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Grabbing a bigger slice of the pie

Sri Lanka Tourism has grand plans to achieve a target of 100,000 Indian tourists this year, given India's top slot as Sri Lanka's highest tourist generating market in the country in 2002. Increased airlinks, visa-on-arrival and most importantly, product appeal and diversity; be it bargain shopping, culture, nature, adventure, beaches or MICE, are being flaunted as major 'destination assets' to woo more Indian travellers not to mention value for money and the promotional packages on line for grabs.

However, given the enormous potential of the Indian outbound market,extimated at 100 million, are we doing enough to get a bigger slice of the pie? If not, what are the areas that need to be addressed to woo more Indians to the country? Business Travel reports.

Development of more Indian-oriented product

According to Jetwing Hotels Director Marketing and Sales, Lalin De Mel, Sri Lanka needs to develop a more Indian-friendly-product to ensure that the Indian travellers are given the same privileges of the European holiday-makers.

Literally, offering a specialised product and service that makes them feel like 'privileged tourists' and not people `who are part of the local culture'.

"Hence priority should be given to developing a more Indian friendly tourism product focusing more on food habits, product appeal and the overall service available, given the competition Sri Lanka face from rival destinations going all out to lure the Indian travellers," De Mel observes.

Negotiating for more air rights and increased airline frequencies

Sri Lankan Airlines Manager Corporate Communications, Chandana De Silva says that one of the major hurdles in bringing in more tourist traffic from neighbouring India, has been the Indian government's air access controls.

There is a huge traffic flow from India that can be serviced given a more liberal air space policy on the part of the Indian Aviation Authorities", he said.

Sri Lankan Airlines currently operates 44 flight frequencies to India with Hyderabad next on line. But this is not sufficient to serve the demand, De Silva pointed out.

"India as a tourist generating destination today is what Europe was to Sri Lanka in the good old eighties.

There was a heavy inflow of tourist traffic from Europe in the 1980s given the European penchant for sun, sea, sand and and hill stations. India is Sri Lanka's biggest tourist generating country now.

However air traffic restrictions have been the major stumbling block in forging ahead to tap the Indian outbound market's full potential," he said.

Need for quality than quantity based tourism product drives

Hilton Director Marketing and Communications Yasmin Cader, laments that despite Sri Lanka being an excellent destination product, tourists coming here are more driven by budget rather than the destination.

"The industry has to stop feeling that they have to 'discount'. Sri Lanka should be asking the price it deserves, because after calculating the discount, there is not enough money even to invest on the product's enhancement, she said.

According to Cader, Hilton has kept to its resolve of selling the product at the price it deserves.

She said that despite this stance, the property has seen an increase in Indian corporate business.

"The country can gain recognition by the high end Indian outbound traveller if there is no compromise on price and a service that is on par with the price," she said.

Aitken Spence Travels Managing Director and Sri Lanka Association of Inbound Tour Operators President, Gehan Perera says that there is a need to develop new areas of interest to lure the increasingly savvy Indian travellers and keep pace with what is being offered by regional competition. Having better attractions in Colombo such as a properly planned entertainment complex would go a long way towards achieving these goals he affirmed.

"Presently we have some good shopping malls but there is a need to have diversity in terms of holiday and entertainment options available for Indians especially in Colombo," Perera explained.

Differentiating the category of Indian visitors, leisure, holiday and aircrews without broader categorisation will also help to gain a better understanding of the Indian travellers' preferences as well as to identify potential of segment markets, he said.

Developing a more strategic year-round Indian promotional endeavour sans the usual seasonal promotional drives.

Cross Section Publication Country Manager, Theo Peiris, who represents a pioneering travel and tourism communication company in South Asia, with special interest in Sri Lanka opines that Sri Lanka tourism should overcome the seasonality approaches to tourism.

For instance despite many promotional campaigns in India, there has been no strategic approach to marketing Sri Lanka during the Indian summer, he said.

He also points out there should be a better product mix to lure different categories of Indian travellers.

This could range from budget travellers, families to high-end Indian tourists. "There is a need to be more market specific, and develop a product-mix accordingly," Peiris observed.

"For example the high end Indian traveller is more keen on the `destination experience' and not merely the competitive price.

This is where Sri Lanka can score given the diversity of holiday choices available, be it balmy beaches, cultural splendours, adventure or nature or the serene and cool hill stations," Peiris said.

He also emphasises that Sri Lanka should make an attempt to lure the Indian holidaymakers, especially during the Indian summer vacations, when overseas forays are high. This is an area that has been neglected so far.

