Q: How do you expect the tourism industry to perform in the next 12 months or so?
A: How effectively the pandemic is managed directly impacts the hospitality sector and tourism industry – locally and globally.

Among the main source markets for Sri Lanka are India and China – both at extreme ends of the pandemic. India is facing another serious second wave whereas China is recovering but its border is still closed.

Meanwhile, Europe – another major market – is expected to review the situation and resume long haul flights from the UK, French and German markets in mid-May, and the Dutch market by the end of June.

Given the uncertainty stemming from the present macroeconomic situation, we cannot expect the tourism industry to fully recover in the next 12 months although domestic economic activities are gradually improving.

We’re optimistic that it can improve by winter if the pandemic and vaccination programme are effectively managed. Our level 1 hotels operating within the bio-bubble are doing reasonably well owing to the arrivals from the Eastern European market.

Our other hotels catering to local clientele are dependent on the situation in the country and ongoing vaccination programme. This uncertainty will continue and therefore, rapid adaptation to the evolving challenges together is essential.

Q: In brief, what are the main challenges confronting the tourism industry?
A: Currently, liquidity is the main challenge. The pandemic has impacted our earnings, raised overhead costs substantially and loans were accumulated. We can expect this to continue for a longer period.

While these challenges heavily impact large corporates like us, they’re more severe for SMEs in the industry.

Another challenge that the industry will face is a profound human resource shortage as many are moving away from it and the country. With the rupee depreciation, more people seek work in the Maldives and the Middle East instead.

Q: What is your take of the ongoing vaccination programme and how critical is it to your company’s prospects?
A: The vaccination programme is crucial not only for us but for the revival of the tourism industry worldwide. Aitken Spence Hotels also has a presence in the Maldives, Oman and India, and this is why a successful global vaccination programme is essential for us.

The Maldives has taken a strategic approach in managing the vaccination programme by prioritising the tourism industry. Although the swift measures enacted by our government to begin the vaccination programme early this year are commendable, the setbacks in the system and a lack of concerted efforts in the industry have been extremely challenging for us.