Lesser-known information about Sri Lanka tourism

Very often, when discussing tourism and its performance, the focus is on occupancy and room rates.

Lesser-known information about Sri Lanka tourism

Very often, when discussing tourism and its performance, the focus is on occupancy and room rates. Certainly, these two indices are the most important aspects to monitor the tourism and hospitality sector, which gives a good indication of how the industry is performing. However, over and above this, there are several other interesting statistics that one can explore, to give a broader perspective of the tourism industry in Sri Lanka.

A few such statistics is analyzed from the 2012 Annual Statistical report of the Sri Lanka Tourism and Development Authority (SLTDA), (the 2013 Statistical report is still unavailable).

1. Public Sector Revenue from Tourism

This gives an indication of the overall revenue that is derived from tourism in various ways by the public sector. However, the sources of revenue collection given in the SLTDA statistics are by no means exhaustive, as there are many other areas where tourists spend money, which do not get properly recorded. Therefore, this figure is almost certainly under estimated.

In 2012, this revenue to the public sector amounted to Rs.4.9 billion, compared to Rs.4 million in 2011, which indicates an annual increase of 21.3%.

The largest component of revenue is from the Cultural Triangle earnings (entry tickets), followed by Embarkation tax from foreign tourists, and the 1% Tourism Development Levy that all establishments pay to the SLTDA.

Source of Revenue:

Tourism Development Levy: 2011 – 649.7, 2012 – 809.4
Tourism Development Authority Income: 2011 – 110.1, 2012 – 130.3
Embarkation Tax on Foreign Tourists: 2011 – 1,041.7, 2012 – 1,161.7
Cultural Triangle: 2011 – 998.2, 2012 – 1,330.7
Botanical Gardens: 2011 – 253.9, 2012 – 279.0
Zoological Gardens: 2011 – 470.2, 2012 – 480.7
Wildlife Parks 301.0 424.8
Museums 14.2 16.8
BMICH 178.2 239.2
Total 4,017.3 4,872.6

2. Foreign Exchange (Forex) Earnings from Tourism

Forex earnings from tourism are captured from 5 sources, which include banks, travel agencies, shops (licensed forex accepting establishments) and the Gem Corporation. Obviously, the forex revenue recorded by hotels is the highest component of earnings at 64% of the total.

It is interesting to note that the earnings from the hotel sector increased by 22% YOY in 2012, and 42.1% in 2011 YOY. This indicates that hotel prices have been increasing quite rapidly.

Sources:

Banks: 2011 -US$94.5 M, 2012 – US$116.7 M, Change – 23.4%
Travel Agencies: 2011 – US$75.5 M, 2012 – US$ 97.4 M, Change – 29.0%
Shops: 2011 – US$ 92.3 M, 2012 – US$119.3 M, Change – 29.2%
Hotels: 2011 – US$545.3 M, 2012 – US$665.6 M, Change – 22.0%
Gem Corporation: 2011 – US$31.3 M, 2012 – US$39.3 M, Change – 25.6%
Total: 2011 – US$838.9 M, 2012 – US$1,038.3 M, Change – 23.8%

Here again, there will be considerable “leakage” where tourists would be changing foreign currency in places which do not get properly recorded.

It is interesting to note, that tourism today has become the 3rd largest forex earning industry to the country, preceded by Worker Remittances and the Apparel Industry.

However, it is a common knowledge that the value- added component in the tourism industry is high, and in the order of about 75% – 80%, while that of the apparel industry can be much lower (50%). Hence, if one were to discount for this factor, tourism could well then be rated as the 2nd largest forex earning industry of the country.

3. Average Stay per Tourist

It is interesting to note that Sri Lanka has always maintained around an average 10 days stay per guest, from as far back as in the 1970s. Hence, it is very clear, that Sri Lanka has always been accepted as a long stay destination for tourists, which is to be expected, given the wide range of attractions and diversity that the country can offer.

