite Accounting System and documentation on direct GDP and employment from tourism underscores the urgent need for improved methods to estimate tourism’s economic impact. Sustainable practices remain largely confined to major operators, with SMEs facing barriers like funding and technology.

“The scarcity of case studies on sustainable hospitality practices hampers our understanding of effective strategies and their impacts.

“To foster change and competitiveness, collaborative efforts are vital to compile and share these case studies, encouraging broader adoption of sustainability in our industry. One critical issue is the prevalence of unregistered tourism establishments which is estimated to be more than figures relating to registered establishment rooms. This lack of formal registration hampers ability to make informed policy decisions, ensure quality control, and effectively collect taxes. We need a survey to identify barriers to registration and improve data accuracy. By understanding these obstacles, we can implement targeted measures to support both registered and unregistered establishments, fostering a more inclusive and sustainable tourism industry.

“Additionally, the lack of analysis in tourism value chain development hampers planning and management. Comprehensive research is urgently needed to understand market potential and multiplier effects, facilitating the establishment of robust frameworks for sustainable tourism growth.

“Sri Lanka’s tourism sector faces skill shortages and low women’s participation, hindering its growth. Women’s involvement is below 10%, far below global of 54% and Asia-Pacific average of 53%. Cultural barriers impede their participation, requiring intervention. Preserving resources and adapting to consumer preferences is essential. Addressing negative publicity is vital for sustainable growth and international market access.”

Speaking to The Island Financial Review, Devindre Senaratne, past president of the Sri Lanka Association of Inbound Tour Operators and chairman, Sigiriya Jungles Resort said tourism is one of the most important industries and rightly the low-hanging fruit for Sri Lanka’s economy. It is very important to make strategic decisions from all stakeholders to ensure that tourists visiting Sri Lanka from any part of the world have a pleasant stay while they are here.

Senaratne, who was one of the panelists at the forum added: “Tourism brings in a considerable amount of foreign exchange and in 2018 our best year, we had 2.3 million tourists and had a forex income of USD 4.5 billion which was the second best net foreign exchange contributor. We are very confident with the present demand patterns, we will handle approximately 2 million tourists and have an income of over USD 4.5 billion for 2024.

“Our infrastructure facilities to serve the tourists are very important for them to conveniently get about without any hassle. For example, we need to get ourselves better organized with facilities at the airport to quickly disembark without a hassle at immigration.

“Line ministries, such as, Sri Lanka Railways, Department of Wildlife and the Central Cultural Fund need to have online ticket purchasing systems to enable convenient purchasing of tickets.

“Tourist Police could be a major supporter too if they will be on the alert at major tourist sites and the popular beaches to ensure the tourists are safe. They could also advertise an emergency number.”