23 August 2023 12:02 am
Since the financial meltdown in 2022, and following the US$2.9 billion International Monetary Fund (IMF) reform programme that commenced in late March 2023, our economy has begun to show signs of recovery from its worst economic crisis since independence.
Our foreign exchange reserves have improved thanks largely to rising tourist arrivals. The tourist industry has showcased an impressive rebound in the first half of 2023, with earnings reaching nearly $ 1 billion, along with steady growth in arrivals.
For the first five months of 2023, the tourism revenue totalled $827.8 million, marking a substantial increase of 30.4 per cent compared to the same period of last year when it stood at $634.6 million, according to the official data.
Likewise, according to the Central Bank, migrant worker remittances during the period from January to June 2023 rose to 931.3 billion rupees. Official records suggest that 300,000 of our 22 population left for jobs abroad in 2022. From January to March this year, another 73,000 left.
However, the country continues to face a massive sovereign debt overhang. In other words, the main problem we face is the shortage of foreign currency to repay our debts.
The challenge is to achieve durable economic stability and put the economy on a sustainable growth path, while the answer to the shortage of foreign currency is to find ways and means to earn this precious commodity.
Remittances from migrant workers and tourism are our biggest foreign exchange-earners. The next biggest foreign exchange earners are our agricultural exports.
As mentioned earlier tourism has been one of our biggest forex earners. Tourism took off in the 1970s and until the 1983 ethnic riots. The riots changed the whole industry. The lucrative operation we had, turned completely upside down.
However, once the ethnic war was brought to an end in 2009, we did not market ourselves properly. We should have gone for new marketing strategies to attract high-end tourists and advertise wider attractions the country offered, like wildlife parks, historic sites, Ayurvedic treatments, windsurfing, whale watching, and seeking niche markets.
A few days ago President Wickremesinghe himself called on the tourist industry to move away from mass tourism and to widen horizons to attract high-end tourists to the country with emphasis on niche markets.
The reality, as a former big-time tourist industry director pointed out in a recent interview, was that the industry had been calling for promotions designed to advertise these features.
Unfortunately, the Governments of the day did not recognise the need. The large tourist hotels suggested the changes, but Governments of the day lacked foresight.
President Wickremesinghe’s emphasis on the need to widen the scope of tourism to attract higher numbers, as well as high-end tourists is fortunate as it will help bring in more of the much-needed foreign currency to help repay our massive foreign debt.
This means, of course, more investment in the tourist trade.
While the tourist trade brings in valuable exchange, it is also dependent on various inputs which have to be imported. The present ban on imports needs to be reviewed and relaxed where necessary if the trade is to grow.
Tourists, especially the high-end tourists will not be attracted to our shores if basics such as good quality sanitary facilities are not operational.
Again a new field of tourism is opening up –‘Sports Tourism’. Both the government and the tourist industry need to gear themselves up to meet the opportunities opening up in this field.
For instance, some of the upcoming Asia Cup matches are to be held in our country. One among them is the India - Pakistan match to be held at Pallekele.
Tickets for the match have already been sold out. The price per ticket range from USD 30 to USD 300.
We need to promote our country as a neutral, safe venue where not only the two Asia giants can play without fear, but also where countries like Afghanistan can host matches and cricket fans have a safe, clean and friendly atmosphere to stay with no political tension hanging over them.