Draft 14 Tourism Sap

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TSAP DRAFT – 8 December 2016

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Sri Lanka Tourism

Strategic Action Plan
2017 – 2020
(TSAP DRAFT)
CONTENTS
Tourism in Sri Lanka: A Story of Untapped Potential 2
Introduction 3
Expanding the Value Proposition
Strategic Direction & SDGs
Chapter 1: Improving Governance & Regulation 22
Chapter 2: Understanding Visitors 32
Chapter 3: Marketing and Communicating Effectively 50
Chapter 4: Developing Sustainable Destinations 65
Chapter 5: Lifting Industry Standards 93
Chapter 6: Engaging the Workforce and Communities 109
[Annexes separate]
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TOURISM IN SRI LANKA:

A STORY OF UNTAPPED POTENTIAL
A transformation of the tourism industry is required to make Sri Lanka

competitive in the global travel market place. This is the context and rationale for
the Tourism Strategic Action Plan. It recommends actions and implementation
mechanisms for the next four years, with a long-term view toward the Tourism Vision
2025 and achieving the United Nations Sustainable Development Goals.
Tourism in Sri Lanka has been a story of untapped potential. The country has
missed the opportunities to grow investment and jobs as well as to utilise tourism
dollars to conserve the environment and sustainably support communities in all parts
of the island.
The growth in the sector – seen by the increase in visitor numbers, investment
projects and international interest – has taken place predominantly on its own accord.
Visionary and strategic guidance for brand positioning as well as focused plans and
policies for value addition have not been consistently executed.
The country has fallen short in sustainably monetising the revenue generation
potential of its natural, cultural and human assets from tourism.
Fundamentally, the ambitions are to increase revenue for the country, meaningfully
support local communities, and grow on a sustainable platform. To achieve these
ambitions, a variety of stakeholders have a role to play, and it drills down to:
! Visitors having more opportunities to spend on extraordinary experiences,

more value added sites for visitors to visit and stay longer;
! Communities being active participants in delivering the memorable
experiences;
! Investors having access to hassle-free opportunities and partnership
prospects;
! A skilled and service-oriented workforce that is equipped to serve the high
value aspirations of the destination; and
! Government being well coordinated and consistent, prioritising sustainability
and using reliable data to make decisions.
The industry is poised to offer great growth and investment potential. The
underlying premise of all efforts is to improve the visitor experiences so they are
world class and sustainable, while still being firmly rooted in the inherent natural,
cultural, historic and social capital of Sri Lanka and its people. By 2025, Sri Lanka
should emerge as the finest island for memorable, authentic and diverse
experiences.
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INTRODUCTION
In Sri Lanka, tourism is now the third largest export earner to the economy,
after remittances, and textiles and garments. In the past five years, growth in
visitor numbers has been unprecedented, averaging over 22% year-on-year, of which
80-90% comprised visitors coming to Sri Lanka on holiday. In 2015, 1.8 million
international visitors came to Sri Lanka, stayed an average of 10.1 days and
generated an estimated US$2.98 billion1.
Sri Lanka is an increasingly popular destination on the international travel

map, as well as for expatriates returning home to visit friends and relatives. In
2013, Lonely Planet nominated Sri Lanka as the #1 destination in the world to visit. In
2015, Forbes Magazine ranked the island among the ‘top ten coolest countries’ to
visit that year. Sri Lanka was identified as a top location to visit in 2016 by global
influencers including Conde Nast Traveler, Rough Guides, Lonely Planet, The
Guardian and New York Times.
Internationally, travel and tourism generated US$ 7.2 trillion in 2015, making up 9.8%
of global GDP and 1 in 11 jobs worldwide were in the travel and tourism sector2. The
Government of Sri Lanka recognises the importance of developing tourism and
the potential it has to create jobs (the tourism sector reportedly provided over
319,000 local jobs in 20153), encourage domestic and foreign investment, promote
conservation practices, and bring greater benefits to cities and rural areas of the
country.
Thus far the sector has not fully captured its true potential and thus been able
to reap the expected benefits. In part, Sri Lanka’s untapped potential a symptom of
the decades-long civil war when large parts of the island were unsafe to travel to and
infrastructures were not maintained. Also, during this time, tourism operators were
limited in the products and services they could offer. The risks of taking visitors to
places and experiences outside the large resorts were high. For instance, there were
extensive restrictions on marine-based tourism activities and there was no
opportunity to develop the domestic civil aviation sector.
Sri Lanka was seen by overseas markets as a cheap destination where the product
was limited to sun, sea and sand, and holidays to Sri Lanka were traded on price: the
operators only survived during these times by offering low rates. There was limited
reinvestment because margins were small. Much of the talent pool in the hospitality
industry emigrated to other, safer parts of the world. In the years since the cessation
of the civil war in 2009, Sri Lanka’s economy, and particularly its tourism industry,
has been growing rapidly.
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1
SLTDA Annual Statistical Report 2015
2
World Travel & Tourism Council
3
IBID
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While the tourism industry is expected to continue to grow, poor planning and
management of this growth as well as limited diversity of markets and
products is underpinning a loss of value-adding opportunities and limiting per
capita visitor expenditure.
As visitor numbers increase, pressures are growing to manage environmental

impacts in areas of high tourist use, for land use in high tourism potential areas, to
access appropriately skilled human resources, and to maintain tourist service and
product quality standards.
Already, it is visible in certain areas that the rush to develop and scale up
tourism in Sri Lanka is negatively impacting the natural environment and
leaving out local communities and local content – the very foundation and
uniqueness of the Sri Lankan travel experience. Sadly, it is the soul of a location
that will be lost and cannot be replicated.
Community engagement is critical for tourism to take root in local destinations,

to build local pride, to mine local tangible and intangible assets, to motivate
more people to be trained, and for benefits to flow to local households. Tourism
is still not viewed by the general population as a sector that is good enough for sons
and daughters to build careers in. These cultural and social perceptions will likely
only change if communities are fully engaged in the process of developing tourism
and feel empowered to be proud custodians as well as beneficiaries of the valuable
endowments around them.
Based on the Tourism Area Life Cycle4, a tool for framing the development of a
destination, Sri Lanka is still in its infancy and at a critical juncture (see Figure 1).
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4
Butlers’ TALC model was developed in 1980 and describes a general picture of the lifecycle of a tourism destination
or area.
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Figure 1: Sri Lanka’s Tourism Life Cycle
Exploration+stage!is!the!beginning!of!destination!
development!when!“explorers”!visit!an!area!and!the!
tourism!infrastructure!is!limited!(e.g.!Mannar).!!
+
Involvement+stage!comes!with!the!increasing!
visitation!that!attracts!local!investment!in!tourism!and!
public!investment!in!infrastructure!(e.g.!Kalpitiya).!
+
Development+stage!is!a!period!characterised!by!
increased!FDI!and!a!range!of!visitors!and!market!
segments,!driven!by!heavy!advertising.!The!population!
Overall, Sri Lanka’s tourism in!the!destination!accepts!tourism!(e.g.!Colombo,!
industry today lies along the Negombo,!Kandy)!!
continuum of “exploration”, +
“involvement” and “development”, At+consolidation+stage,!the!main!income!of!the!local!
depending on the destination. economy!comes!from!tourism!and!the!visitation!levels!
continue!to!increase!but!at!a!decreasing!rate.!Extensive!
efforts!in!advertising!and!marketing!are!made!to!
overcome!the!seasonality!and!develop!new!markets.!
The!importance!of!tourism!is!fully!appreciated!by!the!
local!people.!Growth!rate!begin!to!slow!down.!!
+
Stagnation!occurs!when!visitor!numbers!peak!and!the!
capacity!limits!are!reached,!and!the!area!is!no!longer!
fashionable.!New!visitors!are!few!and!the!destination!
relies!on!repeat!visitations!and!conventions!for!
business.!!
!
(Source: Butler, R.W. 1980, "The Concept of a Tourism Area Life Cycle of Evolution: Implications for
Management of Resources." The Canadian Geographer 24 (1), p. 8.)
In order to continue up the growth curve, Sri Lanka tourism must reframe its
value proposition to conserve assets, to develop and better define new
markets and products, and to include and involve citizens and local
communities as participants in the tourism economy5.
Expanding the Value Proposition

Sri Lanka’s prospects for sustainable tourism growth are therefore at a critical
juncture. Building on steadily growing visitor interest over the past five years and Sri
Lanka’s exceptional island-wide natural and cultural endowments, the government of
Sri Lanka has positioned tourism as a central pillar of the economy. The government
is determined to nurture world class visitor experiences that are firmly rooted in the
inherent natural, cultural, historic and social capital of Sri Lanka and its people, and
to ensure that these experiences should generate island-wide economic value. This
intended expansion of Sri Lanka’s tourism value proposition is at the heart of
this 4-year action plan.
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Several studies have shown that a binding constraint for future economic growth, not just in the tourism sector, is
the availability of skilled labour.
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Current demand patterns – both source markets and what they consume in Sri Lanka
– suggest there is potential to improve Sri Lanka’s market mix by targeting high
growth potential niche (and other mainstream, but underdeveloped) markets
compatible with Sri Lanka’s emerging value proposition. Defining, growing and
sustaining these markets is dependent on also expanding products and services, that
in turn imply more specialised jobs as well as more focused product definition and
market interventions.
At present, streams of visitors and investments are concentrated in clusters

and corridors around Colombo as a commercial hub, the beaches of the “south
coast”, the wildlife product of Yala National Park, the tea estates and forests of the
“hill country”, and the historic and religious heritage of the “Cultural Triangle”.
Potential economic benefits are only trickling to other areas of the country, which are
host to untapped tourism assets. It is a priority for the government to address these
spatial and economic inequalities, but that needs to happen with a healthy dose of
market reality informed by more accurate and up-to-the-minute market intelligence,
asset mapping, data collection and analysis.
A brief summary and analysis of the current picture indicates shortcomings of the
current situation and provides a basis for a 4-year action plan that supports the
Tourism Vision 2025. In general,
" Sri Lanka’s tourism product and market mix are too shallow relative to its
potential; and
" Sri Lankan tourist products and services miss the potential to add value to the
supply chain.
" Sri Lanka’s tourism product and market mix is too shallow relative
to its potential
Currently, over 85% of visitors to Sri Lanka are travelling for leisure and participate in
mainstream activities such as sun & beach, historical / cultural sites and wildlife
viewing, following a well-beaten path established since the 1970s (see Map 1)6.
There are abundant resources and investment opportunities outside this basic
itinerary that could significantly expand the economic footprint of the tourism sector.
Developing these further is a necessity for Sri Lanka to disperse visitors more widely
around the island, but also to expand the value, diversity and quality of the overall
experience. Repeat visitors are also lower because they may feel they have “seen
everything” on this round trip or the first experience was not up to expectations.
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Typical 10-day round tour itinerary: Airport > Cultural Triangle > Hill Country > National Park > South Coast >
Airport. According to tour operators, this conventional route in a clockwise manner is because most visitors request
for their tour to end with relaxing time on the beach.
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Map 1: Popular circular tour route visiting some of Sri Lanka’s major sites
(Source: Scribble Maps / ICF)
The presence of accommodation facilities for travellers is a key building block for any
destination and it is revealing that over 95% of Sri Lanka’s officially registered room
stock is distributed around this popular touring route. While the pattern is very similar
for unregistered rooms such as those sold through AirBnB or Agoda, it is also
noticeable that unregistered rooms are coming up in areas outside the main circuits.
For instance, a larger proportion of room stock in areas like Kalpitiya, Jaffna, Arugam
Bay and Ella is unregistered with the Sri Lanka Tourism Development Authority (see
Map 2).
Nonetheless, it is equally important to acknowledge and support the role these

early investors have in opening up new destinations as accommodation
providers, from which visitors can access activities and attractions in
emerging destinations.
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Map 2: AirBnB accommodation
(Source: AirBnB analysis, September 2016
Jaffna!
East!Coast!
Kalpitiya!
Ella!
The government, both at the local and the national level, has an important role in
planning and managing destination growth. This role is especially important in the
early stages of destination development when the unique character of a place and its
people is intact. The strengths and the settings of Sri Lanka’s natural, historic,
and cultural assets – both tangible and intangible – are the attributes that will
position Sri Lanka competitively for years to come.
Along with the development of diverse accommodation and activities, products and
services, diversity of markets and the market mix within them is equally important.
The United Kingdom, Western Europe, China and India make up over 62% of Sri
Lanka's leisure visitors and these source markets are heavily influenced both by their
own domestic economy and traditional travel patterns. The route to market, that is
reaching these audiences, is important.
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Graph 1: Seasonality index

(Source: Sri Lanka Tourism Development Authority)
150!
140!
130!
120!
Index+value+
110!
100!
90!
80!
70!
60!
Jan! Feb! Mar! Apr! May! Jun! Jul! Aug! Sep! Oct! Nov! Dec!
Average!(2009W14)! Average(2015W26)!
While current travel trends to Sri Lanka are seasonal as seen in Graph 1 above,
improving the market and product mix could influence this considerably. While there
are clear seasonal variations in overall visitor arrivals, this trend is more nuanced
when looking at visitors by country of origin. Deeper analysis of purpose of visit from
different countries of origin could form the basis of more targeted marketing
strategies (see Chapter 2).
" Sri Lankan tourist products and services miss the potential to add
value to the supply chain
More or less across the board in Sri Lanka, the visitor experience could be improved.
This begins with destination planning to consider the visitor experience from entry to
exit and route to destination.
The improvement of the visitor experience has the added effect of being a
positive promotion tool. It is also an opportunity for job creation,
entrepreneurship and innovation.
When products and services are more homogenous and commodified (e.g. a
package holiday to a beach resort), there is a tendency for operators to undercut
each other in a price war to the bottom to gain market share of what is a relatively
inelastic demand situation. This has been the case for Sri Lanka’s tourism industry.
Economic research shows that there is more demand and price elasticity where
value is added to consumer products, and this is also true of destinations.
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For instance, experiences such as whale watching can garner high prices because of
their market appeal, but the current lack of value addition and poor management in
Sri Lanka does not justify it. A spot price check for 3-hour whale watching excursions
reveals that Sri Lanka is priced on average at only US$26 per person, while
internationally, the closest in price is $78 and the highest price charged is in
Greenland at $1207.
Similarly, national park entrance fees for non-resident foreigners in Sri Lanka are
comparatively low in the world8 and while this may be an enticement to visit, again,
the quality of the experience falls far short of expectations. Also, the opportunity for
adding value for both the consumer, in terms of quality of experience, and the
supplier of services, in terms of being able to charge more, are lost. This loss of
value also compromises the sustainability of those same endowments. Furthermore,
visitor satisfaction and the sense of value for money for experiences with high
demand are not met, likely resulting in poor consumer feedback reviews9. (More
details in ensuing chapters.)
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7
Average price per person for 3-hour whale watching group excursion (October 2016) in US$: Greenland ($120),
Iceland and New Zealand ($95), Australia ($89), South Africa and San Juan ($85), Madagascar ($78), Sri Lanka
($26).
8
Average price per person for a non-resident foreigner for daily national park entrance fee (October 2016) in US$:
Botswana ($120), Tanzania ($80), Kenya ($70), South Africa ($65), Uganda ($40), Costa Rica ($18), Sri Lanka ($15,
additional jeep hire, guide and taxes are charged).
9
Reviews on TripAdvisor for both whale watching and the Yala National Park experience are overwhelmingly
negative, despite the fact that these are potentially flagship experiences for visitors to Sri Lanka.!!
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Unleashing Sri Lanka’s Potential: A Journey of

Transformation
Successful tourism development requires a vision, planning and strategic
commitment in actions that achieve that vision. The untapped potential of
tourism in Sri Lanka will require committed and sustained support from all
stakeholders, especially government and the private sector.
This Tourism Strategic Action Plan (TSAP) defines a framework and a transformation
agenda intended to expand tourism’s economic footprint to underutilised natural,
cultural, geographic and human resources within Sri Lanka. Economic,
environmental and social sustainability, from the local level to the national, underpin
every action recommended. Furthermore, sustainable tourism is founded on –
sometimes fragile – intersecting social, cultural, environmental, political and
economic ecosystems that, in an island context, are especially challenging to
manage.
The existing fragmentation of the planning, management and policy making related to
tourism assets (cultural, historic, infrastructure, terrestrial and marine, coastal and
urban, community and government-owned) and the associated and overlapping
legal, regulatory and institutional responsibilities are core issues to address in
transforming the way sustainable tourism development is planned and managed in
Sri Lanka. The TSAP identifies pragmatic approaches, based on global best
practices but relevant to the local context, which attain a momentum towards a
“whole-of-government” and “whole-of-community” approach to the tourism sector.
This four-year Tourism Strategic Action Plan indicates steps and actions necessary
to move towards Sri Lanka’s Tourism Vision 2025. In order to achieve the
government’s high-level objectives and address a range of identified systemic
failures, six transformative themes are developed with corresponding core strategies.
The Action Plan is based on extensive consultation with stakeholders over a period
of eight months; among the stakeholders included were: both large and small
companies and entrepreneurs, conservation organisations, education bodies and
relevant central government agencies and provincial governments (See Appendix 2).
Strategic Systemic Tranformation Core

Direction Failures Themes Strategies
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(i) STRATEGIC DIRECTION

The strategic policy direction being adopted for tourism in Sri Lanka is to strengthen and nurture
the roots of people, places, and natural and cultural heritage, and to add economic value to these
inherent assets throughout the island. This is encompassed in a Roots Philosophy.!
ROOTS PHILOSOPHY
# Celebrate Sri Lanka
# Tourism is rooted in the people, places, heritage and values of the country
# Tourism can promote a sense of place and belonging, and a voice for every community
# Tourism to be used as an income generator to protect, conserve and enhance Sri
Lanka’s natural environment, and tangible and intangible cultural and historic assets
# Take this ‘Roots Philosophy’ to policy, planning and development to build economic,
social, environmental and local capital (the quadruple bottom line)
# Visitors, both domestic and international, are guests in the country
The Vision defines a desired future reputation. It draws inspiration from the 13th century
explorer Marco Polo’s description of the island as “the finest island of its size in all the
world” and from market research conducted into Sri Lanka’s value proposition.!
VISION
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To be recognised as the world’s finest island for
memorable, authentic and diverse experiences
[MADE in Sri Lanka]
The Mission sets an agenda for transformation – improved quality of services and service
delivery that will lead to higher local creation and retention of revenue, investment in
human resources and skills, and improved coordination and collaboration across
government institutions, the private sector and local communities.!
MISSION
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To be a high value destination offering extraordinary experiences
that reflect Sri Lanka’s natural and cultural heritage;
are socially inclusive and environmentally responsible;
and drive economic benefits to communities and the country.
‘High value’ means that every aspect of tourism must ensure quality and yield, and not be
volume driven. It does not denote Sri Lanka as an expensive and luxury-only destination.
The Roots Philosophy advocates that value is not viewed solely in a monetary sense, but
value in terms of the experience, authenticity, diversity, community and sustainability.
Also, there must be value for money in every category of experience.
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There is a preoccupation to set ambitious targets; but these must be tempered with
the impact of “over-tourism”, for instance on food security, housing and local culture.
High-level national economic objectives for the entire industry are given below10.
Considerable research to collate more reliable data as well as deeper analyse growth
trends and opportunities are required. This is addressed in ensuing chapters.
HIGH-LEVEL OBJECTIVES FOR 2020
" Tourism to be Sri Lanka’s #3 net foreign exchange earner with a target of
US$ 5.5 billion earned in 2020
In 2015, tourism was #3 foreign exchange earner at US$ 2.98 billion.
" Tourism and its supporting industries to employ 600,000 Sri Lankans
with women accounting for 10% of the workforce
In 2015, 319,436 people were employed in the tourism sector. Female
employment has not been calculated in official statistics.
" To increase the daily spend per visitor to US$ 210.

In 2015, the daily spend was US$ 164.
During the 70th session of the United Nations (UN) General Assembly, 154 heads of
state or government adopted the 2030 Agenda for Sustainable Development along
with 17 UN Sustainable Development Goals (SDGs). Although all of the SDGs
have varying degrees of pertinence to tourism, three in particular strongly feature
tourism – SDG#8, SDG#12 and SDG#14 (highlighted below). Also, SDG#11 on
sustainable cities and communities as well as SDG#15 on life on land are notable.
UN SUSTAINABILITY DEVELOPMENT GOALS & TARGETS
" SDG #8: Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all.
By 2030, devise and implement policies to promote sustainable tourism that creates
jobs and promotes local culture and products
" SDG #12: Sustainable consumption and production patterns.

Develop and implement tools to monitor sustainable development impacts for
sustainable tourism, which creates jobs, promotes local culture and products.
" SDG #14: Conserve and sustainably use the oceans, seas, and marine resources
for sustainable development.
By 2030 increase the economic benefits of SIDS and LCDs from the sustainable use of
marine resources, including through sustainable management of fisheries, aquaculture
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and tourism
10
Baseline statistics and forecasts from SLTDA.
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The UN has declared the year 2017 the “International Year of Sustainable Tourism
for Development”. This is fitting for Sri Lanka as the country embarks on a journey of
transformation for its tourism sector.
Sri Lanka’s Tourism Vision 2025 and Roots Philosophy are aligned with the SDGs,
and specific core strategies and actions have been developed in the ensuing
chapters of the TSAP towards achieving them, namely:
o Chapter 4 on developing sustainable destinations, particularly the
Transformative Tourism Projects (see Section 4.3.4),
o Chapter 5 on lifting industry standards, and
o Chapter 6 on engaging the workforce and communities, particularly the local
community focus (see Sections 6.2.2 and 6.2.4).
The central aim of the Paris Agreement is to strengthen the global response to the
threat of climate change by keeping a global temperature rise this century well below
2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the
temperature increase even further to 1.5 degrees Celsius. 195 countries, including
Sri Lanka, signed the agreement. Efforts need to be made to lower greenhouse gas
emissions and build climate resilience. The Tourism Vision 2025 emphasises eco-
friendly practices and green principles.
This TSAP and the tourism institutions will work closely with the relevant authorities
as well as existing national plans and strategies towards achieving the SDGs and
mitigating the effects of climate change.
Based on the national economic objectives and the UN SDGs, 7 guiding principles for
Sri Lanka’s tourism industry have been identified below.
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GUIDING PRINCIPLES
# Capturing the benefits of tourism for Sri Lanka

The tourism industry makes a significant contribution towards the growth and
diversification of Sri Lanka’s economy. It should be considered a key pillar of the
economy and a priority in government decision-making. Facilitated by the public sector,
the private sector should play a lead in the development of the tourism industry.
# Democratisation of economic participation

Tourism should result in optimal economic benefit to Sri Lanka’s economy by way of
maximum net foreign exchange income, spreading of development throughout the island,
and creating gainful employment for Sri Lankans. Tourism growth should stimulate and
deepen the value chain and ensure viable, long-term economic operations, providing
socio-economic benefits to all stakeholders that are fairly distributed.
# Conservation and world-class management of assets

Tourism development should promote the conservation and enhancement of Sri Lanka’s
natural environment, and its historical, social and cultural heritage, avoiding any harmful
effects. It should make optimal use of environmental resources – maintaining essential
ecological processes and helping to conserve natural biodiversity.
# Local community involvement

Tourism should respect the socio-cultural authenticity of host communities, conserve their
built and living cultural heritage and traditional values, and contribute to inter-cultural
understanding and tolerance. Tourism development should involve local communities in a
real and holistic capacity. Strong political leadership including regional and local
government should foster informed and wide participation of all relevant stakeholders and
support consensus building.
# Memorable experiences rooted in heritage

All tourism services and activities should be visitor-centric and rooted in the
environmental, religious, social and cultural heritage of Sri Lanka. They should maintain a
high level of visitor satisfaction and ensure a meaningful visitor experience, providing
learning opportunities and raising their awareness about best tourism practices.
# Responsible destination marketing

Sri Lanka should be marketed responsibly to highlight the country’s distinctive
environment, traditions and attractions. Efforts should also be made to dispel
longstanding misconceptions about the country and tourism sector.
# Safety and security for all

Tourism should ensure a safe and secure environment for all visitors, investors and
communities alike. This includes the welfare of animals.
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(ii) SYSTEMIC FAILURES
In order to move towards the vision and objectives of expanding Sri Lanka’s tourism
value proposition through world-class visitor experiences, a transformation in
thinking and planning for tourism is required. Sri Lanka’s tourism industry, in
particular the role that public sector plays, requires a “system reboot” focused around
rethinking and re-organising the following systemic failures:
Coordina(on)
Failures)
Ins(tu(onal) Resource)
Failures) Failures)
Market)
Failures)
Coordination Failures
× Poor coordination and communication between different government
ministries, institutions and stakeholders with respect to tourism
planning, tourism asset management and tourism destination
management. This is further complicated with tourism-related responsibilities
spread across multiple agencies and government levels as a devolved
subject area. Similarly, there is poor communication and coordination with
other tourism stakeholders (e.g. with respect to conservation, education,
SMEs). This contributes to conflict in land use11 and causes administration
and decision-making processes to become complex and slow.
Institutional Failures
× Deficient and politicised leadership and management across all layers
of government. There is a greater emphasis on institution and infrastructure
building, rather than core functions. Political interference has hindered overall
output by government agencies and progress with key growth initiatives.
Although tourism is a globally competitive industry, best in class practices,
world-class competencies and structured capabilities are not fully adopted in
government.
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11
Examples of land use conflicts include environment versus infrastructure projects, fishing versus tourism, energy
versus tourism etc.
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× Limited empathy, awareness and participation in tourism for host

communities. This has caused conflicts between local communities,
institutions and investors, and also negatively impacted tourism-related FDI
projects.
× Inadequate attention toward cultural heritage conservation and natural

habitat preservation. Initiatives to monitor over-visitation and allow for
animal welfare and natural habitat regeneration are not prioritised. There has
been a reliance on regulation to manage issues such as quality, safety and
standards, but limited enforcement of the regulations. In addition, rent-
seeking practices subvert the regulatory process.
Resource Failures
× A limited emphasis by both the public and private sector on human
capital development and 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 to other regional destinations.
× The lack of comprehensive visitor research and data, ongoing research

into products and markets, and market intelligence. This includes
research into alternative attractions as well as niche and emerging market
segments. As a result it 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.
× Access to investment and financing is lacking, especially for SMEs, and

high capital costs. For example, high land prices in certain areas are
hindering independent small businesses. Women are further isolated in this
category of financing. Construction costs are very high as a result of high
inputs (i.e. building materials of steel, cement, aluminium, tiles) and in some
cases, there is over-engineering of resorts, which adds to costs.
Market Failures
× Limited attention has been given to product diversification and
destination development. This is restricting competitiveness, recreation and
tourism choices, the development of niche markets and the ability to value
add to the visitor experience. The emphasis has been predominantly on site-
specific copycat construction, without holistic approaches. This has affected
the authenticity and uniqueness of the Sri Lankan product. More importantly it
has also led to spatial disparity with significant tourism growth in a few areas
only.
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× The lack of effective mechanisms to manage, standardise 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.
× Market distortions because of government policies, rent-seeking and

subsidised government operations (e.g. tariff rates, Colombo room rates,
domestic aviation etc.). Also, government-owned tourism products and
services (e.g. hotel accommodation and tours) exist across several
government agencies that have limited tourism core skills or functions, which
is a reputational risk for the destination.
To overcome the above-mentioned significant and persistent institutional failures that

impede sustainable tourism, there will need to be action from a “whole of
government” and “whole of industry” approach. This will entail meaningful
communication, cooperation and involvement of key partners across local, regional
and national governments.
A significant systemic transformation of tourism in Sri Lanka is required. This

involves changing government views and management of the industry (institutional
reform); changing government and industry’s understanding of and provision for
targeted visitors (visitor experience); and changing the process of implementation (to
tangible measurable actions).
This Action Plan has been prepared as an instrument of transformation, as a start

on the journey towards Tourism Vision 2025 and helping to achieve the UN SDGs.
(iii) TRANSFORMATIONAL THEMES

As a result of this analysis and with the view to ensure a thriving, professional
tourism industry supporting a variety of local businesses and communities, six key
transformational themes were identified in the TSAP:
1. Improving Governance and Regulation

With respect to management, the focus is on creating a system of tourism
institutions, regulations and processes that deliver a conducive climate for
streamlined investment and business operations, facilitate industry best practice,
monitoring and enforcement, and support the development of communities and
workforce.
2. Understanding Visitors
With respect to research and information, the focus is on developing a research
programme and Visitor Segmentation Model to systematically profile source and
niche markets as input to guide product development and marketing decisions.
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3. Marketing and Communicating Effectively

On the demand side, the focus is on yield (total revenue), not numbers. The goal is
not just to attract more visitors, but to attract the right kind of visitors, through the
most effective media and making the most of available digital data, platforms and
applications.
4. Developing Sustainable Destinations

On the supply side, the focus is on developing and defining (for the market) a range
of products aligned to Sri Lanka’s attractions. The goal is to ensure these are
strategically developed across the island to encourage longer stays, facilitate visitor
movement and spending across all districts and encourage return visitation. This
chapter is particularly relevant to the UN SDGs.
5. Lifting Industry Standards

The focus is on creating mechanisms to support best practices in handling of water,
energy and waste; in service and quality control; and for the effective protection and
presentation of wildlife and other key environmental, cultural and historical values.
The aim is to achieve a reputation for being the ‘best in each class’ of tourism
products, rather than only servicing one type of visitor segment (e.g. large group,
fixed itinerary travel package tourists) very well.
6. Engaging the Workforce and Communities

The government has prioritised the human resources agenda for the country. The
focus is on developing the overall capacity of the tourism sector workforce, both
public and private sector. Goals should encourage increased participation in the
sector, particularly by women, and facilitate the linking of tourism training and skills
development opportunities with industry sector needs. In addition, local communities
should become actively involved. This chapter is particularly relevant to the UN
SDGs.
Overall on engagement, the focus is on creating more effective communication and

relationships between tourism stakeholders across relevant management agencies,
the private sector, the conservation groups, the education sector and communities.
The TSAP also acknowledges the need to leverage the global trends of digitalisation,
technology disruptions, and customisation of products and services.
Each theme above is addressed in a separate chapter of the TSAP 2017-2020.

