1

Contents
FOREWORD 4

PURPOSE 5

1 OVERVIEW 6

2 GUIDING PHILOSOPHY 8
Principles

3 S T RAT E G I C D I R E CT I O N 11
Vision
Mission
Goals

4 ENHANCING DEMAND 15
Market Segmentation
Source Markets

5 O P T I M I S I N G S U P P LY 20
Delivering Experiences
Spatial Planning

6 ACHIEVING THE VISION 30

ANNEXES
A1 ICF Consulting Services Study – Sri Lanka’s Tourism Markets
A2 Endorsement
A3 Potential Investment Projects List
A4 Resource Organisations and Individuals
 Foreword
In the 13th century, explorer Marco Polo described Sri Lanka as “La più bella isola delle sue dimensioni in tutto il mondo”
– the finest island of its size in all the world.

Sri Lanka – an island of serendipity, a land of chance encounters and adventures, the home of innumerable treasures.
An island deeply rooted in nature, history, heritage and values. It offers a myriad of experiences to truly immerse in
authentic culture and unspoiled nature, a genuine excitement to the senses, a tug at one’s emotions.

Sri Lanka – a meeting place of friendly faces who share their homes and trade; a space for spiritual healing; a land for
learning from the old and the new; a hub of commercial activity; a spot for tranquility. Sri Lanka casts a spell unlike
anywhere else. It draws people in, not with artificial attractions and grand gestures, but by spellbinding soul and sincerity.

It is time for Sri Lanka to stand strong; to recognise the roots that shaped the island and the roots that must be protected
to conserve the island. It is only with the conviction, commitment and collaboration of everyone that Sri Lanka can
remain the enchanting emerald isle. It is time to share Sri Lanka’s extraordinarily diverse and authentic story with the rest
of the world.

4
Purpose
The current tourism strategy for Sri Lanka was developed for the years 2011 to 2016. Now is the time to assess whether
the goals were achieved, establish new relevant and aspirational targets for the future, and in doing so, embrace the new
disrupted tourism marketing and distribution landscape.

The main goals for the previous strategy were: (i) reaching 2.5 million tourist arrivals by 2016, (ii) attracting US$ 3 billion
foreign direct investments, (iii) increasing tourism related employment to 500,000 jobs, and (iv) increasing foreign
exchange earnings to US$ 2.75 billion by 2016.1 Investment and employment will likely fall short of these targets while
earnings and arrivals will come close to being achieved.

Sri Lanka’s tourism sector is growing exponentially. It is benefitting from being perceived as a safe and secure country,
and wider international interest. This is further enhanced by significant direct investment by the private sector and by
overseas investors, as well as positive steps taken by other key stakeholders in recent years. Nevertheless, to date, tourism
in Sri Lanka has been unable to capture its full growth potential. Sri Lanka’s Tourism Vision 2025 strives to address this.

THE VISION FOR SRI LANKA’S TOURISM GROWTH COMPRISES FOUR DISTINCT ELEMENTS:

>> To set inspiration and direction that drives all tourism stakeholders to build the resilience and competitiveness of
the diverse sector;

>> To provide a guiding philosophy, principles and values for the tourism sector that reflects Sri Lanka and
Sri Lankan heritage, and therefore has relevance and resonance with all within and outside the country;

>> To formulate measurable objectives for the development of tourism aimed at a broader spread of tourism benefits
throughout the country, along the value chain and by setting robust sustainability measures; and

>> To highlight the need for collaborative partnerships and cooperation among tourism stakeholders and with
government in achieving the vision.

The document sets a new course for Sri Lanka to adopt a new tourism strategy where the guiding philosophy, visitor
demand and supply-side experiences are aligned. The new strategy will aim to address gaps in planning, regulation,
value addition, market research, stakeholder coordination, skills development, investment attraction and sustainable
natural resource management.

The Tourism Vision 2025 is not an operational plan for a national brand, marketing strategy, advertising campaign,
country slogan or action plan. Rather it is a strategic positioning of Sri Lanka in the international tourism market,
which sets the foundations from which the sector can build. It is a catalyst to transform the tourism industry to become
a leading employer and driver of economic growth. It provides the foundation with which all stakeholders can rally
together to transform the tourism sector as well as the platform to communicate Sri Lanka’s tourism values to the rest of
the world.

The Tourism Vision 2025 will transition Sri Lanka into a higher value2 tourism destination by capturing its full growth
potential, whilst safeguarding and prioritizing the sustainability of its natural and cultural assets. The implementation of
the vision will be defined by detailed strategies and action plans to be formulated in close cooperation, and through wider
consultation with relevant stakeholders at local and national level before the end of 2016.

1
Tourism Development Strategy 2011-2016, Ministry of Economic Development, Sri Lanka
2
The definition of ‘higher value’ is explained on Page 10

5
 Overview
Travel and tourism is the largest service industry in the world. At almost US$ 7 trillion it accounts for nearly 9% of
global Gross Domestic Product (GDP), 6% of world exports, and employs one in every 11 people. It has evolved into
a diverse and sophisticated sector and is now recognised as one of the world’s most economically significant. Highly
specialised market segments have developed for both leisure and business travel.

Deregulation of airline services and the introduction of low cost carriers has created new markets and opened up
new destinations, encouraging more people to travel. Domestic travel spending generated 72.5% of direct travel
and tourism GDP in 2014 compared with 27.5% for visitor exports (foreign visitor spending or international tourism
receipts).3 Globally, over the next 10 years, the expected growth rate in high yield luxury travel is projected at 6.2%,
almost a third greater than overall travel (4.8%) and with a rapid rise in luxury long haul travel. In addition, the middle
income and upper middle income demographic around the world has expanded and has more disposable income than
previous generations.4 According to the International Monetary Fund (IMF), China is now the world’s largest economy,
measured in term’s of purchasing power. By 2025, some two-thirds of the world’s population will live in Asia.

Technology and demand are rapidly changing the context for this global growth. Changes in capital markets and the
world economy, together with the continued development of more specialised hotel brands and business models (such
as the informal accommodation market and sharing economy) have changed the way accommodation facilities are
owned, operated and financed. Technology is now an essential tool for managing tourism and a powerful pathway for
participation by small and medium-sized enterprises (SMEs), service providers and tourist destination interaction.

Consumer decisions are increasingly influenced by social and environmental consciousness. Governments at all levels
now see cities, urban areas as well as cultural and natural heritage sites as significant tourism assets. These assets must
be conserved and managed so as to remain competitive, deliver the employment opportunities, services and quality of
life which their residents demand, and be passed on to future generations.

The tourism sector has a tremendous effect on global, regional and local trade, investment, infrastructure, incomes
and the environment (including climate change). Tourism has demonstrated its potential to substantially reduce
poverty and increase shared prosperity within its host countries, many of which are in the developing world. In 2014,
tourists spent US$ 413 billion in developing countries – nearly three times the level of development assistance. This
also places tourism in the top five export income earning categories for 83% of developing countries.5 It provides more
employment opportunities for women and youth than almost any other industry; it can motivate integrated, multi-
stakeholder conservation and climate change adaptation efforts; and enhance social wellbeing across a lengthy value
chain in every corner of the globe.

3
Travel & Tourism World Economic Impact 2015, World Travel & Tourism Council; Tourism Highlights 2015, United Nations World
Tourism Organization (UNWTO)
4
Shaping the Future of Luxury Travel – Future Traveller Tribes 2030, Tourism Economics 2016
5
Tourism Highlights 2015, UNWTO

6
In Sri Lanka, tourism – by most indicators – is growing rapidly and organically. Overall visitor numbers are strong,
showing a marked contrast over the past six years and the years previous. Whilst these growth rates are high, they
should be viewed in the context of the pent up demand for travel to Sri Lanka prior to 2009. In addition, it is important
to note that some of Sri Lanka’s strongest tourist arrival growth rates are from countries providing significant growth
in outbound tourism volumes in global terms.6 Furthermore, that growth is clustered in limited areas of the country.
There needs to be greater focus on yield and high spending consumers. [More information in Annex 1.]

