Short term lets on the rise in Sri lanka: is this good for the tourism industry?

The informal tourism sector is growing in Sri Lanka and Hiran Cooray Chairman of the Tourist hotels of Sri Lanka for one thinks it’s a good thing.  ( see  report in the Daily Mirror )

So do I.

By his reckoning 2/5th of tourists coming to Sri Lanka now stay in rented apartments, villas and homestay accommodation many of which are rented out via organisations such as Homestay.com Trip Advisor, AirB&B and the like.

Benefits

So why is this a good thing? Let’s start with the positive side.

  • Money paid by tourists goes directly to local people;

“Tourists staying within the local communities pass the revenue directly to the bottom of the income pyramid, fast-tracking grass root level economic development.” Hiran Cooray

  • Visiting tourists get to mix with local people rather than stay cooped up in hotels full of foreigners and they get to experience and enjoy true Sri Lankan hospitality; plus they get to hang out away from traditional tourist areas.
  • Because tourist are using existing facilities there is no additional strain on local authority services
  • The emergence of the informal rental market actually expands what Sri Lanka has to offer to tourists.

Not everyone (Chinese apart maybe) wants to stay in an hotel. A significant number of tourists like to do their own thing, explore local areas eat when they want in and around local Sri Lankans, and so on. They don’t want to be “trapped” in a cramped and possibly quite expensive hotel room. They like the space and informality that the informal sector can offer and when you can stay in an apartment in Havelock City for example.. at a much lower cost.. well why wouldn’t you?

AAEAAQAAAAAAAAIoAAAAJGUwZDE2Zjg1LTc5ZmQtNDk3Zi1iMmM1LWM2YzRhZTYwYWZhMQ

Havelock City; example of apartment

doing away with the negatives :

  • Unlike the major developments which are springing up around the coast from Kalpitiya to Mirissa and down the east coast; there is no negative environmental impact.
  • There are no major costs to be borne by local communities, economic, environmental or social
  • Homestay and the rental market place no extra strain on stretched local authority services such as electricity, water supply and refuse disposal (although the latter doesn’t seem to be working that well)
Costs
  • owners of rented accommodation don’t pay tourist taxes
  • they are not registered; no-one knows how many there are
  • there is no real quality control beyond what TripAdvisor and AIR B&B can exert
Is it a threat?

So does  the hotel sector needs to worry? No of course not. Sri Lanka can offer world class tourist accommodation for those who want it; plus Colombo is set become a signicant business hub in South Asia so the growth of business tourism which depends on quality hotels is almost assured.

It’s just that not every one can afford the prices that some city centre hotels charge in Colombo for example.

(I could add from my experience that for the money sometimes the service could be a whole lot better, some hotel staff could be a little less “up themselves” but that is for another blog.)

Where it is possible to agree with the Hotels Association is that it is not a level playing field because the informal sector are mainly unregistered and do not have to pay the tourist tax and development levy paid by the hotel chains.

True but the owners do pay local and regional taxes; adding the other costs could simply cause them to raise their rentals to a level where they would not get business so thinking about applying these extra costs or banning the advertising of short term rental and homestay on the web (as has happened in New York for example) is not a step to be taken lightly.

That said there is a case for regulation to be introduced in homestay and private rentals to ensure quality and value for money.

Research needed

In the meantime there is very little data available on the growth of the informal sector at present and maybe it would be worth conducting research so that all concerned know what it is they are discussing.

So time to start asking questions;

  • Where do informal sector tourists stay ? In Colombo? Western Province? Or coastal areas? Maybe it would be worth finding out.

To judge by the Air B&B site much of it is in and around Colombo. If that is so then is it a bad thing? Getting more people to visit Colombo and stay for longer, not necessarily in the city centre can only be good for the economy.