There is an overview of the current situation, a set of core strategies to transform
tourism and a set of specific actions to be delivered by 2020. Each of the actions is
assigned a lead agency responsible for delivery, as well as relevant partner
organisations. A timeframe for implementation and budget estimates are also
provided.
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To summarise, the approach taken to develop this TSAP is as follows:
High-level objectives aligned with national strategies were defined:
Increased
Better skilled & more
opportunities for FDI Greater inclusivity &
jobs, more female
& domestic sustainability
employment
investment
These were underpinned by a clear strategic direction: TOURISM VISION 2025
Philosophy, vision, mission, objectives, UN SDGs & guiding principles
This was followed by analysis of products, markets, institutions, partnerships and policies.
Analysis leading to 4-year TOURISM STRATEGIC ACTION PLAN (TSAP)
The analysis highlighted areas of systemic failure that undermine achievement of Tourism Vision 2025.
Market Institutional Resource Coordination

Failures Failures Failures Failures
Six transformational themes are defined in the TSAP to drive both achievement of objectives and
address the identified systemic failures.
Improve institutional Improve

Improve market Lift industry
performance, communication
understanding & standards at all
governance & across marketing
visitor segmentation touch points
regulations channels
Development & planning of destinations, identification of transformative project

opportunities & signature tourism experiences (Product definition & diversification)
Improvement in workforce & stakeholder engagement
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Monitoring Action Plan Progress

It is essential to incorporate ministerial reporting of progress made against the
TSAP and a regular reporting of the effectiveness of initiatives. The summary below
helps to provide a framework for developing a set of indicators against which to
monitor results during the implementation of the plan.
Transformation Core strategies Success indicators *

themes
Improving Revitalise Key Institutions • Regulations enacted
Governance & Improve Relationships, Communication & • Collaborative MoUs
Regulation Coordination signed by SLTDA
Reform Core Legislation & Regulations • Actual annual
Enable Business & Investment institutional budget
spend
Understanding More Robust Data Collection & Analysis • Regular reporting

Visitors Monitor Success of Marketing Efforts • Niche segment arrivals
Demonstrate Economic Value of Tourism
Industry
Marketing & Sharpen the Brand Focus • Brand health
Communicating Embrace the Digital Age • MICE activities
Effectively Harness the Power of Staging • Regional events
Build Stronger Partnerships
Developing Implement Integrated Spatial Planning • Spend per day
Sustainable Define Tourism Areas & Create • Room inventory
Destinations Signature Experiences • Visitor dispersal
Improve Access Via Development of Key • Duration of stay
Routes, Hubs & Gateways • New visitor
Focussed Destination Development experiences
Through ‘Transformative Projects’
Lifting Industry Improve Conservation, Presentation & • International brands

Standards Management of Natural & Cultural • Average occupancy
Assets rates
Facilitate Uptake of Best Practice at Key • Return visitors
Touch Points
Improve Visitor Information, Signage &
Interpretation
Engaging the Develop an Actively Engaged Workforce • Sector employment
Workforce & Promote Employment & Career • Women employed in
Communities Opportunities in Tourism the sector
Prioritise Lifelong Training & • Numbers of hospitality
Development schools and students
Engage Local Communities in Tourism graduating
* The indicators and their parameters must be clearly defined. Monitoring of many of the
indicators needs to be introduced and the baselines established. Although helping to gauge
success in one area, they are correlated.
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CHAPTER 1:
IMPROVING GOVERNANCE AND REGULATION 12
A strong and supportive legislative framework and an effective and efficient

institutional framework will form the backbone of Sri Lanka’s effort to move towards
Tourism Vision 2025. The legislative and institutional framework must ideally:
• Effectively regulate the tourism sector to maximise sustainability while ensuring

returns on investment, and
• Maximise efficiency by clearly identifying the roles of the public and private sector
and providing a platform for coordination.
1.1 CONTEXT
The institutional framework for tourism in Sri Lanka is fragmented under the existing
tourism legislation. Four separate tourism institutions function under the Ministry of
Tourism Development and Christian Affairs. These are the: Sri Lanka Tourism
Development Authority (SLTDA), Sri Lanka Tourism Promotion Bureau (SLTPB), Sri
Lanka Convention Bureau (SLCB) and Sri Lanka Institute for Tourism and Hotel
Management (SLITHM).
Figure 2: Current public sector institutional framework for tourism
Institutional Framework: Public Sector Tourism Central Level
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
12
A detailed report ‘Review of Legal and Institutional Framework of the Tourism Sector’ (2016) provides a more
comprehensive analysis and further information.
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By law, a fixed proportion of the Tourism Development Fund is allocated to each

institution without due consideration of requirement or prioritisation.
Institutional fragmentation is further compounded by the distribution under the

Constitution of important tourism-related responsibilities among many other ministries
and agencies at the central level and the devolution of substantial but uncertain
powers to the provincial and local levels. There is presently little consultation,
coordination and cooperation which makes daily working rather difficult.
The national tourism institutions are bound by public service regulations, which pose
a challenge to recruiting and retaining the most qualified and capable staff. This
constrains the organisation to carry out their core responsibilities more effectively and
efficiently. Though well organised and entrepreneurial, the private sector is held back
by a range of serious impediments to business and investment.
Strengths
$ National tourism institutions are well funded and empowered on some issues
$ Strong private sector entrepreneurship and institutional framework
$ Large public land holding and extensive protected areas of natural and
cultural heritage
Challenges
× Multiplicity of government agencies with sole or shared responsibilities for
important aspects of tourism
× Further fragmentation between national, provincial and local levels of
government
× Silo approach within tourism institutions, leading to inefficiency and
duplication
× Inadequate planning, development, regulation, marketing and human
resource training within the public sector
× Lack of consultation, cooperation and coordination at all levels of government
and with the private sector
× Various impediments to business and investment
× A large proportion of unregulated tourism businesses that can contribute to
safety and reputational risks.
Extensive regulatory and structural reforms are required to:

• Revitalise the national level tourism institutions;
• Enable them to carry out core responsibilities more effectively and efficiently;
• Establish a more "whole of government" consultative, cooperative and
coordinated framework for tourism at the central level and with the provincial
and local levels;
• Strengthen consultation and cooperation with the private sector; and
• Enable business and investment, especially SMEs.
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1.2 The Core Strategies
The four core strategies to improve governance and regulation over the next four
years are illustrated below:
1. Revitalise Key
Institutions
Improving
4. Enable Governance & 2. Improve
Business & Regulation Relationships,
Investment Communication
Core Strategies
2017-2020 & Coordination
3. Reform Core
Legislation &
Regulations
Core Strategies 1 and 2 are short to medium term in nature while strategies 3 and 4
are longer term. The core actions presented (GR1 to GR12) are sequenced with the
short-term actions that are more easily achieved listed first.
1.2.1 Revitalise Key Institutions

The division of the national tourism organisation (then Sri Lanka Tourist Board) into
four separate institutions in 2007 has contributed to weakening the overall efficiency
and effectiveness of the administration of tourism. Measures are available under the
existing Tourism Law in order to improve overall coordination, output and working
conditions. A number of actions (GR1 to GR3) are proposed to enable a more
integrated approach among the four institutions to improve communication,
cooperation, efficiency and effectiveness.
Staff retention and attraction will require strong HR policies, improved salaries and
employment conditions (more information in Chapter 6). To further enhance and
expand technical capacity, consultants or outsourced expertise must be engaged.
They will have the key skill sets required to strengthen the institutions and better
enable these institutions to undertake existing responsibilities as well as the further
responsibilities required to implement the TSAP.
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Core Strategy 1: Revitalise Key Institutions
Top-line action Institutions Timeline Outcomes

involved
GR1 Strengthening of SLTDA, Tourism Prioritise, Integrated, cooperative
SLTPB and SLCB by Ministry, completed by and practical working
introducing shared functions SLTDA end 2017
and cross-functional teams
GR2 Improve salaries and SLTDA Prioritise, Improved recruitment,

conditions to better recruit and completed by motivation and retention
motivate staff generally end 2017 of staff
GR3 Hire professionals with special SLTDA Prioritise, Supplement with

expertise or outsource completed by additional and new
specialist functions end 2017 expertise required for
TSAP implementation
1.2.2 Improve relationships, communication and

coordination between stakeholders
Given the fragmented institutional structure, it remains critical that effective
mechanisms be established to achieve the “whole of government” and “public /
private partnership” approaches required for a successful tourism sector. These must
transcend politics and personalities, and they need to be formalised so far as
possible by proven mechanisms at and between each level of government and
between the public and private sector.
At the central level, an Inter-Ministerial Council chaired by the Prime Minister will
achieve the required high-level coordination on tourism. This Council could mediate
major national issues related to conflicting land or industry use and large-scale
investments that impact the tourism sector. This will be implemented and
supplemented by the SLTDA entering into MoUs with the relevant authority /
department in each of the key line ministries whose jurisdiction affects or is affected
by tourism13. These MoUs will establish the mechanism for consultation, cooperation,
coordination and reporting and an operational plan for dealing with key issues.
Mechanisms will also be implemented to strengthen consultation, cooperation and

coordination between the central, provincial and local government levels
especially on planning and regulation, and these too will be formalised by MoUs
between the SLTDA and each provincial tourist authority or its equivalent.
In parallel with this, the Agency for Development (AfD)14 will also be involved in
carrying out further coordination in line with the TSAP. Other mechanisms to support
this coordination include the Tourism Task Force, forums, and planning and
regulatory measures.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
13
There are at least 18 ministries and 32 related departments involved in the tourism sector.
14
This agency is proposed by the government to oversee, coordinate and direct national economic policies for three
years, as well as to kick-start critical catalyti projects including in tourism.!
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A similar collaborative structure is required for coordination in the private sector. The
creation of a national tourism industry council with representation from each of
the 8 private sector tourism organisations and with a mechanism to receive input
from the 4 national chambers of commerce relevant to tourism will allow for a unified
voice to represent private sector interests and also streamline coordination with
government institutions (see Figure 3).
Other mechanisms to strengthen the partnership approach between the public and
private sectors include the Tourism Advisory Committee, Tourism Task Force, PPP
arrangements for marketing and the SLITHM satellite colleges, an ombudsman
function within SLTDA, and MoUs with the relevant bodies.
Core Strategy 2: Improve relationships, communication and co-ordination
Top-line Institutions Sub actions Timeline Outcomes

action involved
GR4 Improve Tourism 1. Inter-Ministerial Completed Mechanism
inter- Ministry, Council on Tourism by end for
ministerial / ministries chaired by the PM 2017 consultation,
agency SLTDA, other 2. MoUs for inter- Completed cooperation
consultation ministries and ministerial/agency by mid- and
and agencies consultation and 2018 coordination
cooperation cooperation on tourism on key
on tourism 3. Coordination with AfD issues
GR5 Strengthen Private sector 1. Advocate formation Completed Private

consultation associations of a National Tourism by end sector unity
and Industry Council 2017 and speaks
cooperation with one
with the voice on key
private issues
sector on SLTDA, 2. Strengthen the Completed Stronger
tourism private sector Tourism Advisory by end private
Committee 2017 sector
involvement,
3. MoUs for public / steering
private sector committee
consultation and for TSAP
cooperation on tourism 2017-2020
SLTDA 4. Set up ombudsman Completed Dispute
function to resolve by end resolution
disputes and mediate 2018 and
facilitation
SLTPB, 5. PPP style Completed Better
private sector arrangements for by end cooperation
marketing 2018 and leverage
SLCB, private between
sector public and
private
sector
SLITHM, 6. PPP style Completed Expanded
private sector arrangements for by end and
SLITHM satellite 2020 strengthened
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colleges roll out of
colleges at
provincial
level
GR6 Strengthen SLTDA, 1. Implement planning Completed Provincial
consultation provincial measures by end planning
and councils / 2017 coordinated
cooperation tourist 2. Support for provincial and
on tourism bureaus, tourist bureaus to consistent
between Tourism Task function as destination with TSAP
central, Force management 2017-2020
provincial organisations
and local SLTDA, 3. Implement Forums Completed Mechanism
government provincial and MoUs by end for improving
councils / 2018 working
tourist relations,
bureaus, consultation
Tourism Task and
Force cooperation
SLTDA, 4. Regulatory Completed Provincial
provincial measures by end statutes and
councils / 2019 regulation
tourist uniform and
bureaus, consistent
Tourism Task with national
Force laws and
policies
!
!
!
Figure 3: Proposed private sector institutional sector for tourism
Institutional framework: Private Sector (2020)

Umbrella organisation for national tourism associations
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• The Hotels Association of Sri Lanka (THASL)

• Sri Lanka Association of Inbound Tour Operators (SLAITO)
• Travel Agents Association of Sri Lanka (TAASL)
• Association of Small and Medium Enterprises in Tourism Sri Lanka (ASMET)
• National Tour Guides Association (NTGA)
• Chauffeur Tourist Guides Lecturers Association (CTGLA)
• Ceylon Hotel School Graduates Association (CHSGA)
• Sri Lanka Association of Professional Conference, Exhibition & Event Organisers
(SLAPCEO)
• The Ceylon Chamber of Commerce (CCC)
• The National Chamber of Commerce of Sri Lanka (NCCSL)
• European Chamber of Commerce of Sri Lanka (ECCSL)
• The American Chamber of Commerce in Sri Lanka (AmCham)
1.2.3 Reform Core Legislation and Regulations

There are limitations to what can be achieved without comprehensive legislative and
regulatory reforms. Under the current operating context, the enactment of new
tourism legislation and gazettal of regulations remains an important long-term step.
The regularisation of SLTDA registration and licensing system requires gazettal of

the regulations on each relevant tourism activity. Draft versions of these regulations
already exist and those relating to ‘tourist hotels’ have been gazetted in 2016.
International best practice indicates that many issues are best resolved through self-
regulatory codes of conduct. Furthermore, digital and social media more directly
and effectively address some quality assurance issues in a service industry like
tourism. Honesty, courtesy, helpfulness, friendliness, assistance and authenticity are
difficult to regulate but are becoming more important than “tick a box” physical
facilities. Consumers increasingly rely upon guest reviews and sites like TripAdvisor
and social media to research, choose and book accommodation, transport and other
services and ignore traditional registration, licensing, star rating and the like. Sri
Lanka should be an early adopter and adapter to the new paradigm.
It must be further noted that the legal and institutional framework in Sri Lanka is
undergoing extensive review on a national level (envisaged through a constitutional
change). Further legislative changes are expected through the TSAP, and may
involve the direction and control of other ministries and agencies. It is essential that
these changes be closely monitored through the MoU mechanism and others, and
that expert input be provided to ensure they properly address the issues in tourism
and produce better outcomes for the sector.
Core Strategy 3: Reform Core Legislation & Regulations
Top-line Institutions Sub actions Timeline Outcomes

action involved
GR7 Regularise MoT, SLTDA Gazette Complete Clarity and
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the SLTDA appropriate d by end certainty for all
registration tourism 2017 stakeholders
and licensing regulations
system
GR8 Sharing SLTDA, Provincial Review Complete Early adopter
economy - Councils, regulations d by end harnessing of the
appropriate Provincial Tourist and develop 2018 global power of
light touch Bureaus, wider Codes of digital disruption
regulation industry including Conduct to and the sharing
digital platforms self-regulate economy
and consultants key sectors
or issues Benefits local
SMEs,
employment,
community
ownership and
involvement
Helps to
mainstream large
part of the informal
sector
GR9 Monitor and SLTDA, Each new 2017- Better and more
provide input consultants draft cross- 2020 enabling legal and
into draft cutting law institutional
laws requires framework for
including attention tourism and
constitution, related business
tax, land, and investment
investment,
PPPs
1.2.4 Enable Business and Investment
The impediments to business and investment, both foreign and domestic, in Sri
Lanka are well documented. The government together with development partners
has commenced a wide-ranging programme to improve the investment and business
climate across all sectors. It is important that each part of this reform process
provides for improvements in the tourism sector and addresses the key constraints
preventing the development of business and investment in this sector. Regulations
related to sustainable development and human resources are important, but not
covered here. The rationale for each is briefly set out as follows.
What is broadly categorised as the “informal sector” needs to be more closely

reviewed and defined in order to address the challenges the businesses face, and
introduce measures to mainstream more unregistered establishments. A basic
approach is outlined in Table 1 below, but formal definitions with clear thresholds
should be introduced, and also continuous assessment going forward.
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Table 1: Basic approach to categorising “informal sector”
Type Description Pros / Cons
Traditional Showcase traditional Sri Lankan village Can be developed as a unique
homestay life in rural settings, linked to agro- and experience for Sri Lanka in line with
coastal community tourism. the Roots Philosophy.
Informal Original concept of AirBnB where Income earner or supplementary

sector homeowners short-let spare capacity. income earner, direct earnings to
Generally, their earnings are below the small entrepreneurs and can
thresholds of formal taxation and levies. empower households.
Codes of conduct, accreditation
schemes and spot inspections can
help to maintain standards and
ensure safety.
Unregistered These businesses are not registered Such businesses should be

businesses with the SLTDA, but some may have encouraged to register through
local trade licenses and business measures such as enhancing the
registration. Those businesses meeting value of SLTDA registration with
the earning thresholds should become training and incentive programmes,
registered. They may come up against a moratorium on back taxes,
challenges to register, which include: recently introduced online
lack of awareness, complexity of registration, etc.
process, limited categories of
registration, land permit issue, etc.
Registered Businesses that are registered with the

businesses SLTDA. Commonly referred to as the
“formal sector”.
Having a large and growing proportion of tourism service providers that are
unregistered with the SLTDA is a standards and compliance risk for all
stakeholders including visitors, intermediaries, the authorities and the informal
sector providers themselves. This includes activities, which the SLTDA and/or
Provincial Council clearly require to be registered or licensed, and activities where
licensing and registration requirements are unclear or unnecessary, e.g. the sharing
economy. Mainstreaming the “informal sector” will bring them into the fold, invigorate,
validate insurance, facilitate financing and promote further innovation, product
development and investment as well as consumer confidence.
Mainstreaming the “informal sector” is a high but challenging priority and a number of
actions are proposed which directly address the realities of this in practical and
immediately doable ways across a range of regulatory areas.
Issues relating to land are also a serious impediment to business and investment
and again, pending wider longer-term reforms for the whole economy, the actions
endeavour to address those key land issues in tourism where there appear to be
practical doable solutions within the duration of the TSAP. The objectives should be
to ensure optimal allocation of land in the national and community interest.
Taxation and investment regulations and requirements are the fundamental levers
to either facilitate or impede tourism business and investment. While the economy
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wide reforms on this are being developed, the actions below will address key
immediately doable matters and ensure that the special issues and needs in tourism
are properly addressed in the overall reforms, which will emerge in due course.
Lastly, the actions in this section and the TSAP generally complements and takes
advantage of the government’s AfD initiative, not only by providing a practical
national policy for the tourism sector, but also by identifying and supporting critical
catalytic projects.
Core Strategy 4: Enable Business & Investment
Top-line Instituti Sub actions Timeline Outcomes

action ons
involve
d
GR10 Mainstrea SLTDA 1. Definitions for Completed Better understanding in
m the categories within by mid order to introduce
informal “informal sector” 2017 appropriate measures
sector MoF, 2. Explore options of a Completed Enables business and
SLTDA moratorium on back by end investment,
taxes for first 2017 encourages registration
registration and compliance,
SLTDA 3. Enable regulation to Completed improves consumer
accept land permits as by end confidence and
sufficient evidence of 2018 protection
title for registration
SLTDA, 3. Streamline change Completed
LCG of purpose in land by end
permits and implement 2018
interim workarounds
SLTDA, 4. Streamline Completed
LCG conversion of land by end
permits to leasehold 2020
title
SLTDA 5. Provisional 2017-2020
registration and
licensing
GR11 Land SLTDA, Review tender and 2017 - Better economic and
related consulta lease documentation 2020 social outcomes
actions nts for tourism projects for
better win / win
arrangements
GR12 Taxation MOIP, Include tourism as a 2017 –
and SLTDA key sector with 2019
investme appropriate provisions
nt related in the proposed PPP
actions laws
Consider the special

needs of tourism in
investment incentives
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CHAPTER 2:
UNDERSTANDING VISITORS
A thorough understanding of tourism demand is the foundation of effective marketing

strategies, communications and product development. This includes an
understanding of international and domestic visitors; key niche interest groups; and
visitors to regions and key sites. For different visitor segments, it is important to
appreciate:
• Their motivations and the experiences they want (e.g. why do they travel,
what are the key attractors, what do they want to see and do),
• Travel and accommodation patterns (e.g. how do they travel, where and
how long do they stay),
• Information sources (e.g. how do they obtain, use and share information
and what does it mean),
• Expenditure (e.g. how much do they spend, on what and where),
• Levels of satisfaction with the different elements of their trip
(accommodation, service, nature and culture experiences etc.), and
• Means of booking (direct online, direct with supplier, online travel platform,
traditional travel agent, independent traveller with minimal pre-bookings etc.).
In order to validate findings and understand the tourism industry trajectory, it is also
important to contextualise any market segmentation analysis with consideration of:
• Global trends in travel motivations, expectations and best practices,
technology and how that affects our major source markets and niche interest
groups,
• Global trends in accommodation, tours, attractions and events as this
will affect visitor expectations and Sri Lanka’s tourism industry
competitiveness, and
• The marketing and product strategies and development of competitor
destinations as this offers insights into success factors and how Sri Lanka
can develop competitive edge points of difference.
2.1 THE CURRENT CONTEXT

The tourism research currently available for Sri Lanka is wide ranging and provides a
basic overview. However, there is no clear segmentation model to inform the
tourism planning and strategy formulation process. Although the identified 22
priority markets offer a general focus on mainstream segments and some targeted
but ad-hoc niche segments, more work is necessary to adopt a well-designed
strategic marketing and product development approach.
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The annual Survey of Departing Foreign Tourists conducted by the SLTDA
provides a good foundation for profiling international visitors. However, the sample
size appears to be inadequate to provide reliable estimates to:
o Identify high yield source markets;

o Identify and profile current and potential niche markets / experiences;
o Develop robust estimates and forecasts of tourism spend; and
o Allow meaningful regional and attraction level analysis.
In addition, the survey is not rigorous enough in terms of sampling, implementation,

question design and post-weighting to provide reliable estimates and forecasts of
tourism spend and yield by geographical source market. This has implications on the
industry’s ability to formulate focused market and product development strategies.
There is a dearth of data on domestic tourism from domestic visitor numbers to

profiling. Based on feedback from government and private sector stakeholders during
preparation of the TSAP, the domestic market is seen to be growing. Current
observations of domestic visitors are largely anecdotal; their spend patterns and
visitation choices are not scientifically established or validated.
The present estimates of economic value and employment of the tourism sector
are computed on the basis of the direct impact; and they do not include the flow-on
effects throughout the economy. The lack of reliable data on economic linkages is a
key constraint to estimating the true economic value of the industry and
underestimates its ability to generate employment and support livelihoods. Further,
the estimates do not meet the international standards encompassed in the Tourism
Satellite Accounting methodology, which measures the overall economic value of the
tourism industry in a country.
There is some stakeholder involvement in collective data gathering and

research dissemination, but this is not mainstream and formalised. Stakeholder
engagement in efforts to collect relevant local data can also assist in building their
buy-in.
2.2 VISITOR SEGMENTATION MODEL

The basis of any tourism strategy is market segmentation, which must be built
on reliable data and research. The current context warrants developing a robust
Visitor Segmentation Model following international best practices that lays the
foundation for effective marketing strategies, communications and product
development.
The tourism research currently available for Sri Lanka is wide ranging, but its
reliability and validity needs to be significantly improved before a sound segmentation
model can be created. The four components comprising the Visitor Segmentation
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Model are information pertaining to: International source markets, mainstream market
segments, niche market segments and the domestic market (see Figure 4).
Mainstream
Market Niche Market Segments
Segments
International
Source Domestic
Market
Markets
Visitor
Segmentation
Model
Figure 4: Diagrammatic representation of the Visitor Segmentation Model
With an understanding of its gaps and shortcomings, the limited data available has
been utilised to inform the decision-making process for the TSAP. This is only an
interim Visitor Segmentation Model (VSM), until quality data is collated and analysed
as recommended in the actions. Box 1 has a summary of the methodology and data
sources used in the interim.
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15
Box 1: Interim VSM Methodology
An interim VSM has been developed using the following existing data:
(i) Current International Visitor Data

- International tourist arrivals to Sri Lanka, accommodation statistics, foreign
exchange earnings and flight data by SLTDA
- Survey of Departing Foreign Tourists by SLTDA, which profiles the
characteristics, travel behaviour and satisfaction levels of over 5,000 international
tourists, and departure card information
- Considering private sector data from AirBnB, Amadeus and the consultation
process
- Considering digital information from TripAdvisor
(ii) Supply-Led Destination Analysis

- Destination attributes, current offerings and infrastructure strengths to identify the
kind of source markets, mainstream segments and niche markets that Sri Lanka is
currently servicing and those Sri Lanka would be well placed to cater for.
- Considering these in the context of Tourism Vision 2025: that is, with respect to
sustainability goals, the goal to attract high yield visitors, and the strategy of using
diversity to combat volatility.
- Considering these in the context of a desktop analysis of the value of these niche
markets
(iii) Comparative Destination Analysis

Looking at global trends in similar destinations to identify high growth and high
yield markets. !
Subsequent to the analysis of both quantitative and qualitative information; the model
placed emphasis on (a) weighted average spend per day in package and non-package
segments; (b) arrivals share of source markets; (c) annualised growth during 2012-2015
period for source markets; and (d) average stay as key variables for selection of the priority
markets. In order to utilise the tourism assets more efficiently, 3 more source markets were
identified based on the seasonality of arrivals.!
A summary of the analysis carried out based on the interim VSM is provided below.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
15
Marketing Supplementary Paper 1 (2016) provides additional information.
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INTERNATIONAL SOURCE MARKETS

Criteria for identifying and categorising priority source markets may include: spend,
growth in arrivals, size of the markets and other seasonal factors.
At present, Sri Lanka attracts a diverse mix of tourists (see Graph 2 below). The
top 10 markets accounting for 66% of the total arrivals are: India, China, UK,
Germany Maldives, France, Australia, Russia, USA and Japan. The markets of India,
China, UK, Germany and France alone account for 50% of the total arrivals.
Reflecting the influence of the above countries, Western Europe remains the largest
regional source market (31% of the total), followed by South Asia (26% of the total)
and East Asia (20%).
Arrivals!share!by!source!market!
20! 100!
18! 90!
16! 80!
14! 70!
Percent!of!total!
Percent!of!total!
12! 60!
10! 50!
8! 40!
6! 30!
4! 20!
2! 10!
0! 0!
Australia!
Canada!
Ukraine!
Austria!
Norway!
Maldives!
Thailand!
Malaysia!
Nepal!
South!Africa!
Poland!
Denmark!
India!
U.K.!
Pakistan!
U.S.A.!
Spain!
Sweden!
Graph 2: Arrivals share by source market

(Source: SLTDA Annual Reports)
Arrivals from the main source markets grew at reasonably high rates in the last three
years. Annualised growth rates for the top 10 source markets were in double digits
during this period, except in the case of USA and Australia. Large markets such as
China and India continued to contribute with high annualised growth rates.
Graph 3 below maps the main source markets based on their significance in the
current mix, annualised growth rates during the period 2012-2015 and the spend per
day as reported.
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Source!markets!by!size,!growth!and!spend!
!10!! India! China!
!9!!
U.K.!
!8!!
Arrivals!share!(percent)!
!7!!
Germany!
!6!!
Middle!East!
!5!! France!
!4!!
Australia! Russia!
!3!! U.S.A.!
Benelux! Scandinavia!
Canada! Japan!
!2!!
Malaysia!
Italy!
!1!! Switzerland!
Ukraine!
!W!!
0! 5! 10! 15! 20! 25! 30! 35!
Annual!growth!2012W15!(percent)!
Graph 3: Source markets by size, growth and spend
(Source: SLTDA Annual Reports and Survey of Departing Tourists)
Notes: Bubble size corresponds to the average per day spending excluding airfare reported
by the departing tourists computed on the sample included in the Survey of Departing
Tourists. Arrivals share of India and China (17.6% and 11.9% of the total respectively) and
annualised growth during 2012 and 2015 for China (99.0%) could not be accommodated in
the scale of the respective axis. Benelux group includes Belgium, Netherlands and
Luxemburg while Scandinavia includes Denmark, Norway and Sweden.
Travel trends to Sri Lanka are seasonal. It can be observed that six months of a
year experience elevated visitor levels in relation to the average of the year. These
months – January, February, March, July, August and December – are typically
considered the “high season” (see Graph 4). Better targeting could help utilise
tourism assets more efficiently taking into account the seasonality factor.
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250!
Seasonality!of!arrivals!!
200!
150!
Index!
100!
50!
0! Jun!
Aug!
Oct!
Apr!
Dec!
May!
Jan!
Jul!
Feb!
Sep!
Mar!
Nov!
Germany! France!
U.K.! Russia!
Middle!East! India!
China! Seasonality!index!(average!2014W15)!
Malaysia! South!Korea!
Graph 4: Seasonality of Arrivals 2014-15

