Tourism Industry Sri Lanka

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CONTENTS Task One: Reaching the full potential of tourism
1 2 3 4 5 6 Introduction Tourism boom in post war era Need of the hour- enhancing quality of employment Inertia as an impediment Association of MACRO and MESO factors Prospective publications for the article 02 02 02 03 03 04

Task Two: appropriate strategy by harmonizing with ground realities 8 9 Introduction Labour Market below par with demand 05 05 06 07 08 09

10 Inertia as an impediment to expansion 11 Ground realities contradict more profitable segmentation strategy 12 Countering stumbling blocks 13 Proactive response to the situation from a marketers viewpoint

14 Appendices
Table 1: fluctuations of the tourist arrivals in Sri Lanka during the civil war Table 2: International tourist arrivals % changes for the first 4 months of 2010 Table 3: Accommodation Capacity (Rooms) in Graded Establishments and its Regional Distribution - 1999 to 2008 Table 4: Direct Employment in the Tourist Industry - 2006 to 200861967 Table 5: Tourist arrival by month in Sri Lanka

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15 References
16 Declaration

14 15

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TASK ONE REACHING THE FULL POTENTIAL OF TOURISM Introduction Thirteenth century Italian voyager Marco Polo described Sri Lanka as “the finest island for its size in the world”. For an island nation which seems to possess many natural resources and beauty in abundance, Sri Lanka is yet to tap into their full potential in tourism. This is mainly due to the thirty year old civil war which overwhelmed the country with its violence and destruction. It affected tourism due to the adverse publicity and the travel warnings issued by the potential countries indicating Sri Lanka as “a visit at your own risk” destination. Tourism boom in post war era After the war, tourism has become one of the most vibrant sectors with tourist arrivals increasing by 53.7% in March of this year as compared to last year (Table 5). It is expected that 1.5 million tourist will arrive during the year 2010 and would increase to 2.5 million by 2016. The officials are confident that this trend will continues and we can enter into a new era of tourism. However, to achieve this, the industry needs to adapt to the changes with the most appropriate strategy. Tourism in post war Sri Lanka is a very profitable idea for growth and demands improving the standards of all aspects of local tourism starting from the infrastructure to human resource. This interest to develop tourism in SL is critical before the international attention in the country wanes. Recently some prestigious publications such as New York Times and National Geographic listed Sri Lanka as one of the best travel destinations.

Need of the hour- enhancing quality of employment To reach the grade of a top tourist destination, the crucial aspect to look into is the availability of quality employee to cater to this emerging market. The leisure industry has to boldly face this social environment issue. In the past popularity of tourism have waned as an attractive employment option and skilled employees migrated to foreign countries for better pay. Due to non availability of proper training to build employee base to cater to the new markets, local 2

Tourism industry is facing a crisis in quality employment. In 2008 alone, the employment generation in the tourist industry was reduced by 14.3% compared with 2007 (Table 4). Although the authorities are trying their best to train people to fill the gap, it seems to be a better long term option. Thus, the question remains, can so many high skilled employees be trained in time for the next tourist season and if SL fails in this, could it maintain the same interest globally as an attractive destination? Inertia as an impediment This is a manifestation of institutional inertia in the country when it faces with progress. This inertia is a common denominator in the key areas of infrastructure development such as roadways, supply of water, electricity and garbage...
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