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Targeting sustainable and long-term growth with new tourism zones

Targeting sustainable and long-term growth with new tourism zones

02 Jun 2024 | By Maure Navaratnarajan


As the tourism sector drives Sri Lanka’s economy in the country’s phase of economic recovery, it is crucial to develop it into a sustainable and long-term revenue generator for the future.

Among the developments in the tourism sector in Sri Lanka, the tourism zones stand out, highlighting the potential for a sustainable tourism sector in the country.

Speaking to The Sunday Morning Business about the development of the tourism zones, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando highlighted the purpose of the zones in bringing in better control, providing better service to foreigners visiting Sri Lanka, and ensuring positive outcomes for both visitors and the local community.

“We planned 49 tourism zones, and 16 have been cleared and gazetted so far. We are waiting for confirmation from Additional Government Agents to complete their part of the work in relation to geographical details and revert to us so we can proceed with nearly nine zones,” he added.


Focus on infrastructure facilities 


Infrastructure development, the regulatory framework, and incentives for investment would be focused within the tourism zones, Fernando noted, in addition to community development programmes, social development programmes, and overall sustainability in tourism also being prioritised within the zones.

“In tourism zones, everything will be thoroughly considered, including accommodation, restaurants, recreational services, and how the local community can benefit. This includes creating awareness of what to do and what not to do, how to interact with foreign tourists, and understanding the benefits. It’s a more planned approach to tourism,” he explained.


Entertainment and nightlife 


Commenting on the importance of entertainment, especially nightlife tourism, Fernando  said there was a need to provide opportunities for tourists to spend money, thus creating openings for the economy to benefit. Therefore, entertainment should also be a focus, he pointed out, while noting that within the given parameters, the SLTDA needed to specify precisely what would be permitted within the tourism zones, how the local communities could best participate and benefit, and how the overall economy would benefit.

Fernando highlighted Sigiriya and its premises, saying: “We have a capacity of about 5,000 rooms, accommodating approximately 6,000-7,500 tourists at any given time. However, there is nothing for them to do in the evenings after 6 p.m. We need to create activities for them to engage in and provide opportunities for them to spend money so that both the economy and the local communities benefit.” This would be considered when developing the tourism zones, he added.


Minimising carbon footprint 


Fernando further highlighted that they were targeting Sri Lanka becoming a sustainable destination by 2030, emphasising the need to work towards this goal. As part of this initiative, transport options to the tourism zones aiming to minimise the carbon footprint would be focused on, he said. This includes encouraging more people to travel by train and use electric vehicles, thereby limiting the carbon footprint.

“We have already equipped trains to Ella with packed seats, allowing travellers to enjoy scenic views, and we have air-conditioned trains to Jaffna that meet high demand. Therefore, we would like to encourage more tourists to travel by train and use electric vehicles to reduce the carbon footprint. This will provide overall benefits to the economy from a sustainability perspective,” the SLTDA Chairman noted.


A sustainable destination


Fernando pointed out that globally, there was a movement towards sustainable tourism, with people becoming more conscious of sustainability, adding that from a marketing perspective, they preferred to patronise destinations that adopted sustainable practices.

Fernando shared that on 29 May, a significant number of Small and Medium-sized Enterprises (SMEs) in Sri Lanka’s tourism sector, primarily in hospitality, had been awarded under the National Sustainable Tourism Certification Scheme (NSTCS). This scheme acknowledges and promotes destinations dedicated to environmental, social, and economic sustainability.

To receive certification, SMEs must fulfil specific criteria, which are evaluated annually. They must continue these sustainable practices to maintain their certification, which can also be leveraged for marketing purposes.

“Looking ahead, after Sigiriya, we are focusing on Sitawaka as the next sustainable destination. From a global perspective, sustainability will be essential for competing in the market,” he noted.


Planned development


Fernando further asserted that besides hotels, all aspects and facilities in tourism zones would be focused on and developed. 

“Tourism needs to be developed on a planned footing. By 2025, we will even run short of hotel rooms in the formal sector. Therefore, we have to plan precisely where we want rooms, what type of rooms, the quantity, and whether they should be in villas, five-star hotels, or homestays. We have to assess the demand and then develop the supply accordingly,” he elaborated.

The Sunday Morning Business also spoke to The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar, who said that the private sector would definitely start building hotels in the tourism zones and that these could vary depending on the area – boutique hotels and villas, for instance. 

“The tourism zones need to be holistic products, including the entertainment,” Shanthikumar said.

Addressing plans relating to the tourism zones in the near future, Fernando further said that a team from the Asian Development Bank (ADB) and a group of consultants were in the country for consultations, adding that they would help the SLTDA develop these plans moving forward. 

He emphasised the need to avoid ad hoc development and focus instead on pursuing planned development, ensuring that the benefits filtered down to grassroots levels, observing that otherwise, promoting tourism would be pointless. 

“Even if a destination like Sri Lanka is developed quickly, sustainability is crucial. Thus, we are cautious and will adopt a careful approach,” he said.


Benefits for local community 


Fernando further pointed out that tourism had sectoral linkages, with the dollars spent on tourism being distributed among various sectors such as agriculture, fisheries, and handicrafts. This created more opportunities for SMEs to establish themselves in business and provided opportunities for these enterprises in specific areas, he added. 

Elaborating further, Fernando said that the SLTDA was working to promote tourism at the provincial level, involving provinces in developing their tourism sectors to ensure that the benefits derived from tourism remained within those provinces. 

“Promoting provincial tourism earnings is one objective. While this hasn’t happened effectively in the past, we are proceeding cautiously, aiming to implement a plan where benefits are enjoyed by all at the provincial level while filtering down to the grassroots level,” he noted.

Speaking to The Sunday Morning Business, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nishad Wijetunga said that tourism zones required easy access, especially when considering zones far from Colombo, the central areas, and airports. 

“For example, in areas like Pasikuda and other remote locations from the capital city, there’s a challenge regarding accessibility. Therefore, we need to develop infrastructure, particularly transportation and facilities, in order to cater to the needs of tourists. Essential facilities such as restrooms and toilets at various tourist sites are absolutely necessary and integral,” Wijetunga said.

In addition, these facilities should offer various activities and amenities that tourists sought, such as entertainment, restaurants, pubs, and clubs, especially for long-term stays, he further noted.

“Supporting local communities to serve foreign tourists is crucial especially in the tourism zones which will be developed. Local communities must also benefit from tourism; there’s no point in it benefitting only a few individuals,” he asserted.

According to Wijetunga, the Government is planning to develop more tourism zones, primarily focusing on introducing regulations beneficial to businesses catering to tourists in these areas. While this approach had its advantages, careful selection of locations was crucial, he further noted.


Fostering a welcoming culture 


Meanwhile, Fernando also addressed the current issue that concerned establishments and individuals who catered to foreign tourists engaging in exploitation. 

“While exploitation is a weak point currently, efforts are being made to improve it. To address this, there’s a need for more community relations and awareness programmes on how to treat foreign tourists respectfully. There’s a necessity to raise awareness among communities to foster a culture of welcoming foreign tourists at all levels,” he said.

Although only a small segment engaged in such activities, negative portrayals in the media and on social media platforms had amplified the issue, Fernando observed, further noting that while complete eradication may not be possible, efforts were being focused on mitigating the issue through increased awareness.







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