Sri Lanka has many comparative advantages for tourism, but the sector is not competitive in its current state.
Sri Lanka is not universally perceived as providing value for money in comparison with other destinations in South
East Asia. The country is blessed with a vast array of natural, historic, cultural, religious, urban and social assets.
Unfortunately these iconic assets are underutilised as an economic resource and a value-added tourism experience.
In general, they are under-invested, inadequately managed, and not sufficiently linked to integrated supply chains and
value adding goods and services. Inconsistent and uncoordinated implementation with respect to regulation, planning,
development, training and promotion has meant that the tourism sector has not delivered the economic and social
returns it can.

Tourism is an umbrella industry with an incredible income multiplier effect. However, there have been inadequate
efforts to deepen linkages beyond the supply of hotel rooms and thus there is limited choice for leisure activities and
experiences outside of hotels. The country’s value proposition is a compact island that offers the rich diversity of South
and East Asia in around 65,000 km2. Yet, the reality is that travel times between locations take too long and transport
can be poor quality and unreliable with limited options. As an island destination with the vast majority of visitors
arriving via flights, the aviation sector and capacity flows are a critical component when planning and strategising.

6
Whilst Chinese visitors to Sri Lanka have grown from under 10,000 arrivals in 2009 to 130,000 in 2014, the total outbound tourism
market from China has grown from 24 million trips to over 50 million in the same time period. This relates to the Chinese outbound
tourism market which is approximately half the size of the total outbound market.

7
 Guiding Philosophy
The Tourism Vision 2025 introduces a philosophy, which enables every stakeholder in the sector, as well as the public
at large, to be a part Sri Lanka’s tourism story. Simultaneously, it provides a binding element around separate goals and
adheres to set guiding principles.

8
Sri Lanka’s Tourism Vision 2025 is based on the notion of appreciating one’s roots as well as the strength,
foundation and identity that one’s roots provide. It is about celebrating Sri Lanka and Sri Lankan-ness. It is rooted in
the people, places, nature, biodiversity, history, heritage and values.

This philosophy positions tourism as the vehicle to conserve, preserve, protect and enhance Sri Lanka’s plethora of
natural and cultural assets. It is not to exploit and destroy them. It is not simply for the sake of tourists and tourism.
The sector has a key role to play in maximising the environmental and economic returns from nature and culture
based tourism.

The Tourism Vision 2025 highlights protecting not just the tangible, but the intangible. It places importance on
grassroots and the home-grown – be it ideas, talent or products. It emphasises the significance of traditional trade,
crafts and practices; necessitating their revival and fostering livelihoods. From ancient civilization to colonial times to
modern history, it reminisces of the many influences that define Sri Lanka’s roots.

The Tourism Vision 2025 promotes a sense of place and belonging and a voice for every community. It provides a
platform to share the stories of Sri Lanka and Sri Lankans with the rest of the world. It can help create a culture of
mutual respect for all beings – humans and animals alike. The concept also resonates with wider civic pride, national
unity and social inclusiveness. Everyone has a responsibility and everyone can be a part of this journey. The Tourism
Vision 2025 will help to build economic, social, environmental and local community capital throughout Sri Lanka - the
quadruple bottom line.

There is an obvious strong literal link to flora, trees in particular. Sri Lanka will adopt strong green principles to
actively reduce carbon emissions and confront the climate change challenge. This is also in line with the COP21
Agreement, which Sri Lanka is party to.

Blessed with natural and cultural assets, Sri Lanka has many competitive advantages for tourism. However, to
effectively stand out in a world rich with destinations that are becoming more vulnerable and commoditized each
year, Sri Lanka needs a renewed philosophy and approach. The guiding philosophy sets direction for Sri Lanka’s
tourism industry; steering tourism planning, development, investment and promotion in order to enhance Sri Lanka’s
competitive advantage in the global context. In itself, this is not a marketing strategy or advertising campaign.
However, it will provide a context of legitimacy and credibility while appealing to the appreciative visitor.

On the demand-side, global consumer trends show a growing inclination for the local, the authentic and the
ethical, particularly in the higher value or luxury segment. Health, justice, security, environmentalism and
sustainability are emerging as key values for the millennial generation. The concept emphasises the principles of
embracing Sri Lankan-ness, highlighting authenticity and facilitating responsible business. It strengthens Sri Lanka’s
offering as a destination for niche and premium experiences. It will provide Sri Lanka with a distinct positioning and
drive the transition into upscale tourism. Just as much as a point of difference, it sets a point of relevance for today’s
conscious traveller. The idea of Barefoot Luxury is also endorsed here, which espouses the richness and authenticity of
experience over materialism. In fact, the luxury of space, time and connections are fast becoming sparse commodities
today and what consumers are increasingly seeking, particularly when on vacation.

Just as ‘Eco-Tourism’ became synonymous with Costa Rica, Sri Lanka will exemplify this philosophy and principles. As
an ideology that promotes a strong sense of people and place, it has the potential of gaining international recognition
and practice even in other parts of the world. It encourages destinations to maintain their unique environment
and identity for generations. Visitors are able to experience authenticity, rather than replication and homogenous
locations, which is in turn of greater value and interest to travellers.

9
 PRINCIPLES

>> TO VIEW TOURISTS AS ‘VISITORS’ IN SRI LANKA

The reference to ‘visitors’ rather than ‘tourists’ is purposeful as it infers they are guests and thus signals the
positive welcome and warmth expected from the host community. It also acknowledges people both domestic and
international who are visiting for a range of reasons such as for business, medical and conferences, rather than
exclusively for leisure. To note, travel innovation is not just about technology; it is the creative ways to enrich visitor
experiences and people’s lives.

>> TO PO S I T I O N S R I L A N K A AS A ‘ H I G H E R VA LU E ’ D E S T I N AT I O N A N D D E M O C RAT I S E E C O N O M I C
PA RT I C I PAT I O N I N T H E TO U R I S M I N D U S T RY
Striving for a larger volume of tourist arrivals comes at a price to Sri Lanka’s resources. Every aspect of tourism must
transition into creating higher value; quality not quantity; and with minimal cultural and environmental impact.
This prevents the risk of Sri Lanka’s tourism offer becoming commoditized and averts a deterioration of social and
environmental assets and principles. It will also help ensure the tourism sector becomes the vanguard in improving
economic inclusiveness among all Sri Lankans. The inclusive agenda, community involvement and fair trade also
resonates with upscale visitors. Most importantly, value should not be viewed solely in a monetary sense; but value in
terms of experience, authenticity, diversity, sustainability, green credentials, health and safety, community, etc. This
is increasingly important in today’s experiential and sharing economy.

>> TO E N S U R E P R E S E R VAT I O N A N D W O R L D C L AS S M A N AG E M E N T O F S R I L A N K A ’ S AS S E TS
It is essential for Sri Lanka to conserve and leverage its assets in order to generate higher yield for the country by
adding value and growing the earning potential of its natural, historical, cultural, religious and social diversity.
Therefore policies, guidelines and codes of conduct associated with urban planning, agriculture, ecologically
sensitive locations, sustainable use of environmental resources for development, animal welfare policies, as well as
sustainable waste and energy management are critical.

The strategy will strive to redefine boundaries of how tourism subjects are viewed – to link other industrial
and commercial sectors to tourism through public and private sector partnership models related to training,
development and promotion. It is vital that the interconnectedness of government policy be recognised in the
management of Sri Lanka’s natural, historical and cultural assets.

