Sri Lanka’s tourism boom will not impact Maldives

COLOMBO, January 19 (HNS) – Sri Lanka’s tourism industry which was once battered due to a long drawn civil war, which ended in May 2009, has once again begun to pick up with the island nation giving way to large scale investment projects focusing on promoting tourism.

With several major hotel and resort chains such as Indigo, Movenpick and Shangri-La taking steps to invest in Sri Lanka, questions have been raised as to whether the current boom in tourism would draw fierce competition between Sri Lanka and its friendly neighbour, Maldives which maintains a thriving tourism industry.

Despite many being under the impression that the current trend in Sri Lanka might threaten the Maldivian tourism sector, several hoteliers in Sri Lanka are of the view that the developments in Sri Lanka would not have much of an impact in Maldives as both countries deal with two different areas of tourism.

Srilal Miththapala, the former President of Tourist Hotels Association of Sri Lanka, and now a Project Director/Consultant at the Ceylon Chamber of Commerce said that Sri Lanka and Maldives are two complementary products and not competitive products.

“It is a misconception to think that Sri Lanka and Maldives will be competing in the tourism industry as both countries offer different products. The Maldives islands and beaches are unique and it draws tourists who like that kind of an environment and in Sri Lanka we cater to a different genre of tourists,” he said.

“Even though both Sri Lanka and Maldives offers beautiful beaches they are both different in so many ways. Therefore the growth and development in Sri Lankan tourism could not have an impact in the Maldivian tourism sector,” he said.

The President of the Colombo City Hotelier’s Association, Shanthi Kumar said that Maldives has their own market and the boom in tourism in Sri Lanka will not affect Maldives due to both countries specialising in different areas of tourism.

“Sri Lanka offers cultural, eco-tourism as well as coastal tourism. There might be times where there is competition between the two countries to attract tourists who go to the coastal area in Sri Lanka. But this will not make much of an impact since Maldives has their own brand to offer. Many tourists who go to Maldives look for an experience that they cannot get in Sri Lanka,” he said.

“Sri Lanka and Maldives are two different holiday destinations that cater to different types of tourists. Maldives cannot offer what Sri Lanka has and the same goes to Sri Lanka. That is the main reason why there wouldn’t be competition between the two countries in the tourism industry,” Siri De Silva, the President of the Association of Small & Medium Enterprises Tourism said.

“Maldives is a place where tourists go to relax, enjoy the blue murky water, go diving and enjoy the aquatic life the islands have to offer. In Sri Lanka the beaches are very different to Maldives. In most cases, tourists spend a few days in Maldives and then they visit Sri Lanka because it has many different things to offer. This has been the situation in the past and with the present development projects coming up in Sri Lanka there is no way the Maldivian tourism industry could get affected,” he said.

“I think the Sri Lankan government and the Maldivian government should work together to promote tourism in both countries. This will be very beneficial for both countries and will strengthen the tourism industry in the region,” he said.

Recently the Sri Lankan government signed an agreement with the Hong Kong-based Shangri-La Asia Limited that announced its acquisition of six acres of government land facing the Galle Face green promenade, a prominent landmark in Colombo to build a luxury hotel complex.

The company announced that the planned development will be a multi-use complex with high-end retail facilities, deluxe apartments and a 500 room luxury hotel to open in early 2014.

The Shangri-La group is also making plans to develop a second property, a 300-key city resort on approximately 100 acres of land in Hambanthota, on the southern coast of Sri Lanka, to open in 2013.

Alongside the Shangri-La hotel project the Sri Lankan government is now making plans to build a mini-city by reclaiming land from the sea next to the Galle Face green in Colombo. They propose to dredge 500 acres from the sea and build the city between the Galle Face Green and the Colombo port.

The city which will be one-third the size of Male will be the first of its kind in Sri Lanka and will also be a commercial hub with twin- towers with around 40 floors, each overlooking the sea and the city.

Sri Lanka is also making arrangements to build a proposed Formula One race track in Hambanthota in order to host F-1 races in Sri Lanka. Building an F-1 circuit is expected to further increase the inflow of tourists into the country which has shot up since the end of the war.

With the current development in the tourism sector in Sri Lanka, several tour operators are looking at the option of diversifying their operations by providing packages where tourists will be able to visit both Maldives and Sri Lanka.

Currently several Maldivian investors that operate luxury resorts and villas are looking into the option of investing in Sri Lanka in order to work out such packages.

Dr. Nalaka Godahewa, the Chairman of Sri Lanka tourism told Haveeru Daily that he has discussed the matter with tour operators to bring about a combined package which will allow tourists to visit both Sri Lanka and Maldives.

“I have spoken to those involved in the industry in Sri Lanka to look into this aspect as it would be favourable for both countries. In my view it will be helpful for Maldivian hotels and Sri Lankan hotels to work together to provide a combined tour package. I don’t see any competition between the two countries as they offer two different products. This could be beneficial in attracting more tourists to Maldives and Sri Lanka if a combined package system is adopted by most hotels and tour operators in both countries,” he said.

Sri Lanka, which had a tourism growth of 46 percent last year in contrast to 2009, is expected to further rise this year.

Online visa scheme programme for Sri Lanka

 
Sri Lanka Tourism Development Authority Chairman Nalaka Godahewa said the Immigration Department has already completed the online visa scheme programme through the web and a pilot run off will be initiated to test the system.
"A minimum of three months will be needed to test the system. However no changes will be made to the prevailing in the country when obtaining visa till the Immigration Department is satisfied with the outcome and effectiveness of the online system", he said.
"The suggestion was made last year to implement an online visa scheme for tourists to promote the tourism industry in the country. Most of them have to go to embassies and collect the requirements in obtaining a visa", he added. Visitors to Sri Lanka from Singapore and the Maldives, which grant Sri Lankan passport holders landing permits on arrival, would be reciprocally exempted from having to obtain a visa before reaching the island.
Sri Lanka currently issues foreign tourists a 30-day visa on arrival since the 1970s as part of tourism promotion.
The tourism industry in Sri Lanka is showing rapid growth since the end of terrorism in May 2009, and the country has been ranked as one of the most popular destinations for tourists in 2010. In the year 2010 more than 620,000 tourists have visited the country and seen a 50 per cent increase in foreign visitor arrivals since May last year.
Sri Lanka hopes to attract over 700,000 tourists in the New Year. The Tourism authorities have launched a campaign announcing "2011 - Visit Sri Lanka Year", he said.