(Source: SLTDA Annual Report)
Case Study 1: The Chinese Market

Many countries see China as a low yielding, short stay market. In order to achieve
Tourism Vision 2025’s aspiration for high value visitors, China needs to be approached
differently to current practices. There is a growing middle and upper income market in
China that is prepared to pay for special experiences, the type of experiences that Sri
Lanka can deliver.
Chinese travellers are a diverse market. Based on an analysis of income and travel
spending by WTTC and Oxford Economics, household income of close to US$20,000 is
the threshold at which Chinese households can afford outbound leisure travel. From
there, it is estimated that households earning US$35,000 annually find international travel
more affordable and can take more long-haul trips. When traveling abroad, many Chinese
tourists are willing to pay a premium for accommodation, dining and shopping.
For the higher-end market segments, recent Chinese travel trends show that cruise, safari
and adventure travel are becoming increasingly popular. China has a fast-growing market
segment of well-travelled, high spenders, looking for new experiences. A study conducted
by the Boston Consulting Group (2013) shows that from 2012 to 2030, three segments of
the outbound leisure market will grow the fastest: young ‘affluents’ (ages 18 to 30), senior
professionals (ages 45 to 55, traveling without an organised tour group), and small groups
of families and friends (ages 30 to 45, also traveling without an organised tour group).
Combined, by 2030, these segments will account for an additional 100 million annual trips
and US$ 340 billion in annual spending. This is quite different from the past when the
outbound leisure market was driven largely by mass-market travellers in organised tour
groups. It implies potential opportunities for independent consumption, which offer niche
and higher-end products and generally attract more experienced travellers.
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Accordingly, based on the interim Visitor Segmentation Model explained earlier, 10
priority markets are identified to ensure a targeted approach. They are: UK, China,
Germany, France, USA, India, Russia, Canada, Middle East and Australia. Four
more markets are identified to combat seasonality issues. This will help to utilise
assets more efficiently during low seasons. They are: India, Malaysia and South
Korea.
Table 2: Priority and seasonality markets from the interim visitor segmentation analysis
Category Markets1, 4 Attributes & Considerations
Priority UK, China, Germany, • Double digit annualised growth during
France, USA, India2, 2012-2015 except for Australia and
Russia3, Canada, Canada
Middle East, • Traditionally large markets above 2% of the
Australia total arrivals to the country
• Above average stay except for China and
India
• UK and USA are current influencer markets
• Watch out for impact of Brexit on UK;
impact of oil price slump in Saudi Arabia;
economic hardship in Russia; and
aftermath of US Presidential Election
Seasonal India, Malaysia, • Sizeable source markets

South Korea • Seasonal patterns could help better utilise
tourism assets (India peaks May, October
and December; Malaysia peaks June and
December; South Korea peaks January,
May and October)
Notes:
Less emphasis was placed on spend due to lack of reliable data.
1. This list should be revisited annually to review global and source market
specific trends.
2. Although India is identified as a priority market, the relative value addition of
this market should be further examined. An alternative ranking system
generated through the segmentation model revealed that due to low spend
and low average stay, the Indian segment’s significance in the overall ranking
is low. However, lack of spend data could have had a distorting effect on this
finding. The Indian market could be important to assist managing tourism
assets efficiently during low seasons. Better targeting of Indian states and
travellers could be done with more comprehensive and quality data, going
forward.
3. Russia was included in the priority segment based on historical data despite
year-to-date double-digit contraction in 2016. This is reflective of the
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expectation of an economic recovery in Russia in 2017 and beyond as
projected by the IMF World Economic Outlook October 2016 Edition.
4. Italy, Japan and Benelux countries remain at the border of selection criteria.
Visitation of friends and family is on the rise, driven mainly by Sri Lankan
diaspora living overseas. During 2011 and 2015, visitation of family and friends
increased at an annualised rate of 60% compared to the 15% recorded for the
pleasure / vacation category during the same period. Consequently, the significance
of the family and friends category within total arrivals more than tripled to 26% in
2015, thanks to the surge in arrivals from the source markets of India, UK, Middle
East, Germany, Australia, USA and Russia. This category is expected to contribute
to strong tourism growth during the period of the TSAP (see Graph 5 below).
Graph 5: Growth in Visiting Family & Friends category (2011 – 2015)

(Source: SLTDA)
MAINSTREAM EXPERIENCE SEGMENTS
The Survey of Departing Foreign Tourists 2015 indicates that most international
visitors travelling to Sri Lanka are engaging in mainstream activities, which are
broadly categorised at present as:
• Sun & Beach,

• Historical / Cultural Sites, and
• Wildlife Interaction
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These segments encompass the core activities that many visitors undertake when in
Sri Lanka. Sun & Beach is by far the most popular mainstream activity16, but is not
always a high yield market. There is great potential for these mainstream
experiences to be better managed to generate higher value and long-term
sustainability.
The SLTPB has a general approach to mainstream segments (e.g. sun & beach,
nature & culture, wildlife) and some targeted but ad hoc efforts towards niche
segments (e.g. health & wellbeing, tea, sports events, weddings). This spreads the
focus too broadly and does not allow for targeted strategic marketing. Furthermore,
existing market research and visitor profiling is not adequately used by the SLTDA in
regional planning and destination development.
NICHE EXPERIENCE SEGMENTS

To strengthen Sri Lanka’s competitive advantage, to grow the total tourism capacity
of Sri Lanka and to distribute the benefits of tourism more widely, niche market
segments should be developed. There are many niche market segments, which
could be considered as suitable for Sri Lanka, but robust information on these is
scarce and further research will have to be completed before major marketing and
product development decisions can be made.
Based on using data from the Survey of Departing Foreign Tourists 2015, desk
research and the consultation process, it is recommended that the following 10 niche
market segments for international visitors be considered:
• Health & Wellbeing

• Pilgrimage
• Bird Watching (Avi-tourism)
• Whale & Dolphin Watching
• Surfing & Kite Surfing
• Diving
• Cuisine
• MICE
• Weddings
• Cruise
The niche markets have been selected because:

• There is already significant tourism activity and products centred around
these experiences;
• Sri Lanka has the natural attributes and infrastructure to further develop these
experiences;
• There is a propensity to travel long haul for these experiences;
• They are growing market segments globally; and
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
16
The Sun & Beach segment is the mainstream experience segment for the selected priority markets. According to
the Departing Foreign Tourists Survey, in 2015, Sun & Beach was identified as the first choice of holidaying tourists
from these markets with a range of 61% for India (lowest) to 86% for Russia (highest).
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• The segments are high yield.
It should be noted that at this stage the MICE market (Meetings, Incentives,
Conventions and Exhibitions) in Sri Lanka is essentially still in its infancy and is thus
considered niche. This is because of the relative lack of conference / convention
facilities (beyond small to medium facilities); the limited entertainment activities in
Colombo and urban areas to occupy the leisure time of MICE related visitors; and the
lack of an incentive market. Furthermore, it is an important segment because MICE
and business tourists are not motivated by seasons at home or in the countries they
visit, which can help address seasonality fluctuations17.
It is useful to understand the correlation between the categories of experience and

the most relevant source market or market segment, as tabulated below.
Table 3: Experiential categories and most relevant source markets

Mainstream & niche Most relevant source markets / market segments
categories of experience
Sun & Beach UK, China, Germany, France, USA, India, Russia,
Canada
Historical / Cultural Sites UK, China, Germany, France, USA, Australia,
Malaysia
Wildlife Interaction UK (62%), France (52%), Australia (52%), Canada
(47%), Germany (46%), Russia (41%), (USA (39%),
China (35%)
Health & wellbeing Middle East (31%), UK (18%), Germany (16%),
France (16%), Canada (14%)
Pilgrimage India, China, USA, Canada
Bird Watching
Whale & Dolphin Avi-tourism and marine tourism fans in all markets
Watching UK, USA
Surfing & Kite Surfing
Diving Soft adventure sports fans of all ages
Younger age group [35 and under] in all markets
Cuisine UK, USA, Australia, China
MICE India, Middle East

European markets for incentive segment
Weddings India, UK
Cruise Older market segment [50 and over]

European markets, USA
Notes:
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
17
Globally, according to World Travel Monitor, the number of MICE travels across the world had increased by 6% to
94 million travels in 2015 from 88.1 million in 2014. The incentive sector tops the list of growth with 61%, followed by
the convention sector with 44%. Bali is the number one incentive tourist destination in the world.
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Parentheses show the percentage of tourists engaged in the identified niche category from
the relevant source market as per the Survey of Departing Foreign Tourists 2015. Other niche
segments are not identified and polled in the survey, but are based on general market
intelligence.
DOMESTIC MARKET
There is limited data on domestic tourism but SLTDA roughly estimates there are
approximately 6 million annual domestic travellers. Based on feedback during the
consultation process from government and private sector stakeholders, the domestic
market is seen to be growing. They generally travel in groups and most interest
comes from families during school or annual holidays. The most popular destinations
are historic and religious sites (e.g. Kataragama), followed by wildlife and beach
sites. In the southern coastal belt, three out of five households are estimated to
depend on tourism. Anecdotally, the predominant concerns of the domestic visitor
are transportation (i.e. train and bus services) and facilities (i.e. changing rooms,
toilets, places to eat and relax).
2.3 THE CORE STRATEGIES

The following strategies have been identified as the priorities for the next four years
to facilitate movement towards the Tourism Vision 2025. These have been selected
on the basis that they address the highest risk areas in terms of:
o The risk of misdirected investment and spending in marketing and product

development;
o The setting of unrealistic targets for growth; and
o Inaccurate forecasting of visitor numbers, revenue and employment.
Having reliable data and comprehensive analysis by implementing the actions listed
below (UV1 to UV18) will empower decision-making for sustainable and competitive
product development and marketing.
1. More robust data

collection & analysis
Understanding
Visitor
3. Demonstrate Segmentation 2. Monitor success
economic value of of marketing efforts
tourism industry Core Strategies
2017-2020
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2.3.1 More robust data collection and analysis
The collection and analysis of data requires a full-time dedicated research unit within
the SLTDA. The recommendation is for a Sri Lanka Tourism Research Unit
(SLTRU) to be established, with several qualified staff and a contemporary research
agenda coupled with effective communication of research findings for the institution,
and also the industry. The existing team can be strengthened for this purpose and
then transitioned into a distinct unit, SLTRU. Competencies in the unit should focus
more on analytics and drawing cut-through insights, which can lead to strategic
planning. Through this unit, the SLTDA must actively encourage academic research
on the tourism industry and publicise papers and findings on the corporate website.
The first priority of the SLTRU would be to conduct market intelligence reporting,
and begin to validate the interim VSM (detailed below). Furthermore, they would work
alongside industry partners to regularly survey, analyse and publish findings from this
research. The research would encompass details about visitor travel habits, spend,
stay and booking, and information gathering methods of the various source markets.
The SLTRU can maintain a database of indicators on the local industry and
competitor countries for continuous benchmarking.
It is suggested that in the interim, these research actions could be initiated

immediately by leveraging partnerships to obtain and purchase ‘big data’ available
from global and regional travel experts.
This continuous research can be utilised by the tourism institutions, industry partners
and other stakeholders, to aid decision-making in marketing strategies, product
development and lifting industry standards.
Short-term actions
Enhancements to the current face-to-face Survey of Departing Foreign Tourists
conducted at the Bandaranaike International Airport will provide richer information for
market segmentation purposes. Additional questions are required to expand ‘travel
purpose’ responses to include key niche market experiences, ‘travel spend’
responses to understand expenditure, and ‘green preferences’, which will reflect the
‘economic value’ of ecotourism and sustainability practices, etc.
The immigration data collected through the e-visa system is a trove of information.
Subject to confidentiality agreements and as done in other countries, this data can be
analysed to better under visitors to Sri Lanka.
To create sustainable research models, an online international visitor survey and

multi-channel domestic visitor survey should be implemented. The domestic visitor
survey would also help capture outbound tourism trends and help with seasonality
planning.
The VSM is only as good as the data it is fed. Using the data currently available, an
interim VSM has been developed, as mentioned above. It is intended that once one
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year’s research and analysis is complete, the interim model is validated and further
refined, or re-evaluated accordingly. By continuously collecting more robust data, it
will be possible to subsequently develop and validate a reliable Visitor
Segmentation Model, which includes understanding niche market segments. This
will guide strategic marketing efforts and also constantly feed into the VSM.
Core Strategy 1: Actions for More Robust Data Collection and Analysis
Actions Lead Timeframe

Agency /
Partners
UV1 Strengthen SLTDA research team and transition into setting up Tourism Priority in
dedicated Tourism Research Unit for data collation, analysis Ministry Q1 2017
and dissemination. SLTDA to encourage university and other SLTDA
academic research and help to publicise.
UV2 Enhance current face-to-face Survey of Departing Foreign SLTDA Priority in

Tourists at the airport with additional and more detailed Q1 2017
questions.
UV3 Implement International Visitor Survey online, which would SLTDA 2017
complement the enhanced airport survey (UV2) and increase Developme ongoing
the sample size of the survey to at least 30,000. nt Partner
UV4 Comprehensive analysis of immigration data for visitor trends SLTDA 2017
Immigratio ongoing
n Dept.
UV5 Design and implement a Domestic Visitor Survey of Sri SLTDA Priority in
Lankan residents using both online and face-to-face data Developme 2017,
collection in collaboration with a local university. nt Partner ongoing
University
UV6 Purchase relevant international market research studies, Big SLTDA 2017
Data and annual subscriptions for market specific information ongoing
to understand consumer trends and key outbound markets
UV7 Develop Niche Market Profiles using data from the redesigned SLTDA 2017
Survey of Departing Foreign Tourists and other sources, SLTPB
including as a result of UV6. SLCB
UV8 When UV3 and UV5 are implemented, it will be possible to SLTDA 2018
validate and refine Interim Visitor Segmentation Model used SLTPB
in the TSAP and then develop a reliable VSM going forward. SLCB
Also, develop a set of criteria for identifying and categorising
priority source markets.
2.3.2 Monitor Success of Marketing Efforts
Research must be conducted to continuously monitor the success of ongoing

marketing efforts with the view to constantly adapt if required. Success of the
marketing strategy is measured in terms of boosting the awareness and appeal of Sri
Lanka in line with Tourism Vision 2025, and it must be tracked through continuous
consumer research of international travellers in the key source markets. The
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following research methodologies can be used to track Sri Lanka’s brand as a global
travel destination:
Brand Health Research

This research measures the degree to which different holiday experiences are sought
by international travellers, and then ascertains the extent to which Sri Lanka is
perceived as offering these experiences. This research will assist in identifying the
current perceived strengths as well as areas in which more marketing or product
development needs to be undertaken. Such surveys should be repeated every two or
three years to assess whether the brand image of Sri Lanka has shifted in the source
markets.+
!
Brand Tracking Research
This is needed to track the level of preference and intention to visit Sri Lanka
amongst international travellers. A large online sample would be needed for the key
questions of overseas holiday preference and intention but only a small percentage
of the source markets who have a preference or intention to visit Sri Lanka would be
questioned as to their motivations / types of experiences they are seeking plus
barriers to travel.+
!
Online Sources of Information
Technology can be harnessed to monitor the take-up and response by consumers,
especially the tracking of websites, social media and online platforms. Online tools
(e.g. Google Analytics) and online review platforms (e.g. Review Pro, Local
Measure) can be utilised to access a collation of consumer reviews of
accommodation, tours and restaurants. They provide a dashboard of consumer
reviews collated from the internet (i.e. Google and Facebook reviews as well travel
booking and review websites) to gauge standards and visitor satisfaction. The
SLTDA can consider forging commercial arrangements with online platforms
(e.g. Google and TripAdvisor) to analyse their search data and to provide traveller
search trends such as a ranking of Sri Lanka relative to other destinations in terms of
holiday search data. Beacon technology is a tool to provide information,
recommendations and on-the-spot marketing offers to visitors at specific locations
such as the airport and attraction sites, whilst simultaneously collating data for visitor
profiling.
All this brand monitoring is important as Sri Lanka transitions from being more
commonly known as a cheap destination to a higher value authentic destination that
offers specialist niche experiences.
Core Strategy 2: Actions to Monitor the Success of Ongoing Marketing Efforts

Agency/
Partners
UV9 Undertake online consumer research in key source SLTPB 2017
markets to track the brand health and brand research. ongoing
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UV10 Implement regular website / social media monitoring to SLTDA 2017
gauge the success of digital marketing efforts. SLTPB ongoing
UV11 Use online review platforms to access a dashboard of SLTDA 2017

consumer reviews from the internet to gauge standards and SLTPB ongoing
visitor satisfaction.
UV12 Evaluate and contract online platforms to analyse their SLTDA 2017
search data to understand traveller search trends relevant to SLTPB ongoing
Sri Lanka.
UV13 Consider using beacon technology to communicate with SLTDA 2017

visitors in-country via an app on their mobile phones for SLTPB ongoing
marketing and visitor profiling. Beacons will need to be Other govt.
installed at high-traffic tourist locations (e.g. airport and depts.
attractions).
2.3.3 Demonstrate Economic Value of Tourism Industry
Reliable data needs to be collected from both international and domestic visitors to
produce estimates and forecasts of tourism revenue and jobs. This will more
accurately estimate the total contribution of the tourism sector to the country’s
economy through a Tourism Satellite Account (TSA). The TSA will provide data on:
revenue from inbound and domestic tourism, jobs attributable to tourism, tourism as
a percentage of GDP, and tourism exports and imports. A proper TSA:
• Provides credible data on the impact of tourism and associated employment,

and on the nation’s balance of payment;
• Provides information on tourism human resource characteristics;
• Provides information on tourism consumption, investment and tax generated
by tourism industries;
• Is a powerful instrument for designing appropriate policy; and
• Is based on international standards, which makes it easier to compare and
benchmark with other countries.
To complement the TSA work, a comprehensive Tourism Value Chain Analysis

and mapping experience would help to understand the real trickle down effect of the
tourism industry. This can highlight the different visitor touch points, areas for
improvement and further value addition, etc.
In addition, the provincial and local government network can be utilised to conduct
Regional Visitor Surveys and Business Surveys. These surveys would collect
information on a regional level about the appeals of the destination, visitor
expenditure, business seasonality, as well as visitor satisfaction (e.g. with
accommodation, access and transport, information services, attractions, restaurants
and cafes, shopping, safety and security, etc.), and reasons for satisfaction or
dissatisfaction. Such information can be used to monitor and uplift quality and service
standards, which will help Sri Lanka transition into a high value destination.
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In collaboration with the private sector, Employment Surveys must be conducted to

identify human resource gaps and forecast workforce-related industry trends (see
Chapter 6).
Core Strategy 3: Actions to Demonstrate Economic Value of Tourism Industry

Agency /
Partners
UV14 Expand questions on expenditure and niche experiences SLTDA Priority in
to the International Visitor Survey and Domestic Visitor Q1 2017
Survey (see UV2, UV3 and UV5). This will provide reliable
data for use in the tourism revenue and demand estimates /
forecasts, and data that can be used to build a Tourism
Satellite Account.
UV15 Develop a Tourism Satellite Account for Sri Lanka SLTDA 2018
Consultant
UV16 Conduct a Tourism Value Chain Analysis and mapping SLTDA 2017
exercise University
UV17 Develop and implement Regional Visitor and Business SLTDA 2018
Surveys in partnership with provincial / local levels of Other govt. onwards
government. Potential support from a development partner. depts.
UV18 Develop and implement Workforce Employment Surveys in SLTDA 2018

collaboration with the private sector Private onwards
sector
2.4 THE OPTIMAL OUTCOMES

The above actions will help to achieve the following outcomes as part of realising the
Tourism Vision 2025:
• A dedicated team – Sri Lanka Tourism Research Unit – that is well

resourced to consistently conduct and report on tourism research and
insights, including international source markets, domestic and international
visitor choices, and workforce trends, etc.
• An ongoing research programme that captures reliable and statistically

sound data on both domestic and international visitors, niche interest groups
and visitors to key regions and sites.
o This feeds into, validates and allows constant refinement of a best
practice Visitor Segmentation Model. This model allows reliable
identification of priority source markets, mainstream segments and
niche segments.
o The systematic analysis, reporting and sharing of this data guides
stakeholders in both the public and private sectors with their respective
marketing and product development decisions.
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• The research programme also captures reliable and statistically sound data
on the economic value of tourism at a national level and for regional
communities.
o This feeds into a tourism satellite account at a national level. It will
inform public sector decisions on budgeting, investment and land between
tourism and other portfolios. This is fundamental in recognising tourism as
a central pillar in the Sri Lankan economy.
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CHAPTER 3:
MARKETING AND COMMUNICATING
EFFECTIVELY
Sri Lanka must be seen as a more aspirational destination. To achieve the

Tourism Vision 2025 and work toward the UN SDGs, destination marketing
encompassing the Roots Philosophy is paramount. Tourism marketing needs to be
more focused, inclusive and tailored to meet specific consumer needs. This will be
guided by a new research agenda and Visitor Segmentation Model (see Chapter 2),
and will be delivered through contemporary marketing and communications means.
The role of the government and that of the private sector in the field of marketing
needs to be clearly defined. The government institution will focus on destination
marketing, whilst also providing leadership to the industry. The private sector will
leverage destination marketing to position and market a highly curated product
portfolio, and also research and develop new products.
Strengths
$ Asia’s travel growth is the highest it has ever been, and Sri Lanka is strategically
placed within the region alongside growing source markets; it has the ability to
attract those people already travelling within the region.
$ Perceptions of Sri Lanka as a tourism destination are largely positive, although
not widespread.
$ Sri Lanka is well-positioned to be marketed as an authentic destination for
experiential travel including high value, nature based and culturally rich tourism.
$ Sri Lanka fills a niche in high value, reward destinations.
!
Challenges
× There is still some perception of Sri Lanka as a country of war and therefore
deemed unsafe.
× Absence of a holistic approach to marketing and communications from over-
arching policy to strategic planning.
× Absence of quality driven, professional and digitally savvy strategic activity plans.
× SLTPB’s focus has been on limited, low return marketing activities, namely
conventional methodologies such as trade shows, consumer shows and above-
the-line advertising.
× Marketing and communications activities by SLTPB have not been trend-
conscious and dynamic to respond to market requirements.
× SLTPB is faced with challenges to implement / execute, as a result of limited
capability, competence and experience of employees.
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× Insufficient constructive relationships and cooperation between the private sector
as well as between the public and private sectors.
!
!
The basic diagram below presents the different components that comprise a
marketing strategy – research, brand development, market development and the
respective channels. This approach can also help with deciding resource
requirements for teams internally and the external / outsourced capabilities to be
contracted. The marketing strategy and marketing teams are also closely linked to
destination planning and doing business.
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! VISION, MISSION, PHILOSOPHY, OBJECTIVES, PRINCIPLES
MARKETING STRATEGY
RESEARCH
Brand health & tracking, data & indicator trends, visitor segmentation & insights, competitor destination
trends, brand equity study & key drivers, journey mapping
BRAND DEVELOPMENT
– Define brand, positioning values, personality, target consumer values, proposition
– Brand comprises brand identity (logo), brand architecture (extension), value proposition (tagline)
and brand guidelines covering all touch points
– Resources required: Internal team to define brand strategy, external contract / outsourced
agency for brand identify development
MARKET DEVELOPMENT
– Formulate development plans / strategy for current markets: mainstream markets, source
markets, domestic market
– Formulate development plans / strategy for new markets: niche markets
– Consider sales channel development due to global trends toward greater independent travel
and less significance of intermediaries
– Use of different channels below to reach these identified markets (conventional ATL / BTL,
digital, public relations, staging)
– Resources required: Internal team to develop product plans, execution, monitoring. Cross-
functional working groups or teams should come together.
DIGITAL PR
CONVENTIONAL - Prepare PR &
STAGING
- Prepare Digital - Includes: Events,
ATL / BTL Strategy Roadmap Communications
(Above the line and below Plan activations, road
- Aspects include:
the line advertising) shows, trade shows
Web development, - Resources
- Brief advertising - Overall plan and
social media, required: Internal
agency events calendar
content team for planning,
- Develop advertising development & one external global
campaign, collateral / management, other agency or an
merchandise web tools, etc agency in key
- Resources required: - Resources markets for
Internal team to required: Provide execution
provide ad agency brief & contract
brief & evaluation, external company
contract best in class for Digital Strategy
advertising agency
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An inclusive and holistic approach is required to achieve Tourism Vision 2025 and
work towards the UN SDGs. The core marketing and communication strategies and
actions for the next four years are outlined below (MC1 to MC26). The intended
results will harness existing resources more effectively and economically as well as
lay strong foundations for sustained growth for the future.
1. Sharpen the
brand focus
Marketing &
Communicating 2. Embrace the
4. Build stronger Effectively
partnerships digital age
Core Strategies
2017-2020
3. Harness the
power of
staging
The interim Visitor Segmentation Model suggests that 10 priority markets and 4
seasonality markets are focussed on; and together with big data findings and
international outbound tourism research, visitor profiles per market need to be
developed. This further extends to niche and domestic markets being paired with
appropriate products and / or services (see Chapter 2).
It must be emphasised that investment in marketing is for the long term and cannot
always be judged on per visitor or per dollar spend. For example, events and stunts
can generate significant publicity, but may not translate directly into visitor arrivals
and spend, but can go a long way in building the destination brand. Furthermore,
marketing has a wider responsibility to manage the visitor experience. Rather
than only highlighting the same attraction, by marketing lesser-known and off-the-
beaten track spots, it can encourage visitor dispersal and help to alleviate over-
visitation.
The actions will help to achieve a diverse yet targeted marketing programme as part
of realising the Tourism Vision 2025 that is based on sound research, sophisticated
segmentation and productive private sector partnerships. It will also strive for Sri
Lanka to be prominent in the digital world and effectively connect and communicate
with travellers that share its sustainable tourism principles.
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3.2.1 Sharpen the brand focus

Sharpening the marketing focus means to have sound research at the core, strong
brand identity, and the most effective and value for money channels – based on
strong evidence – for all marketing and communications activities.
Sri Lanka’s tourism stakeholders need to know far more about visitors, their
demographics and source countries in order to segment markets and build visitor
profiles, and then market to them using the most appropriate channels. Focusing and
targeting enables more effective use of staff time and resources. In addition, it
enables more valuable monitoring of the efficacy of marketing campaigns
communicated differently according to the maturity of each market. The first step is to
develop and implement a rigorous research system that will inform the marketing
teams and the tourism industry about the characteristics of all markets both in a
qualitative and quantitative way (see Chapter 2).
Just as the contemporary traveller is always changing, the Visitor Segmentation

Model (VSM) should be viewed as a fast evolving model. Each iterative version will
enable data driven and intelligent decision-making thereby continuously sharpening
the marketing focus. It is intended that this model is iterated to a standard where the
high yield traveller becomes a reality, which is central to Tourism Vision 2025.
Sri Lanka’s tourism sector requires a brand that characterises the essence of the
destination, and is in line with Tourism Vision 2025, the Roots Philosophy and with
market research. The brand is not just a logo and tagline, although they are
developed as means of communicating the brand. The brand identifies the
destination, its appeal and values, and differentiates it from its competitors. The
brand will influence images and editorial so that there is a common message being
delivered. It needs to be accepted and used by government and the tourism industry.
There needs to be a review of the current brand identity (brand and brand values
including logo and tagline of ‘Wonder of Asia’) to establish if it is currently delivering
as mentioned above or whether a new brand needs to be developed, followed by an
ongoing brand health evaluation.
Imagery is a powerful tool, and accordingly the type of images and video content
used in all marketing and communications activities should be curated by one or
more professionals. They will ensure the imagery is in line with the brand and
evocative signature experiences associated with the brand.
Produce and Curate Original Content – Original and curated content are the
cornerstone of digitally savvy campaigns and communications. Producing original
and relevant content serve as a visual reference for the brand, and will epitomise
brand values.
Still and Moving Image Library – As an immediate priority, an image library of still and
moving images should be developed. At the same time, the library should be
professionally catalogued and also own all copyrights, or be in agreement over
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licensing of each image. This should be outsourced to professional photographers /
art director within Sri Lanka Tourism, drawing up a shortlist based on signature
experiences and tailored for source market campaign requirements. Additional
suitable images taken by the tourism industry and by visiting journalists /
photographers / bloggers should be added to the library once suitable copyright
approval has been negotiated and obtained.
Alongside all imagery, relevant narratives and stories should be complementary,

enabling end users to use them together, or in isolation. Stories should be proactively
written and distributed to the media providing the content and editorial they need.
Mechanisms to collect, and crowd source images and content should be immediately
explored particularly using digital competitions and outreach mechanisms.
The YouTube channel is a cost effective way of getting a message across to

potential customers and collateral needs to be developed specifically with this in
mind. The library image shoot should be outsourced to professional photographers
with Sri Lanka Tourism drawing up a shortlist based on the island’s mainstream,
niche and signature experiences. The type of images used in the promotion should
be closely managed by Sri Lanka Tourism so that they are in line with the brand and
depict sustainable tourism experiences.
A revitalised Public Relations and Communications Strategy with media

coordination that fully supports the marketing strategy should be developed. Story
telling is an essential ingredient to communicating through all media types and
original content should be developed and distributed. There should be consistent
baseline messaging on Sri Lanka as a safe and secure destination. According to
source market profiling research, the key markets of India, China, UK and Germany
base their travel choice firstly on “safety and security”. This can be done in a subtle
but coherent manner by using the overseas missions, key travel agent meetings,
conferences and brand ambassadors (see Section 2.2.4).
A steady line of communication with the general public, industry partners, domestic
travellers and international press where relevant will further enable a strong
communication policy for the tourism institutions. This is best addressed through
conducting a monthly press briefing. In the future, digital messages, podcasts etc
may also be considered.
The PR team’s main focus would be sourcing and coordinating, original content that
positions the brand and its brand values. Copy used in the promotion should be
managed by Sri Lanka Tourism so that it is in line with the brand and depict
sustainable tourism experiences.
The Visiting Journalists Programme and Familiarisation Tours should be

revitalised by staggering delegate arrivals throughout the year and developing
tailored itineraries and VIP programmes for key journalists, editors and travel agents.
Furthermore, applications and criteria for selection must be refined in accordance
with international best practices. They should be sourcing credible journalists /
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editors, travel agents / wholesalers and bloggers to visit Sri Lanka and also
evaluating their results.
It could be helpful to explore the opportunities available if SLTPB Public Relations &
Communications would offer a marketing internship / work experience
programme. This will facilitate more innovative content creation and collaboration. In
turn, all produced content would be part owned by SLTPB, thereby creating an
incubator for content production (i.e photographers, content writers, designers,
bloggers etc).
Core Strategy 1: Actions to Sharpen the Brand Focus

