HOSPITALITY SECTOR
TOURISM IS SET TO THRIVE
Sanchitha Uduwavidana is confident tourists will soon return to Sri Lanka
Compiled by Yamini Sequeira
Q: How do you see Sri Lanka’s hospitality sector today?
A: I am confident the sector will regain the momentum it lost due to the global pandemic. Sri Lanka is a resilient island, and tourism has bounced back in the past even after the civil war and Easter Sunday terrorist attacks in 2019. Many tourists are holding back from travelling presently but the moment they’re ready to book flights, we will be among the first to welcome them! It’s a matter of time – and I’d like to believe that the time is now!
Q: How has the pandemic impacted resort hotels and SMEs that depend on tourism?
A: Resorts went through a bleak period during the second and third quarters of last year.
Some of us have been fortunate to enjoy support from the domestic market with accommodation and catering segments performing well while other hotels have supported the national effort by accommodating repatriated guests.
We see international travel sentiment picking up towards the third quarter of this year and beyond. The SME sector has also focussed on the domestic tourism market but the numbers have been modest compared to larger operators.
Q: How and when do you expect a recovery in hotel occupancy?
A: My belief is that from the third quarter of this year onwards, hotels can expect an increase in occupancy through foreign tourist arrivals. If we make do with local business until then, the industry could see a revival this year with better results than in 2020.
Some hotels have recorded reasonable levels of occupancy. The optimal mix should comprise both foreign and local guests, and this blend is needed to operate with higher profitability as we did before the pandemic.
Q: What aspect of tourist life is missing at this time?
A: Hotels are operating with mainly one restaurant offering buffets. However, most operators are focussing primarily on personalised guest experiences, which has helped reap results under these trying circumstances.
Q: Some tourists complain that Bangkok and Malaysia are cheaper than Sri Lanka when it comes to room rates. How would you respond to this?
A: This is clearly a wrong impression. A destination and hotel product command a certain price based on a supply-demand mechanism. As a destination, Sri Lanka is on the right track as pre-COVID statistics indicate. We should aim to work towards such numbers and improve our yields while leveraging on the high level of service we’re famous for.
Q: Considering the influx of new hotel chains, how do you see the availability of trained and skilled staff in the hospitality sector?
A: This does pose a challenge and yet, we can overcome it with the involvement of all stakeholders.
Hotels should improve training opportunities for beginners while adopting the latest practices. I feel that we have to explore new avenues to source staff with career growth being the focal point.
Q: How do you rate the level of hospitality service in Sri Lanka? And what training initiatives should be launched to attract youth to this sector?
A: Sri Lanka’s service levels are quite high. Our hospitality employees are doing extremely well in many hotels overseas. Exposure to international hotel brands is key as it provides valuable learning opportunities that employees experience at no cost.
Attracting youth to the sector can be done by way of various initiatives such as a tourism curriculum being introduced into school education, and internships and traineeships as part of post-school education. These programmes should reach the youth residing beyond Colombo through CSR projects and so on.
Q: Will the entry of new hotels drag down room tariffs due to oversupply?
A: Although tourism has paused globally, I believe that as borders open up in quick succession, we will attract more tourist business.
However, if we receive guests to full capacity, the room inventory in Sri Lanka won’t be sufficient. Even though tourism is well established here, it’s still an emerging industry compared to many other destinations.
Q: What are the strengths and weaknesses of Sri Lanka’s hospitality sector?
A: Our intrinsic feature of being hospitable, the destination’s allure and offering, and easy accessibility are key strengths. However, we need to enhance our tourism infrastructure and add more reasons for visitors to choose our island over other destinations.
Other areas that could do with further improvement are international marketing and the holistic development of tourism as a sought after segment for employment.
Q: What is on your wish list to improve and accelerate tourist arrivals?
A: We would like to see more international hotel chains and brands entering the Sri Lankan market, with better attractions such as internationally competitive shopping, theme parks, and meetings, incentives, conferences and exhibitions (MICE) facilities to increase arrivals.
We should adopt a marketing strategy that promotes separate local destinations instead of the island as a whole – Weligama Bay and Arugam Bay for surfing, Kandy for culture and so on.
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