Sri Lanka, with its stunning landscapes, rich cultural heritage, and diverse wildlife, has the potential to be a top-tier tourist destination all year round. However, the impact of seasonality upon the tourism sector’s stability and profitability is a challenge that is faced by many tropical destinations. 

For years, questions have revolved around how to mitigate the effects of seasonality and foster the development of year-round attractions, in addition to the exploration of collaboration between businesses and tourism boards to enhance off-peak tourism. 

According to several sources, the optimal months to plan a visit have been determined to be the period between December and March. Fluctuations in tourist numbers during different times of the year result in peaks and troughs that can strain resources during peak times and lead to underutilisation during off-peak periods. 

Tourism potential 

Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando believes that other destinations within the country should be explored in order to counteract the effects of seasonality.

“Currently we have about 33% repeat visitors, but they are being taken on the same routes and destinations, which is why we are trying to open up new areas for tourists. For example, we are working on the Wasgamuwa National Park to make the area more attractive and have plans to develop other areas in the east as well.  

“We are trying to create carrying capacity in these areas while promoting them. We also want to take sustainable tourism into consideration so that local communities will benefit at the provincial or district level,” he said. 

Fernando added: “I would not say that Sri Lanka has an off-season. The months of May to October were deemed off-season, but that was largely due to weather patterns. When it’s the monsoon season on the southwest coast, the eastern coast usually benefits from favourable weather conditions, making activities like bathing and surfing quite safe.”

Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu too expressed positive sentiments regarding the upcoming off-season months. “We are in a very positive place as the numbers are approaching those of 2016. We are looking at promoting within the European and Middle Eastern markets since these have much potential. July, August, and September are also looking very good. 

“Hopefully, we will be able to achieve the numbers that we have targeted. For example, our year-end target is 2.3 million visitors, which was also the figure for 2018. Currently we are closing in on a million, which is expected to be exceeded by the end of this month, which leaves us requiring approximately another 1.3 million for the next six months. For October, November, and December, we have a target of 700,000-750,000 arrivals.”

Strategic and targeted marketing

Diversified marketing campaigns that cater to different seasons are expected to help attract tourists throughout the year, such as promoting cooler hill stations during the hot season and coastal areas during the winter months. Implementing dynamic pricing models that offer discounts during off-peak periods can attract budget-conscious travellers. This not only boosts occupancy rates but also ensures a steady stream of revenue for businesses.

“Although there are many revenue management tools that hoteliers can use to optimise pricing and occupancy all year round, according to Sri Lanka’s pattern, factors vary when it comes to hotel and location. If you take the city of Colombo, supply is greater than demand, so it varies. If you take the resorts into consideration, perhaps on a long weekend, there will be a different level of revenue management because most places will be fully booked,” said The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar. 

The SLTPB is expected to launch a global campaign in July, commencing with India, China, Germany, France, and the UK and progressing to South Korea, Japan, Australia, the Middle East, and Scandinavian countries. Markets vary from region to region, requiring target marketing that has to be executed strategically. 

The European market books holidays far in advance as opposed to the Indian market, which books on very short notice. India views Sri Lanka as a 365-day destination whereas Europeans are more likely to visit in winter. Visitors from Portugal and Spain travel during the summer as well, which calls for PR and digital marketing efforts to be strategic.

“It is not the cost that is affecting travel. Until the end of April, we had many flights arriving at Mattala Airport and most of them were charter flights coming from Russia, which enjoyed certain incentives, like a reduction of 50% of the landing cost and exemption from the embarkation tax of $ 60. This was successful with the Russian market because, upon segmentation, there are high-end, mid-end, and low-end or budget tourists, and most of our visitors belong to the category of budget tourists,” added Fernando. 

“Our accommodation sector is structured. We have homestay programmes, guest houses, one- to five-star hotels, villas, boutique hotels, etc. In order to cater to the existing structure in the accommodation sector, we need a mix of tourists,” he further noted. 

Fernando also stated that it was vital to identify which travellers were more likely to visit a destination and the purpose of their visit. By 2028, 50% of tourists are expected to visit the high-end market with a spending potential of $ 500 per night. He added that currently, only about 8,500-9,000 rooms were capable of catering to high-end tourists. 

The structure of accommodation, services, facilities, and quality should meet standards expected by this cohort. Failure to meet these standards could result in greater damage through means such as social media backlash. Fernando also believes that there is potential to utilise digital marketing in a more effective manner, acknowledging it as a cost-effective messenger in promoting Sri Lanka. 