Agency /
Partners
MC1 Hire a creative agency to review the current brand SLTPB Draft TOR
identity to assess whether to continue with the current SLTDA Q1 2017
logo and tagline or redesign / revise messaging and SLCB
images in line with Tourism Vision 2025.
Develop a brand toolkit that can be made available to

the broader tourism industry. Encourage use of that
toolkit through industry partnerships and launch road
show.
MC2 Create an updated or revised campaign with specific SLTPB Q2 2017

and appropriate messages for each of the priority SLTDA
source markets. Tourism
Association
s
MC3 Use new research findings (see Chapter 2) to create SLTPB Q3
new campaigns with specific messages for each SLTDA 2017
priority niche segments and / or signature Tourism onwards
experiences. Association
s
MC4 Revitalise publicity collateral – Develop a still and SLTPB Q1
moving image library with negotiated copyrights. Also Private 2017
produce and curate original content, including niche Sector onwards
and signature experiences.
MC5 Develop and implement PR and Communications SLTPB 2017

strategy including consistent safety and security SLCB onwards
messaging and regular press conferences Private
Sector
MC6 A structured visiting journalists programme, SLTPB 2017
including tailored itineraries, catering to a range of SLCB onwards
media journalists and content editors, Private
Sector
MC7 Marketing internship programme for content Tourism 2017
production Ministry onwards
SLTPB
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3.2.2 Embrace the Digital Age

National Tourism Organisations (NTOs) worldwide are having to change their ‘bricks
and mortar’ approach with the advent of the digital age. The most important element
of marketing is now digital marketing. Online and social media platforms are now
the first source of information for travel abroad, including for Sri Lanka. Travellers use
their smartphones and tablets throughout their trip, so travel companies and
destination marketing organisations have multiple opportunities to communicate and
connect with ‘hot leads’ over a longer period of time. Embracing digital means the
destination can remain relevant, for longer, and if harnessed properly, to an individual
level.
Professional well-designed and implemented campaigns across digital platforms can

broaden consumer and trade reach. They are significantly more cost effective than
conventional above-the-line advertising. Furthermore, they offer an added advantage
of an evolving approach, where progress and certain results can be tracked real time.
Sri Lanka’s destination marketing has not fully grasped the digital landscape, lacking
ingenuity and relevance. Further, it has been held back by government procurement
procedures, which too are not entirely familiar with this space. The digital sphere has
its own rules, often unregulated, and it is important for all concerned to understand
and become a part of it.
It must be noted that digital channels may be harnessed for various means including
outreach, research, crises management, community mobilisation or recruitment etc.
This chapter discusses marketing specific priorities. This is also true for reaching out
to emerging markets and running campaigns targeted at the domestic traveller. To
this end, a comprehensive Digital Marketing Roadmap must be prepared. This
would include the website design and development including content, management
of social media channels (i.e. Facebook, Twitter, Instagram, Snapchat, Wechat,
Weibo, Baidu), Search Engine Marketing, Search Engine Optimisation, travel apps
and online platforms (i.e. TripAdvisor), etc.
External consultants should be tasked with executing content plans in consultation

with SLTPB, and online presence should be highly curated. An additional rules of
engagement, or wider communications policy should encompass communications for
staff and employees across social media and other digital platforms as considerably
as it does on traditional means of communications.
As an immediate priority, a visually stunning and highly functional destination

website that is rich in content and customer friendly should be developed. The
website should be regularly updated, mobile responsive, and should include search
by location, signature experience and type of products. It must contain a series of
interactive touring routes and itineraries themed by experience, geography, duration
and area of travel. These itineraries will provide potential visitors information on a
range of alternative holiday experiences in Sri Lanka and spread visitation beyond
the current hotspots resulting in a broader dispersal of economic benefit and taking
the pressure off sensitive cultural and wildlife sites.
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In the spirit of cooperation with private enterprises, the website should be a tool for
significant value addition for SLTDA registered tourism businesses. It can contain
details of these businesses under appropriate categories (e.g. accommodation, tours,
attractions, retail arts / crafts, local cuisine), links to the operator’s website (if
applicable) and monthly promotional editorials. The site will also include an
interactive events calendar (see Action MC10) covering man-made and natural
events. Website images and editorial should be in line with Tourism Vision 2025 and
promote sustainable tourism practices and experiences. Website development will be
a gradual process, but there will be tangible results on a regular basis, even before
the whole redevelopment is complete, once the consultant is contracted.
This improved website should be combined with engagement across appropriate

social media channels. Social media is the fastest growing means of consumers
interacting with destinations and their products. Channels such as Facebook,
Instagram, Baidu, TripAdvisor and Weibo should be considered alongside the Visitor
Segmentation Model, and content plans for each channel should be developed.
Social media is a powerful tool for messaging, imagery and good analytics. These
further feed into digital marketing campaigns that run concurrently.
Consistent and active engagement with potential travellers online creates a unique
environment where conversations happen. This can be stretched across website,
and social media channels. For example by using an online Help Desk or
Customer Service Desk on the website. Sri Lanka Tourism will also need to
synergise its online presence with industry and related private sector to more
systematically, consistently and professionally engage with social media on a regular
basis.
It is critical to establish a Digital Marketing Team or cross-functional working group

with core digital capabilities to handle the above-mentioned work. There should be at
least 3 full time competent social media communications staff who will be sourcing
stories, uploading those stories and photos and answering enquiries and connecting
with consumers. They also need to be organising Insta-meets to bring focus on Sri
Lanka through this media. It is necessary to outsource the expertise where it doesn’t
exist in house.
Core Strategy 2: Action to Embrace the Digital Age

Agency /
Partners
MC8 Prepare a Digital Marketing Roadmap using SLTPB Prioritise,
multiple channels and for wide reach to 10 priority Consultant implementation
markets. Draft clear ToR and call for RfQs. by end of Q2
2017
MC9 Redevelop the Sri Lanka Tourism consumer SLTPB New website
website. Draft clear ToR based on recommendation SLTDA framework
of Digital Roadmap, call for RfQs and engage SLCB completed by
consultant. Consultant end Q3 2017.
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SLTPB, SLTDA and SLCB staff to collate content on: Continuous
- Collation of detailed destination and experience visible progress
information, but emphasis on visuals will be seen.
- Copy should be written with audiences in mind
- Strict copyright considerations
- Assign responsibility for management of site
including weekly updates on posts, analytics and
traffic.
MC10 Develop Digital Interactive Visitor Touring Routes SLTPB Q2 2017

and Digital Interactive Events Calendar
Private
Sector
MC11 Virtual help desk for visitor support and interaction SLTPB Q2 2017
Private
Sector
MC12 Value addition for SLTDA registered businesses on SLTPB Q2 2017
Sri Lanka Tourism consumer website SLTDA
MC13 Strengthen digital capacity within Sri Lanka Tourism SLTPB Q2

with working group, new recruits and outsourcing SLTDA 2017
3.2.3 Harness the Power of Staging
The current emphasis on trade shows and public road shows must be rigorously
examined to ensure they are delivering strong return on investment (ROI). Each
show should be measured against strict criteria as the value of these types of
promotions is being questioned by NTOs globally. This is because the internet is
becoming the top source of information for prospective visitors and there is a move
toward independent travel.
Participation at trade shows needs to critically assessed in line with presence,

activities, attendance, spend and value for money, particularly considering the types
of markets and the targeted segments. There are mainstay trade shows in each key
source market (e.g. World Travel Market in London (WTM), International Travel
Bourse in Berlin (ITB), IFTM Top Resa in Paris) that should remain. However, they
should be optimally maximised. These major events provide a captive audience of
travel communities, which can be leveraged for product launches and publicity
stunts. They can also be coupled with fringe events and consumer activations to
amplify the brand and its values. A calendar of luxury fairs (e.g. Virtuoso, Pure) and
niche fairs (e.g. bird watching, culinary, wellness, cruise, sailing, etc) should be
considered to support Sri Lanka’s transition into high value and niche segments.
Industry partners could be handed the reins to continue such activities when the
market begins to mature.
In future, it may be more effective to have in-market representation by a company

that can connect with industry and the media on an ongoing basis and a cost benefit
review needs to be undertaken to establish if this is the case. Models comparing ROI
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for trade representation, public relations and advertising can be developed to
establish the most effective method of delivery in international markets. This model
has proven successful in several other countries, and offers significant value for
money. This option should be evaluated by Sri Lanka Tourism.
Publicity stunts often give excellent ROI. Provided they are in line with brand values
and are tasteful, they can gain significant exposure in mainstream media and go
viral. A minimum of one publicity stunt should be carried out once a year in priority
and / or emerging markets. These can take place in target countries or in Sri Lanka
with adequate exposure, but relevance to the market segment and being trend-
conscious are critical to success. For example, a giant papier-maché elephant in
Trafalgar Square creating publicity for the UK market to visit elephants in the wild in
Sri Lanka. This could be amplified alongside World Wildlife Day or World Elephant
Day and a campaign about the one-of-a-kind Elephant Gathering in Minneriya could
be promoted alongside it.
Events are an excellent way of attracting visitors with the added bonus that they can
be scheduled during the low seasons as a way of evening out visitor demand and
available rooms. A dynamic and multi-faceted Annual Events Calendar is an
excellent tool to build and market brand Sri Lanka, whilst showcasing Sri Lankan
talent and heritage. Furthermore, they can be timed to highlight the island as an all-
season destination as well as promote particular locations or lesser-known
attractions (e.g. A world-class event in Passikudah, international surfing and kite
surfing championships in Arugam Bay and Kalpitiya). The calendar should have a
quarterly international standard event that can attract visitors from the region and
showcase the country positively (e.g. International artist / celebrity chef). An events
calendar needs to be drawn up covering a running 12-month period at a minimum,
but moving toward planning two to three years ahead. It is recommended that the
calendar include events, festivals, holidays and significant natural phenomena (e.g.
whale season, elephant and bird migration). These events will help to create content
and invite people to share this real-time content, which is a form of direct and more
authentic advertising.
Rather than replicating what is done elsewhere, it is important to develop localised,

home-grown events with a distinct identity that showcase special elements of the
island and can help develop niche segments. For instance, witnessing Vesak
celebrations should be an iconic event celebrated throughout Sri Lanka at that time
(International example: Songkran Water Festival in Thailand). Example event ideas
are included in Box 2, but must be assessed for viability and should be produced in
partnership with the public and private sector.
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Box 2: Example event ideas for consideration
‘Roots Sri Lanka’ – An annual celebration of everything that stems from Sri Lanka; an
embracing of the sustainable simple life; an appreciation of everything local, from elders to
heritage to peace. See the extraordinary in the ordinary – Fruits, vegetables, spices, trees,
medicinal plants, flowers, folklore, dance, music, astrology, indigenous rituals, gems,
meditation, history, architecture, etc. With the support of the Provincial Councils and local
government, this well-curated and inclusive event can be situated in a different location
every year. Going forward, it can be one major event with fringe activities throughout the
year.
‘Colombo Carnival’ – One weekend a year when the Colombo Fort and Pettah areas are
closed to traffic and when the public can take to the streets in a carnival atmosphere.
Historical traditions and colonial era heritage is commemorated with food, costumes and
parades. Seminars and workshops on living heritage with appreciation for architecture,
history and traditions will be introduced. This event should have active participation of
schools and can become a must-see event for international and domestic visitors alike.
As SLTPB has a large budget for supporting local events, a clear and consistent
events policy must apply to all applicants. The process can be made more efficient
through an online application process, as well as a means of evaluating tourism
value or potential. Sri Lanka Tourism will specifically target and provide support for
events held in off season times and regional areas to encourage visitor dispersal
during these periods. This strategy may also be used to disperse domestic travellers
during holiday seasons, which can help combat over-visitation. An Events Grants
scheme could be set up to incentivise provincial governments and entrepreneurs to
develop such events with community involvement (e.g. Regional food festivals, craft
celebrations, beach bazaars etc.). There are opportunities for significant events that
can showcase unique features or lesser-known attractions of Sri Lanka, such as
marathons and triathlons to be held in scenically spectacular locations, namely the
hill country.
The SLCB has made strides in developing Sri Lanka’s MICE market, but the industry
has been predominantly focussed on the areas of conventions and exhibitions.
Unfortunately, conventions are limited to smaller size regional meetings up to 2,000
delegates until a suitable high-tech Convention Centre is built (see Chapter 4,
Section 4.3.4). Nonetheless, there is considerable scope over the upcoming 4 years
to capture the incentive side of the MICE market. This is the creation of exclusive or
‘money can’t buy’ experiences as special incentive packages for corporates.
Examples can include dinners in hilltop tea plantations with helicopter transfers and
trekking in a small national park with ranger guides. Not only do they deliver high net
worth visitors and higher returns to the private sector, but are also able to enhance
the image of Sri Lanka being recognised as a high value tourism destination.
Sri Lanka can also consider hosting niche but high profile conferences that endorse
the Tourism Vision 2025 and UN SDGs. These include: a Roots Tourism Travel Fair
with a strong sustainable and community tourism focus and summits on specialist
subjects (e.g. whale watching, wreck diving, wetlands, bird watching).
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Core Strategy 3: Actions to Harness the Power of Staging

Agency /
Partners
MC14 Prepare selection criteria for trade and road shows SLTPB Priority in
and then prepare a trade and road show calendar for Private Q1 2017
the year. Going forward, include specialist fairs based on Sector
targeting key markets and niche segments based on the
Visitor Segmentation Model.
MC15 Develop and execute a minimum of one PR stunt per SLTPB Q2 2017
source market per year. Publicity onwards
team
MC16 Prepare a comprehensive Annual Events Calendar, SLTPB Priority in
with emphasis on home-grown events, regional events Provincial Q1 2017,
and those during current low seasons. Events policy with & Local onwards
pre-plan objectives and post-evaluation established. Govt.
MC17 Events Grants Scheme established to encourage local SLTPB Q3 2017

events and entrepreneurship Provincial
& Local
Govt.
MC18 Identify and develop at least 10 ‘money can’t buy SLCB Annually
incentive packages’ which can then be marketed Private starting Q1
systematically. Sector 2017
MC19 Specialist travel fair in Sri Lanka and subject summits in SLTPB Annually
line with the Tourism Vision 2025 SLCB starting Q1
Private 2018
sector
3.2.4 Build Stronger Partnerships
SLTPB and SLCB should be the lead agency in overall destination marketing,
working closely with other government stakeholders, provincial governments and
private enterprise (see Chapter 1 for working arrangements). SLTPB and SLCB
should enhance private sector relations and develop partners for optimum
collaboration, specifically in marketing.
This partnership should be strengthened with regular contact through formalised

Tourism Advisory Working Groups (TAWGs) representing sectors or experiences
or niche segments. Planning meetings can be held well in advance to ensure
adoption of marketing plans and initiatives. Frequent follow up meetings should then
take place to ensure implementation, which is the weakest link. For example, bi-
annual planning for trade shows can take place with themes, collateral, gifts or any
product launches being decided in advance, ready for procurement / execution. Data
collated and analysed for the Visitor Segmentation Model can support decision-
making. In line with current practice, the private sector should be involved in
developing marketing action plans.
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By sharing knowledge and training travel agents about Sri Lanka and its product
offering, they are empowered as partners of Sri Lanka Tourism. To this end, direct
educational interactions with the trade is essential, particularly with those dealing in
niche experiential travel since Sri Lanka is transitioning its positioning into a high
value destination. Competitions can be held with the winners being selected for high
value familiarisation tours as mentioned above.
A quality quarterly digital industry newsletter should be sent to all registered

tourism!businesses and overseas missions. Rather than a collation of past activities,
the content should be progressive and engaging such as market insights, new
research findings, upcoming events, promotional opportunities, etc. This helps with
advance planning and builds rapport to develop meaningful relations.!
Entering strategic partnerships for joint promotion and / or activation

opportunities, Sri Lanka Tourism can effectively gain greater value for money. This
can be done with key stakeholders such as airlines, major hotel groups, cruise
companies, niche tour operators etc to outline cooperative marketing opportunities.
Clear policies and agreements must be entered into to ensure mutually beneficial
outcomes.
Strong strategic partnerships with global media groups should be built to take
brand Sri Lanka to the world. The selection is based on the targeted markets, the
types of content available and brand alignment. The media groups go beyond
advertising contracts or single programmes; they can be negotiated to be more
comprehensive partnerships encompassing world-class editorial, photography,
footage and digital content, which can be repurposed for multi-channel use. For
instance, Animal Planet and National Geographic for the wildlife and ecotourism
offering, the Discovery Channel and CNN for cuisine, luxury and new experiences. In
addition, specific collaborations for television series in specialist areas or pop culture,
which is already taking place by SLTPB, should be actively pursued. In fact, one in
five travellers have visited a destination they saw in a TV show, reveals TripAdvisor
research. This collateral can then be used for domestic markets as well.
Sri Lanka Tourism can work more closely and collaboratively with key country
promotional agencies, such as the Board of Investment, Export Development Board,
SriLankan Airlines and Tea Board. These government agency partnerships will
maximise budget spend, avoid duplication of limited resources and amplify the
promotion. Joined up working on external promotions in key markets (e.g. Investment
missions, road shows and media opportunities) will be valuable.
The above strategic partnerships can only be entered once clearly defined criteria for
evaluating each partner and their offering is established. Furthermore, Sri Lanka
Tourism and the teams must have the evaluation mechanisms in place to
continuously monitor progress and results.
Another key partnership strategy is creating connections with target audiences by

better understanding their hobbies and interests. By considering the niche categories
and market segments, the most suitable corporate partnerships can be sought.
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These are subtle scenarios where there is not the obvious destination promotion
angle. For example:
o Develop a strong connection between ‘The Pearl Fishers’ Opera (The opera
of ‘Les Pecheurs de Perles’ is a story based in Mannar, ancient Ceylon) when
it performs internationally to link with Sri Lanka. This is a direct consumer
promotion and link with a visitor who is interested in high culture.
o Facilitate product ranges titled ‘Sri Lanka summer collection’ or ‘Colombo
collection’ by reputable international home / lifestyle companies (e.g. summer
range crockery or swimwear), which can also connect Sri Lankan designers.
o Place Sri Lankan specialities and flavours on the world culinary map (e.g.
Create a national dish and cocktail that can be introduced in menus around
the world; identify and promote traditional recipes and food items).
Representation of Sri Lanka through brand champions could add additional value to
brand building and strategic partnerships. Carefully selected high profile individuals,
well respected in their fields who invariably represent Sri Lanka on the world stage
could formalise their representation through partnership with Sri Lanka Tourism. This
maybe of significant value in niche segments, for example wildlife and photography,
bird watching or mining for gems. It is also important to have brand champions who
are the “real faces of Sri Lanka Tourism” such as the knowledgeable tour guides,
local vendors, independent operators, young entrepreneurs, etc.
Core Strategy 4: Actions to Build Stronger Partnerships

Agency /
Partners
MC20 Set up Tourism Action Groups to share industry SLTPB 2017
trends and plan ongoing campaigns and implement a SLCB ongoing
calendar of regular meetings and follow up. Private
Sector
MC21 Training travel agents (linked to familiarisation tours) SLTPB 2017
SLCB
MC22 Produce and digitally distribute a quarterly industry e- SLTPB 2017
newsletter for stakeholders of Sri Lanka Tourism SLTDA
MC23 Establish strategic partnerships with joint corporate SLTPB Q2 2017

promotion and activation SLCB ongoing
MC24 Establish strategic partnerships with global media SLTPB Q2 2017

groups ongoing
MC25 Create connections through hobbies and interests, e.g. SLTPB Q2

The Pearl Fishers Opera, Sri Lankan cuisine, product 2017
ranges.
MC26 Identify brand champions – cricketers, celebrity chefs, SLTPB Q1 2017

“real faces” etc. to promote Sri Lanka as a tourism ongoing
destination.
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CHAPTER 4:
DEVELOPING SUSTAINABLE DESTINATIONS
Countries with successful and sustainable tourism industries tend to be built

through interconnected and complementary regional and local destinations.
These destinations have, over time, defined their unique selling propositions. They
have also nested together attractions, amenities, access, human resources, image
and prices to match their demand and supply dynamics. Such destinations are
underpinned by high levels of public private partnerships, ongoing dialogue, and joint
planning between national, regional and local stakeholders.
Thus far, Sri Lanka has not systematically and proactively engaged in building
destinations. Tourism has and is growing opportunistically and this opportunistic
growth has led to the regional disparities described earlier.
Going forward, Sri Lanka should move towards establishing a tourism

planning framework and approach that can effectively build destinations, by
conserving, developing and implementing integrated tourism destination plans while
facilitating sustainable destination management. Tourism planning is especially
important to channel resources where they can provide the greatest benefit and for
government agencies at all levels.
Planning enables key catalytic or anchor projects to be developed so that other

projects may follow. Typical examples of catalytic projects are roads, airports,
jetties and marinas, urban regeneration and high value integrated accommodation.
As in the case of nature and culture attractions, many of these catalysts are provided
by institutions not directly involved in the tourism industry. This emphasises the fact
that a “whole of government” approach to destination planning and development can
greatly contribute to accelerating tourism growth.

Sri Lanka’s greatest strengths as a destination lie in its extraordinary diversity of
natural resource assets, ancient and modern culture, rich history and friendly people.
Added to that is Sri Lanka’s compact size and strategic location in the Indian Ocean.
Its challenges lie around the fact that this rich mosaic of endowments is not
systematically organised to deliver optimal economic and experiential benefits.
Strengths
$ Hundreds of significant cultural sites, national parks, forests and sanctuaries,
right across the country
$ Eight UNESCO World Heritage Sites
$ Opening up of significant areas that were previously not easily accessible during
the civil war
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$ Relatively small island and short distances between tourism sites
$ 61% of the national road network is developed
$ Two international airports with planned expansions / upgrades
$ Development plans for domestic light aviation network
$ Colombo and other strategic port expansions / upgrades
$ Good telecoms and internet, strong ICTA plans for the country
$ Accessible high standards of services such as health care and banking
Challenges
× Limited systematic implementation of existing plans and projects
× Protracted and disjointed government decision-making and approval processes
× Inconsistent policy and political interference in infrastructure priorities
× No formal and organised destination management framework linking central,
provincial and local government
× Spatial and economic disparity between areas, particularly those inaccessible
during the civil war
× Cases of over-development and under-development, leading to destinations not
evolving individual ‘personalities’
× Long travel time due to road conditions and congestion
× Many of the road systems are crowded, making for slow inter-regional land-based
travel
× Limited vital connectivity infrastructure such as highways and domestic aviation,
as well as leisure infrastructure such as cruise facilities, tourist jetties and
marinas
× Lack of established tour routes to north, east, north west and south east
4.2 DESTINATION PLANNING

Destination planning – the process and the output – is the first and most
critical tool to address fragmentation of human and financial resources. The
visitor economy involves a whole set of experiences delivered by many organisations
in the public, private and voluntary sectors. It is essential that they work together and
in doing so achieve better use and management of resources, which strengthens the
quality of the visitor experience and the performance of businesses.
By strengthening the visitor economy, services enjoyed by local people, such as

restaurants, attractions, arts and entertainment will also benefit. Looked at the other
way, actions directly aimed at making somewhere a better place to live and
work will also make it a more appealing place to visit. Destination planning can
play an important role in identifying how the full range of local authority policies and
services (in planning, transport, environmental management, leisure and recreation,
culture and the arts) can support the visitor economy on the one hand, and be
supported by it on the other. By showing these links, tourism can be considered less
in a silo, but rather as a core contributor to economic and social development.
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A critical success factor is the active presence of some kind of organised destination
management structure. This is usually a publicly hosted localised entity that meets
regularly and brings together public, private and community stakeholders to monitor
the progress and address issues that come up during the implementation of a given
destination plan. This kind of entity is completely absent in Sri Lanka, but there is
scope to evolve these entities with constitutionally devolved responsibilities.
For destination planning purposes, it is constructive to view the island in tourism

regions as well as drilling further into tourism hubs, nodes and gateways as
described below.
4.2.1 Tourism Regions
The Tourism Vision 2025 considered five tourism regions for planning purposes:
Colombo & Western Megapolis Zone, Cultural Heartland & East Coast Zone, North &
North Western Zone, Southern Coastal Zone, and Hill Country Zone (see Map 3).
Such destination planning can:
• Showcase an authentic, diverse Sri Lanka to enhance the visitor experience;

• Disperse visitors and expenditure around the island;
• Broaden choice, enhancing yield and extending visitor stay by linking
experiences and giving different areas a unique personality;
• Improve connectivity between sites;
• Manage visitor flow / minimise negative tourism impacts on the country’s
assets and values;
• Cluster experiential opportunities and make the most of regional assets; and
• Ensure the tourism product and infrastructure engages the local community,
provides local community benefits and is in line with community aspirations.
Every effort should be made to integrate all local and national plans. It is
possible that based on the priorities and actions set out in the TSAP that the mapping
of tourism regions, nodes, gateways and hubs will evolve along current
administrative lines in order to facilitate implementation. Nevertheless, the concept of
complementarity and cooperation between districts and provinces is an important
dimension to include.
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Map 3: Tourism regions for spatial planning purposes
4.2.2 Tourism Hubs, Nodes and Gateways
The guiding principle is that Sri Lanka seeks a greater diversity of visitors to
stay longer and spend more, wherever they visit in the country. Every visitor
should have a positive and, where possible, world class experience so that they
return to their homes as ambassadors and advocates for the destination. Achieving
these outcomes is dependent on a wide variety of tourism related infrastructure that
caters to multiple price points and interest groups.
An important starting point is to identify tourism hubs, nodes and gateways that
have a critical mass of supporting services (e.g. banking, retail, F&B, healthcare,
accommodation, places of interest, etc.) that serve to accumulate and then distribute
visitors (to the next hub). Access is clearly a major determinant in the way hubs,
nodes and gateways, and eventually destinations, will develop. Air, road, rail and
perhaps seas and rivers link the gateways and hubs and offer different experiences
for the consumer. Each gateway, node and hub has a number of attractions or assets
in their vicinity, such as national parks, marine parks, cultural sites, religious sites,
etc, which add to its value and appeal.
The tourism gateways, nodes and hubs can:
• Harness the natural and cultural values of the country;
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• Disperse tourism more broadly across the regions;

• Diversify the range of tourism experiences for visitors;
• Open up opportunities for poverty alleviation and employment across the
country; and
• Provide opportunities for MSMEs and SMEs to prosper.
There is a gradual evolution of tourism gateways into nodes and hubs. For
instance, Ella was a stopover location or gateway for visitors heading to other towns,
namely the east coast, but has since organically developed into a destination in its
own right. Nonetheless, it must be noted that some destinations will remain nodes or
hubs and not become major hubs with greater connectivity and international airports.
Not only is this to tackle urban sprawl and maintain authenticism, but also based on
their carrying capacity, biodiversity and community considerations.
Map 4: 2025 Destination Planning Map – anticipated tourism hubs and gateways (TBC)
Note: The map is a visual aid, but not comprehensive. There are many hundreds of additional cultural
heritage sites that are not depicted but could well be developed in the future to increase the depth of
attractions on touring routes.
The possible scenario for 2025 above is presented in Map 4 and described below.
Over the next 10 years existing destinations will develop and mature. New nodes and
gateways will emerge, and new hubs will develop.
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Major Tourism Hubs

These are well-established destinations that attract significant visitation in their own
right and form the mainstay of travel itineraries. They include destinations with a wide
range of accommodation options, attractions and support services, such as Colombo,
Kandy, Galle, Negombo, southwest coast. There are still opportunities for
development in these destinations, particularly in niche segments.
Tourism Hubs
They are a centre of significant / emerging tourism visitation either as an attraction or
as a centre of accommodation or both. Hubs rely on major hubs for support services
and connectivity such as touring routes. Current examples include: Habarana,
Polonnaruwa, Jaffna, Nuwara Eliya, Trincomalee, Mirissa, Tangalle. In 2025, the
following hubs can emerge as major tourism hubs:
• Trincomalee – Being a natural harbour and in close proximity to expansive

beaches and a range of natural and cultural heritage attractions and marine
tourism, Trincomalee will develop into a major tourism hub in its own right. In
particular, adventure / exploration cruise ships, visits by super yachts, fishing
expeditions and cross-ocean yachts are likely to be attracted to Trincomalee
and thus suitable water-based infrastructure and recreational facilities should
be developed accordingly.
• Hambantota – It will emerge as a major industrial city and shipping port with
Mattala International Airport and serviced by the highway from Colombo. The
city is within close proximity to a wide range of marine and terrestrial tourism
destinations and also has a large conventions venue, which can facilitate all
commercial-scale tourism.
• Jaffna – With infrastructure development, increased connectivity and a

domestic airport, Jaffna will emerge as a commercial and tourist hub. Its
authentic roots with traditional culture, architecture and food should be
conserved and enhanced for visitors to learn about and enjoy.
Tourism Nodes
These are evolving destinations with strategic value, but are currently challenged by
the lack of both tangible and intangible infrastructure. Current examples, albeit at
varying scales of growth, include: Batticaloa, Arugam Bay, Ella, Mannar, Passikudah,
Kalpitiya. In 2025, these existing nodes can emerge as tourism hubs, each with its
own value proposition, if there is the right investment, management and community
involvement. The additional emerging nodes will be the integrated developments that
have been identified of Iranawila, Dedduwa, Akurele and Kuchchaveli.
Tourism Gateways
These may be towns that can provide strategic access to other destinations, for
example, as a break-journey or point of crossroads. This is especially important in
the interim as transport links are yet to be developed. With the right clustering of
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activities, they can allow visitors to spend an extra night’s stay. They may also be
locations that help to manage capacity / overspill of a nearby tourism hub, especially
at peak times. They can act to distribute visitors to different locations, especially with
the emergence of more independent travel and traveller confidence. Developing
these gateways to be more self-sufficient could help with business viability as costs
of goods and logistics can be reduced when products and services are available
locally. Potential tourism gateways for consideration are described below.
Table 4: Potential tourism gateways for consideration by 2025

