Money spinning Arugam Bay not gazetted as a tourist zone

Foreign tourists in large numbers frequent Arugam Bay 

• Due to the exceptional beauty of this coastal area, Arugam Bay has a global brand name
• A travel advisory issued to Israeli nationals against travelling to Sri Lanka, has cost the hotel industry here dearly 
• The dominance of tourism in Arugam Bay is primarily centered around surfing

There are no facilities to change clothes. Both local and foreign tourists are forced to return to hotel rooms to manage these basic needs. A recent incident clearly highlighted this issue, which led to public discussions about tourists wearing bikinis while engaging in sports and walking along the roads in Arugam Bay 

By Prageeth Sampath Karunathilaka 

and Sudharika Gurusinghe

Recognised as one of the top ten surfing destinations in the world, Arugam Bay is a renowned beach among foreign and local tourists. Due to the exceptional beauty of this coastal area, Arugam Bay has a global brand name. The main reason for this is surfing. This bay attracts thousands of both local and international tourists each year. Arugam Bay has now become a region overflowing with those who are passionate about surfing. Arugam Bay has consistently received praise from foreign tourists visiting Sri Lanka.  

Arugam Bay, located in the dry zone on the southeastern coast of Sri Lanka, bordering the Indian Ocean, is an ancient settlement in Batticaloa. It is situated 320 kilometres east of Colombo and 4 kilometres south of Pottuvil, a commercial city. Among the major tourist attractions in the area are the local beaches, lagoons, temples including the historic Muhudu Maha Viharaya, and the nearby Kumana National Park. 

The majority of the population living in the Arugam Bay area are Muslims, and the Muslim settlement there is known as Ullai. In the southern part of the area, there is also a notable presence of Tamil and Sinhala communities. While traditional fishing has long been the main livelihood, in recent years, the tourism industry has rapidly developed in the region. The dominance of tourism in Arugam Bay is primarily centered around surfing. Among the coastal areas in Sri Lanka, suitable for surfing, Arugam Bay stands out as the only coastline with a large number of ideal surfing spots. There are 13 such main spots along this coast, including ones like Whisky Point, Lighthouse Point in Komari, Crocodile Rock (Koka Point), Pottuvil Point, Mangi, Baby Point, Panama and Uhana.

Many countries that are not familiar with Sri Lanka are strangely aware of Arugam Bay. The reason for this recognition is the sport of surfing. Numerous international surfing competitions have been held in Arugam Bay, drawing global attention to the area. Tourists from many countries—except Pakistan and China—visit Arugam Bay to practise surfing. Because of this, foreigners widely recognise Arugam Bay as a travel destination. However, during the COVID-19 pandemic and the economic crisis, the people involved in the Arugam Bay tourism sector faced many difficulties. The negative impacts of the global situation were strongly felt by the tourism industry.

Eventually, tourists began returning to Arugam Bay, bringing some relief to both the country and those depending on tourism for a livelihood. Yet, on August 20, 2024, Israeli Ministry of Foreign Affairs issued a travel advisory warning its citizens against visiting Arugam Bay if they were travelling to Sri Lanka. This advisory was based on information suggesting possible attacks targeting Israeli nationals. These measures taken by Israel authorities are linked to the conflict between Israel and Palestine.

Following this announcement, many tourists cancelled their planned visits to Arugam Bay. This caused a major setback for those in the tourism industry who had been hoping to recover financially. As a result, the government also turned its focus to the situation in the Arugam Bay ‘tourism zone’. Upon further investigation, it was discovered that Arugam Bay has still not been officially declared a tourist zone through a government gazette. When the tourist season begins, the area could generate more than 200,000 US dollars per day—which is around 60 million Sri Lankan rupees. It is unfortunate that a location with such economic potential has yet to receive formal recognition as a tourist zone. As a result, there is a lack of proper facilities for visiting tourists. The quality of rooms and food—often sold at extremely high prices—raises serious concerns about value for money and standards.

Lack of facilities for tourists 

Tourists who engage in surfing and sea bathing at Arugam Bay do not have access to clean water to rinse off afterward. There are no facilities to change clothes. Both local and foreign tourists are forced to return to hotel rooms to manage these basic needs. A recent incident clearly highlighted this issue, which led to public discussions about tourists wearing bikinis while engaging in sports and walking along the roads in Arugam Bay.

Because the area has not been designated as a tourist zone, proper facilities for tourists are lacking, and serious concerns have arisen regarding their safety. Although the Tourist Police, Special Task Force, Navy, and Army provide ongoing security, more attention is needed from the Tourism Development Authority. Many hotels in Arugam Bay have air conditioners that do not function properly. Worse, the water supply is also inadequate. Despite the fact that the area is frequently visited by tourists, street lighting is not maintained. By 7 p.m., there is insufficient electricity to operate air conditioning units. Another issue is the lack of proper water supply from the Water Supply and Drainage Board. At night, several places do not have water at all, and where water is available, supply is subject to low pressure. To get an adequate water supply, one must wait until the early hours of the morning. As a result, tourists face significant difficulties during their stay.

Pottuvil Municipal Council does not regularly dispose of garbage from Arugam Bay. Waste is only picked up on scheduled days. This situation exists despite Arugam Bay generating a significant daily income from tourism. All this is because Arugam Bay hasn’t yet been officially declared a tourist destination. Some tourists who visit Arugam Bay have started their own businesses in the area. There are many reasons for this trend.

