Saturday, December 1, 2012

Ecotourism Sector in Sri Lanka: A SWOT Analysis


Sri Lanka government has already identified “tourism” as a priority sector in its mission to achieve sustainable economic growth. However, mass tourism has its own negative impacts such as environmental and socio-cultural degradation. As a result of increased global awareness on environmental issues, tourists are increasingly becoming environmentally oriented. In this background, ecotourism has emerged as an alternative form of tourism that promises to minimize negative impacts of mass tourism while providing sustainable income to host communities. In planning and developing a key sector such as ecotourism, it is vital to assess ecotourism sector’s strengths, weaknesses, opportunities and threats i.e. conduct a SWOT analysis to gain a broader picture. SWOT analysis can serve as an excellent tool for policy makers in decision making. The strengths, weaknesses, opportunities and threats for Sri Lanka’s ecotourism sector are discussed below.
Strengths
·         Natural resource base to support wide array of ecotourism opportunities/products
§  High biodiversity: Sri Lanka’s tropical forests possess a high level of biodiversity with remarkable high proportion of endemic species of flora and fauna. Sri Lanka has been identified as one of 25 biodiversity hot spots in the world.  Apart from large mammals such as elephants, leopards and sloth bears, it is an ideal destination for birding, as well as studying amphibians and reptiles.
§  Wide range of terrestrial ecosystems: Country’s climate changes widely as you go inland. This give rise to numerous ecosystems with unique flora and fauna. Sri Lanka has several forest types including tropical lowland evergreen, dry monsoon, mountain, sparse and reverie/mangrove forests.  
§  Diverse landscape: varying topography from mountains to flat lands, rivers, and unique ecosystems provide excellent opportunities for adventure seekers.
§  Aquatic ecosystems: Sri Lanka has wide range of fresh water, brackish water and marine ecosystems with high bio diversity. Corel reefs along south-west beach are of special importance as tourism/ecotourism attractions.
§  Historical and cultural diversity: Sri Lanka has a rich history and culture influenced by Buddhism, which spans beyond 2500 years. Numerous ruins linked to ancient kingdoms are still remaining, attracting thousands of visitors each year. Being a multi-ethnic country, visitors can experience different cultures as they travel around the country. Endogenous people/tribes in the country and their unique culture also provide opportunities for ecotourism.
·         Existing tourist markets
§  Sri Lanka currently has numerous strong tourism markets. Western European countries (U.K., Germany, France, Italy, and Netherlands) have been the main markets. Recently, tourist arrivals from Asian countries such as India, Russia, China and Japan as well as visitors from Scandinavian countries have also picked up, becoming major markets.    
·         Skilled labor force for the hospitality industry
§  Skilled labor force for employment in hospitality and tourism industry starting from executive management level to catering/stewards are available domestically at relatively low labor cost. Education and training is provided mainly through state owned Sri Lanka Institute of Tourism and Hotel Management, Universities as well as private sector hotel schools. At present, the supply of skilled labor exceeds the demand; hence trained professionals often seek employment abroad.
·         Accommodation facilities to meet international standards
§  At present, fully facilitated accommodations/rooms totals to 14500 rooms. In addition, there are numerous small scale locally owned guesthouses to accommodate mid and low end tourists.
·         Institutional structure to facilitate the growth and development of tourism sector including ecotourism
§  At present, the required government institutional framework is there to support the growth of tourism sector. The new Tourism Act in 2007 established 4 institutes to handle different aspects of tourism.
1. The Sri Lanka Tourism Development Authority: new tourism product, destination, and market development, planning and policy
2. The Sri Lanka Tourism Promotion Bureau: marketing and promotion
3. The Sri Lanka Institute of Tourism and Hotel Management: Human resource development
4. The Sri Lanka Convention Bureau
Weaknesses
·         Continuous focus on traditional tourism products
§  Despite the wide variety of ecotourism opportunities in the country, policy makers are still concentrating on traditional sun and beach mass tourism to gain quick revenues. Despite lucrative income, mass tourism has its own negative socio-cultural and environmental impacts. All the recently developed tourism development projects are focused on beach destinations. Alternative sustainable forms of tourism such as ecotourism are less prioritized.  