Location Significance Access
Kurunegala Several notable historical sites On the route to Kandy,
including impressive remains of Anuradhapura, Passikudah and
citadels and palaces built by Sri BIA Airport
Lankan kings, Buddhist temples and
monasteries
Ratnapura Unique value proposition of gem On the route to the hill country,
mining Sinharaja Rainforest, Ella and
opening to the east
Anuradhapura UNESCO World Heritage Site but Opening to Jaffna and the north
currently has only small hotels and as well as the east
homestays
Around Digana Quality golf course and can ease Access to Kurunegala and central
congestion in Kandy highlands, eastern national parks
Around Tea estates and potential for Connects to Wellawaya

Bandarawela ecotourism, can ease congestion in
Nuwara Eliya during peak season
Okanda Along the south coast, just outside Access to Arugam Bay and east
Yala National Park and an area with coast
good surf points
Pottuvil Coastal town on the east coast, close Access to east coast
to Arugam Bay
Mullaitivu Historical significance and two Access to north east coast

renowned birding areas nearby –
Chundikulam Sanctuary and Kokkilai
Bird Sanctuary
An important part of this detailed planning effort will be the analysis of the SLTDA
held land, identified as Tourism Development Areas (TDAs), across 12 locations
including beach front lands and islands. The TDAs are in: Hikkaduwa, Bentota,
Unawatuna, Mount Lavinia, Pinnawela, Negombo, Beruwala, Nilaweli / Uppaweli,
Madu Ganga, Arugam Bay, Trincomalee, Kalkudah, Kalpitiya and Kuchchaveli. The
original intent of these areas was to facilitate international tourism resorts. Such sites
have acted and can act as catalyst projects to stimulate growth of a new destination.
The nature and scale of those new developments have the capacity to set the tone
for the perception and reputation of the destination, and therefore great care must be
taken to avoid unintended consequences.
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4.2.3 Connectivity & Accessibility
Roads
The road network around Sri Lanka is dense and well laid out, providing basic
coverage to the country’s population and centres of economic activity. In 2015, 87%
of internal tourism trips were taken by road18.
Buses are a common means of transport for visitors, and services reach even the
remotest corners of the island. However, getting around can be a frustratingly time-
consuming process. The island’s narrow roads are congested with trucks, buses,
pedestrians, cyclists and tuk-tuks. The road from Colombo to Kandy (a distance of
approx. 100km) takes around 3 hours by car, bus or train. The bus trip across the
island from Colombo to Arugam Bay is not direct and takes at least 10 hours for a
distance of 320km. Many independent travellers opt to hire a car / van and driver.
The congested narrow roads are a challenge for self-drive travellers.
The Road Development Authority (RDA) has a National Highway Network Plan in
place and a major, ongoing programme across the island of road widening and
highway upgrades will gradually improve the situation. The country’s first proper
highway, the Southern Expressway opened in 2011, has reduced travel time from
Colombo to Galle, from about 3 hours to just one. The plan provides for an orbital
beltway to bypass the city of Colombo and reduce traffic congestion as well as a
Central Expressway (due to be completed by 2018) to link Colombo with Kandy and
Dambulla. Other major road projects that have been mooted are:
o Katunayake - Anuradhapura Expressway

o Northern Expressway (Anuradhapura – Jaffna)
o Eastern Expressway (Anuradhapura – Trincomalee)
o South-East Expressway (Hambantota – Batticaloa)
o R u w a n p u r a E x p r e s s w a y ( Kahathuduwa to Pelmadulla via Horana)
o Colombo Metropolitan Highway 1 (Kirulapone – Kadawatha)
o Colombo Metropolitan Highway 2 (Colombo Fort – Kottawa)
o Colombo Metropolitan Highway 3 (Colombo Fort – Peliyagoda)
Given these circumstances, and the fact that the overcrowding on roads other than
expressways is likely to continue for years to come, alternative means of access
should be developed.
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18
Travel in Sri Lanka, Euromonitor International, August 2016
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Rail
Sri Lankan railways have great potential to increase the depth of the country’s
tourism product. It is noted that the rail infrastructure is old and the services are slow,
but they often traverse far more scenic routes than the roads. An example is the
Colombo to Galle route along the coast and in the tea country from Nuwara Eliya to
Ella. Trains offer more character, some outstanding viewscapes and are sometimes
quicker than the clogged narrow roads. The addition of first class tourist rail carriages
and the premium private sector operations have improved traveller comfort. However
services are still slow and relatively inconvenient for tourist travel. Investment in
improved rail services, whether through PPPs or direct public investment should be a
priority.
Three new rail projects have been proposed by the government and it is anticipated
that they will be completed in the next three years:
o Matara to Beliatta
o Beliatta to Hambantota
o Kurunegala to Habarana
Map 5: Railway plans
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Air
International
As an island nation, Sri Lanka is heavily dependent on aviation access. Efforts must
be focused on maintaining current flights as well as increasing current route capacity
and frequency. Importantly, to meet expected expenditure growth under a scenario of
high value tourism, it will be necessary to achieve viable new routes. The 2020 plan
to open the second runway for Bandaranaike International Airport (BIA) will cater for
up to 15 million passengers.
Airlines respond to overall demand and therefore the appeal of the destination is
paramount for the leisure market. Air services are built through increasing the
demand for the destination to the point where a new or increased air service appears
to be viable. The viability of an air service is the most critical aspect in securing and
maintaining capacity. The number of charter flights into Sri Lanka is growing and this
bodes well for future scheduled services.
The Mattala International Airport represents a significant infrastructure investment

that is underutilised. Despite its many shortcomings, it offers opportunity for tourism
as a future hub to conveniently reach a number of marine and terrestrial wildlife
hotspots and the highland tea areas.
The impact of operational changes at SriLankan Airlines will need to be assessed in

2017.
Domestic
In aviation it is important that partnerships between national and provincial
government, national tourism bodies and economic development bodies are
supportive and recognise the importance of air services. The notion of a national
Air Force providing commercial flights in non-emergency situations should be
reviewed. The operation of the Sri Lankan Air Force (SLAF) ‘Helitours’ is an
impediment to the entry of private sector aviation services in Sri Lanka.
A recent study19 found that: “Overall the (domestic) market is fairly underdeveloped:
the limited tourist demand for some of the domestic routes, limited availability of
scheduled seats and perceived high cost of air tickets from private operators are
some of the key factors leading to the low levels of traffic. A key consideration from
the analysis of the domestic aviation market is that the low traffic volume limits the
opportunities for private sector participation and, more in general, for profitable
operations. On the supply side a key observation is that the GoSL subsidises the
market through the SLAF’s involvement in the management of domestic airports and
in the provision of commercial air services. Helitours plays a relevant role in the
market as it contributes to serve and to generate demand for air services, which
might not be available otherwise. It must be noted though that the price distortion
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19
World Bank Group (June 2016): ‘Options Study for Private Sector Participation in the Development of
the Domestic Airport Sector in Sri Lanka’
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created by the subsidised fares makes it harder for private sector operators to enter
the market and to compete effectively, and therefore retards the development of the
domestic aviation industry.”
Seaplanes provide access to the key identified tourism hubs, but on a small scale.
There are approximately 20 waterdromes in use at present, which include tanks,
reservoirs and lakes around the country.
Water
Sri Lanka is endowed with extensive marine resources – offshore, near-shore and
inland. The natural assets of reefs, marine life, picturesque islands and bays to
welcome high value visitors and the capacity to attract super yachts, ocean sailors,
divers and snorkelers, lagoon and canal houseboats, day cruises and sports fishing.
The capacity to build these segments is restricted if marine tourism operations are
limited to beach-based landings.
Current tourist excursions take place on old or modified boats, while commercial
ports and fisheries harbours are used for cruise and leisure boat parking so the
visitor experience is compromised. Cruise ships (estimate of 40 ships in 2015) dock
in Colombo, Galle, Hambantota and Trincomalee. Mini marinas located in Mirissa
and Beruwala have been constructed by a private company. Access to inland waters
is limited due to narrow waterways, but there is potential for houseboats on inland
lagoons and backwaters. This segment of visitor accommodation is a key component
of the tourism experience in Kerala, India for instance, where there are over 1,000
registered houseboats and riverboats. Meanwhile in Sri Lanka there is only one
commercial riverboat with overnight accommodation.
The Department of Aquaculture Resources (DFAR) is committed to upgrading or

replacing a number of jetties (e.g. Jaffna, Eluvativu, Analathivu, Kapparatota,
Weligama, Mirissa and Kudawella). Similarly the Sri Lankan Ports Authority (SLPA)
controls the three major ports of Colombo, Trincomalee and Hambantota. It also
controls Kankasanthurai in the north (being re-constructed); Port Pedro in the north;
Galle Harbour; and Oluvil on the east coast north of Arugam Bay.

Sri Lanka aims to become a high value destination. This approach is adopted very
successfully within other sectors such as the automobile industry where, for example
prestige brands aim to be the best in class within every class they enter. In this way
they are not only pitching their product to the high-end luxury buyer, but also
appealing to consumers who value quality no matter what class of car that they buy.
This has great relevance to the tourism industry where many styles of services
including accommodation and tours are provided.
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The plan is for the Sri Lankan tourism industry to embrace the goal of being
the class leader in every segment of tourism that it enters. This is something that
the whole industry can work towards, and benefit from. It is about creating high value
local destinations, regions and the country.
The delivery of best-in-class quality and service also enables the operator to
achieve a higher yield from a market that values quality as well as the
opportunity for employees to skill up and earn better salaries.
The following four Core Strategies have been identified as the priorities for the next
four years to facilitate movement towards the Tourism Vision 2025 and the UN
SDGs. These strategies and their corresponding actions have been selected on the
basis that they address:
o The highest risk areas in terms of a potential loss of significant environmental

and cultural values,
o Sri Lanka’s potential competitive edge in ecotourism,
o Demand from emerging market segments,
o Their potential to have a positive catalytic effect within the timeframe, and
o The significant reputation risks from bad visitor experiences and reviews.
Not all of the actions in the tables below (SD1 to SD30) are under the remit of the
SLTDA, but they are included here as key focal points for stakeholder partnership
projects to be implemented via the kinds of collaborative and PPP mechanisms
discussed in Chapter 1.
1. Implement integrated
destination planning
4. Focussed Developing
destination Sustainable 2. Diversify
development via Destinations product range &
'Transformative create signature
Core Strategies experiences
Tourism Projects' 2017-2020
3. Improve
connectivity to
tourism experiences
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4.3.1 Implement Integrated Destination Planning

Efforts to implement destination planning and development will be greatly enhanced
with a dedicated and well-resourced Destination Planning Team within the SLTDA
who can further utilise the concepts outlined and translate them into a
comprehensive National Destination Development Plan including Tourism Zones.
This process will equip a small team of tourism planning professionals to continue on,
after preparing the national plan, and to develop the regionally specific destination
plans. Key local stakeholders will need to be consulted in the destination planning
process.
In the long term, the Provincial Council tourist bureaus or their equivalent should be
strengthened to function as Destination Management Organisations (DMOs). They
can be involved in GIS mapping, implement the specific destination plans, prepare
regional events calendars, monitor clean up programmes, collate a network of
regional suppliers, etc. Programmes for capacity building and funding of these DMOs
will need to be assessed. They will be led by and work closely with the destination
planning team at SLTDA.
An initial analysis of regional attributes is captured in the Destination Planning Map

(see Map 4 above). This provides a snapshot of the links between key destinations,
current tourism experiences, products, access and infrastructure. More detailed
mapping efforts are required.
It is not only the tourism hubs, but investment in touring route infrastructure (e.g.
wayside stops, viewpoints, interpretive centres, museums, markets, etc.) is essential.
Such developments can be government investments or public-private partnerships.
They should be high quality and be of an international standard but have a local
flavour, whilst focussing on immersive experiences and the use of innovative
technology. For instance, in cases where traditional methods of craft, gem cutting or
artistic works are featured, interactive elements are highly valued. In the case of
regions that have MSMEs, there will be value in developing ‘Enterprise Centres’
where micro businesses can come together in a similar way to ‘farmers markets’ –
allowing a critical mass of quality produce or products to be presented and building
the appeal of the attraction to visitors.
Core strategy 1: Actions to Implement Integrated Destination Planning
Actions Lead Agency/ Timeframe

Partners
SD1 Establish a Destination Planning Team within SLTDA to SLTDA Priority in
prepare a National Destination Development Plan and Development Q1 2017
Tourism Zoning consistent with this national plan. Partner
SD2 Capacity building and strengthening of Provincial Council SLTDA 2018

tourist bureaus (or their equivalent) to function as Provincial ongoing
Destination Management Organisations. Govt.
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Development
Partner
SD3 Initiate a country-wide GIS Mapping Programme to SLTDA 2017
utilise local government networks to record lesser known Provincial
attractions, folklore and traditional values, which can be Govt.
used in destination development.
SD4 Develop at least 4 regional integrated destination plans SLTDA 2018-2019

for selected tourist hubs or regions where there is strong Provincial
demand from provincial or district governments to guide Govt.
the development of specific destinations. Consultant
SD5 To ensure the supply side is considered, develop Niche SLTDA 2017 –
Market National Development Strategies for each of the Consultant 2019
10 identified niche categories: Health & wellbeing,
Pilgrimage, Bird watching, Surfing & kite surfing, Diving,
Whale & dolphin watching, Cuisine, MICE, Weddings,
Cruise.
SD6 Scope and map locations for MSME Enterprise Centres SLTDA 2018
in different regions. Development
Partner
4.3.2 Diversify Product Range and Create Signature

Experiences
To bring additional value to the tourism experience and to move Sri Lanka along the
path set out in the Tourism Vision 2025, it is essential to provide for a diversity of
experiences and higher standards; to broaden the visitor offerings from the one-
dimensional products at present, to the multi-dimensional range of experiences. This
would expand the product offering and open up tourism experiences to a wider range
of visitors, thereby uplifting the country’s competitive advantage. A strategic tourism
development process involves ensuring that visitor infrastructure, access
routes, services and accommodation are aligned to the needs of the visitor,
across the range of targeted segments.
Just as important as creating and enhancing new experiences, Sri Lanka must
preserve the authentic locations that have grown organically and have a unique
‘sense of place’. These ‘Roots Localities’ must be protected to maintain their
authentic look and feel before they begin to overdevelop and change. Possible
locations include: Arugam Bay, Ella and Unawatuna. They cannot be developed
along the same lines as an SLTDA Tourism Development Area such as Passikudah.
Clear regulations, codes of conduct and construction guidelines should be produced
to prevent large-scale developments, and enforce more stringent environmentally
friendly business practices in a gradual phased process like no / restricted plastic
use, waste recycling, renewable energy use, etc.
Similarly, there should be enhanced protection of Sri Lanka’s coastline,

viewpoints, heritage properties and fragile environments. Stringent and
consistent guidelines must be introduced for building heights, roof gradients,
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buildable density and building materials along the coastline and in environmentally
sensitive locations. It should not be based on the use of the land or land ownership,
but on the sites themselves. However, specific locations will be zoned and
designated for higher rise properties accordingly. Also, there should be legislation
such as a Beautification Act to prevent significant visual pollution in environmentally
sensitive locations by restricting large constructions, which obstruct scenic views and
vantage points. Urban conservation precincts should be demarcated to protect
historic and exemplar architecture, particularly in Colombo. Urban development
guidelines should be issued for new constructions and renovation projects within
these precincts. There must be identification of specific buildings as protected
heritage properties, which adds to their value and helps preserve them sustainably.
This recommendation is not only to protect Sri Lanka’s assets, but also to provide
security for investors.
Specific integrated development projects must be professionally planned and

managed from conceptualisation to commercialisation. These include architectural
concepts, land and environmental assessments, stakeholder consultation and
community involvement and investor engagement. Locations identified during the
duration of the TSAP include: Iranawila, Dedduwa, Akurele and Kuchchaveli.
The differentiation and diversification of Sri Lanka’s offering requires development

of new and competitive products comprising the urban night economy, museums,
Culinary Arts Schools, Royal Craft Centres and integrated golf courses – all to
provide visitors with a range of authentic and memorable experiences. Those sites
not typically identified for tourism should also begin to cater to visitors and become a
part of touring circuits (e.g. Agriculture parks, fruit picking farms, agricultural research
centres, Ayurvedic gardens, traditional medicinal centres, etc). The actions below
(SD7 – SD15) provide examples of specific high value products and also support the
identified niche segments.
Core Strategy 2: Actions to Diversify Product Range and Create Signature Experiences
Lead Agency/ Timeframe

Actions Partners
SD7 Evaluate Protected Roots Locations and develop SLTDA 2018
regulations, codes of conduct and monitoring Local Govt.
mechanisms Private Sector
SD8 Stringent guidelines and consistent enforcement of SLTDA Priority in

regulations to protect Sri Lanka’s coastline, Other Govt. 2017
viewpoints, heritage properties and fragile Depts.
environments.
SD9 Assessments, planning and development as PPPs of SLTDA Priority in

strategic integrated development projects Local Govt. 2017,
Private Sector onwards
SD10 Develop an urban night economy strategy and SLTDA 2017
programme for downtown Colombo, e.g. cultural shows, SLTPB onwards
markets, outdoor performances. Private Sector
SD11 Conduct a scoping and prefeasibility studies for a SLTDA 2018
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network of international standard, interactive Other Govt. onwards
museums to showcase Sri Lanka’s heritage and Depts.
encourage visitor learning:
o Tea Museum in Colombo
o Transport Museum in Ratmalana (expanded)
o Flying Boat Museum in Koggala
o Silk Road by the Sea Museum
o International Cricket Museum
o Buddhist Civilization Centre
o Rajarata Hydraulics Civilization Museum in
Cultural Triangle (see Section 4.3.4)
o Asian War Museum in north (see Section 4.3.4)
SD12 Evaluate feasibility for PPPs for Culinary Arts Schools SLTDA 2018
in different regions offering professional chef training SLTPB
and recreational tourist courses to promote Sri Lankan Private Sector
cuisine
SD13 Develop a network of Royal Craft Centres within each SLTDA 2018
zone and alongside major road links where visitors can RDA
watch craft making and purchase items. Private Craft Council
institutes and design schools can work with these Private Sector
centres to develop more competitive and contemporary
ranges alongside their traditional wares. The centres will
retail local foods and organic produce as well as provide
comfort centres for journey breaks. They can have
regular dance and music performances involving local
schools.
SD14 Comprehensive feasibility and environmental SLTDA 2019

assessments for integrated golf courses. Potential for Other govt.
20
two distinct golf circuits – mountain and coastal. depts.
Private Sector
SD15 Assist SMEs to develop high quality traditional crafts, SLTDA 2019
spices / produce, gemstone cutting and small-scale Other govt. onwards
manufacturing and outlet / attraction enterprises in hubs depts.
in known localities for these items. Development
Partner
4.3.3 Improve Connectivity to Tourism Experiences

Government agencies are responsible for the core transport links and SLTDA should
advocate support of initiatives to improve connectivity, including the expressway
extensions, road and rail upgrades, airport expansion and new expressway
construction. !
As an interim measure, until the plans for highways and roads are complete, the
SLTDA should consider alternate direct transport links. This is possible by
collaborating with the private sector to launch express luxury coach services to
tourism hubs including Kandy, Arugam Bay, Trincomalee and Nuwara Eliya,
particularly during peak seasons. Specialist routes to coincide with particular events
can also be explored.
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Potential sites to be rigorously assessed based on environmental impact, climate conditions for play,
rainfall to lower maintenance costs, vegetation, typography and environment for the course, as well as
options for other recreation.
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As an interim measure until more regular tourist train services are available, the
SLTDA should advocate extending the number of first class online
bookable carriages on major tourist routes. Standing for several hours in a non-air-
conditioned carriage complete with baggage is not a high value tourism experience.
Another idea is to further extend the private sector use of Sri Lanka’s rail network
with a regular luxury “Orient Express" style of operation either for high-class day
trips or extended touring services, as there is high-end demand for steam train
excursions internationally. These initiatives could be introduced by a private sector
provider under a PPP.
As an interim measure until the marinas are constructed, it is recommended to

negotiate with the relevant government authorities for a fixed annual price and
allocated space in the fisheries harbours / ports for leisure boats and yachts.
Once the ongoing role of SLAF in domestic civilian aviation has been clarified, a
programme of upgrading airports that service existing cities with significant
tourism potential is a priority. Potential airports are identified for consideration in
Table 4 below. An audit is required to determine the extent of upgrade in each case
covering the technical specifications of the runway and support systems; terminal
upgrades and public transport access to the airports from the closest city. Airport
terminal upgrades should provide for the comfort and convenience of travellers, yet
be consistent with a low-key island style and character. Additional specialised
tourism related aviation services are likely to develop such as fixed wing and
helicopter joy flights, general aviation services and parachuting / ultralight schools
etc.
Additional jetties and marinas are required at strategic locations to fully harness the
tourism potential of the coastal blue economy. Dedicated tourism jetties or mini
marinas will be required at prime tourism coastal ports in order to develop a
sophisticated sector that is capable of handling visitors in comfort and safety for a
high value experience. It is recommended the marinas are planned with an island-
wide holistic perspective so that each has a distinct functional identity. Site-specific
feasibility studies should be conducted to ensure they are proportionate and
complementary to each location and with local fishing industries. Existing and
indicative sites are provided for consideration in Table 5.
Core Strategy 3: Improve Connectivity to Tourism Experiences

Agency /
Partners
SD16 Assess feasibility of express luxury coach SLTDA 2017
services to specific tourism hubs in season under Private
a PPP and float an RFP. Sector
SD17 Advocate extending the number of first class SLTDA 2018

online bookable train carriages on major tourist Railways
routes under a PPP. Dept.
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SD18 Advocate for a regular luxury “Orient Express" SLTDA 2018

style of operation on two major tourist routes Railways
under a PPP. Dept.
SD19 Negotiate with the relevant government bodies for SLTDA 2017
a fixed annual price and allocated space within Other Govt.
fisheries harbours and ports for leisure boats. Depts.
SD20 Advocate a strategy for domestic airport SLTDA 2018
upgrades in line with national plans and tourism CAA
growth profiles. Ensure consideration of visitor Provincial
services and experience within terminals.
govt.
SD21 Assess the required tourism jetties, piers and SLTDA 2017 – 2018
marinas in strategic locations and development of SLPA
a holistic implementation plan with PPP, float RFP FDAR
Table 5: Possible use of international and domestic airports in Sri Lanka

Inte Domestic Status Service potential
rnational
BIA, Existing international airport
Katunayake Domestic terminal to be
located at BIA, instead of at
Ratmalana
Mattala Existing international airport Access to popular south and

but underutilised east tourism areas as well as
Hambantota commercial area
Trincomalee Existing Air Force base and Access to the east and
domestic airport northeast
Hingurakgoda Currently an Air Force base Access to Polonnaruwa and

Dambulla, even Kandy and the
national parks in the vicinity
Kandy To be constructed Access directly to hill country
and central highlands
Batticaloa An Air Force base that Access to the east and
operates as a domestic southeast including Arugam Bay
airport since July 2016
Ampara Existing Air Force base and Access to east and south east
domestic airport
Jaffna Existing Air Force base and Access to the north

domestic airport
Anuradhapura Currently an Air Force base Access to the Cultural Triangle

and Cultural Heartland Zone
Palavi Currently an Air Force base Access to the west including
Kalpitiya and the national parks
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Table 6: Current and potential locations for marinas for consideration
Type Existing locations Potential future locations
Mini marina / jetty Beruwala, Mirissa DFAR identified locations
Mannar, Kalpitiya
Leisure marina None Colombo, Galle, Hambantota,

(medium-sized) Trincomalee, Batticaloa, Jaffna,
Palmunai
Working marina None Dikkowita, Oluvil, Kankasanthurai
Further advancements in transport, which come under the purview of other

government institutions could include:
Rail
" Extending the rail network to Colombo's Bandaranaike International Airport,
which would avoid the peak hour delays in getting from central Colombo to the
airport. There is a station close to the airport and either an extension or dedicated
coach transfer from the airport terminal together with increased rail services
would simplify and speed up transport from the airport to Colombo and
connecting rail services.
Air
" SLTDA should work with both public and private aviation industry stakeholders to
identify potential charter flights and permanent route additions and align
marketing initiatives to support these routes. A stronger partnership between
SLTDA and the international and domestic airports as well as between SLTDA
and the airlines servicing Sri Lanka would aid intelligence sharing and
cooperative destination development and marketing initiatives.
" There is a need for a domestic transfer gate at the BIA to facilitate seamless
and convenient passenger transfers, an essential initiative to enhance the growth
of domestic aviation.
4.3.4 Focused Destination Development via

‘Transformative Tourism Projects’
Significant revenue, community engagement and resource protection measures are
being missed due to the lack of visitor infrastructure and adequate interpretation.
While the travelling market has good reason to visit popular locations, there is
significant potential to develop new tourism sites and new touring routes.
Taking a pragmatic approach, it is recommended that a selection of key projects be

developed in the first four years, rather than attempting to develop all of the
transformative destination development activities that might be required to achieve
the Tourism Vision 2025. These ‘Transformative Tourism Projects’ (TTP) will go a
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long way in helping to achieve the goals of the TSAP. They also enable Sri
Lanka to embody the Roots Philosophy and guiding principles, and act as
catalysts in developing new tourist hubs and experiences as well as defining
new product segments around the country. Each project will create an iconic focal
point of high value potential, which also conserves and showcases Sri Lanka’s
unique natural and cultural heritage. The TTPs will create anchor sites, which help to
draw and retain visitors to a destination, and through their development help to
increase business activities throughout the area.
Through consultation with government institutions and the private sector, the
following criteria were identified for the selection of transformative projects:
o Increases yield rather than volume,

o Deepens market penetration and awareness,
o Encourages SMEs and MSMEs,
o Capable of being managed sustainably,
o Facilitates visitor dispersal and improves access,
o Increases the diversity of products and experiences,
o Achieves destination development in identified priority areas,
o Creates community benefits, and
o Can involve PPPs.
Seven Transformative Tourism Projects that meet these criteria have been identified
for further consideration. Location specificity, economic viability and environmental
feasibility need to be assessed. Key destination planning decisions should be taken
to protect the low impact, high value potential of the sites. This will ensure they do
not become overrun by ad hoc development and lose their unique point of difference.
1. Ecotourism Discovery Circuit

12-18 months project
Sri Lanka can credibly place a strong focus on ecotourism and can realistically aim
to be an international leader in ecotourism within a decade. Key elements of
ecotourism include ethical business practices, sustainable environmental
management, commitment to conservation and local community involvement, which
are closely aligned with the Tourism Vision 2025 and embody the Roots Philosophy.
A new ecotourism-focussed touring route will be defined based on existing products

and experiences that embody “ecotourism principles”. There are already several
immersive social, cultural, and natural activities and experiences offered by
independent operators around Sri Lanka. However, they are not connected and
branded as one collective experience that might appeal to consumers of ecotourism
products. This touring route would pilot various schemes including national tourism
signage, national standards for visitor services, ecotourism certification (see Chapter
5), and free wireless would be provided at key sites to facilitate social media postings
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for destination marketing. These could be developed in collaboration with input from
the local communities who will be involved in the project.
This would be a first-of-its-kind-in-Asia 10-day fully eco-certified tourist itinerary. If

agreed by the industry, it should be branded as “Roots Tourism”, and showcase the
best of eco-conscious Sri Lanka through authentic and homegrown socially and
environmentally responsible businesses. The itinerary would take in, among others,
Platinum LEED certified accommodation in one of the planet’s oldest tropical
rainforests, small tented camps in national parks, critically acclaimed local
architecture, locally grown and distinctly Sri Lankan cuisine, experiencing local village
life and traditional Ayurveda spa treatments. What is unique about this itinerary is
that each interaction will be produced end-to-end by following the best of ecotourism
principles. Potential sites on the route could be Sinharaja, Deniyaya, Ella,
Bandarawela and Haputale.
In addition, the circuit can be expanded with new eco-discovery products such as
rainforest canopy walks, wilderness and forest trails and soft adventure options.
Specialist wildlife research centres on subjects such as endemic species, birds,
elephants, leopard and primate species, can be set up at key spots on the circuit, in
collaboration with international universities. This encourages the growing trend of
volun-tourism and learning travel experiences. In time, operators would sell different
specialist segments of this route.
This TTP would serve to position Sri Lanka in a new light in key source markets as
well as bring strong and more responsible tourism standards to domestic suppliers.
2. Coastal Forts of Sri Lanka

