•  Indian outbound travellers are still unaware that Sri Lanka has fixed its shortage issues

•  Hosting a big international event would boost confidence in potential travellers

•  Right promotion is to start flights to new Indian destinations

By Sanath Nanayakkare

If Sri Lanka Tourism is to grow at a fast pace, the country should capture a significant share of the growing outbound travellers from India, and with the right moves made swiftly, it won’t be a herculean task for Sri Lanka, says an investor cum global investment manager from India who runs a leading hotel property in Sri Lanka.

Indian investor, Priyank Gupta who is the Chairman of Ocean Edge Suites and Hotel on the Marine Drive in Kollupitiya says that given the close proximity to India, a boom in Sri Lanka tourism and leisure industry is Sri Lanka’s for the asking.

“But things that need to be done need to be done within the fastest possible time,” he says.

Further speaking he says:

“India is the most populous country in the world with the fastest growing economy. The Indian outbound travel market is among the fastest growing markets globally, therefore, Sri Lanka needs look no further than India for the exponential growth of its tourism sector to account for a greater share of Sri Lanka’s GDP.”

“However, I think Sri Lanka must relay the correct message and dispel the doubts in the minds of Indian outbound travellers about the current ground situation in Sri Lanka. Most Indians still think that Sri Lanka still suffers from food shortage, fuel shortage, electricity shortage etc. That perception doesn’t put them at ease about visiting Sri Lanka. But the reality is different. You have everything here that a foreign traveller wants. The general public may have their struggles but guests have everything they expect from a good holiday destination. That’s what they care about. Unfortunately, that message is not out there yet. So what Sri Lanka Tourism needs is not only promotions but sending the core message that the country’s tourism sector has fully recovered and there are no shortages whatsoever.”

“Indian tourism is booming. The load factor of our domestic flights is more than 90 per cent. The great shift in Indian domestic tourism is evident from the hotel room rates. A room sold in some of the places in India for US$ 30 a few years ago now costs up to US$ 300 dollars. So, with the right marketing strategy, Sri Lanka can take a significant share of that business because the two countries are tantalizingly close. The farthest place in India from Sri Lanka is New Delhi and Delhi is just 3 hours away. You see, Vietnam which was not on India’s tourism map, started direct flights to lesser known cities in India like Ahmedabad and strategically penetrated into that market when Sri Lanka hadn’t been active in the tourism landscape in the past few years.”

“Nevertheless, it’s a very positive thing that Sri Lanka has designated acceptance of Indian Rupee (INR) in Sri Lanka. I am confident that the acceptance of INR in Sri Lanka will have a major advantage for tourism because the fact that Indian tourists can pay in their own currency will make Sri Lanka a preferable destination for Indian tourists.”

“A withholding tax will come into effect from July 1, 2023 in India on all foreign exchange purchases. So our understanding is that if you go to another country where you buy foreign exchange, there will be a withholding tax of 20 per cent. In this context, it will be preferable for Indian travellers to visit countries where INR is accepted. Sri Lanka has opened the path of accepting the INR. If that is properly executed, Sri Lanka will be the most preferable destination in the world for Indian travellers.”

“With the adoption of INR transactions and relaying the correct message to India as I said, Sri Lanka will have a tourism explosion, so to speak. But If INR execution takes two years, by that time India would roll it back or India would figure out another way and Sri Lanka would miss the bus.”

“Visa fee is not a concern among tourists anymore. But connectivity is. So the right promotion is to start flights to new Indian destinations. That will bring you tourists. Let me say this too. There is no better place than Sri Lanka for Indian tourists to spend a quick weekend getaway. I have organized many tours for travellers from Delhi who hopped over to Colombo at short notice. They would inform me at 1pm on Friday and take a flight to Colombo at 5pm and get here at 8pm. I would have everything ready for them by the time they arrive. They would enjoy the best of serene Sri Lankan hospitality over the weekend and would be back in Delhi on Monday. Indians who have very busy lives find this experience amazing.”

Gupta says that Sri Lanka should demonstrate to India as well as the rest of the world that it has a stable ground situation to host big international events.

“In 2010, Sri Lanka hosted International Indian Film Academy (IIFA) awards in Colombo. The ceremony was televised in India and internationally and it conveyed a positive image about Sri Lanka. But when Sri Lanka withdrew from hosting Asia Cup 2022 amid political turmoil, it sent a reverse message and the country’s image suffered. In my view, if Sri Lanka can host a multi-nation cricket tournament involving India and Sri Lanka with other countries like England, Australia, South Africa etc. that would send a very positive message to India. Because that would drive home the point there’s nothing to worry about visiting Sri Lanka. On the contrary, they would see Sri Lanka has returned to complete normalcy and is visitor-friendly. So the right kind of help you should seek from India is to put together a big event like that rather than anything else,” he says.

The Island Financial Review

learned from the Ocean Edge Hotel’s staff that the hotel not only remained resilient through the Covid 19 pandemic and the unprecedented domestic economic crisis without using retrenchment as a cost reduction measure; but also gave its employees a sufficient pay rise to balance out prolonged inflationary pressure in the country.