With Sri Lanka’s tourism sector contributing approximately 8-10% to the GDP, integrating sustainability initiatives is now imperative for the industry’s continued growth and international competitiveness.
In an interview with The Sunday Morning Business, former Director General (DG) of the Sri Lanka Tourism Development Authority (SLTDA) and industry veteran Upali Ratnayake detailed the progress made in sustainability initiatives, while highlighting the significance of adopting sustainable practices to maintain a competitive edge in the future.
Following are excerpts:
In terms of implementing sustainability initiatives in tourism, especially environmental conservation and community well-being, what kind of progress has Sri Lanka made?
Tourism is a sizeable sector, contributing about 10% to the national economy or GDP, and it is also a promising and expanding industry. Integrating this sector with sustainability is necessary, and for this, a fairly wide range of interventions, approaches, and steps are required.
We clearly understand that when it comes to operations, the private sector undertakes about 95% of tourism activities. On the other hand, the Government sector handles most of the foundational preparation for tourism, starting with necessary infrastructure and managing attraction, including infrastructure like roads, transportation, electricity, water supply, cleaning, and security.
Within this context, both the facilitation and operational aspects must incorporate sustainability.
We have addressed both the Government and private sector requirements, and the globally recognised mechanism for engaging the private sector is sustainable certification, which we implement through a threefold approach: the accommodation sector, tour operator sector, and Small and Medium-sized Enterprise (SME) sector. The SME sector includes smaller-scale accommodation activities and travel agencies.
In addition to these, there are tourism attractions and destinations. While attractions constitute places where people pay a visit, destinations require a longer stay. It is a cluster of attractions where people visit and stay for an extended period, allowing money to be spent within that destination. Destinations include attractions, common areas, and public facilities that require certification like that of the Global Sustainable Tourism Council (GSTC).
We are focusing on four core areas within tourism – destination sustainability (managed by the Government, including attractions), accommodation sector certification, tour operator certification, and SME certification. However, the preparation for this alone typically takes two years.
We first began with the accommodation sector, completing a pilot project. We have also completed the SME sector certification for up to 200 units. The destination certification took two years, where following the final assessment, Sri Lanka successfully certified its first sustainable destination, Sigiriya.
However, infrastructure certification is not solely the responsibility of the tourism sector and other sectors must also prepare – for instance, transportation, which needs to embrace sustainability.
While there remains more work to be done, even the United Nations World Tourism Organization (UN Tourism) acknowledges that, from a sustainability perspective, Sri Lanka is far ahead of many other developing countries. We are systematically bringing the private sector into sustainability through certification, along with the phased approach of destination certification.
We have completed the first destination certification and initiated the process for nine others across the nine provinces. Overall, we have completed a significant amount of work since initiation, particularly in the two-year span following the Covid-19 pandemic.
How closely is Sri Lanka’s tourism sector aligned with GSTC criteria at present, and what specific steps are being taken to achieve full recognition or certification?
The global sustainable criteria are based on the Sustainable Development Goals (SDGs), which are the UN’s objectives. The GSTC has adapted these for the tourism sector, developing criteria that are used globally. We are actively using these criteria. However, certification organisations typically tailor these criteria to fit a practical, local environment.
We have developed a National Sustainable Tourism Certification (NSTC), which is specific to Sri Lanka but utilises the GSTC guidelines. The GSTC develops the criteria, which are open source and available for any member country to use. Naturally, we need to eventually secure its acceptance and accreditation.
Can you elaborate on key upcoming sustainability projects that would drive Sri Lanka’s tourism growth?
Sustainable destination management is primarily a Government responsibility and all nine provinces are engaged in identifying one destination, while necessary training has also been provided to the officials.
The speed of their progress and the completion date depend on actions and resources allocated within each province. To my knowledge, the Central Province is progressing very quickly, as are some others.
Regarding accommodation, the matter is open for the private sector to come forward and apply for certification; the system is accessible. Likewise, any willing tour operator can apply for certification at a set fee. The system for the SME sector is also open, with no barriers to applying and moving forward.
For both tour operator and destination certification, Green Destinations, a renowned international certifying body, has signed a Memorandum of Understanding (MOU) with Sri Lanka. Future certificates will carry both a national and international recognition, including both NSTC and Green Destinations recognition, all based on GSTC criteria.
All initiatives are open for the tourism sector to proceed with. The provincial councils are actively progressing with their destination work. A self-assessment system has also been developed and is available free of charge. Any tourism organisation can access this to conduct a pre-assessment of their sustainability, scoring between zero and 100. It is recommended that any organisation scoring above 50 or 60 should apply for sustainable certification.
In terms of climate adaptation specifically, what key measures are being rolled out as required by global standards?
Any organisation that adopts the sustainability criteria naturally addresses all these areas. However, with respect to climate change adaptation, tourism is a very high-impact sector, requiring extra effort.
Transportation, in particular, must be considered, as it accounts for the highest emissions in the travel sector – 72% of carbon emissions come from air travel, followed by ground travel. With the importation of Electric Vehicles (EVs), more are being utilised in tourism daily. Customer and tour operator demand will significantly support carbon emission minimisation.
