For years, India and Sri Lanka have shared a bitter-sweet history. However, Indian tourists could not get enough of its neighbour’s beauteous landscape, unspoiled beaches and mouth-watering cuisine.
When the island country was rocked by bomb attacks in April 2019 and its tourism came to a standstill, Indian travellers pulled the sector out of the slump. The country accounted for almost 17% of inbound tourists by August 2019, even while total foreign tourist arrivals (FTAs) to Sri Lanka dropped by 28% that month as compared to a year ago.
Seeing the potential business that visitors from their neighbouring country could provide, Sri Lanka’s travel and hospitality companies went all out to woo Indians. The government too supported this move by introducing free visa on arrival for Indians.
However, all this came to naught when the government suspended international flights to control the spread of COVID-19 last year. It finally reopened borders on 21st January, allowing foreigners to enter under ‘bio bubbles’ and limiting interaction with locals.
Roshan Perera, General Manager of Mövenpick Hotel Colombo tells Vinita Bhatia how hoteliers in the country are trying to revive business, while adhering to stringent government restrictions for foreign travellers.
How did the pandemic affect Sri Lanka’s tourism market industry?
After Sri Lanka introduced multiple travel bans in March 2020, our tourism industry collapsed. The March 2020 traffic dropped by nearly 68% as compared to 2019. The country’s tourism earnings declined to $391 million in February as compared to $475 million earned in February 2019, and overall decimated many of our top source markets.
Our occupancy levels trickled down from 70% to 80% to single digits. Having said that, this is a resilient industry and we will bounce back.
What is tourism’s annual contribution to the nation’s GDP and at what pace was it growing pre-COVID?
In 2020, tourism and travel’s contribution to Sri Lanka’s GDP was around 12%-12.5%. It was 6.7% in 2001, so it was growing at 3.61% average annual rate.
According to Sri Lanka Tourism and Development Authority (SLTDA), the country earned up to $4.4 billion from tourism in 2018, which is 12% more than 2017. It was expected that the revenue would touch $5 billion from 3 million arrivals in 2019, however the unfortunate Easter Attacks changed this for us.
Is the country’s tourism industry on the way to recovery?
Yes, it definitely is. However, this progress has begun with resorts and hotels located outside cities. Tourists are now placed within a ‘bio bubble’ to adhere to all health and safety requirements. This means, they are likelier to opt for resorts within tier 1 hotels. However, it won’t be long before we see Colombo bustling again with tourists.
How are hotels like Mövenpick adhering to the government’s safety precautions like the bio bubble?
Mövenpick Hotel Colombo is the first star class hotel to participate in the designated ‘level 1’ certified hotel. Meanwhile, our resident guests have always supported our F&B outlets as well as weddings, meetings and events. We continue to maintain the strictest health and safety guidelines and are ALLSAFE certified. This global cleanliness and prevention standard was developed with, and vetted by, Bureau Veritas.
Our hotel was thoroughly audited by Accor operational experts in order to receive this label. An ALLSAFE Officer is available 24X7 ensuring all elevated cleanliness protocols are followed.
Will the government’s bio bubble move benefit only top brands and be disadvantageous to smaller players?
International brands, of course, would benefit from firm support based on their brand’s popularity amongst tourists. At the same time, Sri Lankan brands, inclusive of smaller players, have already made a name for themselves. One sees tourists choosing smaller players for privacy, uniqueness and charm. Within the next few months, even smaller hotels will start to pick up.
In August 2019, India was the largest source of tourist traffic to Sri Lanka. Will Indian FTAs continue to lead Sri Lanka’s tourism revival?
Both Indian and Chinese markets will lead Sri Lanka’s tourism revival. In 2019, post the Easter bombings, the Indian market rendered its support across hotels in Colombo, constituting 19% of total FTAs.
According to statistics, 3,55,000 Indian tourists visited us in 2019 against a total 1.9 million FTAs. In December 2019 alone, we had over 48,000 Indian visitors. Therefore, we firmly believe that the Indian market will continue supporting its neighbour.
What percentage of your guests comprise Indians currently?
In 2018, 8% of the total business mix represents Indian travellers, and in 2019, it was 13%. In 2018, the guest composition was 56% leisure, 27% MICE and 17% business. A year later, it was 45% leisure, 41% business and 14% MICE. So, if we average the numbers for the two years, 50% of the guests are leisure travellers, 21% business professionals and 14% comprise MICE.
What month-on-month (MOM) growth do you expect this year?
The forecasted average MoM growth for 2021 is 19%. To achieve this, we are looking at partnering with Indigo to boost traffic of transient guests. We will also leverage Accor’s loyalty programs, ALL and Accor Plus, to drive increment business along with SLTDA and promote the ALLSAFE programme.
India is the second-largest supplier of outbound travellers on a global scale, and Indian tourists are amongst the highest-spending.
How are hotels, including yours, wooing back them back?
We have introduced a variety of special packages to suit Indian travellers. We have curated special tour packages for families and business travellers as well.
Food is an important factor and we try to live up to their expectations. Our buffets, for example, feature a dedicated Indian corner, chai teas and Indian delicacies. Our chefs have been trained by renowned Indian chefs.
The shopping malls are just a brisk walk away and we are located in the centre of various malls ranging from ceramics to fabric and a countless number of shops.