  • Who are these type of  tourists; where do they come from?
  • How long do they stay?
  • What do they do, where do they go what do they visit?
  • Why do they choose rental/homestay?
  • What about the owners/renters: who are they? What accommodation is being used and why?
  • How much money is it making for the owners?

As I wrote in an earlier blog; A Paradise Lost ; see https://geosrilanka.wordpress.com/2015/06/16/sri-lanka-tourism-is-it-just-a-case-of-re-branding/, my belief is that Sri Lankan tourism needs a balanced portfolio of investment; homestay and apartment rentals are.   a part of that, (as is mass tourism) because it has the value of bringing tourists much closer to an understanding of Sri Lankan life and culture.

After all, there is nothing better than hanging out around Water’s Edge on a Saturday night along with the thousands of families who come to chill, enjoy the street food , and relax over an affordable beer maybe.. and you don’t get to do that at The Cinnamon Grand

Boardwalk

 

Saving mangrove forests; Sri Lanka takes a lead role

 

“It is the responsibility and the necessity of all…to be united to protect the mangrove ecosystem.” – President Sirisena

How refreshing it is to see that Sri Lanka is leading the world in the conservation of its mangrove forests.

Two N.G.O.’s Seacology and Sudeesa (formerly known as Small Fishers Federation of Lanka) alongside the government of Sri Lanka have just announced a US$ 3.4 million project set to run until 2020 aimed at

  • protecting all 8,815 ha of Sri Lanka’s existing mangrove forests.
  • replanting an additional 9,600 acres (3,885 ha) in areas where mangroves have been cut down.
  • establishing three mangrove nurseries to promote replanting efforts.
Where are the mangrove forests?

mangrove-4-638

There are three main areas of mangrove forest:

  1. The west coast; between Kalpitiya and Colombo
  2. The South coast especially between Kalutara and Galle
  3. The East coast from Batticaloa all the way along towards Jaffna
Threats

74% of mangrove forests have been lost in Sri Lanka since the 19th century.  30 years ago there were over 40,000 ha. of mangrove, now there are just 8000…most of it  been destroyed due to commercial exploitation and firewood use.as well as the impacts of the war that raged from 1983 to 2009.  It seems that most of the damage is in the past and was due to:

  1. prawn farming
  2. collateral damage from the civil war
  3. poor communities particularly along the East coast relied on mangrove  forest as a source of firewood

Today those threats remain plus:

  • clearance for tourist developments and hotel complexes

bulldozing.mangroves

  • coastal urban development more generally
  • pollution from agricultural chemicals
Why protect the mangroves?

Mangroves are trees and shrubs that grow in brackish and saline water along tropical and sub- tropical shorelines. Mangroves’ stilted roots are anchored in underwater sediment and extend above the surface.

Mangroves

They are biologically rich ecosystems but and are hauntingly beautiful but their value goes way beyond the aesthetic.

Mangroves are very productive ecosystems  (on a par with tropical rain forest) with an economic value globally estimated to be more than US$ 186 million annually (according to the World Wildlife Fund. Why?

  • Fisheries: Mangrove forests are not only home to a large variety of fish, crab, shrimp, and mollusc species, which form an essential source of food for thousands of coastal communities around the world. They are also nurseries for many fish species, including coral reef fish.  This makes mangrove forests vitally important to  commercial fisheries as well.
  • Timber and plant products: Mangrove wood is resistant to rot and insects, making it extremely valuable. Many coastal  communities rely on this wood for construction material as well as for fuel. These communities also collect medicinal plants from mangrove ecosystems and use mangrove leaves as animal fodder. Recently, the forests have also been commercially harvested for pulp, wood chip, and charcoal production.
  • Coastal protection: The dense root systems of mangrove forests trap sediments flowing down rivers and off the land. This helps stabilizes the coastline and prevents erosion from waves and storms. In areas where mangroves have been cleared, coastal damage from hurricanes and typhoons is much more severe. When the 2004 Tsunami hit Sri Lanka the mangroves played an important role in slowing down the waves and giving people time to escape to safer ground. By filtering out sediments, the forests also protect coral reefs and seagrass meadows from being smothered in sediment.
  • Tourism: The huge diversity of species is becoming increasingly attractive to tourists who are looking for more than just sun sea and sand based holidays
  • Carbon Sink: It is now estimated that the mangrove forests play an important role in absorbing carbon dioxide from the atmosphere (carbon sequestration) . This is not just because of the large biomass of the forests. The forests are very efficient and transferring carbon to the soil.

