DIGITAL TOURISM TRADE-OFFS
The golden era of tourism was said to be between 1977 and 1982, when foreign exchange earnings rose to US$ 40 million, from 146.6 million dollars – a three and a half fold increase in a mere five years.
Today, Sri Lanka stands at the precipice of a similar phenomenon with inbound traffic having surpassed the two million mark in November – although the catastrophic cyclone and widespread floods that wreaked havoc across the island may put a dampener on the high hopes that preceded Mother Nature’s wrath.
Beginning with the incentivising of digital payment schemes, former president Ranil Wickremesinghe alongside Indian Prime Minister Narendra Modi launched India’s Unified Payments Interface (UPI) services in Sri Lanka in early 2024.
Building on this, the Digital Public Infrastructure (DPI) partnership established later that year has laid the foundation for key digital frameworks in the country.
Digitalisation has the potential to revolutionise the tourism industry. According to the World Economic Forum (WEF), Asia is currently positioned to become the world’s fastest growing tourism economy due to contributions from travellers exceeding seven percent across regions.
With this shift comes faster payments and an increase in the scope of revenue streams, which will attract both tourists and potential investors.
There is however, a caveat: as the growth of travel and tourism intensifies, the erosion of cultural authenticity becomes a concern that must be carefully managed. Local communities may adapt to the higher visitor presence by mirroring their cultural norms and expectations while heritage sites also take a hit.
Overt commercialisation with mismanagement can lead to a performative authenticity and local communities tend not to reap the benefits of tourism relating to their specific cultural practice.
With digitalisation comes the potential for cryptocurrency to enter the market. However, this also carries risks: while cryptocurrency can attract investors, it may also be used to conceal or encourage criminal activities.
At this juncture, much is at stake – and with such opportunity and a clear vision, Sri Lanka cannot miss out.
Balancing Sri Lanka’s rich cultural array with the need to adapt to the global market is not an exercise in futility. The practical implementation of foolproof legislation, policies and frameworks across the board is essential to building trust, confidence and best practices.
Positioned as it was prior to the recent cyclone and despite its far-reaching effects, Sri Lanka remains to achieve much more given the sunnier prospects ahead of the ensuing crisis – and into further innovation.