4 years project
Dating back to 1,500 years, Sri Lanka has some 30+ forts distributed at strategic
points along the coast. The forts when presented in the context of their location and
history provide a valuable contribution to destination appeal. They also present a
compelling case for World Heritage listing on cultural criteria. This TTP is important
as some of the assets are in a fragile state. They also enable a new tour to visit the
forts by sea, hopping to each site in a mini-cruise, which can be one of Sri Lanka’s
signature experiences. The project – requiring significant investment – would involve
developing conservation and presentation management plans to preserve the
remaining fabric and to interpret their individual stories to visitors. The early focus
would be to develop the essential inventory, management plans and the presentation
approach for the sites. There is huge potential for PPPs around mixed developments
in and around the forts. For instance, Hammenheil Island Fort, currently a Navy-run
hotel, could be developed into an Asian War Museum with sections on the island and
on land (International example: Alcatraz in San Francisco). This will be an example of
an anchor attraction for the northern coast.
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The purpose behind this project would be to preserve these important historical
buildings while putting them to good economic use. The project would serve to bring
visitors to the peripheral parts of the island, encouraging visitor dispersal, and to
demonstrate and strengthen the “Roots Tourism” paradigm.
3. Colombo Conventions and Exhibitions Centre

4 years project
With the significant growth of 4-5 star hotels in Colombo, the international access
offered through Bandaranaike International Airport, the opportunity for the MICE
market to even out seasonality issues and the strong potential for the MICE market
from India, there is considerable merit in examining the potential for a state-of-the-art
convention, exhibition and event centre in Colombo. The MICE market is very
competitive with many nations / states within the Asia-Pacific region building grand
convention centres and offering heavily discounted rates to attract business.
At present, the city lacks capacity for events beyond an audience of 1,600. A new
centre should be a hi-tech, flexible space with seating capacity for 8,000 that can be
reformatted for trade shows, indoor sporting events, music concerts and
performances, consumer shows, etc., and with adequate parking. Such a project
calls for a comprehensive pre-feasibility analysis to investigate the likely viability and
funding models that might apply, including potential as a PPP. This project is a high
priority as, apart from traffic and transport considerations, it is not dependent on other
major infrastructure, and can create high yield.
4. Marvels of Ancient Wewas

4 years project
There are an amazing 30,000 tanks (reservoirs) across the country. The Cultural
Triangle is serviced by many tanks and the story of Sri Lanka’s renowned skills in
water management dating back over 2,000 years is one that would appeal to
international and domestic visitors. The flagship attraction among these is Sigiriya
Rock.
Developing museums, interpretive centres, signage and related trails around other
water bodies (e.g. Kaudulla, Giritale and Minneriya) will add another stop to a visitor’s
itinerary in the Cultural Triangle as well as help to link less visited natural and cultural
heritage sites. A Rajarata Hydraulics Civilization Museum and interactive interpretive
centre can tell the story of Sri Lanka’s water engineering history and ancient
innovation. Visitor signage as well as low impact excursions such as guided calm
water tours and non-permanent picnic spots can allow for further exploration. For
instance Giant’s Tank in Mannar has abundant potential for high-end bird watching
and other wildlife viewing. It could be an important stop-off point for visitors as well as
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an opportunity for local communities to earn revenue from providing goods and
services.
A themed route that interprets the story of these engineering marvels, and connects
with other tourism highlights in the region, is something that would appeal to many of
Sri Lanka’s market segments. Rather like the forts, these tanks represent an
important and underutilised asset that could serve to strengthen tourism roots with
local communities.
5. East Coast Sunrise Corridors

4 years project
Since opening up to greater outside visitation in 2009, the Eastern Province has seen
a small, but steady increase in visitors, both domestic and overseas. This TTP
would have a very high economic rate of return for Sri Lanka. Tourism
endowments in the east are comparable to the west coast, but are currently
underutilised, particularly in Batticaloa, Ampara and Trincomalee. Several different
markets are evolving in the province, with higher end beach and whale watching
tourism more focused north of Passikudah and more independent budget and
adventure tourism, especially surfing, growing from Batticaloa southward. The east
coast is on an opposite monsoon season from the south west of Sri Lanka, offering
an opportunity for year-round island tourism.
While each of the districts has slightly different value propositions, they share a
similar set of opportunities for national economic development:
• Poor access from Colombo – is an opportunity for air access and scheduled
rail and coach services
• Lack of destination planning, development, promotion and marketing
initiatives – is an opportunity to plan and build destinations
• Lack of a developed regulatory framework – is an opportunity to pilot
decentralised regulatory services
• Absence of large anchor investors / investments – is a huge opportunity for
FDI and domestic investment
• Absence of a consultative dialogue between private and public sector – is an
opportunity to pilot relationships and approaches that are deemed essential
for further tourism development
• Generally weak capacity in product offering and lack of innovation – is an
opportunity to deepen and strengthen local supply chains to generate local
employment and investment
• Low service standards – is an opportunity to upgrade skills and create higher
value and better jobs
Iconic projects within each key tourism location and related project actions are
identified below.
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Dutch Fort, Batticaloa – This is an anchor site for Batticaloa town. A concession for
the buildings within the fort to the private sector to develop as a small boutique hotel,
restaurant, café and other tourism services could ensure the physical renovation of
the attraction. It could also be coupled with a requirement to enhance and maintain
the paths and other structures, develop interpretive materials, etc. on the fort to allow
for a more comprehensive tourism experience.
Waterside Development, Trincomalee – The development of a ‘tourist street’ in

Trincomalee town, either along the Inner Harbour Road or possibly along Dutch Bay,
could create a hub to attract visitors to the town. A street development project would
attract restaurants, shops and possibly small accommodation facilities, which would
help to create a focal point for visitors to congregate and stimulate business in the
town.
Family entertainment, Passikudah – At present, recreational options are limited in

Passikudah. A plot of land, currently used as an expansive car park, in the SLTDA
tourism zone can be repurposed as a family entertainment and recreation space. A
park space for soft adventure, small restaurants, events and music can be created,
which would complement the water-based activities along the coast.
Nature Tourism around Arugam Bay – An additional anchor for tourism, especially
in the Ampara region, would be investment in enhancing the national parks of the
region. The parks of Kumana, Lahugala Kitulana and Gal Oya (not in the Eastern
Province but accessed through Ampara) all offer exceptional wildlife attractions, but
are under-visited. Of the three parks, Kumana offers clear short-term development
possibilities, due primarily to its access from Arugam Bay and breadth of potential
activities. Expanding the nature tourism product offers a way for Arugam Bay to
extend its tourism beyond the May – October surf season.
6. Jaffna Islands Exploration

2 years project
The islands off the Jaffna peninsula are largely unexplored but offer an interesting
water-based experience. Instead of large hotel development on the islands,
accommodation will be based on the water, while excursion opportunities will be
created on the islands. This will be developed and marketed as a community-based
tourism product, linking blue and green tourism economies. With a strong community
focus and aiding in poverty alleviation, this has the potential to be a model project on
the world stage.
Exploration of the islands and island-hopping would be possible with day excursions
on revamped traditional fishing boats and overnight accommodation cruising in
custom-built leisure boats, houseboats and mini cruises. A marina and two piers
near-shore on the mainland will need to be constructed. Low impact tourism with
kayaking, recreational fishing, swimming and diving will be encouraged. Construction
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of an interpretation centre on one island and a research and conservation centre for
the wild horses on Delft Island will add value. Cottage industries in fishing and
aquaculture will be promoted whereby visitors can see and interact with traditional
techniques. Visitors can then enjoy coastal cuisine at small restaurants and day rests
on the islands. A community programme to improve standards and output of the local
cottage industry can be set up with development partner support. The possibility of
granting national marine sanctuary status to the archipelago must be assessed.
7. Religious & Spirituality Experience

2 years project
The rationale for this TTP is to strengthen and better define, promote and package
an already developed segment that has significant potential to grow. Religious
pilgrimage trails for different religions can be devised into 5-day or up to 2-week trips.
Visiting a place of spirituality can become part of the travel experience in Sri Lanka.
Examples of sites and trails of religious significance include:
• Buddhism – e.g. Sri Pada, Kandy, Mihintale, Anuradhapura, Sri Maha Bodiya,
Polonnaruwa, Tissamaharamaya, Kataragama, Buddhism trail
• Hindu – e.g. Adam’s Peak (Sivanolipatha Malai), Kataragama, Koneswaram
Temple, Keerimalai Springs, Ramayana Trail
• Muslim – e.g. Adam’s Peak (Al-Rohun), Red Mosque
• Christian – e.g. Adam’s Peak, Wolfendhal Church, Madhu Church
The itinerary can be complemented with dedicated quality facilities for meditation
centres and Ayurvedic rituals, treatments and cuisine. As the products themselves
exist, this TTP can be made market-ready sooner.
In particular, there is opportunity to delve deeper into Buddhist heritage. In addition to

the well-known sites, there are other sites of interest, which can be combined into
itineraries. Examples include the tallest Buddha statue in South Asia at
Batamullakanda, Matugama; the oldest Buddhist temple in Sri Lanka at Girihadu
Seya, Trincomalee; extraordinary wood carved interiors at Embekke Temple, near
Kandy; unusual cave temples such as Ridi Vihara Temple in Kurunegala and
Aluvihara Temple in Matale, island temples, etc.
Core Strategy 4: Actions to Ensure Focused Destination Development via ‘Transformative

Tourism Projects’
Agency /
Partners
SD22 TTP1: Ecotourism Discovery Circuit SLTDA Phase 1
o Convene a working group of interested ecotourism Other Govt. completed
operators and academics who will help define Depts. by 2018
potential products around Sri Lanka that would fit the Local Govt.
Roots Philosophy. Private Extended
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o Scope and map these products and use the operators Sector circuit
to design an itinerary. Media completed
o Engage either Ecotourism Australia or The by 2020
International Ecotourism Society to scope and assess
potential products for certification and to establish
certification and verification principles.
o Conduct inspection and training to facilitate
certification.
o Develop a short promotional film of the journey these
products have taken, also develop other collateral to
help with promotion. The Roots Philosophy should be
highlighted.
o Media partnership with an international network to
create related documentaries and other content.
o Share this material with the private sector in Sri
Lanka.
o Aim to launch at World Travel Market and follow up
with a familiarisation trip for key journalists from the
UK market, followed by activations in other markets.
SD23 TTP2: Coastal Forts of Sri Lanka SLTDA All planning

o Convene a working group of historians, an architect, Dept. of completed
tour operators, photographers, UNESCO, relevant Archaeology by 2019
government bodies, etc. CCF
o Assess the potential of accessing and renovating UNESCO Phase 1
each of the identified forts (some have already been Local Govt. completed
renovated). Private by 2020
o Develop a funding proposal to scope each location Sector
and assess the likely costs of renovation and the
potential repurposing of these buildings and their
grounds (potential for mixed use tourism activity
areas).
o Convene decision-makers responsible for each
location and assess willingness to move forward with
renovations and reinvestment.
o Develop a staged project plan with distinct phases.
o Approach potential donors to support the preservation
and adaptive reuse of this important heritage.
o Once renovation has started, begin developing
collateral that tell the story of each fort and the role
they have in Sri Lanka’s history.
o Start discussions with the private sector and local
communities about PPPs for the management and
maintenance of the forts – consider the forts as
possible tourism information centres, as sites for
orientation and interpretation, as small museums, with
possible retail / restaurant / boutique hotel, boutique
shops featuring local handicrafts or locally produced
agro products, etc.
o Develop a tourist itinerary with as many forts as
possible.
o Commence UNESCO World Heritage listing process.
SD24 TTP3: Colombo Conventions & Exhibitions Centre SLTDA Planning in

Appoint a public and private sector working group to Megapolis 2017
develop the concept, location, scale, green credentials Authority Construction
and design features, including a pre-feasibility study. begins in
2018
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SD25 TTP4: Marvels of Ancient Wewas SLTDA Completed

o Convene a small working group of historians, tour Other Govt. by 2020
operators, photographers, relevant government Depts.
bodies, potential donors, community mobilisers, etc.
o Develop a plan, based on location, to scope and map
each tank site.
o Develop a funding proposal to scope each location
and assess the likely low impact tourism product
potential including learning experience, museum and
interpretation centre.
o Produce and implement a phased project plan.
o Develop collateral that tells the story of each tank, its
setting and context; link with international media
channels.
o Start discussions with the private sector and local
communities about PPPs for the tourist services
around these water bodies, e.g. craft markets, small
boat tours (engineless), agro and community tourism,
local shops.
o Build the new products into tourist itineraries.
SD26 TTP5: East Coast Sunrise Corridors SLTDA Planning in

o Identify teams, including local stakeholders, for each Other Govt. 2017
location – Trincomalee, Passikudah, Batticaloa, Depts.
Arugam Bay. Local Govt. Begin
o Initial site assessments, stakeholder scoping and implementati
local awareness workshops. on in stages
o Facilitate opportunities for sustainable community from Q3
engagement. 2017
o Batticaloa Fort – Relocation of district government
office, develop plan for fort including initial feasibility,
business plan, architectural concepts and
interpretation opportunities. Private sector concession
planning.
o Passikudah – Explore family recreational space in
SLTDA owned plot near existing tourism zone
o Trincomalee Waterside Development – Identify tourist
street and determine the status of buildings along the
street, develop a plan for the area, including a
feasibility analysis, conceptual designs, renovation
proposal and strategy to attract investors.
o Arugam Bay Nature Tourism – Work with relevant
stakeholders to enhance services and promote
Kumana National Park wildlife experience. Identify
habitat conservation, business feasibility, resources
required, partners for implementation and expected
return on investment.
o Produce a phased project and implementation plan
o Market the destinations and create media
opportunities.
SD27 TTP6: Jaffna Islands Exploration SLTDA In operation

o Convene a small working group of historians, tour Other Govt. by 2020
operators, relevant government bodies, potential Depts.
donors, community mobilisers, etc. Local Govt.
o Develop a plan to scope and map each island and its Private
unique assets and traditions. Sector
o Assess declaration of the archipelago as a national Development
marine sanctuary. Partner
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o Develop a funding proposal to scope each location

and assess the likely low impact tourism product
potential, including interpretation centre, research
centre, watersports and aquaculture.
o Produce a phased project plan and implement.
o Develop a community programme to improve
standards and output of local cottage industry
o Produce promotional collateral and link with tourist
itineraries.
o Launch at an international fair with media coverage.
SD28 TTP7: Religious and Spirituality Experience SLTDA Completed

o Convene a small working group of religious Other Govt. by 2019
organisations, tour operators, etc. Depts.
o Develop potential distinct touring routes and trails to Local Govt.
be added into other itineraries Private
o Produce a phased project plan and implement Sector
o Produce promotional collateral and create media
opportunities
SD29 SLTDA to encourage private sector to develop various SLTDA 2018

general and targeted travel apps to help independent Private ongoing
visitors explore the country more comprehensively. Sector
Examples include: key touring routes; World Heritage
Sites; Forts of Sri Lanka; key Wewa sites; Wildlife of Sri
Lanka; Festivals and Events (including content
development).
SD30 SLTPB to market the signature experiences of Sri SLTPB 2018

Lanka, including events, editorials and blogs even during ongoing
the planning stages
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CHAPTER 5:
LIFTING INDUSTRY STANDARDS
All sectors of the tourism industry must transition towards international best practices
in order to conserve the country’s natural and cultural endowments and to
attract the ‘right’ kind of visitors to Sri Lanka. They are the visitors inclined to
respect Sri Lanka’s roots – the wildlife, environment, culture, heritage and
communities. The global trend is also towards a more environmentally and
socially conscious consumer who is seeking authentic experiences and is more
discerning in their travel, accommodation and spending choices.
The United Nations World Tourism Organisation (UNWTO) calls this trend a
complete ‘paradigm shift’ towards a more responsible traveller21. This rapidly growing
segment is more inclined to support and pay more for high quality service,
professional practices, high environmental standards, authentic community
engagement and evidence of community support. In addition, research suggests this
segment is likely to become mainstream in the very near future22.
Well-respected large hotel chains and tour operators as well as countries like Costa
Rica are already increasing profits by tapping into these ‘green’ preferences23. Sri
Lanka will need to lift its game to competitively position itself against destinations with
a similar comparative advantage in nature based and cultural offerings. Tourism
Vision 2025 strives to address this. In addition, with information flowing fast and far in
the digital world, Sri Lanka cannot afford bad word of mouth reviews with respect to
service standards, professionalism, health and safety, wildlife interactions,
environmental and heritage management, and community interactions.
This chapter considers the context and actions required to lift standards at specific
touch points that will positively influence the high value reputation of Sri Lanka’s
tourism industry.

National parks and wildlife as well as historical, religious and cultural sites are a core
attraction for visitors to Sri Lanka and play a vital role in the tourism industry. In
particular, Sri Lanka’s iconic wildlife (both marine and terrestrial) is a critically
important competitive advantage. Together they generate significant revenue (see
Graph 6) for conservation – not only of the natural and built environment but
intangible cultural traditions and ancient legacies, which may otherwise be lost.
These areas provide employment and community engagement opportunities as well
as the chance to present what is uniquely Sri Lanka. However, over-visitation and
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21
http://cf.cdn.unwto.org/sites/all/files/pdf/global_report_transformative_power_tourism_v5.compressed_2.pdf
22
http://www.natgeotraveller.co.uk/smart-travel/features/is-sustainable-travel-going-mainstream/
23
http://www.responsibletravel.org/resources/documents/2015%20Trends%20&%20Statistics_Final.pdf!
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mismanagement of assets can be detrimental to the country’s reputation and
counterproductive to marketing efforts.
Graph 6: Annual revenue from national parks in Sri Lanka

(Source: DWC)
Carrying capacity is an issue that is raised frequently in any discussion of Sri

Lanka’s natural and cultural heritage management. Carrying capacity studies have
not been conducted for the country’s major attractions. It is worthwhile noting that
carrying capacity is a sound concept, however its application must be
thoughtfully adopted. It is a truism that 90% of visitors will be happy if they can gain
access to 10% of a protected area. Therefore equipping that 10% of the protected
area to handle the 90% of visitors becomes the primary focus. This also contributes
to the primary aim of protecting the environmental values in these areas. Some of the
most popular national parks and cultural sites in Sri Lanka are approaching capacity
under existing management approaches. In addition to providing for a broader range
of activities to increase visitor capacity there is an opportunity to manage visitation
through the combined use of time, price and alternative appeal opportunities.
Visitor numbers to national parks, cultural attractions and religious sites, and the
resulting revenue collection, are increasing steadily (see Graphs 7 and 8). However,
this visitation is concentrated on a few, heavily utilised sites. For example, four of the
national parks (Yala, Horton Plains, Udawalawe, and Minneriya) together with the
Pinnawela Elephant Orphanage carry most of the nature-related visitation, with Yala
and Horton Plains accounting for almost 50%24.
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24
Source: DWC !
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Graph 7: Visitor numbers at national parks in Sri Lanka in 2015

(Source: DWC)
Graph 8: Visitor numbers at CCF-managed sites of Sigiriya, Anuradhapura, Polonnaruwa and Galle
(Source: CCF)
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Strengths
$ A wealth of natural, cultural, historical and community lifestyle assets
well distributed around the island – including 8 UNESCO World Heritage
sites, 5 RAMSAR wetlands, and many areas of high environmental, cultural
and historical value still underutilised for tourism. Sri Lanka has the second
highest coverage of protected areas in Asia, with the Department of Wildlife
Conservation managing nearly 90 natural areas. The Forest Department
manages over 500 areas, many of which contain high levels of biodiversity,
endemism and similar tourism values to currently over visited sites25. The
Central Cultural Fund, within the Ministry of Education, manages 21 cultural
26
sites including four World Heritage Sites : Anuradhapura Sacred City,
Polonnaruwa Ancient City, Sigiriya Rock Fortress and Kandy Sacred City.
There are a number of noteworthy Buddhist, Hindu, Christian and Muslim
religious sites.
$ All this provides year-round opportunities for a diverse range of visitor

experiences and activities without the need to contrive attractions. As a result,
Sri Lanka possesses significant potential to offer excellent ecotourism
and interpretation around:
o Large charismatic species,
o Endemic species and high levels of terrestrial and marine biodiversity,
o Agri-tourism – particularly tea and spice production,
o Gemstones and jewellery,
o Religious pilgrimage, and
o Historical ports, forts and engineering feats.
$ A good revenue base collected and directly managed by the respective

organisations and the ability to disperse visitor numbers and impacts.
Utilising other areas with the same quality values is also an advantage for
implementing good conservation and visitor management practices.
$ The presence of large international chains provides opportunities for

private sector-led leadership in developing voluntary certification and
standards schemes to drive higher standards across the industry. It also
provides opportunities for mentoring, training support via information sharing
in industry meetings and forums.
$ There are many under-valued and unused natural and cultural heritage
sites that could be utilised for new tours.
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25 !Biodiversity Sri Lanka, 2016
26 !The Legal Authority is the Dept. of Archaeology!
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Case Study 2: Wildlife Safari

The traditional approach to protected area visitation is via jeep based safari tours –
exclusively undertaken by independent jeep operators which may be owner operated or
have multiple vehicles and employed drivers. This provides a one-dimensional experience
of Sri Lanka’s National Parks. There is significant potential to broaden the range of
experiences offered and provide significantly better tourism experiences. However, more
importantly in the short term, there is a need to address the management of these
tours. There are numerous social media references to run down vehicles, speeding,
over-charging and crowding at wildlife sightings. The DWC guides also regularly receive
feedback related to poor language skills and demands for high tips. A high-end tour or
accommodation provider must currently ‘hand over’ their guests to a jeep driver and DWC
guide despite the fact that they may have suitable 4WD vehicles and highly trained
interpretive guides on staff. In addition, there appears to be little enforcement of park
rules. This has implications for visitors and wildlife. There is an urgent need to apply
standards to jeep operations (e.g. minimum pay and conditions for drivers, an age limit
on vehicles; protocols on how many vehicles may surround wildlife and minimum
distances). Specialist eco-guide training and improved language skills are also
critical. The fitting of GPS tracking devices to all jeeps and safari vehicles could also
enable park managers to monitor movements, vehicle numbers, vehicle clustering around
wildlife, speed and known animal congregation points. It could also identify vehicles that
are continually exhibiting activities outside of park rules.
Visitor services and infrastructure are also generally extremely limited with most areas
lacking access to basic toilet facilities. There is little in the way of interpretive, behavioural
and way-finding signage and interpretation displays are often absent and where present
very dated. While online booking systems are on the cards, there is little to no use of
interactive technologies or digital apps. There are some camping areas available in
National Parks and some bungalows mostly utilised by domestic visitors – though these
structures could be dramatically improved by considering low impact style safari tents
which blend with the environment.
!
Challenges
× Nature based / religious / cultural experiences are confined to a few
high profile sites which are suffering from congestion, poor visitor
management and poor conservation of values (see Case Study 2:
Wildlife Safari). Visitor management plans for sites are deficient, not visitor-
centric or not comprehensive. The essential element of visitor use and the
experience from entry to exit is often absent. For national parks, visitor use is
currently only controlled by a permit system, available on a park-by-park
basis. There is also no system for managing commercial operators.
× There is currently little data and feedback collected at the site level on
visitor numbers, profiles and preferences. This would provide insights
into visitor needs and levels of satisfaction. It is fundamental for planning and
monitoring the effectiveness of infrastructure, interpretation, soft adventure
activities, accommodation options and merchandising. This also feeds into a
better understanding of visitors (see Chapter 2).
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× There is no effective national standard or certification system covering
tourism operations across accommodation, tours, events, attractions
and speciality services and retail businesses (e.g. arts, crafts, Ayurveda,
gemstones). This limits Sri Lanka tourism’s capacity to:
o Provide consistent guidance to operators on how to improve their
business, environmental and social performance;
o Provide visitors with the ability to identify and give a preference to
best practice operators; and
o Assist in promoting Sri Lanka as a sustainable tourism destination
(by highlighting best practice operators) to the market segments
identified in Chapter 2.
Case study 3: Whale & dolphin watching

Sri Lanka is rapidly gaining a reputation for whale and dolphin watching. Three key sites
are recognised: Mirissa on the south coast, Trincomalee on the north-east coast and
Kalpitiya Peninsula on the north-west coast. Blue whale, sperm whale, dolphins and
turtles can be viewed and have reliable sightings in the peak whale watching months of
December, January and April, but also in November, February and March. Spinner
dolphins and certain small shark species are common in the Kalpitiya area.
Reading TripAdvisor reviews reveals a major problem in the management of whale

watching, particularly in the Mirissa area. Small, slow overloaded, smoky boats;
significant proportions of guests suffering sea sickness; reports of chasing whales and
harassing whales; operating tours out of season when the chances of seeing whales is
slight and the sea conditions are rough. This type of feedback is building a negative
reputation for Sri Lanka in this upscale niche market segment.
One of the major limitations of the whale watching industry is the use of small boats. A
high quality whale watching experience will be more assured with the use of high-speed
vessels of 15-30m. Purpose-built whale watching vessels have optimal viewing decks,
interpretive facilities, on board bathrooms and the capacity to cater with hot meals.
Like the terrestrial wildlife tourism issue, marine tourism management requires
government intervention with the support of local marine experts, resident communities,
the private sector and non-government tourism bodies to move this important sector to a
sustainable footing and one that offers a high value tourism experience.
Whale watching commenced globally as a tourism activity in the early 1990’s. There are
standard, well-regarded protocols for sustainable vessel based whale watching
(e.g. minimum distance that must be maintained to whales, engine off requirements when
whales come to a vessel, no ‘leap frogging’ of whales, additional minimum distances for
mother and calves etc.). Similarly, there are well-tested commercial permitting systems
around the globe that regulate operating procedures, animal protection, vessel quality and
safety etc. There should be a declared whale watching season to prevent off-season
voyages in unfavourable conditions. Incentives for operators to achieve ecotourism
certification should also be introduced. !
× Standards across accommodation, tour and retail providers vary

greatly. There is little management, monitoring or enforcement of best
practice, professionalism and quality control (see Case Study 3: Whale
& Dolphin Watching). This is particularly prevalent in protected areas, land
based and marine life tours, with respect to health and safety, and in the
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certain specialist services and retail such as Ayurveda and gemstones.
There are inconsistent industry standards across best practice in waste
management, water / energy conservation, habitat preservation, and marine
and wildlife interactions – these are all serious reputational risks for a
destination.
× There is generally a poor standard of information, narrative,

interpretation and presentation of values at most sites. Visitor services,
signage and infrastructure are absent or sub-standard and there is also poor
packaging, presentation and connectivity between sites (see Case Study 4:
Sigiriya value addition). Visitor information and information centres are hard
to find, inconsistently presented and offer limited services. Visitor information
regarding health, safety and appropriate conduct with respect to wildlife,
religion, culture and communities is minimal.
Case study 4: Sigiriya value addition

The high profile World Heritage Site – Sigiriya – is under visitation pressure and is not
delivering the quality of tourism experience that is realistically achievable. It should be
given early attention to enable the fabric of the site to be preserved and the visitor
experience to be broadened and enhanced. There are many opportunities to add value to
the current experience through better personal and non-personal interpretation. This
includes personal tiered guiding based on the market segment and length of time: from
general information to academics to specialist knowledge. Non-personal interpretation
includes accurate signage, apps, displays and 3D technology, which are eco-friendly and
fitting of the historic setting (no neon signage, for instance). There are important attributes
of the site that are not currently featured such as Cobra Hood cave, which is below the
main Sigiriya rock and has different motif paintings; the surrounding gardens and the
walled city and moat; and more local community engagement on the site. The occupation
of key areas at Sigiriya by temporary cafés, food stalls and souvenir stalls is a distraction
from the grandeur of the site. There is potential to provide high quality visitor services –
good quality food outlets, local souvenirs, craft making and other value add options, which
should be housed in specific locations. An interpretive centre and improvements to the
existing museum are planned for the site.
× Most sites offer only one-dimensional experiences and limited

opportunities for community interaction. There are significant
opportunities to broaden the range of culturally based activities on the sites
to celebrate the country and Sri Lankan life. This would involve the local
community in activities (e.g. local crafts, music, traditional livelihoods,
authentic Sri Lankan foods etc.) while alleviating negative aspects such as
touting. This can encourage volun-tourism and local events.
× There is a tendency to over-design and over-develop sites, particularly

cultural and religious venues. This can be a waste of financial resources.
It is critical that the authenticity and true fabric of each site is maintained
and protected; otherwise their real value is lost forever.
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× The range of touring routes offered is limited and standardised with
tour operators largely utilising the same over-frequented natural and
cultural sites. In their defence these are also established with infrastructure
connectivity and visitor facilities. However, there is an emphasis by tour
operators and guides to visit commission-giving establishments, which
disadvantages smaller rural entrepreneurs. Many Sri Lankan operators tend
to offer a little of everything in their tourism promotion literature, without
perhaps an appreciation that potential niche markets (e.g. bird watching)
require more focused and higher standards of guiding and service delivery.
All this limits the diversity of tourism experiences and hinders the regional
spread of benefits to communities who are outside of the popular attractions.
× Bureaucratic processes as well as coordination and political

interference are a challenge to implementation of plans. In addition,
dated approaches to protected area tourism management have not
optimised local employment opportunities. For example, many creative
initiatives for ecotourism on national parks do not materialise due to a
confluence of lack of funding, vested interests and bureaucratic inertia27.