“the .. implication of this is that the long term sequestration of carbon by 1kmsq of mangrove is equivalent to that occurring in 50kmsq of tropical forest”

Dr Emily Pidgeon: Conservation International

So if countries are serious about limiting carbon emissions the last thing they should be thinking of is removing their mangrove forests.

Sri Lanka leads the way

The Sri Lanka Mangrove Conservation project is being run by California based NGO Seacology alongside SUDEESA (formerly known as Small Fishers Federation of Lanka) and the government of Sri Lanka.

The $3.4million project aims to:

  • Protect all 21,782 acres (8,815 ha) of Sri Lanka’s existing mangrove forests.
  • Replant an additional 9,600 acres (3,885 ha) in areas where mangroves have been cut down.
  • Establish three mangrove nurseries to promote replanting efforts.

sri-lanka-wetland-plants

The way it works is that if a village agrees to create or enforce a forest or marine reserve, Seacology will fund a key community need, such as a school or health clinic.

Putting women in charge is at the heart of the scheme. They will protect mangroves by ensuring no one in their communities, or from outside, cuts down the trees. If persuasion does not work they will be able to alert the authorities who are providing legislative support.

“We have discovered that if you want a project to succeed, have the women of the community run it,” said Anuradha Wickramasinghe, chairman of the Sri Lankan NGO Sudeesa. “Other conservation organisations have found the same thing.”

Where local communities agree to participate, the project will provide alternative job training and microloans to 15,000 poor women and their families, who live in 1,500 small communities adjacent to this nation’s mangrove forests.  In exchange for receiving these microloans to start up small businesses, all 1,500 communities will be responsible for protecting an average of 21 acres of mangrove forest. A first-of-its kind mangrove museum to educate the public about the importance of preserving this resource will also be constructed as part of this project.

Dual benefits

It is significant that the focus will be on women and the belief is that empowering women within the communities living close to the mangrove forests will have a major impact in raising living standards.

Sri Lanka’s emerging tourist industry can also benefit. Mangroves offer a new wildlife alternative for tourists; maybe to take some of the pressure off the heavily visited (over visited) national parks such as Yala

For too long mangroves have been seen simply as a wasteland to be cut down or removed to make way for commercial development but there is emerging a new more enlightened view and with it the hope that Sri Lanka’s existing mangrove forest can be protected and enhanced for future generations.

Welcome to Geo Sri Lanka: case studies for A level geographers

Hi, my name is Phil Brighty. The title for the blog Geosrilanka comes from the fact that I lived and worked in Colombo  for nearly 7 years, and came to really love the country and its people. You will find case studies focussed on geographical  issues in a developing country: Sri Lanka. Up until recently South Asia has been a neglected are for study; however, it is a rich area for study geographically and,  just as importantly, offers new material for students. As a teacher I was always on the lookout  to get away from the same old examples everyone uses…which is why I set up this blog. I hope you find the case studies useful.

List of articles; click on this link to see the full range of  articles

Dengue in Sri Lanka:
Dengue fever in Sri Lanka is reaching epidemic proportions: check out the latest Dengue update.

Apart from Geosrilanka I write mainly for for GeoFactsheets.. However, I have also published in The Geographical Review, and Geofile Online.

Before that I was Head of Geography at The Sixth Form College Colchester and then was based at Colombo International School as HOD and Head of Secondary School. In the past I have been an A level examiner for OCR, AQA and also an examiner for IB diploma geography.

