India-Maldives spat offers new chance to build on last year’s promising results
Tourists walk along Mount Lavinia beach in Colombo. The country aims to significantly increase annual visitor arrivals. © Reuters
MUNZA MUSHTAQ, Contributing writer February 10, 2024 15:32 JST
COLOMBO — Sri Lanka is crafting a new tourism strategy, aiming to build on a promising 2023 by honing its advertising message, wooing digital nomads and raising per-traveler revenue. It may even have a chance to capitalize on shifting geopolitical winds amid tensions between neighboring India and the Maldives.
The South Asian island welcomed over 1.48 million visitors last year — roughly double that of 2022, when the country defaulted on sovereign debt, suffered severe shortages and saw protests topple the government. Buoyed by glowing tourism features in international magazines like Forbes and Conde Nast Traveler, the country is hoping for at least 2.3 million in 2024.
So far, the numbers are encouraging: 208,253 visitors arrived in January alone, versus 102,545 a year earlier. Chalaka Gajabahu, chairman of the Sri Lanka Tourism Promotion Bureau, suggested the country could aim even higher, for an “upper target” of 2.5 million this year.
Better leveraging Sri Lanka’s natural and cultural assets, including picturesque beaches, could help create a tailwind for the nation’s fledgling economic recovery. Already, the sector is performing better than at any time since the 2019 Easter Sunday bombings rocked the industry. But Gajabahu stressed there is more to the mission than the sheer number of arrivals.
“The focus is on quality over quantity,” he told Nikkei Asia. “When compared to the Maldives, the arrival numbers are quite similar, but in the Maldives the average tourist spends a minimum of $500 to $600 a day, whereas in Sri Lanka it ranges from $160 to $180 a day.” The Maldives saw over 1.8 million visitors in 2023.
Gajabahu said the groundwork is being prepared for a campaign targeting digital nomads — remote workers whose jobs or businesses allow them to work anywhere with an internet connection. Official plans have yet to be revealed, but Sri Lanka is understood to be considering a nomad visa that would allow a yearlong stay with an option to extend. Currently, visitors must apply for a 30-day electronic travel authorization, which can be extended for a stay up to 270 days.
Overall, a 10-year tourism plan calls for attracting 5 million tourists by 2029, of which 2.5 million would be “high-end” travelers.
Until March 31, Sri Lanka is offering free visas for tourists from China, India, Indonesia, Russia, Thailand, Malaysia and Japan. In a boost for regional connections, it also signed a free-trade agreement with Thailand last weekend, after which Thai Prime Minister Srettha Thavisin said daily flights between the countries would resume at the end of March and pledged collaboration in tourism and other fields.
But despite the strong arrival numbers, tourism earnings remained relatively low last year, estimated at around $2 billion. The Maldives took in an estimated $4.5 billion in receipts in 2022, according to its monetary authority.
Hiran Cooray, chairman of Jetwing Symphony, a prominent hotel chain in Sri Lanka, pointed to low pricing of hotel rooms, particularly in luxury urban establishments. “We were selling rooms at five-star Colombo hotels for $65 on a half-board basis,” he said. “However, that changed in October 2023, when the government imposed the minimum room rate on city hotels.” Now, such hotels charge at least $110 plus taxes per room.
Cooray said low rates at top-brand chains have a “domino effect” on the industry as a whole. “Internationally branded hotels should elevate the profile of the country, not bring it down. The minimum room rate was a godsend, significantly contributing to the country’s recovery.”
A tourist poses for a photograph during a visit to the Gangaramaya Buddhist temple in Colombo. © Reuters
Still, Sri Lanka has for years struggled to position and market itself as a destination, he said. “The key for Sri Lanka is to showcase its finest offerings. This doesn’t imply that travelers will exclusively opt for those specific hotels or experiences, but the emphasis should be on highlighting the best,” he said, drawing a parallel with air carriers like Emirates and Singapore Airlines that tend to showcase their first- and business-class offerings even though most travelers fly economy.
“The tourism growth observed last year can be attributed to organic factors. However, if Sri Lanka aims to attract high-net-worth travelers, a well-structured campaign spotlighting its premier offerings is essential,” he said.
The tourism bureau appears to have recognized this. Gajabahu said the bureau has brought in Phoenix Ogilvy, the agency behind the “Incredible India” marketing campaign. He said a substantial portion of the budget would go toward social media and public relations.
India itself may have given Sri Lanka a leg up recently.
Speaking at a recent forum in Mumbai, Indian External Affairs Minister S. Jaishankar endorsed the island, saying, “My first advice would be, the next time you want to take a holiday, go to Sri Lanka.”
The statement may have had more to do with geopolitics than Jaishankar’s appreciation for Sri Lankan scenery. India has been sparring with the Maldives’ new China-friendly government and found itself in a public spat last month after Maldivian cabinet members hurled online insults at Indian Prime Minister Narendra Modi. The ministers apparently took Modi’s promotion of Indian beaches as an attempt to draw tourists away from the Maldives.
Amid the feud, Indian tourists — the top visitors to the Maldives in 2023 — dropped to fifth in the first month of 2024, reports said.
Imran Furkan, a Sri Lankan geopolitical and risk analyst, said India is poised to use tourism as a weapon — not unlike China — by promoting countries closer to them, such as Sri Lanka, and taking a stand against those that have turned against them, like the Maldives. “This strategy aims to favor countries aligned with India while punishing those that are not, and we should seize this opportunity to … promote our country,” he told Nikkei Asia.
A
Furkan argued that Sri Lanka had not done enough to take advantage of Jaishankar’s statement. Sri Lanka’s foreign minister, he said, should have sent out a tweet thanking him for assistance during a tough time, keeping the story alive and subtly encouraging more support. “This tweet should have been followed by the tourism minister reminding Indian tourists that they have been warmly welcomed in Sri Lanka for thousands of years.”
The analyst worries Sri Lanka’s industry is becoming complacent now that arrivals have recovered and domestic conditions are more stable.
Gajabahu, the tourism promotion chief, stressed that maintaining this stability is crucial for achieving further growth. The stakes may be even higher this year, as Sri Lanka is due for presidential and parliamentary elections in the second half. “Political unrest can result in increased travel warnings,” he cautioned.