4. Age and Sex of Tourists

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The male to female ratio of visitors to Sri Lanka is fairly well balanced, with males (55.4%) out numbering females (44.6%) slightly.

The largest component of about 51% is in the age group of 30-49 years. Hence, obviously, the appeal of Sri Lanka for more ‘senior citizens’ (50 years and over) is relatively less.

Age Group: 3-19, 2011 – 11.6, 2012 – 10.6
Age Group: 20-29, 2011 – 16.9, 2012 – 19.2
Age Group: 30-39, 2011 – 22.6, 2012 – 25.9
Age Group: 40-49, 2011 – 26.6, 2012 – 25.1
Age Group: 50-59, 2011 – 11.7, 2012 – 10.2
Age Group: 60 & Over, 2011 – 10.62012 – 9.0

This is borne out from the fact that only 8% of visitors are from the “retired” category, with about 13% been recorded as unemployed. A large proportion is professionally employed persons.

Educationists: 2011 – 4.8, 2012- 6.8
Retired Persons: 2011 – 5.3; 2012 – 8.1
Scientists & Technicians: 8.0 9.9
Professionals: 2011 – 7.6, 2012 – 11.4
Businessmen: 2011 – 18.3, 2012 – 14.8
Executives: 2011 – 16.7, 2012 – 16.8
No Occupation: 2011 – 14.1, 2012 – 13.0
Other Occupation: 2011 – 25.2, 2012 – 19.2

5. Visitation to Wildlife Parks

One of the important and popular revenue streams are earnings from visitation to the wildlife parks. These revenue streams have been showing very strong YOY growth in the post war scenario, indicating that wildlife tourism is fast becoming an important facet of Sri Lanka tourism offerings.

2008: Total Revenue – 84,419 [other information not available]
2009: 70,688 visitors (YOY data not available); Total Revenue – 103,993 (23% YOY Increase)
2010: 143,198 visitors (104% YOY Increase); Total Revenue – 227,249 (119% YOY Increase)
2011: 198,536 visitors (38% YOY Increase); Total Revenue – 301,008 (32% YOY Increase)
2012: 244,525 visitors (24% YOY Increase); Total Revenue – 468,097 (56% YOY Increase)

[Total Revenue = Rs. ‘000]

It is interesting to note that of these 244,525 foreign visitors to the national parks, almost 50% are visitors to the Yala national park. Therefore, it is quite obvious that Yala is the most well-known and popular national park in Sri Lanka. It is this popularity that is causing the current over visitation problem at Yala.

The total visitors of 244,525 to wildlife parks in 2012 amounts to about 20% of the overall total arrivals for the year (little over 1 million), which leaves rooms for further improvement by promoting other wildlife national parks, which will then ease the pressure on Yala.

6. Charter Operations

It is very interesting to note that tourist arrivals from charter flights to the country have dropped to a mere 0.6% in 2012. This is a remarkable reduction from about 60% in the early 1990s.

Inter-Regional flights: 2011 – 86.2%, 2012 – 87.8%
Intra-Regional flights: 2011 – 11.8%, 2012 – 11.3%
Charter Flights: 2011 – 1.8%, 2012 – 0.6%
Sea Carrier: 2011 – 0.2%, 2012 – 0.3%

The dramatic increase in inter-regional flights, fueled by the Middle East carriers offering good connections to Europe has been a major factor for this drop in Charter airlines operation to Sri Lanka.

Also the improved security and ground condition in Sri Lanka has had an effect as well. During the period of instability, tourists preferred to use more packaged group tours, operated through charter flights for security reasons. However, today, tourists are able to access all parts of the country, without any hindrance. Therefore, more and more tourists are utilizing inter-regional flights, which will give them more flexible and independent travel options.

From the foregoing therefore, it is obvious that there are more interesting trends and statistics that tourism operators and professionals should start looking into seriously, now that the Sri Lanka tourism is growing rapidly, with the country now fast developing into a mature tourism destination.

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