Tapping into niche markets

Identifying and catering to niche markets such as wellness tourism, adventure tourism, and ecotourism can attract visitors with specific interests regardless of the season. 

To sustain tourism year-round, it is crucial to develop attractions and events that draw visitors irrespective of the season. This can be achieved through promoting cultural festivals and events that are spread throughout the year, which can attract tourists interested in local traditions and experiences. 

Investing in infrastructure that supports year-round tourism is essential. This includes all-weather roads, indoor attractions like museums and galleries, and facilities for conferences and events that can attract business travellers.

“There are many niche markets that we have not tapped into, such as underwater shipwrecks. There is a lot of water activity that we can consider. Sri Lanka has many hidden treasures, of which Jaffna is a good example. 

“We need to focus on these aspects, but initially, we have to assess global expectations and identify categories and subcategories. It is a step-by-step process, but I am confident we can achieve this,” said Gajabahu. 

Investment opportunities 

Although the effects of the economic crisis have impacted tourism as a whole, the demand for better infrastructure has increased over the recent past, creating the opportunity for investment. 

Sri Lanka’s move up the ranks on platforms such as The Times of India, National Geographic, and Ecotrail creates a positive sentiment for both potential visitors and investors. However, there is a concern that if the same pace of development continues, both infrastructure and superstructure will not be adequate by the end of 2025. 

“Over the last four years, we had to face a lot of difficulties. The economy was not in good shape and expenditure was curtailed for obvious reasons. Even if we had the money, we were not permitted to incur capital expenditure. Now that these regulations have been removed, we are focused on further development and have identified the relevant areas already,” said Fernando.   

He further added: “As far as the superstructure is concerned, it is the responsibility of the Government and its agencies to provide a conducive environment. However, investment has to come from the private sector as well as through Foreign Direct Investment (FDI). But we are yet to create a conducive environment for investors to arrive in Sri Lanka in large numbers. As we proceed, I am certain we should be able to create such an environment, overcoming the difficulties we had to face. 

“Additionally, when an investor sees that a demand exists for a destination, they will be more inclined to come and invest, but of course, their protection has to be guaranteed. We have signed certain treaties with many countries providing investor protection.”

Infrastructure development is crucial because, at the current growth rate, Sri Lanka will run out of rooms by the end of next year. However, sustainability must also be considered to avoid an overflow of tourists. The goal is to prioritise quality over quantity, aiming for five million tourists by 2029-2030. 

Achieving this balance is essential, as the average daily spending by tourists in the Maldives is $ 500, compared to $ 180 in Sri Lanka. The plan involves significantly increasing the balance between high-end and low- to middle-end tourism without neglecting backpackers and homestays. This process requires gradual development, with sustainability playing a major role.

Collaborative efforts

The success of promoting Sri Lanka as a year-round destination is also dependent on the collaboration between businesses and tourism boards in order to execute strategic initiatives and provide a cohesive approach to tourism development. 

Businesses and tourism boards can pool resources to launch comprehensive marketing campaigns that highlight the country’s diverse attractions. The sharing of data and market research on demographics and behaviours will help businesses to streamline services and promotional efforts. In order to provide a seamless, hassle-free experience for tourists, the creation of clusters where businesses collaborate to offer packages that include accommodation, dining, and activities will encourage holiday extensions and higher spending. 

“There is a project in the pipeline which will be funded by the Asian Development Bank (ADB) together with the Asian Bureau. Several projects are in the works that will provide convenience to travellers and will be launched in six to seven languages, featuring pictures and videos containing information on transport, travel destinations, etc. This will provide people with something they can engage with. 

“There are many apps, but we don’t have a proper tourism app to talk about Sri Lanka, highlighting all the destinations and categories we have. That’s a big project that we are working on right now,” said Gajabahu. 

Making Sri Lanka attractive all year round requires a multifaceted approach that addresses seasonality, develops diverse attractions, and fosters collaboration between key stakeholders. 

The implementation of strategic marketing, flexible pricing, and targeting niche markets can attract and sustain a steady flow of tourists. Investing in infrastructure and organising year-round events can further enhance the country’s appeal. Collaborative efforts between businesses and tourism boards will ensure a unified and effective approach to boosting tourism, ultimately contributing to the sustainable economic growth of the country.