An analysis of Sri Lankan policy Tourism strategic plan and master plan- Supervised by Professor Suranga Silva - UOC

1. Prepared by
V.Keethopayan

2. History of Policy Sri Lankan Tourism
Master plan &TSP Major areas
To achieve Master plan & TSP aims, stakeholders
must check whether
Key Assumptions ( This Plan for 1992 to 2001 & 2020)
Reasons for not develop tourism before 2009
Tourism Growth & Trend 2001-2020
Failures in Master Plan
Key transformational themes
Recommendations to ensure the
achievement of the Tourism Vision
Implementation of the
Recommendation……..
01
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03
04
05
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09
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3. History of Policy Sri Lankan Tourism
• The Chinese traveler Fa-Hien visited Sri Lanka as early as the 4th century, and in the 13th Century,
Italian explorer Marco Polo claimed Ceylon to be the "best island of its size in the world”.
• The government initiatives in development of tourism date back to 1937 when the Ceylon Tourist
Bureau was established.
• However, it was closed down in September 1939 due to World War II.
• After Sri Lanka's independence the promotion of tourism was again considered by re-establishing
the Ceylon Tourist Board which took over the function of the Tourist Bureau.
• Tourism sector was given with the enactment of Act No. 10 of 1966.
• This provided the legislation for the establishment of Ceylon Tourist Board and First Tourism plan
also been Developed.

4. Continue……
• Under UNDP country program with WTO Sri Lanka has introduce Tourism Master Plan 1992-
2001.
• In October 2007 according to Section 2 of the Tourism Act No. 38 of 2005, the Sri Lanka Tourist
Board (Act No 10 of 1966) was replaced by the Sri Lanka Tourism Development Authority
(SLTDA)
• After 2001 Tag Line has been Introduce for Sri Lankan Tourism as “Paradise in Sri Lanka”
• Again Sri Lankan Tourism has been Introduced a New Tag line “The Wonder Of Asia”
• The year of 2017 Sri Lankan Government has introduced 5 years of Strategic Plan for the Sri
Lankan Tourism Development.
• Based on that the new Slogan has been introduced as “So Sri Lanka”
• Sustainable Tourism concept Developed in Sri Lanka but implementation on it was not success.

5. To make Sri Lanka competitive in the global
travel market place
To increase revenue for the country
To support local community
Back ground & Current Situation of Sri Lanka
Long Term strategic plan
Five year development plan
Pre-Feasibility study of 4 Major Projects – Kandy,
Unawatuna – Gale, Argumaby, Negombo
To increase tourism on sustainable platform ,
Define new markets and products
This Master Plan have 4 Major
areas TSP Major areas

6. Back ground & Current Situation of Sri Lanka
• Background of SL Length 432 Km, Width 224 Km Square Feet 65,610 Km
• Key Issues face by CTB (SLTDA) – Ceylon Tourist Board on Marketing
• Budget concern
• Shortages of qualified Professions
• Inadequate direct representation in a number of key markets
• Inadequate marketing & promotional activities
• No Coordination between Private Sector & CTB
• SL having BOP Deficit Since 1979. Trade Balance deficits offset by Earrings from Tm &
National workings overseas
• 14 Region
• Colombo City – BMICH , Dehiwel zoo, Mt Lavini beaches, Colombo Region – BIA areas,
West Coast (North Colombo – Negombo to Marawila, West Coast Colombo to Galle,
South Coast Galle to Hmabantota, South West inland Ratnapura - Ella, South East –
Kataragama , East coast – Batti – Trinco, East Inland – Mahiyankana – Ambara. Hill
Country, Kandy region, Ancient Cities, North West Kurnagella – Puttalam, North Zone
Jaffna

7. • Economic Impact – Foreign Income Earnings 71% remaining within SL & Leakage 29%
• Tm Sector having good Backward Linkage in the form goods & Services from other sectors of
Economy. 47% of the inputs purchased from other sectors of the economy
• Tm Education & Training Ceylon Hotels Schools (CHS) , Private Hotels Schools , University
Tm Course
• Issues Faced by CHS
• Poor Physical Facilities
• Low Salaries compared with the Private Sector
• High Staff turnover
• Land Use Planning No Tm development in permitted without the prior approval of CTB.
• Use of land for Tm development 5 Major State agencies
• Land Commissioner
• Urban Development Authority
• Mahaweli Authiority
• Coast Conservation Department
Continue….

