Attracting the right traveler
“Out of our (2029) target of 5 million tourists, we want to attract 2.5 high-end tourists spending US$ 500 as opposed to (tourists) spending US$ 180-200” - Ex-Chairman of Sri Lanka Tourism Promotion Bureau.
Whenever talk of enticing high spenders to Sri Lanka is voiced, particularly by major players in government many veterans of the tourism industry laugh to hide crying, because, not only is it a subject that has hung in suspension for several decades, but one that is easier said than done!
Aiming for a ‘value over volume’ strategy in international tourism is a strategy that seems naturally right: having a smaller number of visitors bringing the same amount of money into the country as many low-spending visitors definitely places less strain on our tourism hotspots.
Mass tourism can change the character of a place for the worst. The once charming, full-of-mystery destination becomes another victim of the homogenized, standardized model of modernization.
In this regard, Sri Lanka Tourism has perhaps left it late; where taking tourism from mass to class should have been done over ten years ago. At that time, development and investment strategies should have been reassessed in-depth, prioritizing projects with a clear market demand, focusing on either the ultra-luxury or budget segment while being cautious about overbuilding in the mid-market category, as well as incorporating mixed-use developments such as branded residences that could mitigate risk by providing a more diversified revenue stream.
We really need to think hard about the type of tourists we want to attract and the tourism mix we want. With the global high-end travel market set to exceed $2.5 trillion in value by 2030, it is important that Sri Lanka’s tourism industry understands how to best attract the “right” travelers.
In the context of “Value” most everyone in the industry equate it as the amount of money spent within the Sri Lankan economy. With this in mind, are “high-spending” travelers what we want or would we be better off attracting “high-values” travelers who are committed to sustainable tourism and respecting local communities and cultures?
Firstly, we need to fully understand the distinctions or variations in terms of the costs of servicing higher and budget spending tourist demands. It’s about finding balance and understanding that each segment has costs, benefits and a payback.
Bigger-budget tourists can have larger carbon footprint than budget travelers and stay for shorter periods of time. For example high-spending visitors who fly first or business-class to Sri Lanka, eat prime steaks while here, and travel the island, can leave a very high environmental impact.
Conversely, budget travelers who spend on average baseline budget of $50 per day, as suggested by most round-the-world travel guides and who party throughout the night with little consideration for the locals who have to put up with their all night parties and noise pollution, as well as strolling around town during the day, skimpily attired, also can offend cultural sentiments.
We all know that there is an urgent need for better planning of tourism practices. Governments need to engage with local citizens, local businesses, service providers and visitors to collectively look for innovative ways of ensuring economic growth without the loss of unique environments, landscapes, heritage and cultural value.
Shafeek Wahab – Editor, Hospitality Sri Lanka, Consultant, Trainer, Motivational Speaker, Ex-Hotelier
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