·         Inadequate infrastructure to support the growth of tourism sector as a whole
§  Shortage in accommodation facilities: The Government has already set its target to attract 1,600,000 tourists per year by 2016. However, current accommodation facilities are not sufficient to host such tourist inflow since it requires to more than doubling the number of rooms available at present. Many believe this is an optimistic target under present economic situation in the country.
§  Congested road traffic and under-maintained road network
§  Limited service destinations and operation of national carrier airline service
·         Inadequate infrastructure to support the growth of tourism sector
§  At present, less attention is given by the authorities to develop infrastructure at ecotourism destinations in the country. Necessary infrastructure such as information centers, restrooms, resting areas/huts, lodging and camping sites are lacking or poorly maintained in some destinations.
§  Access roots, bridges, bird-watching platforms etc. need to be developed and maintained. 
·         Lack of communication and marketing strategies to promote different forms of ecotourism products. 
·         Inappropriate management of ecotourism destinations
§  At present, visitor controlling is hardly exist in most ecotourism destinations. Many destinations easily get overcrowded especially during holidays with local tourists, causing inconvenience to tourists with genuine interest to observe wildlife. Overcrowding and increased traffic inside parks disturb the site as well as flora and fauna.
§  Park entrance fees are placed low and this also attracts crowd in higher numbers.
·         Absence of onsite interpretation/education specialists 
§  Education/interpretation is a key aspect of ecotourism. At present there’s a shortage of skilled ecotourism specialists and competent interpreters at ecotourism destinations. There’s a severe shortage of such specialists who are capable of communicating in foreign languages.
·         Absence of a national ecotourism policy
§  Although there is a national tourism policy, it emphasizes less on alternative forms of tourism. Scope and goals of ecotourism often conflict with the mass tourism. Hence, there’s a need for a national policy and action plan for ecotourism in Sri Lanka. 
Opportunities
·         Opportunities for new markets and tourism products
§  European travelers are particularly becoming environmentally aware and conscious of reducing their carbon footprint. For such traveler markets, ecotourism is an ideal product to capture revenues. The existing biodiversity rich diverse ecosystems provide numerous opportunities for ecotourism development.
§  Opportunities exist in dense rainforests to develop canopy walks. These can attract adventure seeking ecotourists.
·         Opportunities for low cost accommodation
§  Alternative tourism products such as ecotourism typically targets tourists who are more demanding for nature and less demanding for facilities. They can be accommodated in small-scale eco-lodges. These alternative tourism forms can help attract more visitors while requiring lesser need to develop costly accommodation facilities. Therefore, ecotourism is an ideal opportunity to achieve the Government’s target of bringing in an annual tourist flow of 1,600,000 by the year 2016.
·         Improving security and economy in the country
·         With the eradication of terrorism from north and east part of the country, new opportunities for foreign and domestic tourism have emerged. National parks which were closed for public are now opened, creating new opportunities for ecotourism.
·         Opportunities in developing effective marketing and promotion plans
·         Effective marketing and promotion programs can be launched especially using internet and modern technology to reach new and existing markets
·         Research and development
·         At present, there are formal institutes including universities that particularly can conduct studies on ecotourism sector. Most tourism studies are conducted on economic impacts of tourism. Research should more focus on new markets, alternative forms of tourism, demand and supply, behavior and policy.
Threats
·         Under-developed infrastructure: road and accommodation facilities to meet the rising demand
·         Environmental and socio-cultural degradation due to mass tourism since ecotourism is likely to be undertaken passively as a part of multi-purpose trip/tour package.
·         Lack of diversification in tourism products
·         Foreign exchange leakages occur in mass tourism. In ecotourism, local materials are used for constructions and local cuisines are commonly served at eco-lodges, which minimize the revenue leakage. 