 Fieldwork in Sri Lanka;

Sri Lanka is a great place to undertake fieldwork for A level geography..most places are accessible and value for money; plus for students it can be the trip of a lifetime because with careful planning they get to experience what regular tourists never can:

If you are interested click on the live link above to find out more..

Feedback; would love to have some

What would be interesting to know is how people are using the case studies..are students being referred to the site? are teachers using them in class or as research and prep for lessons?

The blogs are very much summaries of often large numbers of links, websites etc. If anyone wants to know more, wants help with resources, especially with Sri Lanka in mind, then I would be happy to respond.

There is an opportunity to comment so do send comments in and I will put them up.

Stop Press: Just added

Making sense of the Sri Lankan monsoon

Dengue Update; dengue cases could top 150,000 this year!

Colombo Garbage Dump Collapse

The Indian Ocean Monsoon part 1: is the monsoon becoming less predictable?

Plus 2 articles have been updated

Dengue Update

Challenges ahead for the Sri Lankan Garment Industry

more… 

Next Up: 

The Monsoon, Drought and Global Warming in Sri Lanka; prospects and problems

 

Sri Lanka Tourism: Paradise Lost?

Tourism hot spot? Maybe not

A quick search though google shows up that, right now Sri Lanka was not in the hottest destinations lists anywhere for 2014. Yet wasn’t Sri Lanka the big new thing a few years ago? So what has happened and should the Sri Lankan tourist industry be worried?

Facts and Figures

  • Tourist arrivals to Sri Lanka are on the up; more than 1.5 million in 2014 and growth is predicted to continue through the decade.
  • Overall tourism contributes around $800 billion to the economy, or about 9% of GDP.
  • It is reckoned that more than 700,000 jobs are linked directly or indirectly to the tourist sector.
  • The majority of visits (84%) are leisure based; only 16%  of tourism is business tourism
  •  India supplies the largest number of tourists at 134,000 in 2014 (January to July)
  • about 25% of tourists are come from Western Europe, North America and Australasia
  • Tourists from Eastern Europe and China for the fastest growing group of tourists

Rethink Due?

Speaking at a tourism conference in Singapore David Keen CEO of “QUO” a marketing organisation embedded in the global tourism industry said:

“Sri Lanka tourism should completely rethink its tourism branding strategy to leverage its culture, in order to entice the new age traveller who seeks uniqueness in diversity,” 

Now, leaving aside the marketing speak  he has a point. (see Daily Mirror June 2nd: http://www.dailymirror.lk) His argument, is that Sri Lanka may well be going down the wrong path in terms of its overall tourism strategy.

Paradise lost?

The previous regime took the view that:

“It is important that the country moves away from the low cost tourism and focuses on high end tourism. A product that is appealing to the high spenders”

But has it done that? What that seems to have led to in reality however, is the growth of mass tourism aimed at the younger age group; mainly Europeans, which to my eyes doesn’t look dissimilar to any where else in the world. Already, arguably Hikkaduwa and Unawatuna have become seaside resorts not too dissimilar to Spain or Majorca, as the photo above shows:

and now Mirissa is following the same path

At the same time there have been hotel developments on the East Coast for example at Pasikuda, along the South Coast isolated beach resorts like Ranna 212 and now major developments planned for Kalpitiya around Dutch Bay see http://www.sltda.lk/kalpitiya; all of which cater for a limited section of the tourist market and one which is highly volatile.

Reading down the list of proposals for this latter development makes for depressing reading; it is a full works version of everything that is probably unsustainable in the longer run: high end hotels, golf course, water park, high speed boat safaris, theme parks etc. True it will make money for the property developers and in the short run for the major hotel chains who will build there but at what cost to the environment and local communities in the longer term?