Given the 'price advantages' Sri Lanka can even tap the Indian domestic market since competitive prices coupled with short haul travel, are major product appeals to woo the Indian tourist traffic.

"They spend twice as much to even to travel within India."

Branding the destination and the need for evolvement

According to a leading industry expert, Sri Lanka must make an effort to brand the destination to evolve with the times.

"Branding of a destination cannot remain static. It should be incorporated to our marketing strategies effectively," he said. For instance Thailand has a specific slogan 'Amazing Thailand', Singapore has 'Live it up in Singapore' and Malaysia has come out with 'Malaysia-Truly Asia'.

These countries are destinations with 'evolving brands' that have boosted tourism prospects for these countries, he said.

We have a 'Land Like No Other', but have we really explored that angle ?, he questioned.

- Tharika

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Hapugoda, new President Tourist Hotels Association of Sri Lanka

by Tharika Goonathilake

Malin Hapugoda, is the new President, Tourist Hotels Association of Sri Lanka (THASL). A consultant to John Keels Hotels, Hapugoda, was elected President of THASL at the 38th Annual General Meeting (AGM) held at the Taj Exotica last week.

He succeeds Kumar Mallimarachchi. Other THASL Committee members elected include Vice Presidents Hiran Cooray, representing resort hotels, M. Shanthi Kumar overlooking city hotel properties, Stephan Furkhan, general interests hotel categories and Siri Gunawardena representing small hotels.

The Association represents almost all major hotels in the country with a 143 hotel members, out of 218 units registered with the Tourist Board.

The Association comprises nine key regional associations, which are represented in the THASL Managing Committee.

One of the poignant moments of this year's AGM was the special tribute paid by THASL to honour four of its past Presidents and pioneering hotel industry stalwarts for having led the industry during two decades of conflict which also coincided with the bleakest period of the industry. In recognition of their contribution, the Association awarded `Honourary Life Membership' to Herbert Cooray, George Ondaatjie, Prof. M.T.A Furkhan and Prema Cooray.

The Chief Guest, Minister for Tourism Development Ranjith Madduma Bandara, addressing THASL members said:"

The Government has taken several initiatives to develop tourism while redefining forms of cooperation for more private sector involvement.

He emphasised that the provision of a more investor-friendly environment, strategic tourism zoning for regional tourism development action plans, the introduction of the new Tourism Development Law, allocation of budgetary concessions, and duty free incentives for the hospitality trade, were all a part of 'greater efforts'' to spur the industry."

Tourism Ministry Secretary Dr. P. Ramanujan said the new Tourism Bill would make way for more private sector participation in marketing and developing Sri Lanka's potential as a destination.

He said that 'there was no mystery with regard to the provisions of the new Tourism development Bill'' that will be presented to Parliament shortly.

Dr. Ramanujan described the proposed Bill as a catalyst to invigourate the industry and reposition Sri Lanka as a top notch travel destination.

He also said that the Government has agreed in principle to grant duty free concessions for the hotel industry for refurbishment.

Immediate past President (THASL) Kumar Malimarachchi expressed his appreciation to the Association's members for extending their support during his tenure as President.

He also thanked Tourism Ministers Gamini Lokuge and Ranjith Madduma Bandara for "responding positively to industry suggestions," Tourism Ministry Secretary Dr. P. Ramunuujan for being "so industry pro-active and working towards clearing bureaucratic red tape efficiently and expeditiously."

Mallimarachchi also expressed the appreciation of the hotel sector to Sri Lanka Tourist Board Chairman Paddy Withana for " assistance rendered" while being "the industry's close colleague and friend."

Mallimarachchi said that during the past year, THASL, worked closely with Sri Lankan Airlines to lobby support and promote Sri Lanka as a preferred travel destination. Efforts were also made to renegotiate loan payment schedules granted to the hotel industry, develop a national cycle trail to enhance product appeal and community based tourism drives, as well as draw on a series of industry proposals for the inclusion in the proposed Tourism Bill.

THASL, also collaborated in the Tourism cluster initiative, established with the main purpose of developing and implementing a strategy for industry competitiveness. Largely, to formulate and implement a strategy for competitiveness, designed to increase average spending capacity of tourists, he said.

New THASL President Malin Hapugoda said the Association was looking forward to reaping the benefits of peace and the subsequent opportunities opening to promote Sri Lanka as a leading travel destination in the world. He called on the Ministry to ensure that the industry's suggestions are incorporated into the Bill.

Hapugoda, also requested for "an adequate time frame for the industry to study the proposed legislation before it is presented to Parliament."

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