Currently, there are foreigners in Arugam Bay who have been remaining in Sri Lanka on tourist visas for about five years. Many are illegally engaged in tourism-related businesses without the approval of the Sri Lanka Tourism Development Authority. They directly coordinate with their home countries and operate websites to attract tourists to Sri Lanka. However, the income generated through these activities doesn’t benefit the country, as the money is transferred back to the foreigners’ home countries. This has become a serious issue due to the absence of a proper legal framework in Arugam Bay to regulate the dollar income earned through tourism.

There are approximately 1,500 hotel rooms in the Arugam Bay area, and about 200 hotels in total. However, only 30 to 40 of them operate legally. Many among the rest of the hotels are not registered with the Sri Lanka Tourism Board. Some of these hotels are built on reserved or government-owned land. The existence of such unauthorised establishments has contributed to issues related to water supply, electricity usage, and garbage disposal. Overconsumption of water and electricity caused by these illegal operations has raised concerns about the quality of these services.

Several of these hotels do not have licences and only allow online room bookings. These places are not registered with the Sri Lanka Tourism Development Authority (SLTDA), and as a result, the authority does not have a proper record of the tourists who stay there. Even the accommodation providers only receive limited information submitted through online platforms, and in some cases, they do not verify whether the data is accurate. This poses a significant threat to Arugam Bay as a tourist destination. The security issues that emerged last year can be traced back to these gaps in regulation. The police and armed forces surely provide full security to tourists visiting Arugam Bay.

However, the insufficient attention paid by the SLTDA to these issues is concerning. Critics point out that due to these developments there could be a threat to security in the area, in the future. Moreover, the visibility of uniformed military personnel in the area has driven a sense of fear into some tourists. Therefore, during a recent meeting chaired by Pottuvil Divisional Secretary, it was decided upon that security personnel should be clad in civilian attire when providing protection to tourists.

Chabad House 

The 1,500 hotel rooms in Arugam Bay can accommodate between 2,500 and 3,000 tourists. Room prices typically start at US $100. Based on this, hoteliers in Arugam Bay can generate an estimated income of nearly Rs. 60 million per day through accommodations alone. However, there is currently no system in place to ensure that this income is properly regulated.

At present, Australian, European, American and, Israeli nationals have acquired land from Sinhala and Muslim landowners in Arugam Bay and have built hotels. Israelis also maintain a place called Chabad House in the area for their religious activities. 

This building is located on a plot of land owned by a Muslim individual and has been in operation for about 4 to 5 years. Since then, locals noted that special police security has been consistently provided to the Chabad House. There are reports that some visitors from countries such as Israel, Sweden, Japan, and the USA have remained in Sri Lanka without valid visas. Tourists visiting the country typically enter under one of three types of visas. One type is a visa issued by the Board of Investment (BOI) for those intending to invest in the country. 

Another is an employment or investment visa, which requires a minimum investment of over $50,000. The third is a tourist visa, which is only meant for visits. Despite this, some foreign nationals from the aforementioned countries have arrived on tourist visas and gone on to open hotels and even establish religious centers. Houses have also been built under these circumstances. Each year, approximately 6,000 Israeli tourists enter Sri Lanka on tourist visas. Tourists from many other countries also arrive in large numbers, especially to surf in Arugam Bay. This has a significant impact on the country’s tourism industry.

The present government has provided a prompt solution. The tourist season in Arugam Bay has now begun. However, people involved in the tourism industry pointed out that the number of tourists expected this year may not match previous seasons. They maintain that tourists from countries such as Israel, the USA, Australia, Japan and Poland are expected to arrive in the coming months. Among them, some tourists also engage in business activities within the country. Tourists arriving in the country for business purposes are granted visas based on a legal requirement that they must show proof of earning an income of US$ 50,000 per month. 

However, there is growing doubt about whether some of these tourists bring even US$5,000 into the country. Instead, they often earn money through tourism activities in Sri Lanka and transfer those earnings back to their home countries. The lack of regulation regarding foreign-operated businesses and the unchecked flow of people entering and leaving the country pose another threat to the tourism sector in Arugam Bay.

Therefore, authorities should take steps to officially gazette Arugam Bay as a tourist zone. Additionally, to strengthen the safety of tourists in the area, it is essential to regulate the presence of unregistered tourists and illegally operating hotels. Surfing in Arugam Bay is believed to have commenced as early as 1914. Since then, all successive governments have been urged to declare Arugam Bay a formal tourist zone. However, this request remains unfulfilled to this day. The coexistence of fishing villages and boats within a potential tourist city also causes inconvenience to visiting tourists, according to those involved in the tourism sector.

In an attempt to obtain further information, this newspaper contacted Pottuvil Divisional Secretariat. However, an officer informed this writer that the Divisional Secretary was unavailable and that there was no alternative number to reach the Secretary. Efforts were also made to contact the SLTDA via telephone, but there was no response.

“All necessary facilities must be provided to tourists”

- Arugam Bay Hotel Association Chairman

Commenting on the matter, Arugam Bay Hotel Association Chairman A. Jawfar said that Arugam Bay should be officially gazetted and designated as a tourist zone. “All necessary facilities must be provided to tourists. Despite the fact that the area earns over Rs. 60 million per day, there are shortcomings with regard to infrastructure,” said Jawfar. 

According to Jawfar, the area lacks amenities such as water, electricity, and proper workspaces. Additionally, food is sold at excessively high prices. Hence there is an urgent need to regulate the price of food.