You may want to have a look at the report from NAFSO http://www.nafso-online.org/2011/03/tourism-project-in-kalpitiya-islands.html

map_0

credit; Sri Lankan Tourist Development Board

Mass Tourism Cycle

History shows that mass tourism has a limited shelf life in any one location. The Butler diagram is found in most text books and still applies today, and will I suspect apply to Sri Lanka if the strategy remains to focus on seaside / hotel tourism for the masses. What has happened all around the Mediterranean and in parts of South East Asia will happen in parts of Sri Lanka

8091284

The Butler Model

Mass tourism based on the 2 week stay by the sea in an hotel expands to begin with but as the numbers increase the environment becomes increasingly damaged, the beaches fill up, become increasingly noisy and polluted, more and more hotels are built and the location loses its attraction.

For those who know Sri Lanka well,  just try to remember what Unawatuna used to look like and look at it now..a noisy crowded mess; and this used to be one of the world’s top ten beaches.

And now Mirissa which was arguably more idyllic than Unawatuna has seen a rapid growth in hotels, guest houses and beachfront cafes; I counted close to 20 on a recent visit.

The beach area shows the same congestion as Unawatuna

IMG_0710

author’s photograph

The Mass Tourist

In the early days places like Unawatuna and Mirissa were largely unknown to all but a few pioneers.

  1. These pioneers had very little impact and simply used the existing facilities.Their impact overall was quite low you suspect; these visitors were educated, culturally quite aware; yes they came for the sea and the beach but to hang out, snorkel, surf; that kind of thing
  2. As the word spread improvers arrived; independent travellers. They brought with them spending power and a demand for improved facilities.. hot water showers, better food, and service, a/c in the rooms and eventually the capability of booking online. Savvy guest house owners put web sites together and got themselves on the net; this was probably the state of play around 2006/7 although the 2004 tsunami had slowed things down on the coast. However, the island was getting a place on the tourist map.These visitors were also interested in the culture of the country. They would have visited the hill country the cultural triangle (ancient archaeological sites in the centre of the country).
  3. Recently the mass tourists have arrived; they only seem to be after sun, sea, sand and booze.Their demands are few their collective spending power, however, is large. But, that is all they bring. They seem to have no real interest in moving outside of their immediate environs. The local economy away from the beach gets very little of their custom. The characteristics of this group on observation seem to be:
  • predominantly 20-35 age group
  • mainly “western/european + some chinese
  • limited ambitions re travel and exploration
  • stay on or close to the beach most of the time; sunbathe swim and sleep
  • select their tours (if they take them) from beachfront
  • very little interaction with locals except to haggle over prices in shops
  • culturally unaware; some might say illiterate
  • inappropriate (possibly) dress; especially females; thongs, topless sunbathing;

So what you have is invasion and succession at work. As the improvers arrive the pioneers move off to find somewhere unspoiled. As the mass tourists arrive so the improvers are put off. In Spain the resorts slid down market in time and my concern is that the same will happen here.

The tourists aren’t the whole problem, but mass tourism is. Tourists come because they have been sold a vision of idyllic tropical beaches. What they get is a little different. What they do perhaps unknowingly is they impose their culture and their demands on the tourist destination and the industry feeds those demands in order to maximise short term profit.

Increasingly driven by the entrance of package tour companies the numbers will grow and with it the global spread of western night club culture. Already Unawatuna and Mirissa have a major night time noise problem from the beach bars pumping out maximum decibel dance music, a problem that no-one seems to be able to control. The high numbers mean that the bars and cafes can’t keep up; service is slow and poor; and in Mirissa there have been reports of friction between local people and tourists including harassment of women.

So what happens is that this kind of mass tourism destroys the very thing that the tourists come to enjoy. Sri Lanka becomes a land like every other; David Lee was right on that score.

When that happens, eventually tourist numbers start to decline; The tourists come once but don’t return because the vision they were sold doesn’t exist. They simply look for somewhere else to go. The tourism industry willingly obliges and the cycle starts all over again in a new location. You are left with half empty hotels, underused infrastructure and people out of a job.