>> TO C R E AT E M E M O RA B L E E X P E R I E N C E S W H I C H A R E RO OT E D I N S R I L A N K A A N D I TS H E R I TAG E
The aim is to develop and market experiences, not specific venues or locations. Influenced by the millennial
generation, consumers want to spend money on experiences that enhance their lives. More travellers are also looking
beyond a ‘place’ to holiday and are led more by their hobbies and interests. This demand side trend is of primary
importance when considering developing the brand of a destination as well as the economy of the local tourism sector.
It must be emphasised that the purpose of regulation and codes of conduct are not to standardise experiences, but to
ensure consistency of product, sustainability of delivery and credibility of marketing. It will also ensure stability for
both planned and organic tourism investment.

Foreign attractions and destinations need not be replicated in Sri Lanka. Instead, the necessary learning and case
studies should be taken from other countries and utilised to develop authentic experiences rooted in the Sri Lankan
context of natural and cultural heritage. It is also misguided to believe that every experience needs to be large-scale
and elaborate. Meaningful and natural interactions can create the most memorable of moments.

>> TO DISPEL MISCONCEPTIONS ABOUT SRI LANKA

It is essential for Sri Lanka to dispel the misconceptions that it is unsafe, and that it is a seasonal and round-trip-only
destination. These ideas became entrenched when the country was not entirely accessible due to the conflict areas
and also when bygone travellers’ main attraction was solely the sea and beach. There are specific times to see marine
life or surf on certain coasts or experience events and festivals, but Sri Lanka is and must be promoted as a year-
round destination (see table on Page 24).

10
Strategic Direction

VISION

To be the world’s finest island

for diverse, authentic and
memorable experiences

MISSION

To be a high value destination

offering extraordinary experiences
that reflect Sri Lanka’s natural
and cultural heritage, and which
drive economic benefits to
communities and the country
that are socially inclusive and
environmentally responsible

11
 GOALS

Increased visitor arrivals alone will not deliver the desired product, investment and market diversification that
is necessary to both grow the value of tourism to Sri Lanka’s economy and to ensure it benefits the country in an
equitable manner.

The following sets of goals aim to provide a transparent results framework that will drive actions towards achieving the
Vision 2025. Specific targets need to be set to ensure close monitoring and evaluation. Progress will be reviewed in 2020
and the goals re-evaluated if necessary. Further research and due analysis of data is required to establish measurable
baselines, which will take place during the consultation phase and feed into the strategic action and implementation
plan. Some gaps have been identified here.

From a macro-perspective, the 2025 goals are to increase foreign exchange earnings, raise overall employment
and skill levels and grow Foreign Direct Investment (FDI), whilst ensuring sustainability of Sri Lanka’s natural and
cultural assets.

ECONOMY

2025 GOALS R E S U LT S S TAT U S G A P A N A LY S I S

Tourism to be Increased contribution to GDP from In 2015, tourism ranked as #3 Baseline exists,
Sri Lanka’s #2 net travel and tourism sector foreign exchange earner for Sri but further
foreign exchange • Increased daily spending per Lanka’s economy, earning US$ 2.98 research needed
earner international visitor billion. Ranking above were foreign to verify the
• Increased average length of stay remittances and the apparel sector. baseline.
Increase in FDI to per visitor
be cumulatively • Increased occupancy outside The daily spend per overseas tourist Improved clarity
generated from conventional ‘peak seasons’ was US$ 164 and average length of of economic
Sri Lanka’s • Increased local and foreign stay was 10 days. The average room linkages to the
tourism industry investment in tourism occupancy rate was 74.5%.7 tourism industry,
• Increased connectivity within as which may not
well as to and from Sri Lanka The travel and tourism sector was be reflected in
• Increased linkages with other estimated to directly contribute 4.8% current reporting.
industrial sectors such as to Sri Lanka’s GDP in 2014 or 11.1%
manufacturing, design, crafts, if wider indirect and induced effects Data must be
agribusiness, etc. for value addition are included.8 captured on the
and increased productivity rapidly growing
FDI into Sri Lanka in 2015 was ‘informal’ and
US$ 681 million, and the tourism ‘partly registered’
specific investments are estimated at tourism
accounting for 20%.9 enterprises
operating in the
Sri Lanka is served by 27 airlines country.
connecting 25 countries to the island.
Passenger volumes have surged,
reaching 7.8 million in 2014.10

7
SLTDA Annual Statistical Report 2015
8
World Travel and Tourism Council: Sri Lanka Country Report 2015
9
Source: Board of Investment of Sri Lanka
10
Options Study for Private Sector Participation in the Development of the Domestic Airports Sector in Sri Lanka, ICF Consulting Services Hong Kong

12
 PEOPLE

2025 GOALS R E S U LT S S TAT U S G A P A N A LY S I S

Tourism and Increased tourism employment As at end 2015, direct employment Certain
its supporting and economic participation in each in the tourism sector was estimated baselines must
industries to province as well as improved standards at 135,930 people while indirect be established,
employ 1 million and skills employment was 183,506.11 especially related
Sri Lankans, • Increased number of people to women and
including employed in the tourism sector, According to the World Travel and skill categories
doubling especially women Tourism Council: Sri Lanka Country in the travel and
the number • Increased number of jobs available Report 2015, the travel and tourism tourism sector,
of women in specialist hospitality categories sector supported approx. 350,000 also the number
employees • Increased number of accredited jobs. The total contribution of the of SMEs.
institutes offering tourism-related sector, including indirect jobs, was
courses and with more students estimated at 800,000 or 10% of total New data and
graduating employment. trend analysis
• Increased number of tourism- will need to
related SMEs registered nationally, In 2014, women were estimated to be conducted
particularly women-owned account for approx. 8% of those including
• Increased number of tourism formally employed in the tourism behavioural
outreach programmes organised sector.12 mapping and
by SLTDA, including consultations, perception
mobile registration and training Only 10% of employees in the studies.
• Improved wider community tourism sector have had some
representation and engagement technical training (i.e. formal or
in tourism informal Technical and Vocational
Education and Training).13

EXPERIENCES

2025 GOALS R E S U LT S S TAT U S G A P A N A LY S I S

To entrench Transition to creating more At present, data related to repeat Baseline to be

ownership of extraordinary visitor experiences as visitors to Sri Lanka and the established
the guiding well as improved connectivity and average length of stay per region for different
philosophy accessibility to and within Sri Lanka are not collated. experiences and
and support • Improved experiential tourism capacity limits
world-class infrastructure and management As at 6 May 2016, there are 807 including return
management capacity, which includes transport travel agencies registered with on investment
of Sri Lanka’s options SLTDA and a handful of specialist studies on
natural and • Established portfolio of rooted companies specifically marketing resources.
cultural assets signature tourism experiences Sri Lankan experiences.
• Increased number of repeat visitors
to the country and specific locations Experiential tourism is
• Increased visitor dispersal packaged and promoted on an
throughout the country individual service provider level.
• Increased community-led tourism Infrastructure and capacity for
initiatives development of related activities
are not in place.