8. • Environmental Planning – Central Environment Authority (CEA) & Costal Zone Managements
Major issues relating to the Tm Sector
• CEA Steering Committee - No represent from CTB
• Before Starting the Project CEA to issues Initial Environmental Examination Report (IEE) or
Environmental impact Assessment (EIA) prior to Project approval.. CTB not included in this
agency
• Based on the Complexity to obtain – ETA or less complication – IEE
• EIA Process – i) Screening, ii) Scoping, iii) Based on that prepare the report, iv) reviewing the
report v) Approve or Reject vi) Post approval reviews
• Income generation – Skilled & Un Skilled workers which improve their standard of living
• Infrastructure provision for Tm improves amenities
• Environmental Improvements
• Tm Can Support preservation of Cultural and natural heritages which benefits to local residence
• Undesirable activities including Prostitution may be engaged by local low skilled workers
• Possible loss of access by local people
• Cultural difference between tourists & local people
Continue….

9. To achieve Master plan aims, stakeholders must check whether
05
Government of Sri Lanka Role – Long term and Short term Strategies.
World Tourism – Create positive distinctive image and to promote and expect
higher spending Tourist.
World Tourism – Create positive distinctive image and to promote and expect
higher spending Tourist.
Key Assumptions of Tourism Economic Enhancement – Product Development, Maximize the Ec
onomic benefit of Tourism increasing the range quality and capacity of goods, Services for
Culture – Preservation of Heritage Resources & Pre-feasibility Studies – Indicates the
commercially viable - Kandy, Unawatuna (Gale), Argumaby, Negombo

10. 05
Visitors have more opportunities to spend money on extraordinary
experiences
Visitors have value added sites to visit and stay longer
Communities are active participants in delivering the memorable experiences
Investors have opportunities without any problem ,
Investors have partnership prospects (future) ,
Have skilled workforce
Workforce is enough for engage in higher-value tourism services
Government is well coordinate
Government is prioritizing sustainability and using reliable data to make decisions
To achieve TSP aims, stakeholders must check whether

11. Key Assumptions ( This Plan for 1992 to 2001 & 2020)
• In 2001 arrivals 874,000 - TSP -2020 4 Million
• Guest Spending 2001 USD 86 – TSP – 2020 – USD 210 (But
Currently USD 164)
• 2001 – 19000 Rooms – TSP – 36,000
• 2001 – 136,000 Jobs Creation – TSP 600,000 Job Creation
• Earnings USD 706 Million in 2001 TSP 2025 7 Billion But 2018 3.9
Billion
• Master Plan 14 Zones – TSP 9 Province
• Length of Stay 11.4 Nights – TSP 14 Nights

12. • Civil war/Eater Sunday Attack/ Covid 19
• Unsafe to travel
• Infrastructure was not maintained (Poor planning)
• Tourism operators were limited (service & products)
• Restrictions on marine-based tourism activities,
• No opportunity to develop the domestic airports
• International travelers thought that Sri Lanka as a cheap
destination where the product was limited to sun, sea and sand
• Talent pool emigrated to other countries
Reasons for not Develop Tourism Before 2009

14. 211.1
253
340
416.8
362.3
410.3
384.4
319.5
349.3
0
50
100
150
200
250
300
350
400
450
0
100000
200000
300000
400000
500000
600000
2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Tourist Arrivals
US$ Mn
Tourism Growth Trends – 2001 to 2009

16. 575.9
838.9 1038.3
1,715.50
2,431.10
2,980.60
3,518.50
3,924.90
4,380.60
3,606.90
956
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Tourist Arrivals
US$ Mn
Tourism Growth Trends – 2010 to 2019