And where is Sri Lanka right now? it is arguably somewhere around stage 3/4 on the Butler model

It isn’t just that this type of tourism is doomed to be unsustainable. This kind of tourism imposes its values and behaviour on the host community, and it exploits the host economy. You can bet that a large percentage of the investment in hotels will be made by foreign companies. Most of the profit will leak out of the Sri Lankan economy, many of the top jobs in these hotels will not be filled by local people, they will get the menial lowly paid jobs instead. There is no guarantee that food will be sourced locally either.

Alternative strategies

Where David Keen has it right is in suggesting that Sri Lanka should be looking at promoting an alternative strategy for tourism; an alternative experience. He argues for a strategy which promotes the people and culture of Sri Lanka rather than the climate and the beaches. ( which they can find anywhere in South and South East Asia).

He also suggests that Sri Lanka should recognise a new type of traveller; he calls them the “new age” travellers and that future strategies should be developed to attract this emerging group.

Now I am not sure what he means by “new age” but what I understand that to be is a tourist that doesn’t buy a package tour , is not especially interested in staying in an over the odds expensive hotel, who plans the holiday themselves and wants to experience the country and its culture, not hide out in some artificial enclave.

Not one type of tourist but many

Investing in tourism is like investing on the stock market in a way. Most wise investors spread risk by having a broad portfolio of stocks and shares rather than being dependant upon one thing. The same could be said of Sri Lanka’s tourist potential.

So far as Sri Lanka is concerned, there isn’t one type of tourist but many; sport (cricket), outdoor activities (rafting, hiking, surfing), wildlife, birds, culture, health (ayurvedic resorts for example) sea fishing, hiking, educational, business and conferences; and yes the traditional sunseekers.

So there should be a range of strategies aimed at encouraging as diverse a client base as possible. In that way you spread the risk.

Sri Lanka is an incredibly beautiful and diverse country and Sri Lankan people are wonderful hosts. The country has a rich history and cultural heritage, an amazing variety of wildlife, and great food. Above all it can offer a wide range of experiences and it is this diversity which should be promoted.

Around one in four tourists comes from Western Europe the USA and Australasia. They include a sizeable number of what David Keen terms the “new age travellers”, the people who are looking for this diversity of experience. These are the people Sri Lanka could be targeting. They are probably the future of tourism in the country.

However, cutting back on mass tourism comes at a short term cost. During the current phase of development there is a lot of money to be made by those in a position to exploit a tourism boom at all levels from the property developer to the guy who owns a beach shack. They want to make as much money as they can while they can. Cutting back on mass tourism and promoting a wider range of experience will not go down well with them.

So a choice is going to have to be made; short term loss for long term gain or the other way around?

There is nothing wrong with retaining some of the traditional tourist trade. Long term, however,  the country needs to move away from its reliance on mass tourism, because, like it or not, the boom will be short lived. More support and promotion could be given to guest houses as an alternative to the impersonal nature of the larger hotels. Smaller travel and tour companies like the Ecoteam for example or Little Adventures should be encouraged to develop.

More also needs to be done to safeguard the environment and place more controls on the kind of development that has ruined Unawatuna and will ruin Mirissa, so that people will still want to visit Sri Lanka 20 years from now.

This is perhaps where the government and the private sector could work together to promote a different view of tourism and to offer a more diverse range of experience.

In its 2010 strategy document the Sri Lanka Tourist Development Board included the following:

“Tourism products will be diversified with special emphasis on eco-tourism. Adventure tours (safaris, jungle tours, mountain trekking) will be provided…tapping the tourism potential of the natural topography and the ecological values of the country. Community based tourism and tourist villages are also to be promoted to increase value change in tourism based activities linking with rural economy, harvesting seasons, wild life, farming practices, art, culture and religions.”

How much of any of this has happened so far?