11
Sri Lanka Tourism Development Authority Annual Statistical Report 2015
12
‘Women’s Employment in the Hotel Industry – An Exploratory Research into Focusing on Women Currently Employed in the Hotel Industry’,
S.A. Nanayakkara, University of Colombo, Masters Thesis, September 2015
13
The Skills Gap in Four Industrial Sectors in Sri Lanka, International Labour Organization, 2015 (Data from Department of Census and Statistics
Labour Force Survey 2004)

13
 PROMOTION

2025 GOALS R E S U LT S S TAT U S G A P A N A LY S I S

Sri Lanka Improved destination perception Sri Lanka is ranked #60 in Accurate data
positioned as and branding among international FutureBrand’s Country Brand Index system for
THE island for and domestic tourists with a focus on 2014-15. calculation of
diverse authentic source markets and target segments visitor segments
experiences within the country In 2015 there were 13 international to be made.
• Increased recognition and strength hospitality brands entering and
of city brand Colombo and country operating in Sri Lanka.14
brand Sri Lanka
• Increased number of strategic In 2015, the Meetings, Incentives,
international travel and tourism Conventions & Exhibitions
brands in the country (MICE) segment in Sri Lanka was
• Increased investment into market guesstimated at around 150,000
research and innovative destination visitors.15
marketing
• Increased number of MICE and events
with international interest in Colombo
and attendance by overseas visitors
• Enhanced levels of consistent quality
communications of destination
Sri Lanka

ENABLING ENVIRONMENT

2025 GOALS R E S U LT S S TAT U S G A P A N A LY S I S

To strengthen Improved capability and efficiency of The 1968 Tourism Act was repealed Determination of
institutional Sri Lanka Tourism with strong working and replaced with the 2005 revenue streams
resilience and relations across and throughout Tourism Act. As at May 2016, the in the tourism
governance of government accommodation classifications have system as well as
Sri Lanka • Introduction of key policies, been gazetted, but not the other identification of
tourism guidelines and mechanisms for tourism regulations, which were improved and/
environmental preservation, reduced originally under the 1968 Act. or alternative
To ensure carbon emissions and eco-friendly revenue streams
effective practices in tourism As at 6 May 2016, there are 2,295 are required.
tourism asset • Upgraded institutional policies and places of accommodation registered
management processes with the SLTDA.16 There are over
at local and • Introduction of mechanisms for better 5,300 properties in Sri Lanka listed
national level inter- and intra-government working on Booking.com.
• Introduction and enforcement of
tourism-related legislation and As at May 2016, there are
guidelines perceptions of weak oversight and
• Increased number of establishments poor mechanisms of working across
registered with SLTDA and continued government.17
monitoring
• Enhanced research and data analysis Sri Lanka was ranked #63 in the
for government and industry World Economic Forum (WEF)
decision-making Travel & Tourism Competitiveness
• Increased number of public-private Index 2015.
partnership projects in tourism

14
As at May 2016, the international hospitality brands in Sri Lanka are Aman, Anantara, Best Western, Centara, Hilton, Hyatt, ITC, Marriott,
Movenpick, Riu, Sheraton, Shangri-La, Taj.
15
Source: Sri Lanka Conventions Bureau | 16 Source: SLTDA
17
During discussions, 90% of resource persons, including government officials, raised issues related to institutional capacity and industry governance.

14
Enhancing Demand
Successfully transforming Sri Lanka’s tourism sector depends on an in-depth understanding of the global travel
and tourism market. Detailed trend analyses will be conducted for the strategy to gain insight into the different
geographical markets and the segments within them. The key questions in the demand analysis are two-fold: which
segments have most value and who is responsible for creating the market linkages. Certain markets, such as China,
require a greater government role in creating market linkages. Nevertheless, the private sector’s role is becoming
more significant in marketing efforts, particularly as visitors seek ‘experiences’ over ‘locations’. Selection of target
segments and markets should be a fluid exercise as it is heavily influenced by world economic trends, air connectivity,
global security and other uncertain factors.

M A R K E T S E G M E N TAT I O N

Visitors to Sri Lanka can be segmented in several ways including interests, demographics and purpose of travel.
The practice of attracting everyone and thus catering for everyone is not beneficial, nor sustainable for Sri Lanka in the
long term. The exception is the capital city of Colombo and Western Megapolis region, which will cater to all segments
of travellers.

The domestic visitor has been the backbone for the tourism industry during challenging times. They can continue
to do so especially in this transition stage for Sri Lanka’s tourism growth cycle. Domestic visitors can generate visitor
spending during lower season months and stimulate travel to less well-known areas. For visitors from overseas, it is
essential to have an understanding of the visitor who will appreciate Sri Lanka’s authentic and diverse experiences and
in turn, what can be done to enhance the experience for those visitors. The guiding philosophy supports responsible
management of Sri Lanka’s assets, whilst appealing to the most appropriate visitors for Sri Lanka.

The rationale is to target travellers based on their interests as well as their countries of origin. The profile of the
traveller Sri Lanka is striving for is one who feels a sense responsibility towards a place and its people. These visitors
enjoy true-life encounters, appreciate learning experiences, seek adventure and they want to engage in niche pursuits
available in Sri Lanka. A common attribute for all segments is the prerequisite of value for money. This profiling and
segmentation is additionally important for destination marketing when communications may need to be tweaked or
amplified based on the target audience. Potential key market segments are mentioned below, which will be further
analysed in the detailed strategy.

15
 Aged around 50+, post retirement travellers who are
less affected by market downturns and with more
Corporates and people who organise disposable income and leisure time. They are after
and attend MICE events. Business more value-added and comfort services (e.g. escorted
travellers tend to be less cost- tours, luggage handling, customised travel, cruises,
sensitive and many extend their etc). The over-60s constitute the fastest-growing
business trips for leisure. They group in the populations of wealthier countries. They
may also travel with families. This are in an exploratory phase in their lives and interested
segment is particularly important for in seeing new destinations. Some may have ties to
developing Colombo as a regional hub. Sri Lanka through their personal or professional lives.

People of Sri Lankan origin

living abroad who wish to
visit family, reconnect and
possibly seek investment
opportunities in Sri Lanka.

MICE GREY
MARKET

EXPERTS DIASPORA

NATURE
& CULTURE MILLENIALS
VULTURES

Members of the
academic community
who are interested in
specific Sri Lankan or
Asian natural and cultural
heritage as well as wider Aged 18 to 34, they are more likely to
learning experiences. make purchases in support of a cause (e.g.
environment or social), they are content
creators and users, and they are keen on
experiences, travel and adventure. Unlike
Enthusiasts for nature,
previous generations, they also want to spend
the outdoors, both modern
and are willing to spend on travel because they
and historic cultural
consider it an important aspect of life, and do
experiences. They may
not wish to save and wait for retirement to
travel in groups or as family
spend. Sri Lanka’s proposition as an authentic
units. The guiding philosophy
and diverse destination with a number of
resonates most with this
exciting pursuits appeals to them.
group and the millennials.

16
SOURCE MARKETS

In 2015, the top source markets to Sri Lanka were China, India, UK, Germany, Maldives, France, Russia, Australia,
USA and Japan. India, China, UK and Germany accounted for 45% of the arrivals volume.18 Further research must be
conducted to better understand, promote and tailor the product and services to these markets. It must be noted that
markets are not stagnant and highly influenced by a wide range of macro factors and trends such as natural disasters and
currency fluctuations. Different source markets offer varying opportunities and requirements if they are to be targeted
as part of a strategy. The Tourism Vision 2025 strives to ensure that each market segment is offered the most appropriate
product that meets their specific demand, whilst staying true to the guiding principles. The following examples illustrate
how different source markets need different strategies:

NORTH AMERICA

Given the long haul and multi-stop travel required, this is a

niche market for Sri Lanka, with focus in the luxury segment
or for specific experiences. There is a considerable diaspora
residing in the US and Canada, many who already travel to
the island to visit family and friends. Key trends in the US
leisure travel market include a rising interest in authentic
trips, adventure holidays, an increasing focus on health and
wellness and culinary tourism19 – themes that are particular
strengths for Sri Lanka. North America is the largest outdoor
market and the biggest representative of the global Adventure
Travel Trade Association (ATTA) offering culture and nature-
based adventure tours worldwide. The affluent adventure
traveller generally uses a reliable and reputable agency in
North America and being included in the product offering of
these companies should be a priority for Sri Lanka.

INDIA

The United Nations World Tourism Organization (UNWTO) predicts

that India will account for 50 million outbound tourists by 2020.
While business travel, holiday and trips to see friends and family
dominate outbound volumes, people are also opting for niche
experiences like sports tourism, MICE, honeymoon packages and
cruises. With close proximity, strong connectivity and cultural
commonalities, India is a key growth sector for Sri Lanka, especially
for Colombo, the MICE category and long weekend getaways whilst
being an essential contributor to reducing seasonality.