17. Failures in Master Plan
Coordination
failures
Resource failures
Institutional
failures
Market failures

18. • Poor coordination and communication between government ministries, institutions and stakeholders
• with respect to tourism planning.
• Tourism asset management and tourism destination management.
• The distribution of tourism-related responsibilities across multiple agencies and government levels
• complicates this. similarly, there is poor communication and coordination with other tourism
stakeholders (e.g., with respect to conservation, education, small and medium enterprises (smes)),
which contributes to conflict in land use, and complicates and slows administrative and decision-
making processes.
Coordination failures…

19. Deficient and politicized leadership and management at all levels of government.
• There is a greater emphasis on institution and infrastructure building than on core functions.
• political interference has hindered overall output of government agencies and progress on key
growth initiatives.
ƒ
Limited awareness and participation in tourism by host communities.
• This has caused conflicts between local communities, institutions and investors and has negatively
affected local perceptions of tourism-related for projects.
ƒ
Inadequate attention to cultural heritage conservation and natural habitat preservation.
• Initiatives to monitor over-visitation and promote animal welfare and natural habitat
regeneration are not prioritized.
• There has been a reliance on regulation to manage quality, safety and standards,
but limited enforcement of the regulations.
• in addition, rent-seeking practices subvert the regulatory process.
Institutional failures

20. Limited emphasis in the public and private sectors
• On human capital development and on an inclusive employment agenda across the tourism and hospitality value
chains.
• In addition to the shortage of skilled staff at all levels and professions, this has led to a failure to identify and foster
talent.
• Women are highly under-represented in the sector, particularly in comparison with other regional destinations.
ƒ
Lack of comprehensive visitor research and data,
• ongoing research into products and markets, and market intelligence.
• research into alternative attractions and niche and emerging market segments is limited,
• which limits the effectiveness of product development decisions and marketing strategies,
• as well as the ability to address seasonality and to make the most of regional attributes.
ƒ
Lack of access to investment
• Especially for SMEs and women, and high capital costs.
• for example, high land prices in certain areas hinder independent small businesses. construction costs
are high as a result of the high cost of inputs (e.g., steel, cement, aluminium, tile), and in some cases,
there is over-engineering of resorts, which adds to costs.
Resource failures

21. Limited attention paid to product diversification and destination development.
• This restricts competitiveness, recreation and tourism choices, development of niche markets, and the ability to add
value to the visitor experience.
• The emphasis has been predominantly on site-special copycat construction,
• without a holistic approach, which has affected the authenticity and uniqueness of the Sri Lankan product.
• More importantly, it has led to geographic disparity, with significant tourism growth in only a few areas.
ƒ
Lack of effective mechanisms to manage, standardize and enforce best practices.
• This has contributed to poor interpretation, poor visitor experiences, and poor conservation of environmental and
cultural values.
• specifically, tour operators visit only the sites and outlets where they receive benefits, and middlemen control the
delivery of experiences.
ƒ
Market distortions because of government policies, rent-seeking and subsidized government operations
• (e.g., tariff rates, colombo room rates, domestic aviation).
• several government agencies with limited
• tourism core skills and functions are responsible for government-owned tourism products and services
(e.g., hotel accommodations, tours).
Market failures

22. Key Transformational Themes
Core Strategies Success Indicators
• Revitalize the Key Institution Ex- SLTDA,
THASL ,TAASL CHSGA etc..
• Improve the relationship, Communication
and Coordination
• Enable Business & Investment
• Regulations enacted
• Collaboration with SLTDA
• Actual Annual Budget Spending
Improving governance and regulation
Core Strategies Success Indicators
• Improve the data collection & analysis
• Monitor success of marketing efforts
• Demonstrate the Economic value of Tm
industry
• Regular Reporting
• Niched Segment arrivals
Understanding the Visitors

23. Core Strategies Success Indicators
• Sharpen Brand focus
• Embrace digital age
• Use events & festivals
• Build Strong partnership
• Brand Health
• MICE function
• Regional Events
Marketing & Communication effectively
Core Strategies Success Indicators
• Implementing the Integrated geographic
planning
• Define Tm areas & Create Signature
experience
• Improve access by developing key routs,
hubs and gateways
• Spending per day
• Duration of stay
• New visitors experience
• Room Inventory
Understanding the Visitors
Continue….