The Government’s goal to increase renewable energy in the system is also welcome. However, we are dissatisfied with the slow adoption of renewable energy by the Ceylon Electricity Board.
Within the tourism sector, we encourage organisations to use more solar energy and implement programmes for replanting and increasing greenery. Even in new development, especially on Government land, we now generally mandate that a maximum of 30% of the area can be used for building, while the remaining 70% must be maintained as open green space.
The authorities also consistently advise organisations to implement water conservation measures at the construction level. All these measures are considered in the sustainability assessment and status designation.
How is Sri Lanka benchmarking the performance of regional competitors in adopting sustainability, and which areas do you see as gaps or opportunities?
We are certainly on par with our competitors. For instance, Thailand primarily focuses on mass tourism, which presents challenges for sustainability. When comparing its 36–38 million tourists per year with our approximately two million, and the percentage of sustainable properties, Sri Lanka is at a higher stage.
While the Maldives has also adopted sustainable best practices for a long time, its official certification process was initiated even after Sri Lanka’s. Thus, while it may be ahead in general best practices, we are likely ahead in certification. However, Sri Lanka’s efficiency of practical efforts and implementation progress sometimes remain questionable.
In terms of fund allocation limitations, what kind of gaps are there and what areas need to be improved in order to attract better investments?
Compared to the past, Government funding for sustainability initiatives is now sufficiently available. At the same time, private sector participation is extremely important.
Most new investors are focusing on sustainability, not solely due to Government policy, but because their future customers are increasingly demanding or preferring sustainable practices. Therefore, every new investor is integrating sustainability adaptation or sustainability-based factors into their investment.
Thus, I do not foresee any funding issues with formal investors. The challenge lies with the informal sector – the smaller operators who are high in number and may prioritise profit over respecting sustainable practices.
Another challenge cited by stakeholders is regarding human resource issues in the industry. What kind of limitations are there at present and how should this be fixed?
Within the private sector, leading organisations, hotels, and travel agencies have already recruited at least one officer or a team to work on sustainability. However, in the Government sector, there are concerns over whether officers are being formally recruited, trained, and assigned to this work efficiently.
At the SLTDA, for example, only two officers were allocated to this work after two-and-a-half years, which is insufficient. The provincial offices also have personnel who are willing to work but lack dedicated officers. Therefore, deploying more human resources and improving their knowledge and training is paramount for achieving better outcomes in the future.
To what extent are authorities integrating community-based tourism and local entrepreneurship into the sustainability agenda?
I am very pleased with the progress in community tourism. The Government fully supports this, including promoting homestays. More importantly, the community itself has recognised the value of tourism. Even the larger tour operators now allocate half a day or a full day for community tourism experiences. This has created a self-sustaining demand-and-supply cycle.
The communities themselves are now taking responsibility for protecting their environment. We need to provide them with more knowledge-sharing and training on best practices, ensuring they do not focus solely on profit.
However, the community has embraced tourism as an opportunity and the tourism sector recognises the opportunity to interact with the community, ensuring mutual benefit. This is a positive, win-win situation that is currently unfolding.
How can sustainability initiatives contribute to tourism growth while also maintaining our international competitiveness? What policy or regulatory changes are required for this?
Sri Lanka must focus more heavily on the highest tourism-generating regions, especially on the European region, as it is a high-yielding market. With the European Union’s decision to mandate sustainability from 2026 onward, embracing sustainability is essential to secure this market. It is not merely a value addition; it is an essential component for operating within that market.
Our focus on sustainability will therefore give us a significant competitive advantage, particularly with developed countries. The same is true for Asian countries like Japan, Hong Kong, and South Korea, which are sustainability-sensitive. China is also expected to follow suit in time.
Sustainability heavily supports tourism growth. In 2019, the total global expenditure by tourists on sustainable products was $ 1 trillion, and this segment is growing at a rate of 23.4%. Therefore, our move towards sustainability is not a value addition but a necessity for future growth.
As an island country, we must ask ourselves whether we need a higher number of tourists or a higher income. The obvious answer is the latter, and Sri Lanka must target the high-spending market. We cannot increase tourist numbers indefinitely, like Thailand. At some point, we will have to cap the number, and at that time, we cannot compromise on the income. We are well positioned with best practices to tap into this high-yielding market.
Sustainability is evolving into a key management technique and a way forward. Furthermore, with regard to national contribution, tourism has historically been associated with leakages and negative impacts. Minimising these negative impacts and promoting conservation and community benefit is fundamental to sustainability.
We are currently in a win-win situation where we meet these fundamental guidelines. This process strengthens our competitive advantage and supports our ability to develop resilience to challenges like climate change.
Tourism, being a resource-intensive, high-consumption industry, benefits immensely when the operator and the visitor take responsibility. Therefore, Government policy needs to be strengthened in this area. Not only do we need stronger written statements in policy papers, we also require more resources and dedicated intervention in the implementation phase to achieve more meaningful and sustainable outcomes in the future.