AUSTRALIA

This is a growth sector given its familiarity and strong links

with Sri Lanka. The guiding philosophy can be a draw for
the adventurous and active Australian who prefers culture,
heritage, nature and sports when on holiday. September is
a peak holiday travel month for Australians.20 Pioneering in
spirit, young Australians can be attracted to new tourism
destinations such as in Sri Lanka’s Eastern and Northern
Provinces, and should be encouraged to share their
experiences on social media to create market awareness.

17
 CHINA

As seen in 2015, China is the largest international tourism source market for most destinations in the
world. Given China’s strong infrastructure development drive in Sri Lanka, the country’s presence and ties
are strong here. The concerns of air pollution and overcrowding
in China are a more compelling reason for those with the means
to travel abroad, and this can be rooted in Sri Lanka’s competitive
advantage. Chinese New Year and the National Day Golden Weeks in
February and October are good months to promote to the Chinese
market, which have usually been lower occupancy months for
Sri Lanka. Chinese visitors are the highest spenders on retail, but
Sri Lanka should tap into the share of luxury experiential spending.

MIDDLE EAST

Forecasts from the UNWTO suggest a substantial increase in outbound

tourism from the Middle East, projecting some 35 million tourists travelling
to overseas destinations by 2020. Emirates-based travellers tend to go on
long trips with their families, with an average trip lasting 14 nights. They are
typically brand conscious and status orientated, making specialist destination
branding key to attracting this upscale market.21 Attracting a relevant brand
operator would help gain traction in this brand conscious market segment.

EUROPE

Western Europe has been a longstanding source market for

Sri Lanka. The mature status of the market creates a high
number of independent travellers likely to book different
destination facilities themselves whilst exploring smaller, unique
accommodation and service providers. European travellers are
seeking real experiences in non-traditional destinations and are
keen on life-enhancing encounters and interacting with the local
people. European consumers, particularly western and northern,
are increasingly concerned with sustainability. Europe is the
largest wellness tourism market and within Europe, it is Germany,
France and the UK who are the largest markets for wellness tourism.22 In addition, Sri Lanka has a
competitive edge with historic ties and influences as a former colony of the Portuguese, Dutch and British.
The guiding philosophy has a distinct appeal for the European market.

SOUTHEAST ASIA

A prospering middle class with growing urbanisation increases

the tendency to travel abroad. This is a development that is most
synonymous with the Southeast Asian economies. With several short
haul low budget flights available, travel around the region, including
to Sri Lanka, is increasingly accessible. Twin promotions with
neighbouring countries can be beneficial and should be explored.

18
Source: SLTDA | 19 ITB World Travel Trends Report 2015/2016, prepared on behalf of ITB Berlin
20
Australia Outbound Travel Trends, December 2015, Stark Tourism LLP
21
Source: Centre for the Promotion of Imports from Developing Countries (CBI)
22
ITB World Travel Trends Report 2015/2016, prepared on behalf of ITB Berlin

18
Source: World Bank Group and SLTDA
*

19
 Optimising Supply
DELIVERING EXPERIENCES

Increasingly tourism, particularly high value tourism, is driven by experiences. These need to be experiences that are
authentic, inspirational and memorable to the destination. As such they will help drive demand across a range of market
segments – from millennials to speciality groups and domestic to international travellers. Growth needs to continue
beyond existing source markets within Asia, the Middle East and Europe to find new and emerging regions. A key trend
driving the future of luxury travel is the shift in values from the material to the experiential.23

The six categories of experiences

identified are rooted in Sri Lanka’s
assets and centred around catering
to the target market segments and
source markets. They are each able to
generate tourism revenue and can serve
as independent drivers of visits – both CULTURE NATURE
domestic and international. The appeal of
these experiences – and of the island – is
that they can be combined and together
serve as another accelerator to move Sri
Lanka to a new level of tourism revenue,
more upscale, and expand development.
WATER TRADE
A fundamental fact here is that many
of the experiences – namely nature,
water and trade – are not static. They
are continuously under pressure from
economic and environmental influences
and their utility to other industries. This
vision strongly advocates an approach
of active and responsible management SPIRITUALITY URBANITY
of the resources that are at the core
of all six experiences. It also supports
diversifying and optimising prime
destinations to serve as models for
tourism development in the future.

Broad stakeholder collaboration is required to protect and develop natural resources so that the country can balance
carrying capacity and the demands of other uses alongside revenue and diversification potential from tourism. Likewise,
greater collaboration is required to achieve the best end-to-end customer-centric visitor experience because the journey
is as much of a focal point as the destination.

Elements of education and learning are emphasised under each experience. This is because learning a skill – be it
nature or culture based – is a memorable moment, a journey in personal growth and a story retold on many an occasion.
According to TripAdvisor research, travellers are seeking new experiences: ‘learning something new’ and ‘trying
something new’ are cited among the top five influencers when making travel plans.24 Therefore research hubs, nature
and craft centres, museums, adventure sports facilities and recreational culinary schools will be encouraged. In addition,
certain experiences are to be offered and promoted as signature or rooted experiences unique to Sri Lanka.

23
Shaping the Future of Luxury Travel – Future Traveller Tribes 2030, Tourism Economics 2016
24
TripAdvisor TripBarometer Travel Trends 2016

20
 E X P E R I E N C E C U LT U R E

The nation, its people and its customs are firmly rooted in a rich cultural diversity and history that has, and will continue,
to form the basis of a well-established tourism experience. With six cultural UNESCO world heritage sites, countless
archaeological sites, forts, museums, galleries and agricultural and village systems steeped in tradition, Sri Lanka has
a geographically concentrated product that is driven by a wide variety of cultural experiences. These include: festivals,
sport, folklore, destination weddings, indigenous communities, Sri Lankan family life and home stays. Food has an
unrivalled ability to communicate a unique sense of place and the flavourful Sri Lankan cuisine is no exception. The
enjoyment of Sri Lankan cuisine with its many influences, indigenous ingredients, colourful cooking, street eats and
colonial-inspired food, is a signature experience in the country.

Sri Lanka’s cultural roots have domestic and international appeal. Culture is a big lure for any destination,
TripAdvisor travel trends reveal.25 Conscientious visitors representing a growing share of upscale travellers want to
connect with the local community; they seek cultural connection and immersion. Heritage and prestige are hallmarks
for a luxury brand. Sri Lanka has an ancient recorded history dating over 2,500 years and authentic culture, which
make it a timeless destination for deep travel that is rooted in the country’s origins and its present identity. Travellers
are also hungry to explore behind the scenes of any given destination, and they’re using culturally specific food to
discover destinations.

EXPERIENCE TRADE

Given its central location on the maritime route between the East and West, Sri Lanka was and continues to be an
important trading hub. The ancient business along the Spice Route that drove a dynamic trade in tea, coffee, rubber,
coconut, seafood, spices and gems, that still continues today in other forms, is being transformed in the travel space
into agri-tourism, artisan villages and trade fairs, retail-driven travel, historic exploration and excursions, and education
linked to precious stones. Whether on a farm or in the city, learning about tea and cinnamon, watching craft making
or shopping for gems; collectively, these experiences are rooted in a form of trade that has flourished for thousands of
years in Sri Lanka. There is great potential to expand this experience by supporting cottage industries and ‘greening’
traditional trade.

Trade is an opportunity yet to be fully leveraged in Sri Lanka. It is an important experience because of its sphere of
influence and its direct revenue earning potential among a range of communities. It also ties closely with travellers’ desire
for new learning experiences.

