Sri Lanka is open for business, again

The island country’s tourism sector soldiers on with hopes of revival post the Easter terror attacks

June 19, 2019 02:31 pm | Updated 02:31 pm IST

Train on a bridge in Ella

Train on a bridge in Ella

Earlier this year, Sri Lanka was riding a tourism wave — especially after the island was ranked top destination for travel in 2019 by Lonely Planet . But in five months’ time, the story would change drastically.

Following the April 21 Easter terror attacks that killed over 250 people — including about 45 foreigners — the country’s tourism sector is struggling to survive. Official data from the Sri Lanka Tourism Development Authority shows a 7.5% fall in tourist arrivals in April compared to last year, pointing to the steady stream of visitors during the month until the ghastly blasts. But May would bear the brunt, witnessing a 70% fall, as against the 1,30,000 tourists who visited the country same time last year.

“When a calamity strikes, whether it’s a natural disaster like the tsunami or something else like the Easter bombings, the tourism sector is the first casualty in the economy,” says Ajit De Soyza, MD of Colombo-based Ceymondu Travel. “We took things for granted in the last 10 years,” he says, referring to the decade of relative peace in the island, ever since the civil war ended in May 2009.

While communal tensions — mostly anti-Muslim attacks — witnessed in the central and southern parts in the last few years did affect tourism, the recovery was quick. But those operating in the sector think this time around it might take much longer to recuperate.

The impact on hotels is visible. Their occupancy is low; plush properties are offering unbelievable discounts, slashing room rates by 50% or more to woo tourists. “Hotels have sent all their contract staff home. Allied businesses like travel agencies, vehicle leasing facilities, drivers, assistants, and nearly 2,000 area guides — they are all perhaps invisible, but badly affected,” De Soyza adds.

In his view, bigger companies somehow manage with their cash reserves, but smaller players are badly hit. “I was the official travel partner for a conference scheduled here in July; it got cancelled and I will lose about LKR (Sri Lankan Rupee) 2 million (roughly ₹8 lakh),” he says.

Sri Lanka’s tourism sector is a key foreign exchange earner, after tea and textiles. The island’s stunning landscapes — beaches and hills — have for long drawn tourists from the neighbourhood and much farther.

The highest number of tourists, government statistics show, are from India. Their preferences span a wide range, from temple trails and beach-side destination weddings, to casino hopping and retail therapy.

In addition to the delightful sights, it doesn’t hurt that the food is particularly flavourful, from the spicy pol sambol (coconut-based universal side dish), and the ambul thiyal (sour fish curry, a southern delicacy) to the aromatic crab curry in the island’s North and East. An additional bonus for Indians could be that beef dishes are more easily available. For the high-spirited, nothing like the island’s much-loved coconut and palmyra arrack.

Sri Lanka’s resilient tourism industry is counting on all this, and hoping to gradually pick up. The government seems willing to back it — slashing the Value Added Tax component in their rates (initially from 15% to 5%, and now, raised to 7%), and urging countries to soften travel advisories put out following the Easter blasts. Things may have just about begun looking up, but travel companies remain sceptical.

Several of Viranthi Kumarage’s clients cancelled their bookings soon after the attacks, but in recent weeks, some of them have got back, requesting that their reservations be held, even as the security situation improves. “We are getting more enquiries now, but I’m not sure all of them will convert to actual trips,” says the director of Trabana Tours.

Sharp decline

Further, tour operators point to a sharp decline in the number of travellers from West Asian countries. “Usually around this time, the season after Eid, is when we get many visitors from that region. In fact, we went to the travel fair in Dubai some months ago to promote our destinations. But they aren’t coming this time,” De Soyza explains. He sees the string of anti-Muslim attacks, in Kurunegala and Gampaha districts, post-Easter blasts, as the main reason. Two local Islamist radical groups carried out the Easter bombings, which the Islamic State too claimed. But the local Muslim community, which vehemently condemned the attacks, was targeted by Sinhala mobs. “You can’t have racial tensions and violence, and then expect Muslims to travel here,” he says.

Kumarage too has received only one enquiry from a family in Bahrain, compared to the dozens she would get every year. “The ban on the face veil after the attacks possibly deterred tourists from those countries,” she notes.

Looking East

With new, peculiar challenges that the terror attack has thrown up, tour operators are turning eastward for hope.

“It is anyway off season in the South and West, because of the monsoon. But along the East coast, the demand usually surges this time,” Kumarage notes. Along the eastern beaches, the tide is just right this time for surfers. Resorts come in varied vibes and prices — catering both to the backpacking solo traveller and bigger groups.

Maybe, the waves are calling once again.

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