24. Core Strategies Success Indicators
• Improve conservation, presentation &
management of natural & cultural assets
• Improve visitor’s information
• International Brands
• Average Occupancy Rates
• Return Visitors
Lifting the Industry Standard
Core Strategies Success Indicators
• Develop actively engaged workforce
• Priorities the training and development
• Engage local communities in Tm
• Sector Employment
• Women Employment
• Hospitality Schools & Students graduating’s
Understanding the Visitors
Continue….

25. • “To match the slogan ‘Wonder of Asia,’ what are the wonders that Sri Lanka possesses? Two items that are
noteworthy are Sigiriya and the gathering of elephants in Minneriya. Other than these two, one cannot think
of any other wonder in Sri Lanka. Therefore, it is questionable whether the branding of the destination is
correctly placed
• Sri Lanka lacks a cohesive marketing strategy and campaign which should be a mutually-agreed private-
public partnership. There are various promotional exhibitions that have taken place in foreign capitals in the
past but they are not based on a master plan to promote the market destination. There is much more work that
needs to be done in this area”
• Sri Lanka as a sun-sand-sea island getaway failed to promise a unique experience that differentiated it from
the country’s competitive set.
• Currently We start with slogan SO Sri Lanka – Reflecting authentic and diverse aspects of the country.
Inspired by the landscape, the enlarged. This “O” has a represents a world of attractions waiting to be
experienced; it serves as a window to reveal the wonders of Sri Lanka at different places and moments; and it
encourages people to put verbal emphasis on the “so” Once again without confuse the International Marker
we have to continue with So Sri Lana slogan
Confuse in Marketing Strategy

26. • “Another issue that arises is which kind of tourists are we targeting – high-end, middle or the lower-
end? Some argue that we must target the higher-end and focus on smaller number of tourists who are
high spenders and bring more foreign exchange earnings.
• This is however debatable; Sri Lanka is still considered as a ‘value for-money cheap-end destination’
and this remains its strength. Thus the lower end should not be abandoned, while gradually
developing the high-end and the middle level tourism. We need to move fast to make this sector a
larger contributor to the economy.
• Some of Sri Lanka’s Asian competitors are at a much higher level of tourism sector contribution to
GDP, this is certainly not an impossible task if a master plan is worked out by the industry and
the Government”
Confuse in understanding the Visitor…….

27. • An implementation strategy and action plan with a realistic approach is developed in consultation with stakeholders.
• Institutional improvements to deliver the strategy, coordination and communication with all the Public and Private
sectors.
• The policies, legal and regulatory frameworks should be analyze for improvement of competitiveness, streamline
investment and business operating procedures.
• New Tourism related projects are initiated with the contribution of the relevant stakeholders.
• Tourism related Policies and Strategies Develop by qualified Tourism and hospitality personnel as well as
Academic experts .
• Preservation of Heritage and Natural resources and destination management for the sustainable Tourism
Development with the involvement of relevant stakeholders.
• Vision should achieve by Sustainable long-term marketing strategy.
• Well developed Crisis Management policies for the prevention Economic fluctuation. Ex . Pandemic , Terrorist
Attack , Natural disaster.
Recommendations to ensure the achievement of the Tourism Vision

28. • The Public sectors cannot not undertake all Tourism projects alone.
• Government - At all levels and across all subjects must fulfill their responsibilities and work in unity toward
achieving the Tourism Vision. Ex -policies, regulations, governance mechanisms and destination marketing
methodologies.
• Private Sectors - Responsibly invest in and market different destination of tourism and collaborate with government
to develop all the policy decisions. Ex provide employment, investment , Crisis Management etc..
• Development Partners - This includes non-governmental bodies and charitable organizations, support and work
towards the National Tourism vision, mission
• Local Community Involvement - For the suitable Tourism Development
• Media - Create awareness Sri Lanka’s natural and cultural heritage resources among International and
National Tourism.
Implementation of the Recommendation……..