25
TripAdvisor TripBarometer Travel Trends 2016

21
 E X P E R I E N C E N AT U R E

Sri Lanka’s biodiversity is considered to be the richest per unit area in the Asian region with regard to mammals, reptiles,
amphibians, fish and flowering plants.26 Sri Lanka’s natural heritage of varied tropical forests, wetlands and unique
ecosystems are the hosts to this diversity. Nature is a traditional tourism offer in Sri Lanka rooted in the flora and fauna
of the country and its landscapes. The country has two natural UNESCO world heritage sites – the Central Highlands
and Sinharaja Rainforest – as well as numerous national parks, reserves, sanctuaries, forests and botanical gardens. The
nature experience includes: Safaris and wildlife appreciation, bird watching, treks and nature trails, recreational and
adventure sports, learning at nature research centres, camping and eco-friendly accommodation. Sri Lanka may not have
the wildlife found in classic safari destinations such as in Africa, but the density and the combination of a ‘beach and
bush’ experience within or near the national parks is in a league of its own, particularly in the Asian sub-continent, and
can be promoted as a signature rooted experience.

Nature is a high growth segment of the international market and provides a contrast to the increasing urbanization
of many of Sri Lanka’s source markets. Varying degrees of access and interaction with the flora and fauna can be
managed to create revenue tiers that drive market segmentation, and will contribute towards a push upscale. The value
proposition of Sri Lanka’s offer is anchored in its less-exploited and authentic offer. Going forward there is significant
space to further segment into niche pursuits such as bird watching (avitourism) and learning-based vacations that are
independent or linked to academic and medical research. This experience is also sought after by the domestic tourist
and for educational purposes.

EXPERIENCE URBANITY

Colombo is rich in colonial history, fascinating architecture, archaeological sites and public green spaces. With the
Western Region Megapolis Planning Project’s transformation of Colombo and its surrounding districts, the city is
destined to be THE City of the Indian Ocean. The aim is to make Colombo an attractive and affordable place to live,
learn, work and enjoy. A thriving capital city will build Sri Lanka’s brand, which will in turn support endeavours to
attract reputable investments to the country. For the urban-based visitor experience, greater variety in dining, nightlife,
events, retail, city recreation and architectural appreciation are required. In addition to Colombo, other locations such
as Kandy, Jaffna, Hambantota, Trincomalee and Galle have great urban potential and will become significant cities in
their own right, each with distinctive cityscapes. This can be coupled with a more established and growing domestic and
international MICE segment.

City trips soared by 82% between 2007 and 2014 to reach 22% share of all holidays.27 The significance of city trips is that
they tend to promote off-season travel. The three most popular activities for the MICE traveller are sightseeing, dining
and arts/culture. The night economy in urban areas needs to be developed further through suitable policies, regulations
and promotions.

26
Sri Lanka’s Fifth National Report to the Convention on Biological Diversity 2014, Biodiversity Secretariat, Ministry of Environment &
Renewable Energy
27
ITB World Travel Trends Report 2015/2016, prepared on behalf of ITB Berlin

22
 EXPERIENCE SPIRITUALITY

“I have not other desire, since I have arrived on this island, but to visit the illustrious foot of Adam” (Ibn Batuta, the Moor
from Tangier, 1344, A.D.)28 From thousands of years before the explorer Ibn Batuta to the present, visitors are drawn
by a spiritual energy in the island. Kataragama, Nallur, Adam’s Peak and the Madhu Church in Mannar are examples of
mystical places of inter-faith worship visited by Buddhists, Hindus, Christians and Muslims alike. In addition to these and
being the home of Buddhism, a number of distinct temples and seminal sites draw wide interest and present Sri Lanka’s
spiritual side. Religious trails and studies, meditation retreats, healing centres and hermitages for different religions
and wellbeing are widely available. Holistic medicine and traditional therapies have been practised in the country for
generations, while in recent times Ayurveda treatments and spas have become popular as a tourist experience provided
by hotels and operators.

The global spa and wellness industry is fast growing and was estimated at $ 3.4 trillion in 2013.29 Spirituality, health and
wellness appeal to the higher value customer who is willing to spend more to renew and relax. Whether baby-boomers or
the upwardly mobile who are seeking an escape from their fast-paced jobs, many are driving the trend toward restorative
holidays for mind and body. Alternative and traditional medicines have also gained popularity as consumers opt for a
multi-pronged approach to health and a substitute to the conventional medical community.

E X P E R I E N C E WAT E R

As an island with the Laccadive Sea to the West, Indian Ocean to the South and the Bay of Bengal to the East, Sri Lanka
offers countless tourism experiences that are rooted in water by the coast. These include: the traditional sun and sea
experience with the added benefit that many of Sri Lanka’s beaches are secluded and not overcrowded. Yet Sri Lanka
has the added advantage with abundant inland waterways, lakes and tanks. This is the result of the island’s history being
centred on a hydraulic civilisation, which utilised the geography with rivers originating in the central hills and flowing
down and out toward the sea, creating unique ecosystems and landscapes. Successive monarchies and colonial powers
harnessed the landscape for irrigation and transport. White water rafting, recreational fishing, kayaking, canoeing,
educational experiences centred on ancient irrigation systems, lake and lagoon boating and mangrove safaris provide
a present and future complement to a leisure-driven holiday. Moving offshore, the adventure increases with scuba and
wreck diving, water sports such as surfing and kite surfing (with high potential to host more international events), sailing
and yachting, deep sea fishing, mini cruises and island tours, and the more traditional fishing community experience.

The majority of accommodation supply is found along the coast and most visitors have sought a beach experience in Sri
Lanka. As a staple driver of demand, water based experiences in Sri Lanka focused on beaches have significant potential
to expand given the nascent stage of scuba, surf and sailing and the yet to be developed markets of sport fishing, lake and
lagoon boating and island tours. Many of these water experiences have the ability to be combined with other experiences,
particularly MICE tourism, thus encouraging extra days added to business, conventions and academic trips.

28
H.A.J. Hulugalle (1965), Ceylon of the Early Travellers
29
Global Spa and Wellness Economy Monitor Report, 2014

23
 The variety of experiences further enhances Sri Lanka’s positioning as a year-round destination, thereby countering
seasonality and its operational challenges. The table below illustrates this point, but is not meant to be an exhaustive list.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cultural Heritage Site Excursions
Religious Trails & Festivals B B B B B B B B B B
Adam’s Peak Pilgrimage B B B B
Spiritual & Wellness Retreats
(Meditation, Yoga, Healing, Spa Therapy)
Plantation Excursions (Tea, Coconut, Rubber,
Cinnamon, Spices, Rice, etc.)
Village Lifestyle Experience P P
Sri Lankan Culinary Experience
National Parks Safari
Bird Watching B B B B B
Whale And Dolphin Watching B B B B B
Turtle Watching B B B B B
Rainforest Excursions
Beach Fun (Non-Swimming)
Water Sports (Jet Skiing, Water Skiing)
Snorkelling, Scuba Diving & Wreck Diving
Deep Sea Sport Fishing B B B B B
Surfing B B B B B
Windsurfing
Kite Surfing B B B
River Safari & Inland Fishing
Sailing (Inland & Ocean)
Kayaking (Mangroves & Lagoons)
White-Water Rafting B B B B B
Camping, Trekking & Hiking
Rock Climbing
New Adventure Sports
Cycling, Trail Biking & Mountain Biking
Hot Air Ballooning
Sport (Especially Cricket, Golf) C

EXPERIENCE BEST ENJOYED IN THE EAST

EXPERIENCE BEST ENJOYED IN THE SOUTH AND WEST

EXPERIENCE CAN BE ENJOYED ALL YEAR ROUND

B BEST TIME FOR EXPERIENCE, FOR EXAMPLE PARTICULAR CULTURAL AND RELIGIOUS FESTIVALS, NATURE SIGHTINGS

P PADDY HARVESTING SEASON

C SCHOOL CRICKET SEASON

24
S PAT I A L P L A N N I N G

Land is a limited resource and thus spatial planning is critical. Tourism is an activity produced and consumed
simultaneously within a spatial context. It is here, at the destination level, where tourism needs to be managed and
which requires careful planning if the Tourism Vision 2025 is to be achieved.

