USAID and SLTDA Launch New Sustainable Niche Strategy to Boost Tourism

COLOMBO, Sri Lanka – The United States Agency for International Development (USAID) and Sri Lanka Tourism Development Authority (SLTDA) recently launched a new strategy to reenergize the critical tourism sector by promoting a dozen new sustainable niche tourism categories. From adventure tourism and cultural experiences to hosted/curated experiences and wellness and healing, these categories are set to enhance Sri Lanka’s tourism offerings and attract more global travelers.

Tourism is rebounding globally in the wake of the worldwide pandemic and, although Sri Lanka arrivals rose 30 percent in the first quarter over the same period a year ago, the segment is highly competitive.  Successful implementation of the new strategy will allow Sri Lanka to better establish its brand identity, increase its appeal and market share, create jobs and opportunities across the tourism sector, and generate much-needed foreign exchange.  The launch of this strategy is a strong step forward in USAID’s Indo-Pacific Opportunity Project (IPOP), and it will further support SLTDA to bring niche tourism businesses into the formal sector and help define outreach efforts going forward.

Tourism is critical to Sri Lanka’s economy as it exits the pandemic and deals with its internal economic crisis.  Pre-pandemic tourism represented 12 percent of the country’s GDP, generating US $4.3 billion in revenue in 2018.  Already popular as a tourism destination for its natural beauty and cultural heritage, Sri Lanka will benefit from the new strategy by offering differentiated experiences for travellers seeking an immersive holiday.

“The increase in tourist arrivals this year in Sri Lanka is noteworthy,” said Gabriel Grau, USAID Mission Director to Sri Lanka and Maldives at a special launch event held on Friday 9th June at The Barnhouse in Panadura.  MD Grau added, “It shows that Sri Lanka is again ready to realize its full potential as a global tourist destination, following years of downturn due to COVID and the economic crisis.  The new sustainable niche tourism strategy will be a catalyst to help further boost these numbers and help Sri Lanka’s tourism sector get back on track and bolster the country’s economic recovery.  I am particularly pleased that USAID is engaged in this important sector and that we are supporting Sri Lanka’s return to economic stability.  With the United States having worked side-by-side with Sri Lanka for 75 years, this is what a strong partnership looks like.”

“Today is a special day for Sri Lankan tourism as we launch a new sustainable niche tourism strategy in Sri Lanka.  It marks a new paradigm for positioning Sri Lanka’s tourism offering to highlight, support, and promote these niche products, which will help Sri Lanka fully exploit its potential to be a high-yielding, experience-driven destination,” said Upali Rathnayake, Deputy Director General of SLTDA.

One of the first steps is to create and adopt registration criteria for businesses operating in the new segments established by the new strategy.  Registered tourism businesses benefit from being listed on SLTDA’s official website, which helps them gain access to large tour operators.  This also will help in the development of products in the new categories.

USAID launched the tourism activity under IPOP in July 2022 to support economic reforms and promote foreign direct investment in Sri Lanka.  The two-year project is assisting SLTDA to streamline and implement new policies and procedures to enable fast-tracking and attraction of foreign direct investment in the tourism sector.

The New Niche Tourism Categories shortly after they were unveiled by USAID Mission Director Gabrial Grau (3rd from Left) and Director General, Ministry of Tourism and Lands, Mrs Suranga Vithanage (4th from Left). Others pictured are (L-R) Ms Reneera Paul, (USAID), Glenn Mackenzie-Frazer, Chief of Party, USAID-IPOP Project, Upali Rathnayake, Deputy Director-General, SLTDA,  Krishantha Fernando, General Manager, SLCB and Dr Michelle Pinkowski Project Director, USAID-IPOP Project

USAID Mission Director Gabrial Grau addressing the audience