·         Competition from other ecotourism destinations in south-east Asia such as India, Philippines, Malaysia, Fiji, Thailand.

Sri Lanka’s Tourism Sector


Sri Lanka’s tourism sector mainly comprises travel and transportation, accommodation, catering, recreation and entertainment, and other supplementary services.  Being positioned in a strategically important location in the Indian Ocean in terms of both naval and aerial transportation, the country has historically been a busy travel destination. Traditionally, Sri Lanka’s tourism industry has been oriented towards “sun and beach” tourism, and the country is well-known for its astonishing landscapes, rich cultural heritage, and hospitality. Sri Lanka has much more diverse tourist attractions than in other currently popular tourist destinations in the South Asian region. Over the years, tourism industry has been one of the major foreign exchange sources for Sri Lanka. It was the fourth largest source of foreign exchange with revenues over US$410 million in year 2006 and a major employer providing thousands of direct and indirect jobs (SLTDA 2007). The tourism sector contributed 3.1% to the total foreign exchange earnings in 2007, but the figure slumped to 2.6% by the end of 2009 largely due to the unsafe environment prevailed in the country (SLTDA 2010a). However, this is a marginal increment of 1.1% compared to year 2008 where foreign exchange earnings increased from US$ 319.5 million in 2008 to US$ 326.3 million in 2009 (SLTDA 2010a).
At present, Sri Lanka is in a rapid post-war recovery process, and the tourism sector is also gaining a rapid momentum. The present peaceful environment in the country prompted numerous western countries to relax their travel advisories on Sri Lanka. The interest on Sri Lanka as a travel destination has grown tremendously during the post-war period. For instance, The New York Times ranked Sri Lanka at the top in it’s “The 31 Places to go in 2010” travel article (nytimes.com 2010).The National Geographic Channel has also rated Sri Lanka as the second best place to visit in its travel documentary “World's Twenty Best Tourist Destinations” (National Geographic Channel 2010). Reflecting this growing interest, the first three quarters in the year 2010 alone showed a staggering50%, 46% and 37% of increases in tourist arrivals respectively, compared to the previous year (SLTDA 2010b). According to the World Tourism Organization, Sri Lanka has the advantage of having 49 sites classified as unique attractions, 91 rare attractions, 7 world heritage sites, and 6 of the 300ancient monuments in the world, giving a significant edge over its tourism competitors in the region (de Silva 2000).
With rising tourist arrivals, it is expected that employment opportunities in the tourism sector would also grow significantly. A total of 52,071 individuals were employed directly in the tourism sector with about 62% of them in accommodation and catering, while the indirect employment in the sector was estimated at 72,899 for the year 2009 (SLTDA 2010a). In addition, the tourism sector is a leading source of revenue generation for many public sector institutions such as Tourism Development Authority, Ministry of Port and Aviation, national wildlife parks, national museums, botanical gardens, and establishments under the Ministry of National Heritage and Cultural Affairs. For instance, revenues collected from embarkation tax contributed over US$ 6.9 million in 2009 while tourism development levy and Cultural Triangle entrance fees accounted for US$ 3.68 and 3.66 million respectively (SLTDA 2010a).
At present, there are 249 registered tourist hotels in Sri Lanka with a total of 14,461 rooms (SLTDA, 2010d). In addition, there are numerous unregistered facilities that provide accommodation for tourists. Parallel to the increase in tourist arrivals, the room occupancy rates in registered tourist hotels have also increased significantly. For instance, the first three months in the year 2010 showed 82%, 84.2% and 78.4% increases in room occupancy rates compared to 2009 (SLTDA 2010c). According to most recent statistics, foreign exchange receipt per tourist per day is US$ 81.8 for the year 2009 which is a 6.7% increase from 2008, while the average duration of stay of a tourist was estimated at 9.1 days (SLTDA 2010).