To deliver the ‘best in class’ niche market experiences outlined in Chapters 2 and 4,
and position Sri Lanka as a competitive sustainable tourism destination, a concerted
effort must be made to lift industry standards across the board: including tours,
accommodation, attractions, events, speciality retail and information services.
After consultation with government, the private sector and tourism stakeholders, the
following three Core Strategies and actions (LS1 to LS20) have been identified as the
priorities for the next four years to facilitate movement towards the Tourism Vision
2025. These have been selected on the basis that they address: the highest risk
areas in terms of a potential loss of significant environmental and cultural values, Sri
Lanka’s potential competitive edge in ecotourism, the significant reputation risks from
bad visitor experiences and reviews, and they could be achieved in the timeframe.
Not all of the actions are under the remit of the Tourism Ministry and the tourism
institutions, but they are included here as key focal points for stakeholder partnership
projects to be discussed and implemented via the kinds of mechanisms discussed in
Chapter 1. Actions related to community engagement are discussed in Chapter 6.
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27
International Development Association Project Appraisal Document (PAD 1514) March 2016
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1. Enhance
conservation,
presentation &
management of
natural & cultural
assets
Lifting Industry
Standards
2. Facilitate
Core Strategies uptake of best
2017-2020 practice at key
3. Improve touch-points
visitor
information &
interpretation
5.2.1 Enhance conservation, presentation and

management of natural and cultural assets
Guidelines, codes of conduct and management plans must be implemented to

conserve natural and cultural assets whilst providing a high value tourism
experience. For instance, if there are set guidelines and audit procedures to assess
the infrastructure for protected areas, it can help ensure consistency of delivery for
the visitor experience. These include basic infrastructure needs (e.g. parking, retail,
toilets and rest facilities), interpretation requirements and signage needs (e.g. way-
finding and behavioural). Although the protected areas may not be under the purview
of SLTDA, it can be an essential partner in developing site-specific management
plans. SLTDA can develop a template for the tourism component to deliver a holistic
visitor experience. It is important to continuously review current site management
plans where available and integrate recommended actions.
Sri Lanka cannot become well known an ecotourism destination, whilst having
widespread littering, pollution and waste mismanagement. This negatively impacts
the environment as well as the visitor experience, feedback and referral. A National
“Housekeeping” Programme should be introduced as a concerted effort to address
the issues of continuous clean up, safety and sustainable waste disposal throughout
the island. To begin, a major initiative related to Sri Lanka’s most popular mainstream
market segment – the coastal experience – should be undertaken. This would
encompass beach safety and cleanliness in collaboration with Tourist Police and the
Coast Guard as well as an improved marine life experience by regulating vessel and
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aerial whale watching. Pilot projects in the south collaborating with a range of
stakeholders in the most vulnerable locations will need to be effected urgently.
A reliable and secure online booking and payment system to purchase tickets for
visiting natural and cultural assets will greatly benefit visitors. As Sri Lanka has a
myriad cultural, nature based and religious sites each with their own ticketing system
and pricing structure, the potential for travellers to become confused and
disenchanted is great. Many social media reviews complain about the total costs
involved in multiple visits and the expectation of driver / guides to receive substantial
tips. A common ticketing approach, advance purchase, seasonal passes, low season
passes, student deals and other packages could be developed to streamline the
system and to offer savings to visitors. This system results in a one-off payment so
that visitors do not have to complete multiple forms and pay multiple times. The ticket
‘bundles’ can combine different choices and also feature lesser-known attractions to
promote alternative sites and disperse tourism throughout the island.
Core Strategy 1: Actions to improve conservation, preservation & management of natural

& cultural assets
Actions Lead Agency Timeframe
Partners
LS1 Develop Protected Area Infrastructure Guidelines, SLTDA 2017
Templates and Checklist to allow site audits for Wildlife
each area with the aim to provide the best visitor CCF
experience. Forestry
Consultant
LS2 SLTDA to advocate for integration of both DWC 2017
conservation and tourism objectives and actions in Forestry
site-specific management plans for protected CCF
areas. SLTDA
LS3 Develop a National “Housekeeping” Programme to SLTDA Priority in

ensure clean, safe and sustainable environments. To Provincial & 2017,
begin with an initiative to upgrade the coastal Local Govts. ongoing
experience with pilot projects in the south.
LS4 Enforce national vessel-based and aerial Whale SLTDA Priority in

Watching regulations DWC 2017
LS5 Shipshape Beaches: SLTDA to advocate for the SLTDA 2018

construction of compact two-storey eco-friendly units Coast Guard
along popular beach locations to house one lifeguard Local govt.
and a Tourist Police officer. This is to monitor the
beach on a 24-hour shift basis, to address
maintenance, illegal activities and visitor safety.
LS6 Develop online booking and ticketing mechanisms SLTDA Priority in

allowing access to multiple areas and different DWC 2017
package options. Forestry
CCF
It is critical for the Tourism Ministry and SLTDA to work closely with the relevant
government bodies and development partners to improve management of nature
protected areas for conservation and high value ecotourism. Changes to
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operational procedures and investment in key visitor infrastructure could see a
significant improvement in carrying capacity and resource protection. SLTDA
should advocate potential enhancement initiatives that would transform the country’s
high value tourism offer, such as:
" The development of management systems based on managing access

times, price and exclusivity on nature based / cultural sites such as
stratified access times for large groups, daily limits (short term solution),
higher prices for peak times etc. A premium time of the day may attract
premium entry fee charges. It is also possible to improve yield by retaining a
reserve of tickets (e.g. 5-10%) which visitors can bid for to enter at premium
times or to enter premium locations. Such an online auction bidding process
can enable the independent traveller or small group traveller to make an
unplanned visit at the last minute and pay a premium for this privilege.
" Equip additional staff to each key attraction and provide training to increase
onsite monitoring and enforcement of regulations and codes over tourism
operations.
" Best practices in wildlife interaction also apply to captive wildlife in

rehabilitation centres and zoos as well as wider animal welfare. In line with
ecotourism best practice, SLTDA should advocate open-enclosure green
sanctuaries rather than caged zoos by 2025. The Ridigama Safari Park is an
example already developed by the DWC. Better and more spacious
conditions will be introduced at Pinnawela Elephant Orphanage.
" Introduction of a new system of commercial tour operation management

in protected nature areas. This could be introduced to existing low use
national parks and sanctuaries adjoining popular national parks. It would
involve the establishment of minimum standards whereby only operators with
some level of certification would be eligible to apply for a commercial
operating licence in these protected areas. Interpretation would be
undertaken by certified eco-guides under the employment of the tour operator
or independently contracted by the tour operator. Through trialling a new
scheme on lower use national parks (e.g. Wasgamuwa) and adjoining
sanctuaries, it will be possible to monitor comparative visitor satisfaction
levels, average tour price and environmental impacts.
" A joint agency project focused on piloting an integrated management

model at a national park – include adjoining forested areas in a holistic
tourism management plan; pilot a commercial operator model with an
ecotourism certification programme (only certified operators provided with
permits); establish permit allocation process; transition training / mentoring
programme.
" The question of private tours and small-scale low impact accommodation
in protected nature areas, PPPs and private sector management of tourist
bungalows and campsites needs further exploration. This requires a
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significant review of the current policies to ensure that the primary role of
conservation and protection of natural values is maintained. Examples exist
across the globe of high quality accommodation facilities and attractions built
by the private sector under a range of investment approaches, including
PPPs and joint ventures.
5.2.2 Facilitate the Uptake of Best Practice at Key Touch-

points
To be a high value destination and provide an authentic experience in line with the
Roots Philosophy, Sri Lanka needs to elevate visitor services at key touch points in
the public and private sectors, including ports of entry and exit, accommodation, and
speciality retail.
A “Mystery Shopper” Programme run by the SLTDA with a team of retired tourism
professionals would be useful to randomly monitor quality standards and customer
service. This can address specific pain points at a particular attraction or service. In
addition, periodic data gathering can take place at these touch points using quick
visitor satisfaction surveys to understand customer preferences and profiles,
which will feed into the Visitor Segmentation Model (see Chapter 2).
Private Sector
The EU SWITCH ASIA project – 'Greening Sri Lanka Hotels' – laid a solid
foundation to improving best practices by helping launch over 350 hotels on the path
to pursuing good water, waste and energy practices. A possible expansion or follow
up to the learnings of this project should be considered in the development of
national certification or standards programmes. Significant groundwork has been
undertaken by SWITCH ASIA in the development of a voluntary ‘green tourism’
certification scheme for the tourism industry. This scheme was primarily aimed at
accommodation providers and focused on sustainability practices such as energy,
water conservation, waste management and safety. To avoid duplication of
regulation and unnecessary red tape and cost, it is recommended that certification
under this scheme (if pursued) be integrated into the licensing processes of the
SLTDA. In the next phase, it can be extended by promoting green principles and
codes of conduct among other service providers such as tour operators and
attractions.
The private sector can be further encouraged to uplift standards, particularly in

relation to quality and sustainability, with an annual Tourism Awards Programme.
It can be developed with the collaboration of an industry chamber, with a significant
marketing prize for each category winner and culminating in an awards event.
It is important to foster traditional arts and crafts, cottage industries, Ayurveda

products, and the sale of gemstones and jewellery as speciality souvenir items
through an SME Support Programme. This adds value to the visitor experience and
offers something authentic to take home. Programmes should be rolled out to
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support SMEs and MSMEs in speciality retail related to traditional handiwork,
Ayurveda products and cottage industry ventures. These include access to training,
financing and marketing such as organised business and specific sector training;
rating/grading systems; negotiated loans / grants; an innovation venture fund;
registered operators and outlets showcased on SLTDA website; marketing incentives
for best practice operators; and access to marketing promotions and co-operative
marketing initiatives. There also needs to be quality control, particularly with respect
to Ayurveda products and gemstones. This can be encouraged through audit and
mentoring workshops in partnership with larger private sector companies.
Public Sector
The online visa system (E-Visa) for entry to Sri Lanka is an overseas visitor’s first
tangible encounter with travel to Sri Lanka. Although efficient, further value addition
can take place, namely branding of the E-visa, a better look and feel for the E-visa
website, using the E-visa system as a marketing tool to share information in advance
of the visitor arriving in the country, and for online surveying post trip.
The BIA airport in Katunayake is the first and last touch-point for 99% of international
visitors28. Due to capacity limitations at BIA, there can be bottlenecks during peak
times. Notwithstanding the major renovation plans on the cards, it would be
worthwhile expediting certain quick fixes and soft touches to prioritise the visitor
experience. Examples could include adequate staffing and traditional greetings,
temporary spatial rearrangements for optimal people movement, contemporary
visuals of Sri Lanka, free welcome tea service, mini-cultural performance during
festival times, welcome / departure gifts, etc. Some of these services can be
sponsored by the private sector. With the growth of the cruise sector and the reality
that Sri Lankan ports do not have dedicated cruise terminals, similar interim
convenience measures should be taken to improve the visitor experience at points of
dis / embarkation for cruises.
Safety and security are important for visitors and the host community. As Sri Lanka
welcomes tourism, operators and communities must not turn a blind eye to certain
unscrupulous visitors who may not have best interests at heart. The Tourist Police
predominantly deals with conflict resolution and visitor support. They need to be
strengthened in numbers, capacity, resources and authority. A dedicated Tourist
Police Unit – that is well resourced and trained in soft skills – located at all tourism
hubs can be an important tourism touch-point.
Core Strategy 2: Actions to Facilitate the Uptake of Best Practice at Key Touch Points

Agency /
Partners
LS7 Develop and implement a Mystery Shopper Programme SLTDA 2019
and quick visitor satisfaction surveys at different touch ongoing
points.
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28
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LS8 Develop, or adopt under licence, a national sustainable SLTDA 2018

tourism certification scheme for tours, attractions and ongoing
accommodation. Specifically for accommodation, implement
the ‘Green Hotels Programme’ to promote hotels to set and
achieve renewable energy, water conservation, recycling and
waste reduction targets.
LS9 Review license conditions and add best practice SLTDA 2018
requirements. Where a business has approved certification,
licensing should be integrated into a one step process.
Consider extending this into the speciality retail space or
implementing a code of conduct and recognised suppliers
programme.
LS10 Introduce an annual Tourism Awards Programme with SLTDA 2019

strong quality and sustainability criteria in association with CCC ongoing
industry bodies. Tourism
Associati
ons
LS11 Develop national and enforceable operator codes of SLTDA 2019
conduct, vehicle minimum standards and driver / guide Tourism
standards integrated into licensing and certification Associati
programmes (including Tuk Tuk drivers) ons
LS12 Initiate SME Support Programme for traditional arts, SLTDA 2019 – 2020
Ayurveda products and handicraft cottage industry ventures.
LS13 Work with the Department for Immigration & Emigration and SLTDA 2017
airport and port authorities to enhance online visa service Other
as well as improve airport and cruise visitor experience. Govt.
Depts.
LS14 Strengthening and resourcing of Tourist Police with Tourist 2017
dedicated teams island-wide. Police ongoing
SLTDA
5.2.3 Improve Visitor Information and Interpretation

Significant focus needs to be applied to visitor information and interpretation
including accurate signage, explanatory collateral, visitor centres and online
information. Similarly, ICT can be utilised to provide more information, for instance
working with Google to improve location information on their online maps and
providing more travel information online. All this elevates the quality of the visitor
experience and encourages independent travel. (see Chapter 6 for guiding.)
Well-signed touring routes, view points and interpretation centres along with
provision of comfort centres, rest stops and wayside lookout points (see Chapter 4)
will encourage travellers, especially returning visitors, to explore the country more
comprehensively and enjoy a multi-dimensional visitor experience. It will also be
possible for independent travellers to undertake more independent holidays in much
greater numbers than present. Independent travellers, developing their own travel
and accommodation itineraries will be much less susceptible to the manipulation of
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unscrupulous operators who take guests to a limited range of tourism providers
based on commission payment to the driver / guides.
Up-to-date educational and attractive collateral should be produced to create a

high value learning experience at attractions. For instance, this can include general
print and electronic material on biodiversity and wildlife as well as specialist material
on the botanical gardens. Private sector sponsorship is possible.
Continuous awareness programmes among guides and tour operators must take
place to educate people about the lesser-known sites, which are of interest from a
biodiversity and/or historical perspective. In the urban context, better management
and training of tuk tuk drivers is also required to improve visitor safety and the quality
of information provided.
SLTPB has Tourism Information Centres in prime locations in Colombo, BIA

Airport and Kandy. These provide information to visitors, but can also be used for
data gathering and mini-activations for targeted marketing. Examples include private
sector collaboration to offer welcome drinks and gifts, and public sector collaboration
to showcase lesser-known attractions and raise awareness on safety and industry
HR issues.
Core Strategy 3: Actions to Improve Visitor Information and Interpretation

Agency /
Partners
LS15 Undertake Protected Area Interpretation Audits of key SLTDA 2017
visitor sites to evaluate the current status and necessary DWC
improvements. CCF
Forestry
Consultant
LS16 Develop a national standard for visitor information SLTDA 2017
centres and interpretive centres including overarching DWC
quality and aesthetic standards (not prescriptive design) CCF
and management models (e.g. community participation or Forestry
corporate sponsorship).
LS17 Develop a visitor information guide for use at visitor SLTDA 2017
information points and online (e.g. website, travel apps,
emailers). This should include do’s and don’ts with respect
to environment, community, wildlife, illegal trafficking as
well as safety information and advice on avoiding scams.
LS18 Work with other government departments to produce SLTDA 2017

informative collateral on general themes and for specific Other
attractions / subjects. Govt.
Depts.
LS19 Industry awareness programmes on lesser-known SLTDA 2018
attractions in collaboration with specialist organisations
LS20 Creative utilisation of Tourist Information Counters as SLTPB 2018-2019
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points for data collation, customer service and targeted Private

marketing. Sector
The SLTDA should work closely with the relevant government agencies to ensure
clarity and consistency with signage on key routes and support services. Some
potential tourism-related enhancement initiatives that SLTDA can advocate, include:
" A joint project to develop a national tourism road sign system and staged
signage plan and install directional signage at priority sites. This can be
followed by interpretive signage, which facilitates independent travellers. It is
recommended to involve corporate sponsorship to reduce government costs
and to trial the system under a pilot project, such as for the Ecotourism
Discovery Circuit (see Chapter 4, Section 4.3.4).
" A joint project for a national Tourism Signage Manual for protected nature
areas and cultural sites covering standard design, durable materials as well
as consistent way-finding and behavioural signage using internationally
recognised symbols. Existing site signage and management plans may need
to be upgraded accordingly.
" A joint project to develop national design standards for comfort centres,
wayside stops, viewpoints, lookouts, shelter pavilions and picnic facilities in
identified locations. It is recommended that simple and practical traditional
designs be used in line with the local area.

• Tourism businesses contribute to the protection, conservation and

enhancement of Sri Lanka’s natural and cultural assets.
• Visitors have easy access to reliable information and services, feel safe and
are impressed by environmental performance, social responsibility and
service standards in the country.
• Strong interpretation engages, informs and ‘wows’ the visitor; provides access
to the history, stories, culture and people that make Sri Lanka unique.
• Visitor information and interpretation encourages responsible and appropriate
environmental and social interaction.
• Sri Lanka adopts a ‘best in class’ approach to the delivery of its tourism
sectors and is seen as a globally leading ecotourism nation by 2025.
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CHAPTER 6:
ENGAGING THE WORKFORCE AND
COMMUNITIES
A tourism sector with a highly skilled workforce and that utilises strategic human
resource management29 are pre-requisites to attracting the right people for the right
job. This is crucial to the realisation of Sri Lanka becoming a high value destination.
The strong growth in the tourism and hospitality sector creates high employment and
career opportunities, and can harness the intrinsic hospitality trait of Sri Lankans.
When considering human resources (HR) in the tourism industry, there are three
broad groupings of actors: the public sector, the private sector and communities.
They each require specific strategic approaches of engagement, which are proposed
in the sections below.

Tourism in Sri Lanka employed 319,43630 people in 2015. Direct employment across
hotels, restaurants, travel agents, tour operators, airlines, recreational facilities,
tourist shops, guides, national tourist institutions and the state sector comprised
135,930 of these in 201531. Indirect employment from tourism (including suppliers to
the sector such as information technology, fuel and energy, catering services,
clothing, housing and household goods / services etc.) comprises the balance.
The potential growth trajectory for the tourism industry is recognised by public and
private sector stakeholders as both a major opportunity as well as a challenge to
capturing the benefits of tourism development and meeting strategic objectives.
Strengths
$ A public sector willing to review existing structures and understands the need
for change to ensure goals and objectives are achieved. There is a keenness
for a strong learning and development / training framework across the
ministry and institutions working in tourism.
$ A resilient private sector, including an upsurge in SMEs, which has withstood

trying times during the civil war and is attracting experienced Sri Lankans who
have been working overseas. International hospitality brands entering the
country are raising the benchmark for industry HR standards.
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29
Strategic human resource management is defined as integrating HR management strategies and systems to
achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other
stakeholders (Source: Herman Schwind, Hari Das and Terry Wagar, Human Resource Management: A Strategic
Approach).
30
Report on Forecast of Tourist Arrivals, Tourism Receipts, Average Duration, and Total Employment in Sri Lanka for
2016-2020, Research and International Affairs Division, SLTDA, August 2016
31
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$ Standardised and subsidised training offered at the government-run Sri Lanka

Institute of Tourism & Hotel Management (SLITHM) and a national
qualifications framework – the NVQ system – including national competency
standards and competency-based training.
$ Friendly, hospitable people and widespread conversational English, which

offers an advantage for developing high standards of community engagement
and interaction.
Challenges
× A limited understanding of the importance of HR strategy in achieving a
sustainable workforce exists among decision-makers and influencers in the
public sector.
× Within the tourism institutions, the current Scheme of Recruitment (SOR) is

prescriptive and obsolete, and does not reflect current best practice for
effective service delivery. There is no accountability for achieving outcomes
within designated timeframes. Appropriate technology and a work
environment conducive to productive work outputs are lacking in the public
sector.
× A lack of formal data and comprehensive research to capture information

on:
o Employment profiles and practices in the private sector;
o Learning and development programmes in the private sector;
o Number of women employed in the sector and in what capacities;
o Factors attracting or discouraging potential employees to the tourism and
hospitality sector, especially women;
o Available skill sets of both the workforce and trainers; and
o Attraction, recruitment and retention strategies for both the public and
private sectors.
× Limited diversity and inclusiveness in the private and public sectors,

including low female participation in the hospitality workforce32.
× A dearth of qualified trainers with little emphasis on soft skills training. The
components required to deliver quality training are inadequate, which includes
instructors with industry experience, well-equipped facilities for practical
demonstration, and significant exposure to on-the-job training. Resource
people for training in the north and east are particularly lacking due to
language challenges.
× Strong growth in the tourism and hospitality sector creates additional

demand on the labour market with corresponding shortfalls in supply.
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32
In Sri Lanka, overall unemployment rates of women have been consistently double those of men for four decades.
(Source: Sri Lanka Gender Profile Final Report, Japan International Cooperation Agency, Public Policy Department
March 2010)
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× Migration of trained and / or experienced Sri Lankans to overseas tourism

and / or hospitality jobs that may offer better remuneration and career
development prospects.
× Employment in the tourism and hospitality sector is not a preferred career

option due to a variety of factors, including economic reasons, the lack of
general awareness of the sector, work hours and environment, and socio-
cultural pressures. (More information in Table 6.)
There are a number of factors that impact decisions on entering the hospitality and
tourism industry, seeking education / training, and during employment, which are
outlined below. It is important to better understand the ground reality in order to take
the necessary remedial measures.
Table 7: Some factors affecting entry, training and retention of local staff in the tourism sector.
Topi Entry Education / Training Employment
Economic o Perception of a low o High quality courses with o Salaries are not paid on
paying sector international affiliation can time or as agreed
o Alternative jobs with be expensive o Alternative jobs with
better starting o Uncertainty around the better salaries
salaries quality of certain courses o Perception of
o Starting positions despite the investment, significantly higher
can be as casual especially due to poor earning potential
labour so no social quality of trainers / overseas (valid in some
security (EPF or resource people geographical locations
ETF) and no job o Sector-specific education and for specific skills /
security or training is not a professions)
o Desire to travel prerequisite for o Low base salaries
overseas for work employment (service charge not
always paid during
initial months of
employment or if
employed as casual
labour)
o Inability to source a
loan on the low base
salary
Awareness o Limited presence of o Lack of information o Employer branding is
of sector the industry on through existing primary lacking
popular media and secondary education o Job expectations are
o Unsure of the: providers not met nor are
− skills required to o Unaware of availability of expectations promised
join the sector courses by the employer always
− security of o Vocational training is not delivered
employment, or highly regarded
− career path o On-the-job training deters
people from attending
formal courses
Work hours o Perception of long o Advice to new entrants on o Long (sometimes)
and late hours, deter work hours together with antisocial hours not
women especially benefits associated with a discussed at time of
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o Viewed as antisocial career in tourism are not recruitment, especially
due to work at explained for women
weekends and o Limited flexible working
holidays options, especially for
women
o Poor work ethic / youth
attitudes so tendency to
leave hastily if
expectations are not
met
Work o Travel distances to o Poor HR management
environment places of work (e.g. (e.g. no contracts,
hotels) can be a trainees for years; no
deterrent, especially progression, middle
for women management issues)
o Inconsistent o Work load (perceived
employment and real)
standards across the o Occupational health
industry and safety concerns
o Sub-standard work o Lack of development
environment and opportunities
facilities
o Lack of empowerment,
stifles initiative and
creativity
o Little emphasis on
dealing with work place
issues (e.g.
harassment, bullying)
Career o Limited entry-level permanent positions so entrants are usually hired as casual low-
prospects level labour
o Career prospects (what you can do), pathways (how you can move up and around)
and progression (how to succeed) are not clearly identified and explained during
school level before recruitment, while studying a course or at job entry level
o Biases of the roles for people in the work place, especially women
o Inadequate counselling to support new recruits and trainees; buddy and role model
initiatives are not commonplace
o Inaccurate job matching and placement of recruits and trainees
Pressures o Lack of language skills so not confident to start courses or enter the sector
o Desire to be self-employed, especially young men as tuk tuk drivers, for earning
potential and community status
o Social, cultural, religious and family pressures and biases, especially for women,
because of the perspective the tourism sector is not a safe, dignified or desirable job
(e.g. ‘Office’ jobs are more desirable)
o Gender biases for women in employment in general
o Few women in the sector so a further deterrent to diversity in the tourism workforce
33
(Sources: Stakeholder consultation, survey of training providers , ILO skills gap study 2015)
Harnessing these strengths, better understanding the ground realities and

overcoming these challenges in support of the overall HR development
strategy will require robust commitment. This commitment is required from both
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
33
The survey questionnaire was distributed by the World University Service of Canada to the TVET group.
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the public sector (that creates the environment for business to operate) and the
private sector (that realises the business opportunities).

An empowered tourism workforce and an engaged community will
considerably contribute to a high value visitor experience. High value tourism
tends to be more labour intensive as group sizes are generally smaller, and more
personalised accommodation and touring are preferred by these guests. It opens up
significant jobs and skilled opportunities for both men and women. However, high
value tourism also demands a greater level of intuitive service as well as specialist
and enhanced skills to accommodate premium and niche experiences.
Four core strategies have been identified as priorities for the next four years to
facilitate achieving the Tourism Vision 2025. These have been selected on the basis
that they address the fundamentals of engaging the current and potential tourism
workforce, link the behaviour and satisfaction of employees to the quality of service,
visitor / customer experience, and return on investment.
In order to effectively progress and achieve the actions listed below (WC1 to WC37),
Core Strategy 1 should be implemented as a priority.
1. Develop an actively
engaged workforce
Engaging the
4. Engage local Workforce & 2. Promote
communities in Communities employment &
tourism career opportunities
Core Strategies in tourism
2017-2020
3. Prioritise lifelong
training &
development
6.2.1 Develop an Actively Engaged Workforce

It is essential to have a systematic approach and solid foundation to develop a
sustainable workforce for the tourism sector. This includes fair and robust HR
policies, planning and best practice for employment throughout the public and private
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sector. Building capacity is central to organisational performance to develop an
actively engaged workforce with the knowledge and skills necessary to realise the
Tourism Vision 2025. (Box 2 below explains employee engagement.)
Box 2: Employee Engagement

Engaged employees work with passion; feel a profound connection to their company; and
drive innovation.
Disengaged employees are essentially ‘checked out’; sleepwalking through their workday,
putting time — but not energy or passion — into their work.
Actively disengaged employees are unhappy at work; act out their unhappiness; and
undermine what their engaged co-workers accomplish.
Private sector
As an industry, there needs to be concerted efforts towards best practice in HR,
which includes workforce planning, performance management, talent management,
employee engagement and succession planning. Broadly categorised as Hospitality
Service Standards, they must align with international hospitality service standards.
There should be a commitment to equality, diversity and inclusion among

industry leaders. This comprises best practices for employment standards, career
path development and fair remuneration. This can go a long way to help address the
key HR challenges related to skill shortages, poor retention rates and high staff
turnover. Examples of commitments / pledges to be made by the industry can
include:
o Mandatory hours of annual training while in employment,
o Introduction of flexible working schemes,
o Introduction of internal supportive culture programmes,
o A specified percentage of women employed in the workforce,
o A specified percentage of women in managerial positions, and
o A system in place for handling employee grievances.
Research into the impact of talent retention on the performance of private sector
companies in Sri Lanka34 concluded that there are no effective human resource
strategies for talent retention – a key component of any human resource
management plan that underpins an organisation’s employment standards and
career path development. An employer branding strategy is important in this
regard. Training and development can contribute to keep staff engaged and
rewarded (see Chapter 5, Section 5.2.3).
Whilst the global and local chains of hotels and other major tourism related
businesses have supportive HR policies and practices that are part of their employer
branding, there is no clear picture of what HR policies and practices are in place in
SMEs or MSMEs, which comprise a large proportion of Sri Lanka’s tourism sector.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
34
The HR strategies impact of talent retention on performance of private sector organizations in Sri Lanka; K
Karunathilaka PhD, Prof. Dr M Yajid, Professor Dr A Khatibi. European Journal of Research in Social Sciences;
Vol. 4 No. 6, 2016 ISSN 2056-5429
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They may need more support and thus the recommendation is to develop a
foundation management masterclass programme for MSMEs and SMEs
registered with SLTDA to improve HR practices and business resilience. Access to
these courses can be a value addition of being an SLTDA registered business,
thereby supporting the effort to mainstream the “informal sector” (see Chapter 1).
Topics to be covered in the modular and practical programme include HR
management, employee engagement, quality standards, customer service, business
sustainability, etc.
Formal annual surveys and research on the workforce in the private sector should be
conducted to evaluate and forecast industry trends and gaps in HR. These can be a
part of the local research surveys introduced as discussed in Chapter 2.
Public Sector
Current concerns raised by the four tourism institutions indicate there is frustration
within the workforce stemming from a lack of consistently applied human resource
policies and an obsolete Scheme Of Recruitment (SOR). Other broad concerns
include:
• The current institutional structure and dearth of strong and well-
communicated HR policies have contributed to demotivated staff,
dysfunctional departments, inadequate workforce diversity, loss of high
performing staff and no succession plans.
• Inconsistent decision-making and follow up combined with a pervasive lack of
urgency, which leads to non-resolution of issues.
• A lack of accountability and politicised work culture.
• There has been little emphasis on training and development opportunities.
A cascading chain has emerged where poor evaluations and negotiations followed by
protracted procurement processes and delayed decision-making gravely impacts
outputs. Furthermore, as a result of the limited advance planning and evaluation,
queries are raised regarding payments, which can then become reputational risks for
the institutions themselves and the country at large.
Until such time that the institutional framework recommendations raised in Chapter 1
are implemented, it is suggested that the following interim measures are explored for
optimum functionality and effective outputs. Implementing best practices and
processes will also help transition to a better working culture.
(i) To revise the human resource functions across the four tourism
institutions
Currently, there are four individual human resource functions for a total of
approximately 490 people. At least two options should be considered as part of
the investigation into the future of HR in the tourism institutions:
o Continuing to allow the HR functions to remain within each tourism
institution body but have a collaborative arrangement in place; or
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o Implement a Human Resource Shared Service (HRSS) 35 to manage
human resources across the four tourism institutions. (Further information
on HRSS provided in Box 3 below.)
Box 3: Business Case for HR Shared Services (HRSS)