Five geographical tourism zones are identified that cluster Sri Lanka’s 25 districts. Zoning enables identification
of sensitive ecosystems, conservation areas and lesser-known but significant attractions that can be enhanced and
promoted to manage visitor capacity and increase revenues. This process will in turn, highlight the requirements for
focused policy, planning, implementation and management strategies by all stakeholders toward the delivery of the
Tourism Vision 2025 at any given site or locality. This includes addressing critical aspects of physical infrastructure and
connectivity within the zone and between zones as well as carrying capacity of areas within each zone.

Each zone has several main pull cities or townships and will be multi-dimensional for tourism, offering a range of
diverse and authentic experiences within it. Each zone, except the Hill Country Zone, features the two monsoonal
seasons and is thus able to sustain a more robust tourism economy. With the collaboration of all stakeholders, Sri
Lanka’s product offering can be diversified within each zone. People will have more to do and more to enjoy. Every
zone will be encouraged to develop sites such as public parks, indigenous community neighbourhoods, Royal Craft
Centres, centres for traditional medicine and meditation houses. The objective is to provide a visitor, both domestic
and international, with reasons to travel and immerse themselves within one zone for a longer period of time. Sri
Lanka can then become a longer stay and return holiday destination. Local communities will be able to work in the
hospitality service provision space or engage in relevant entrepreneurial opportunities, for example equipment
servicing, laundry, artisan centres, tours, transport, agribusiness, etc, thus expanding the multiplier effect from
tourism activities within each zone.

Furthermore, ‘Protected Tourism Localities’ and ‘Tourism Economic Areas’ will be demarcated. A ‘Protected Tourism
Locality’ is a protected area that must maintain the authentic look and feel, which has resulted through organic
growth. No large-scale developments are permitted here, except where specifically identified and only to enhance
their unique identity. More stringent environmentally friendly business practices will be endorsed in the area in a
gradual phased process, such as restricted plastic use, waste recycling, renewable energy use, etc. ‘Tourism Economic
Areas’ will be specified around the island where major construction and developments will be permitted in line with
guidelines set by the central and local authorities.

The spatial planning process will strive to be consistent with the 2016-2020 National Physical Plan and also take into
consideration the Strategic Environmental Assessment for Sri Lanka, Provincial Council tourism plans and other
relevant government plans for land use. In particular, the Tourism Vision 2025 advocates the Department of Forests’
objective to achieve 32% protected forest cover and maintaining minimum 65% island-wide green cover, which
includes wildlife parks, sanctuaries, reserves, biological corridors and cultivated plantations.

The spatial planning efforts will emphasise the unique selling points of the country’s tourism zones. Further
research is required on the metrics of attractions, visitors, accommodation, carrying capacity and the potential for
growth. Feasibility-based, localised destination development plans as well as policy evaluations will be carried out
during the strategy consultation process to ensure appropriate developments in each of the zones. High level concepts
are mentioned here (Page 27-29).

25
 Figure 3: Map of tourism zones with key tourist locations

26
COLOMBO
& WESTERN MEGAPOLIS ZONE
Colombo will be positioned as THE City of the
Indian Ocean, a cosmopolitan capital city that
is filled with local and international sights and
sounds in green surroundings. The Western
Region Megapolis Planning Project has identified
optimal urban land use, including tourism and
recreation locations. This project will pave the
way for creating a capital city and region that is
modern yet uniquely Sri Lankan.

The commercial Colombo Port City hub with

a large marina and nearby passenger cruise
terminal as well as the BIA Airport will serve as
attractive gateways to the country. Colombo’s ‘old
city’ – the historic Colombo Fort – will be a
conservation precinct with magnificent heritage
HILL COUNTRY ZONE
buildings restored for reuse as public spaces,
The cooler climes and salubrious qualities of the
boutique accommodation and retail outlets. Also
hill country position this zone as a refreshing
enhanced as a ‘Protected Tourism Locality’ will
getaway with numerous outdoor pursuits and
be the bustling Pettah market with more local
home to tea plantations and horticulture. Heritage
street food choices. ‘Downtown’ Colombo, located
properties in the hill country will be preserved
at the Beira Lake waterfront, will see a hive of
and adaptively reused to not only showcase the
mixed recreational activity. Different quarters will
heritage of the tea industry, but to also allow
breathe life in the city such as a Cultural Quarter
visitors to enjoy the corresponding lifestyle.
surrounding the National Museum and Nelum
Integrated hill country tourism projects are to
Pokuna in Colombo and extending to Apé Gama
be explored as pilots that will endorse the core
community village; the Nature Quarter in Kotte
tourism principles. Possibilities of developing
and urban wetlands; the world-class Transport
a domestic airport and the proposed Northern
Museum in Ratmalana; a theme park; and pockets
Highway are expected to ease access to this zone.
of already developed public parks and leisure
areas. Colombo’s beaches, marine heritage and
Kandy will be an urban hub for culture. This
wreck diving will be emphasised. MICE hubs will
zone includes the UNESCO World Heritage sites
be developed in central Colombo and close to the
of Kandy and the Central Highlands (Horton
BIA Airport to host a number of internationally
Plains and the Knuckles massif ) as well as Ella,
oriented conventions and events.
which will be a ‘Protected Tourism Locality’
for adventure activities. The potential exists
for developing a mountain golf circuit with the
existing Nuwara Eliya and Kandy golf courses.
A cable car service is due to be constructed
between Nanu Oya and Nuwara Eliya from
which visitors can experience the splendour
of the central massif. The botanical gardens of
Peradeniya and Hakgala will be given an elevated
status, while smaller parks and butterfly gardens
will be set up by local communities to enhance
this garden zone. As with the tea estates, sites
such as the Gannoruwa Agriculture Park, dairy
farms and other farms will be enhanced and
promoted for tourism. There is potential to create
interconnected trails and itineraries for enjoying
the natural and cultural attractions in this zone
such as waterfalls, pristine mountain forests, tea
country including heritage buildings from colonial
times, and ancient travel routes.

27
 S O U T H E R N C OAS TA L ZO N E
This zone is home to the country’s most developed
tourism area along the southwest coast and has
the UNESCO World Heritage sites of Galle Fort and
Sinharaja Forest as well as a number of larger and
smaller national parks. This zone is also home to
the spice industry, rubber, low country tea, rice
cultivation, ancient temples, and rainforests that
are rich in biodiversity and a host of endemic
species. Its captivating topography viewed from
above shows in a lush green with undulating
mountains. It is strong in the forest and water
experience, offering a variety of coastal and
inland recreational opportunities for visitors.
Connectivity will be further enhanced by the
Mattala Airport for domestic and international
A ‘Tourism Economic Area’ encompassing
flights, and the extension of the Southern
Ahungalla, Balapitiya and Ambalangoda will permit
Expressway to Hambantota. Galle is designated as
higher coastal constructions for large-scale tourism
a heritage tourist town, and the fort itself will be a
investments. In contrast, the Arugam Bay stretch
conservation precinct to protect the heritage site.
and Unawatuna Bay, with their authentic seaside
Sections of the Galle Harbour and the Tangalle
identity and culture, will each be a ‘Protected
harbour will be utilised for small marinas with
Tourism Locality’. The Chinese government is to
recreational facilities. Mini marinas already exist
be involved in the southern integrated tourism
or are under construction in Mirissa, Beruwala and
development project in Hambantota. Inland canals
Hikkaduwa.
will be assessed for leisure transport, for short
distances, as well as inland tour routes such as
the spice trail, temple trail, and water trail for
low impact tourism experiences. A designated
area as ‘Cinnamon Country’ for exploring Ceylon
Cinnamon and artisanal crafts will also be created.
With golf courses in Koggala and Hambantota and
another two in the pipeline, a coastal golf circuit is
emerging. The Dedduwa integrated development
project will create a new recreational, residential
and tourism hub neighbouring the Bentota
strip. Yala National Park will be a well-managed
world-class safari hotspot for the bush and beach
experience. New sites of tourism interest will be
protected, enhanced and promoted such as Nilgala
Forest only for camping and trekking; Ratnapura
for a gem industry learning experience; Kanneliya-
Dediyagala-Nakiyadeniya (KDN) forest reserve for
nature excursions and research, and Deniyaya and
Ranna for forest based eco-tourism.

28
 NORTH & NORTHERN ZONE
Developing the tourist infrastructure in the north
will be made a priority given the inability to do
so in the last 30 years. Connectivity to the zone
will be improved with the Jaffna domestic airport,
the Northern Highway, and potential locations
identified for medium-sized marinas.
This zone has the unique feature of several islands
off its coasts, including the islands off Jaffna,
Kalpitiya and Mannar. These marine and water-
based attributes will be celebrated, including
enhancing Kalpitiya peninsula’s status as an
international kitesurfing hotspot.

Mannar Island will be protected for avi-tourism,

potentially with the inclusion of low impact
C U LT U R A L H E A R T L A N D
boutique accommodation and recreation sites.
& EAST COAST ZONE
These incredible islands will allow visitors to
With the UNESCO World Heritage sites of Sigiriya,
experience water-based tourism via boats with
Dambulla, Polonnaruwa and Anuradhapura, this
accommodation and sailing. There will be more
zone is foremost for the country’s cultural
excursion opportunities with island hopping and
experience. Engagement and activities at
day trips, while providing earning opportunities
each heritage site will be enhanced to cater to the
for the local community. The islands will be
expectations of upscale visitors. In addition, there
retained for traditional fishing villages and
will be a drive towards experiential and immersive
communities. Low impact and eco-friendly
travel for visitors to fully enjoy and learn at these
developments will allow for experiencing marine
sites. Existing and new museums and galleries will
life, wildlife, and birdlife, especially during the
showcase the marvels of an ancient civilization,
migratory period, with appropriate tourism
traditions and folklore. Reconstruction of tank
interpretation such as signage, walking tours and
village systems will allow for preservation of
designated day activity locations.
traditional village complexes and development of
the agro-tourism industry in this zone, both of
Selected locations will celebrate the seafood
which are important experiential tourism activities
and culinary traditions in this region. Places
in the region. An indigenous community village
of religious, historic and spiritual interest dot
will be established. The elephant gathering in
the North & North Western Zone, and will be
Minneriya is a signature sighting in Sri Lanka and
enhanced with the establishment of museums
must be protected.
and preservation of heritage buildings. The dense
northern nature sites including Wilpattu National
On the coast, a masterplan for development
Park and Chunddikulum bird sanctuary will be
in Trincomalee is currently being drafted and
available for wildlife and nature experiences
will provide the infrastructure for growth of
rivalling that of the more visited parks in other
neighbouring tourist localities. The plans include
parts of the island.
for a domestic airport as well as a proposed Central
Expressway that will improve access and reduce
travel time to the east coast. The Kuchchaveli
integrated resort development project will be
revived. A small marina and recreational club will
service the area as well as a research centre for
whales and marine life. Great Sober Island will
be preserved as a historic site and sanctuary with
leisure and park facilities to enable day excursions.
This zone will cater to water and land based high
value activities such as deep-sea fishing, sailing and
luxury accommodation by pristine beach expanses.
It is also home to Wasgamuwa and Maduru Oya
National Parks, and Kokilai bird sanctuary, which
can manage specialist visits.

29
 Achieving the Vision
Despite the best intentions and plans, implementation of a common vision for tourism has been a major challenge
in the past. Tourism has therefore remained under-invested, inadequately managed, and not sufficiently linked to
value adding goods and services supply chains. To date, mandated government institutions have been inconsistent and
uncoordinated in their efforts with respect to regulation, planning, development, training and promotion and have
hampered the tourism sector in delivering its potential economic and social returns.

Therefore a significant transformation is

required for the sector to become truly
competitive globally.

The described vision, its guiding principles

under a common theme and the spatial
initiatives to attract a wide scope of
market segments can position Sri Lanka
as a quality destination for visitors and a
beneficial tourism sector for the country.
Fundamentally, Sri Lanka strives to transition
into a higher value destination. The Tourism
Vision 2025 sets a new trajectory whereby
the guiding philosophy, visitor demand and
supply-side experiences are aligned. It is
a crucial time to set direction for this key
economic sector, not only to steer its tourism
growth but also to avoid Sri Lanka reaching a
point of stagnation in its tourism lifecycle.

TO E N S U R E T H E AC H I E V E M E N T O F T H E TO U R I S M V I S I O N 2 0 2 5 , I T I S E S S E N T I A L T H AT :

>> An implementation strategy and action plan with a pragmatic approach is developed in consultation with
stakeholders;

>> Institutional improvements are executed to deliver the strategy, including inter-governmental coordination
and communication;

>> The policies and legal and regulatory framework are reviewed with the aim to improve competitiveness,
streamline investment and business operating procedures;

>> Pilot demonstration projects are initiated that follow the guiding principles and experience offerings;

>> A tourism industry human resources strategy is developed to fulfil the projected demand for qualified tourism
and hospitality personnel whilst addressing the barriers of entry, retention and benchmarking;

>> Government agencies are supported to implement relevant management and preservation of cultural and
natural assets.

>> A long-term targeted marketing strategy is formulated in line with the vision; and

>> Local level integrated tourism development and destination management capacity is planned in pilot locations.

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The government cannot and should not undertake all projects and programmes alone. All stakeholders have a
vital role to play. Tourism is private sector driven and developed, facilitated by government, and rooted in the local
community and environment. Its success hinges on collaborative partnership. All stakeholders are partners to ensure the
successful and responsible implementation of the Tourism Vision 2025:

>> G O V E R N M E N T to lead in creating a conducive environment for the tourism industry to flourish, which includes
setting direction, planning development, acting as facilitator, and enforcing consistent policy and regulation. A key
area to be addressed is connectivity infrastructure to truly leverage Sri Lanka’s comparative advantage. Government
at all levels and across all subjects must fulfil their responsibilities and work in unison toward achieving the Tourism
Vision 2025. The strategy must consider existing and new policies, regulations, governance mechanisms and
destination marketing methodologies.

>> P R I V A T E S E C T O R to responsibly invest in and market different areas of tourism, collaborate with government
in developing rooted experiences, as well as employ, up-skill and fairly compensate the workforce. It must be
acknowledged that the private sector has been the engine of growth during challenging times and it is in their power
to transform the sector working together with the government.

>> D E V E L O P M E N T P A R T N E R S , which includes non-governmental bodies and charitable organisations, must

support and work towards the tourism vision, mission and goals of the government with full engagement of all
stakeholders. This includes support with institutional capacity building, up-skilling the workforce and development
projects. They also have a role to play in the promotion and monitoring of the good governance associated with the
Tourism Vision 2025.

>> W O R K F O R C E to participate fully in the tourism sector, not only in the supply of labour, but also as visitors
and shareholders. The workforce must be motivated to exceed expectations through fair remuneration and
continuous training.

>> C I V I L S O C I E T Y is to partake in achieving the Tourism Vision 2025 by sharing their stories with visitors and voicing
concerns. Local communities can champion tourism in each locality, be visitors and seek partnership opportunities
for key attractions.

>> M E D I A , as content developers and providers, are well placed to share grassroots stories highlighting and celebrating
Sri Lanka’s natural and cultural heritage. They can create awareness about the guiding philosophy and marketing the
destination to both domestic and overseas markets.

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