Research shows that regardless of size or industry, any organisation with multiple
locations should consider moving to a shared services model. When implemented
effectively, HRSS can be a tremendous boon to efficiency, employee engagement and
service excellence An analysis of organisations with an HRSS model reveals:
- They are twice as likely to achieve best-in-class as their counterparts;
- They have up to 30% reduction in manual transactions handled by HR;
- 85% of their employees are satisfied, in comparison to 70% where there is no
HRSS; and
- 76% of their employees rate themselves as engaged, in comparison to 70%
where there is no HRSS.
!
Once a comprehensive HR audit has taken place, a strategic HR plan will need to
be developed and implemented, with standardised HR processes across all HR
functions. Gradual transition into a results-oriented, performance-based and
incentivised work culture in the public sector is essential.
(ii) To reorganise and strengthen existing core teams within the

institutions
A priority in 2017 is updating the SORs for the tourism institutions so the skill
sets match the current and progressive requirements of the industry. A pragmatic
approach should be taken to skill identification, with greater emphasis on work
experience, business acumen, experiential tourism and content creation.
Cooperation and efficiency could be achieved by establishing, so far as

practically and legally possible, common / shared secretariat, overheads and
shared service functions such as HR, research, IT / digital and travel logistics.
SLTPB front-end marketing function should be reorganised into teams to reflect
the streamlined priority markets. Working in teams can build resilience and
capability.
With the move away from traditional marketing to the new paradigm of digital
marketing (see Chapter 3), there is a need for new areas of responsibility to be
created in Sri Lanka Tourism and for ongoing capacity building to take place,
especially in digital marketing and market research. Core teams such as
planning, investment, legal, HR, procurement and digital marketing in SLTDA and
SLTPB should be strengthened by hiring specialist expertise and / or outsourced
contractors for set periods of time. This will help clear any outstanding work and
expedite forward planning. It must be mandated to utilise training, mentoring and
implants to ensure a transfer of skills from outsourced project consultants to staff.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
35
Transformation to an HRSS is a long-term prospect and it is successful with inclusive change management
through communication and stakeholder involvement (Building the case for HR Shared Services, Aberdeen
Group 2011).
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Best in class processes, planning monitoring and evaluation must be

implemented. It is recommended to introduce codes of conduct and etiquette for
all communications by Sri Lanka Tourism employees, encompassing online and
offline correspondence, media releases and interviews, social media, etc. This is
in the interest of consistent messaging and brand / government reputation
management.
(iii) To harness ICT to improve work processes

Investment in ICT hardware and software is critical to success, including up-to-
date and cloud-based email, network systems, online documentation, automatic
progress reporting and online content banks. Among other advantages, it
ensures business continuity and transfer of corporate knowledge, which has been
a serious problem for Sri Lanka Tourism. This must be supported by regular IT
training for teams.
In the case of the SLTDA One Stop Unit for project approvals, an online workflow
process system should be introduced between all relevant departments. This can
improve investor relations, approval times and overall efficiency. Using such a
system, investors will be able to track their application as it moves to each
government department and systemic bottlenecks can be assessed, for instance
if there are longer delays at certain agencies. Efficiency in the system has a
direct positive impact on individual project costs, FDI and the country’s reputation
for doing business.
The SLTDA has recently launched an online business registration system for
enterprises that wish to formally register. This provides greater customer-
convenience and record keeping, and helps with efforts to mainstream the
“informal sector”.
(iv) To streamline procurement processes

An accounts support team should be set up to streamline and fast-track
purchasing procedures. It is recommended to implement a pre-qualification
procedure for suppliers and contractors of routine work or when outsourcing is
needed (e.g. A bank of preferred consultants for specialist marketing fields like
photography, content writing, digital and other marketing services). This would
enable rapid response to needs rather than the very long time now taken to
procure, evaluate and execute. In general, there should be advanced planning
and procurement with preparation for pivotal projects such as major advertising
campaigns beginning six months ahead. Once a project concept is finalised, a
dedicated procurement meeting among all decision-makers should be held to
agree on a set approach, and the approvals and documents required.
Core Strategy 1: Develop an Actively Engaged Workforce

Partners
Private Sector
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WC1 Develop, implement and evaluate Hospitality HR Service SLITHM 2017
Standards appropriate for the Sri Lanka tourism industry. SLTPB, SLCB,
SLITHM, TVET,
Private Sector
WC2 Develop pledges and targets to be made by the private Tourism Completed by
sector where all parties commit to workforce equality, Ministry 2020
diversity and inclusion, particularly with respect to SLTDA, SLTPB,
women in employment. Annual evaluation of pledges / SLCB, SLITHM
commitments. Consultant
Private Sector
WC3 Develop and implement an employer branding strategy Tourism Ministry Planning in Q3
for the tourism industry underpinned by an employee SLTDA, SLTPB, 2017
value proposition that can be adapted to suit specific SLCB Implementatio
tourism / hospitality sectors. Marketing n in 2018
After two years, evaluate the employer branding strategy distribution Follow up in
annually to: specialist 2020
o Assess if intended objectives have been met, Private Sector
o Identify continuous improvement opportunities,
o Assess resource allocation and communication
channels, and
o Assess the return on investment.
WC4 Develop and deliver a foundation management SLITHM Planning in

masterclass programme for SMEs and start-ups in TVET 2017
tourism to improve HR practices and business resilience. Private Sector Roll-out in
Development 2018
partner
Public Sector
WC5 Assess the most appropriate HR shared services model Tourism Q1 2017
across the four tourism institutions that includes: Ministry
o A workforce plan with an accurate assessment of the SLTDA, SLTPB,
current HR capacity; SLCB, SLITHM
o Forecast of future HR requirements;
o An equitable remuneration strategy; and
o A gap analysis.
WC6 Develop a strategic HR plan for the four tourism Consultant Planning in Q2
institutions that includes: Tourism Ministry 2017
o Findings of HR shared service audit (WC5); SLTDA, SLTPB, Implementatio
o Restructuring strategies as required; SLCB, SLITHM n in Q3 2017
o Learning and development framework; Annual
o Recruitment and retention strategies (based on the assessments
public sector employee value proposition);
o Outsourcing strategies;
o Collaboration opportunities;
o Review against legislative requirements;
o Evaluation criteria; and
o Agreement with key stakeholders.
Implement the strategic HR plan including a

communication plan and organisational needs (i.e. space,
equipment, payroll). Evaluate the plan annually.
WC7 Draft and update Scheme Of Recruitment for all SLTDA, SLTPB, Priority in Q1
tourism organisations with professional external expertise SLCB, SLITHM 2017
HR Consultant
Management
Services Dept.
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WC8 Reorganise existing institutional teams to operate SLTPB, SLTDA Priority in Q1
most effectively. 2017
WC9 Strengthen core teams and recruit and / or outsource Tourism Ministry Priority in Q1
specialist expertise for specific periods of time. Emphasis SLTDA, SLTPB, 2017, ongoing
on best in class processes, planning and communications. SLCB, SLITHM
WC10 Assess technology improvement needs in the tourism Tourism Ministry Q2 2017
institutions; plan and invest accordingly. Online workflow SLTDA, SLTPB, ongoing
system for OSU to be prioritised. SLCB, SLITHM
WC11 Introduce measures to streamline procurement Tourism Ministry Priority in Q1

processes within tourism institutions SLTDA, SLTPB, 2017
SLCB, SLITHM
6.2.2 Promote Employment and Career Opportunities in

Tourism
There is a potential increase in the workforce to service the tourism industry based
on average duration of a tourist’s stay from 319,436 in 2015 to a forecasted 481,025
in 202036, an increase of 33.59% in five years. Data shows 197 accommodation
facilities under development (and ready for operations by 2018), which adds 11,645
rooms37 to Sri Lanka’s inventory. Training for upcoming demand has been calculated
as requiring 23,360 employees before the end of 2017 for these hotels to be
operational by 2018. The staffing breakdown of incremental head count requirements
for 2016-201738 is in Box 4 below.
Box 4: Directly in Hotels and Restaurants
Staff Required
Managerial 05% 1,168
Supervisory 10% 2,336
Operational 85% 19,856
Total 100% 23,360
To ensure that industry growth is complemented by a high calibre workforce,

recruitment across the board must be increased by improving perceptions of the
tourism industry as well as career prospects in the sector. The current career options
are heavily focussed on jobs in hotels. As seen in Graph 9 below, a major portion of
employment is seen in the food, beverage and cookery section. Career pathways
should be better communicated so that newcomers understand the choices
available and progression in employment.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
36
Report on Forecast of Tourist Arrivals, Tourism Receipts, Average Duration, and Total Employment in Sri Lanka
for 2016-2020. Research and International Affairs Division. SLTDA. August 2016
37
Tourism Industry Forecasts for Infrastructure and Training 2016-2020, Chandra Embuildeniya together with
Dinesh Weerakkody and the subcommittees of training and infrastructure headed by Sunil Dissanayake and
Srilal Miththapala !
38
SLITHM Strategic Direction Plan 2016-2018
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39
Graph 9: A classification of jobs in the accommodation sector as at 2016 :
Housekeeping (12%) Front office (7%) Food & beverage (24%)

Cookery (22%) Management & finance (10%) Maintenance (15%)
Within each of these classifications, there are a variety of jobs from entry level to
supervisor and management (Examples listed).
There is lack of available research to quantify each of the positions within the tourism
sector and the associated entry-level qualifications, skills and / or experience. But
access to employee training reveals the highest estimated potential gain in
productivity. Estimates indicate output per worker would be almost 3 times higher
(i.e. 275% of current levels) in companies that train workers, as opposed to an
otherwise similar unit, which does not train workers40.
In line with international best practice, Sri Lanka should not only prioritise the high
number of new employees required, but also focus on how best to utilise employees
who multi-task in order to deliver the highest levels of hospitality and customer
service. The workforce must also transition beyond standarised service delivery to
true customer service and catering to visitor expectations if Sri Lanka is to become a
high value destination.
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39
A Public-Private-People Partnership (PPPP) Model for Human Resource Development for Tourism and
Hospitality Industry – A Case Study of Sri Lanka, Dr. D.A.C. Silva. October 2014
40
Productivity, Innovation & Growth in Sri Lanka, an empirical investigation Mark A. Dutz & Stephen D. O’Connell;
World Bank, Poverty Reduction & Economic Management Network, Economic Policy & Debt Department
February 2013
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It is necessary to foster a supportive culture in the hospitality workplace, especially
for youth and women. This begins with career counselling at the training institutions
(e.g. career counselling unit at SLITHM), followed by buddy and mentorship
programmes in the work place, role model programmes, continuous team building
exercises, and also middle management training. These elements can go a long way
in attracting people into the sector, but also positively influence staff retention rates
since high staff turnover is costly for any business. Commitments should be made by
the private sector to introduce such best practices (see Chapter 6, Section 6.2.1).
The journey to improve perceptions in the tourism sector begins within

households and in schools. Therefore tourism sector career prospects should be
highlighted in the mainstream school curriculum, such as:
• Hospitality / customer service course introduced into the local school

curriculum,
• Encourage more schools that follow the English Advanced Level syllabus to
introduce the Travel & Tourism A’ Level (Cambridge) course, and
• Introduce ‘Travel Clubs’ into local schools (especially girls’ schools) starting
around the age of 14. A club would have to deliver 12 projects for the year,
which can include a school trip, photo competition, poetry/written competition,
environment clean up, culinary experience, career workshop, etc. Relevant
collateral would need to be produced.
Various annual domestic awareness campaigns should be implemented targeting

different segments – opinion influencers, community members, families, women,
workforce and youth. Topics to be covered include: tourism career choices, salary
and working misconceptions, career progression, hotel and services workplaces,
family support, etc. There must be a dedicated awareness programme to encourage
women into the hospitality sector. With the use of mainstream and social media as
well as quality collateral, these awareness campaigns must be prioritised and
creative. This can be further strengthened with a grassroots mobilisation
programme (e.g. street theatre workshops and open house initiatives at hotels) to
help demystify working in the tourism industry and mobilise potential employees.
Community related actions, which also have an important role, are discussed in
Chapter 6, Section 6.2.4.
Sri Lankans have a strong sense of hospitality and the country has an array of
natural and cultural heritage that are the repository of tradition, history and the Sri
Lankan story. These facets could be better harnessed through locally delivered,
nationally accredited training programmes so every person becomes a tourism
ambassador and, consequently, provides the foundation for a career in tourism and
hospitality. Existing SLTDA initiatives41 can be uplifted to a formalised Sri Lanka
Host programme (Case studies include Australia’s Aussie Host and New Zealand’s
Kiwi Host) that provides customer service training to ensure a welcoming host
community. General customer service courses can also be offered to SLTDA
registered businesses – another value addition of becoming formally registered.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
41
Programme currently conducted by SLTDA’s Domestic Tourism & Community Relations department.
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Core Strategy 2: Actions to Promote Employment and Career Opportunities in Tourism
Actions Lead Agency / Timeframe

Partners
WC12 Develop and promote career planner for tourism SLITHM, Q1 2017
sector to raise awareness of employment opportunities, SLTDA
entry levels and qualifications, skills, knowledge and SLTPB, SLCB,
attributes that are required. TVET
Private Sector
Provincial
Councils
WC13 Career counselling unit set up at SLITHM to help with SLITHM Priority in Q1
career guidance and work placement support for 2017
students as well as keeping in touch after graduation.
WC14 Promote tourism sector career interest and Tourism Ministry 2017 and
prospects within the school curriculum to work with ongoing
Education
Ministry
WC15 Planning and implementation of annual island-wide Tourism Ministry Priority
domestic awareness campaigns SLTDA planning in
Ongoing evaluations of campaign outcomes and Private sector 2017
quarterly amends as required. Commence in
Q3 2017
WC16 Planning and implementation of grassroots initiatives onwards
that complement the domestic awareness campaigns Annual
assessments
WC17 Introduce a formalised Sri Lanka Host customer service SLTDA 2017 planning
training programme to ensure a welcoming host TVET 2018
community. Training can be delivered via workshops Provincial implementation
and an online app. Associated communication strategy Councils
required to promote this training to a range of people.
6.2.3 Prioritise Lifelong Training and Development

Initial training is only the first step in a longer-term process of employee
development. Regular training and up-skilling employees are well worth the
investment to improve the bottom line. Companies should work towards creating a
culture of learning and professional development. Some reasons why lifelong staff
training should be prioritised include:
• To keep up-to-date with industry changes and the latest technology

developments,
• To stay ahead of competitors,
• To identify weaknesses and skill gaps in the workforce,
• To maintain knowledge and skill, as well as advance employee skills,
• To provide an incentive to learn and internal promotion opportunities,
• To increase job satisfaction and staff retention levels, and
• To attract new talent.
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Training is expected to improve skill, knowledge and sense of responsibility.
The outcomes of the training depends on many factors such as quality of the training
package, proportion of technical skills and soft skills, industry experience and / or
level of skill of the instructor / trainer, facilities of the training centre for practical
demonstration, and exposure to the industry by both the trainers and the trainees. If
any of the above factors are not in place, then it is difficult to achieve the expected
outcomes of the training. Furthermore, soft skills training is critical for service
excellence and ensuring improvements in attitude, sense of responsibility etc.
In Sri Lanka, skills certification is organised in a national qualifications framework, the

NVQ system. As at October 2014, availability of national competency standards and
curricula (NVQ Level 1-4) stood at 144 and different programmes relating to tourism
was 11. The evidence indicates a relatively high use of the NVQ system in terms of
the number of NVQ certificates issued.42
Skills training for tourism is carried out internally though induction and in-house
structured programmes, and externally through public, private and non-government
organisations. The low incidence of external training in the industry suggests that
pre-employment training is very important in Sri Lanka.
The VET plan for the tourism sector does not provide detailed information by type of
training providers, coverage of programmes, professional qualifications, syllabi,
targeted occupational groups and mapping them with the relevant NVQ levels. The
ICT VET plan is a good model to adopt as it provides a comprehensive assessment
of skill gaps.
The data from labour force surveys indicate half the number of employees are
employed in SMEs, with about a third in MSMEs. These establishments may find it
more difficult to fund their own training and underlines the need for appropriate
training to be publicly funded if Tourism Vision 2025 is to be realised. There should
be a special focus on guide training, especially as Sri Lanka becomes a high value
destination and requires quality interpretation of niche experiences.
The Sri Lanka Institute of Tourism and Hotel Management (SLITHM) is identified
as being consistent in their delivery methodology for tourism industry training43.
SLITHM delivers training via facilities at Colombo, Kandy, Anuradhapura,
Passikudah, Kurunegala, Negombo, Ratnapura, Bandarawela, Hambantota and
Koggala (with proposed facilities planned for Polonnaruwa and Jaffna). Under current
leadership, SLITHM is making good progress and has doubled its intake of students
in 2016, which are categorised into craft, certificate, intermediate and advanced level
(four-year management diploma). They also provide foundation, apprenticeship,
national tourist guide and chauffeur guide courses. As the principal institution
producing the largest number of graduates and apprenticeships and catering to 60-
70% of the forecasted workforce demand, it is essential that SLITHM function to its
best and fullest capacity.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
42
Skills Gap in 4 Industrial Sectors in Sri Lanka, International Labour Organisation Office for Sri Lanka and the
Maldives, 2015
43
Survey of TVET providers, 2016
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Training programmes for the tourism sector are designed in consultation with the
tourism industry only to some extent. At the national level, the government has
established a sector skill council for hospitality and tourism that aims to make training
more responsive to industry needs. Some training institutions such as SLITHM also
have former and current members of industry involved at the board level.
Core Strategy 3: Actions to Prioritise Lifelong Training and Development

Partners
WC18 Develop a Tourism and Hospitality Competency Tourism 2017
Framework: Ministry
i) Identify all tourism roles and associated competencies Development
within the civil sector and private sector, Partner
ii) Use the findings from the Sri Lanka Skills for Inclusive SLTDA,
44
Economic Growth programme 2016 as a pilot for SLITHM
skills gaps in the workforce and how to address them, SLTPB, SLCB,
iii) Determine skills and training levels required by tourism TVET
sector, and Private Sector
iv) Conduct skills gap analysis across the public and
private sector.
WC19 Develop and implement a National Learning and Tourism 2017

Development Framework to enhance and / or build Ministry
capability in the tourism and hospitality sector. Elements to Development
be incorporated into the national learning and development Partner
framework include: SLTDA,
i) A multifaceted marketing plan as an essential SLITHM
component to: SLTPB, SLCB,
o Maximise participation of participants, and TVET
o Build awareness of the benefits of training with Private Sector
employers as well as current and potential tourism /
hospitality sector employees.
ii) A methodology to evaluate implementation.
After two years, evaluate the framework annually to assess

if intended objectives have been met and then act
accordingly on evaluation findings.
WC20 Identify best practice and advancement for Tour Guide SLITHM Priority in Q1
Training Programmes to increase numbers and improve SLTDA 2017 planning
standards, such as: TVET Q4 2017
o A range of short and longer courses in specialist fields, Private Sector implementation
o Tailored training and / or certification programme for Provincial
naturalists (possibly working with universities), Councils
o Tailored training and / or certification programme for
localised guides (possibly led and administered by
Provincial Councils),
o Prospects for a PPP arrangement for a experiential
guiding academy in a tourist location, and
o Introduction of a short course during the annual
renewal of guide licenses to ensure knowledge is
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
44
Sri Lanka Skills for Inclusive Economic Growth Program 2016 established by the Australian Department of
Foreign Affairs and Trade (DFAT) in Sri Lanka as a comprehensive integrated program focused on ‘Economic
Opportunities for the Poor’ (EOP)
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current and to maintain standards.
WC21 Identify and promote training institutions in both the public SLITHM Priority in 2017
and private sectors to deliver accredited training TVET
programmes to fill workforce skills gap. (SLITHM is SLTDA
considering a franchise model.) SLTPB, SLCB
WC22 Support training opportunities for SLITHM faculty, SLITHM Priority in 2017
especially in specialist fields
WC23 Introduce a four-year honours Travel & Tourism Degree SLITHM with 2018
programme of international standard University
Grants
Commission
6.2.4 Engage Local Communities in Tourism

People are a core element of sustainable tourism, and part of the Tourism Vision
2025 is to ensure that tourism creates benefits for urban and rural communities
across Sri Lanka.
Tourism can be an excellent source of revenue, particularly in local areas with

limited livelihood prospects where it further provides opportunities for education,
training and meaningful employment across the range of hospitality services such as
accommodation, tours, events, attractions and performances.
The development of small businesses and cottage industries can strengthen local
economies and investment in infrastructure and services that are shared with the
community (e.g. roads, transport and recreation facilities). On a deeper level and in
line with the Roots Philosophy, engagement of local communities in tourism can
foster the conservation of history, culture and traditions that may otherwise be
lost. It can also renew a shared sense of local pride, ownership and care for
protecting the authentic elements of Sri Lanka with a bias to minority groups and
women. Positive engagement between visitors and local communities can be an
excellent vehicle for fostering cross-cultural awareness, understanding and peaceful
relations.
To realise these benefits, it is critical that:
! Communities are aware of the potential benefits of tourism, and that tourism is
perceived as a viable employment opportunity and career option;
! People are aware of and can access meaningful training and employment at a
local level through the Sri Lanka Host programme right through to tertiary
qualifications;
! Tourism roles and working conditions meet best practice standards for each
sector of the tourism industry including equity in wages, diversity and inclusion;
! Communities have support in learning how best to host visitors to capture
these benefits; and
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! Support is available to develop small businesses and cottage industries to
preserve traditional arts, crafts, music, language, dance, dress, history,
locations, artefacts, traditional medicine and healing, styles of growing and
preparation of food etc.
Without a dedicated focus on this element, there is a risk that Sri Lanka will lose
much of the unique character and culture that is a key attraction for visitors. In
addition, the country will miss out on potential employment, opportunities for poverty
alleviation, small business development and revenue that could all be funnelled
directly into local community development.
Actions related to specific initiatives and projects are discussed below.
Core Strategy 4: Actions to Engage Communities in Tourism

Partners
Policy
WC24 Investigate mandating an upfront or ongoing Local Community SLTDA 2018
Contribution from large-scale hotel developments that can help Tourism
with community tourism and so is mutually benefiting. Ministry
(e.g. Renovate a public park space, develop a craft centre, create
a culinary centre, host a regular local festival, etc.)
Projects
WC25 Create local Community Spaces at tourist attraction sites for CCF 2017 – 2020
information, interpretation, traditional craft markets, music, local SLTDA
arts, crafts and food. Guidelines to be provided and can be set up Provincial
as a local cooperative. Councils
WC26 Develop an Artisan & Crafts Incubator Project to promote local SLTDA Completed
creativity and new market prospects. Offer subsidies or business Craft Council by 2019
training for new business ideas for traditional handicrafts and
cottage industries. Particular focus on opportunities for women.
WC27 Use Regional Tourism Expos to increase awareness of the Tourism 2018 – 2020
benefits of tourism to the regions and how to be a good host; Ministry
identify successful / celebrity local personalities as ambassadors; SLTDA
use tourism graduate alumni networks of SLITHM. Can be an SLITHM
annual event held in a different province each year. Provincial
Councils
Programmes
WC28 Skills Re-training Programme to equip people with tourism Tourism 2017
sector-related skills so they can earn additional income or combat Associations ongoing
seasonality (e.g. A fisherman or farmer who can be retrained into Private sector
community tourism to work seasonally.)
WC29 Nominate Community Stewards for specific duties related to SLTDA 2018
tourism (e.g. beach agents involved in lifeguarding, guiding Provincial ongoing
activities, experience creation, etc.). Where community members Councils
speak and understand several foreign languages, it would be
beneficial to encourage them into the community steward
programme. It can be run by the local government in accordance
with SLTDA standards. This can address local harassment
issues.
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!
WC30 Consider an Adult Apprenticeship Programme for older people Tourism 2018
who want to change careers or take up an interest, especially in Ministry & ongoing
less popular Sri Lankan handicrafts. Possible incentives can be Vocational
subsidised training and / or provision of the tools for the craft. Training
Institutes
WC31 Initiate programme to recruit retired, educated professionals and Tourism 2018
civil servants to become Experiential Guides – could be a Ministry with ongoing
source of part-time work and income for an ageing yet active SLITHM
population.
WC32 Initiate creative Tuk Tuk Programme to train drivers as local SLTDA with 2018
guides and elevate visitor experience through competitions and private sector ongoing
events. This can address local harassment issues.
WC33 Create an Education Activities Programme in cooperation with Education 2019

local schools aimed at getting local youth involved in nature Ministry
based conservation activities, environmental education and cross- Tourism
cultural awareness programmes, young ranger programmes and Ministry
competitions etc.
Communications
WC34 Develop a Communications Strategy on the role of being a SLTDA 2017
welcoming host community, including using mainstream and Development ongoing
social media on responsible island-wide travel (e.g. featuring less Partners
well-known attractions, cautioning against harmful behaviours)
WC35 Role Model Communications with celebrity endorsement to SLTDA 2018

encourage positive behaviours and conservation principles ongoing
among host community.
WC36 Develop Oral Histories through interviewing community elders to SLTDA 2017
create a collection of local history, lifestyle, events and culture Local govt. ongoing
stories of different localities. Potential for collaboration with
schools and universities.
WC37 Roll out General Communications Campaign targeting Tourism 2017

vulnerable groups to create awareness on social ills and harmful Ministry ongoing
behaviours (e.g. related to crime, narcotics, abuse, etc.) working with
relevant
agencies

• A tourism industry with employment opportunities in the public and private

sector that provide security of tenure, career pathways and wages that reflect
diversity of the sector, skills of employees and the talent marketplace. The
private sector more engaged in being part of the solution to ensuring a
sustainable workforce for the whole tourism sector.
• Use employer and company branding through effective communication

strategies that will assist the tourism and hospitality industry in Sri Lanka to
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!
find, hire and retain the right people; thus, keeping Sri Lanka competitive,
innovative and filled with great talent.
• An HR management system delivering improved cost efficiencies, enhanced

service quality, increased staff capability / capacity and greater collaboration
across SLTDA, SLITHM, SLTPB and SLCB.
• A better understanding of the tourism and hospitality industry to remove many

of the existing preconceptions that exist so the sector is viewed in a better
light as a safe, viable career choice in a sector that is growing exponentially.
Develop pride in their workplace and dignity in a variety of tourism /
hospitality-related occupations with flexibility to meet personal circumstances.
This is particularly important for women in the sector.
• Locally delivered, nationally accredited training programmes delivered by

credentialed trainers available to the public and private sector employers and
to potential tourism sector employees. Better access to accredited training on
an equitable basis to ensure strong technical and customer service skills.
Lankan story.
• Improved community engagement and inclusivity by ensuring community
benefits are derived from tourism; fostering a sense of pride and recognition
of the significance of Sri Lanka’s natural and cultural assets as a repository of
tradition, history and values.
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TSAP DRAFT – 8 December 2016

Sri Lanka Tourism

Chapter 1: Improving Governance & Regulation 22

Chapter 2: Understanding Visitors 32

Chapter 3: Marketing and Communicating Effectively 50

Chapter 4: Developing Sustainable Destinations 65

Chapter 5: Lifting Industry Standards 93

Chapter 6: Engaging the Workforce and Communities 109

TOURISM IN SRI LANKA:

A transformation of the tourism industry is required to make Sri Lanka

! Visitors having more opportunities to spend on extraordinary experiences,

Sri Lanka is an increasingly popular destination on the international travel

As visitor numbers increase, pressures are growing to manage environmental

Community engagement is critical for tourism to take root in local destinations,

Expanding the Value Proposition

At present, streams of visitors and investments are concentrated in clusters

Nonetheless, it is equally important to acknowledge and support the role these

Graph 1: Seasonality index

Unleashing Sri Lanka’s Potential: A Journey of

Strategic Systemic Tranformation Core

(i) STRATEGIC DIRECTION

[MADE in Sri Lanka]

HIGH-LEVEL OBJECTIVES FOR 2020

" To increase the daily spend per visitor to US$ 210.

UN SUSTAINABILITY DEVELOPMENT GOALS & TARGETS

" SDG #12: Sustainable consumption and production patterns.

# Capturing the benefits of tourism for Sri Lanka

# Democratisation of economic participation

# Conservation and world-class management of assets

# Local community involvement

# Memorable experiences rooted in heritage

# Responsible destination marketing

# Safety and security for all

(ii) SYSTEMIC FAILURES

× Limited empathy, awareness and participation in tourism for host

× Inadequate attention toward cultural heritage conservation and natural

× The lack of comprehensive visitor research and data, ongoing research

× Access to investment and financing is lacking, especially for SMEs, and

× Market distortions because of government policies, rent-seeking and

To overcome the above-mentioned significant and persistent institutional failures that

A significant systemic transformation of tourism in Sri Lanka is required. This

This Action Plan has been prepared as an instrument of transformation, as a start

(iii) TRANSFORMATIONAL THEMES

1. Improving Governance and Regulation

3. Marketing and Communicating Effectively

4. Developing Sustainable Destinations

5. Lifting Industry Standards

6. Engaging the Workforce and Communities

Overall on engagement, the focus is on creating more effective communication and

Each theme above is addressed in a separate chapter of the TSAP 2017-2020.

High-level objectives aligned with national strategies were defined:

These were underpinned by a clear strategic direction: TOURISM VISION 2025

Philosophy, vision, mission, objectives, UN SDGs & guiding principles

Analysis leading to 4-year TOURISM STRATEGIC ACTION PLAN (TSAP)

Market Institutional Resource Coordination

Improve institutional Improve

Development & planning of destinations, identification of transformative project

Improvement in workforce & stakeholder engagement

Monitoring Action Plan Progress

Transformation Core strategies Success indicators *

Understanding More Robust Data Collection & Analysis • Regular reporting

Lifting Industry Improve Conservation, Presentation & • International brands

A strong and supportive legislative framework and an effective and efficient