Sri Lanka: Bankrupt country, tourism industry does not give up

Sri Lanka before the crisis: a strange, unspoiled paradise

In 1954, after the filmElephant WalkWhen it was introduced to the international audience, people began to be curious and pay more attention to the teardrop-shaped island located right below the vast India. At that time, Sri Lanka was still a British colony and was called Ceylon. The number of Western tourists flocking to Ceylon increased because ladies and gentlemen were delighted by the traditional Kandyan dance of the natives, by the Sri Lankan Baila melodies sung by children, by the strange religious vestiges, the wild natural landscapes... of the strange land connecting East Asia - East Africa that director William Dieterle brought to the screen.

Nearly 70 years since then, tourism accounts for 12.6% of Sri Lanka's gross domestic product (GDP), becoming a direct dependency for about half a million people in this country. In major cities such as Colombo, Kandy or Galle, many households rely mainly on income from tourists.

Before 2019, the two main sectors of Sri Lanka's tourism industry, spiritual and ecological, had developed very strongly. In 2018, the number of tourists flocking to this country reached 2.3 million people - nearly 10% of the country's total population. In December of the same year, tourism brought in 475 million USD for Sri Lanka, leading the country's leaders to expect that revenue from the smokeless industry would help cover its huge foreign debt.

In addition to typical religious sites such as the Temple of the Tooth Relic (the sacred tooth of Buddha), Adam's Peak (Sri Pada) or the ancient Mulgirigala Raja Maha Vihara Temple, Sri Lanka also attracts tourists with its long, pristine coastlines, dense forests with countless species of wild animals, misty plateaus and green tea hills... Along with that, Sri Lanka is very active in promoting the development of adventure sports tours - most notably the world-famous sport of windsurfing, attracting thousands of athletes and tourists every year.

In April 2019, during Easter, the deadly bombings in Sri Lanka severely affected the country’s tourism industry. Just when international tourists were starting to become wary, the Covid-19 pandemic hit again.

In just two years, Sri Lankan tourism has ground to a halt, contributing to the country's economic collapse.

Declaring bankruptcy, the tourism industry is in a precarious position.

On April 12, 2022, Sri Lanka officially declared that it could no longer pay its $51 billion foreign debt, in the face of its worst economic crisis since independence in 1948. Thousands of Sri Lankans took to the streets to protest, calling on the government to take measures to revive the economy and demanding the resignation of President Gotabaya Rajapaksa. The peaceful protests quickly turned violent, culminating on April 19 when police opened fire on the crowd, killing at least one person and injuring dozens of others.

One similarity between Vietnam and Sri Lanka in attracting international tourists is low spending. However, the economic crisis has brought the highest inflation in 12 years, and speculation has pushed up prices in Sri Lanka. A loaf of bread, which used to cost 180 Rupees (12,500 VND), has now increased to 360 Rupees (25,000 VND). Cheese, meat, wine... are becoming increasingly scarce due to the embargo on a range of imported food items used in hotels.

Since the beginning of this year, gasoline prices in the country have also increased by 90%, while the price of diesel - a fuel commonly used in public transport - has increased by 138%.

It can be said that the economic and political crises are a tragedy for the already damaged tourism industry of Sri Lanka. While it is supposed to be the peak tourist season in Sri Lanka, international tourists are now rarely seen in hotels and restaurants. On the traditional New Year's Day on April 14, there are also not many foreign tourists participating in the annual activities of the Sri Lankan people such as temple visits, coconut breaking and other folk games.

In addition, with power cuts lasting 4-12 hours a day, most hotels in Sri Lanka have to use generators to maintain operations. For small accommodations that do not have or are not capable of maintaining and servicing generators, guests who book rooms have to endure the situation of having no electricity, lighting candles at night, etc.

Worse, with skyrocketing airfares and a weakening dollar, the marketing and mutual support links between Sri Lankan and international tourism operators are fading into obscurity. Many discounted bookings, ticket prices, tours and other promotional programs are no longer available to the international market due to the exorbitant costs involved.

According to the Daily FT, a Sri Lankan economic newspaper, the number of tourists to Sri Lanka is still increasing, but the number of advance bookings has shown signs of slowing down. After the government declared bankruptcy, a series of international tourists requested to cancel their rooms and travel programs in Sri Lanka.

In early April, Indian airline Air India also announced that it would cut its India-Sri Lanka route from 16 to 13 flights per week, due to falling market demand.

In addition, the war between Ukraine and Russia has also severely impacted two of Sri Lanka’s main tourism markets: Ukrainian tourists have completely disappeared, and Russian tourists have been restricted due to newly announced flight policies. Before the war, Russia had been Sri Lanka’s largest source of tourists for several months straight.

Tourism industry does not "give up"

Surprisingly, despite being heavily affected by a series of events that have been and are taking place, the Sri Lankan tourism industry seems to be very resilient so far. Perhaps this is one of the few things that the Government and the people agree on at the moment: the collapse of tourism is the last thing they want to see.

As one of the countries that relaxed Covid-19 regulations quite early, Sri Lanka started to open up from October 2021, with easy immigration and travel procedures. Visitors only need a vaccine passport, proof of two full Covid-19 vaccinations, and an online health declaration to be able to enter and travel freely in Sri Lanka.

On April 8, a spokesperson for the Sri Lankan Ministry of Foreign Affairs said: “The recent peaceful protests are not directed at tourists and tourist attractions. All visitors to Sri Lanka can still travel freely throughout the country, and tourist attractions remain open as usual. CNN even included Colombo in its list of destinations for 2022.”

The Ministry of Foreign Affairs also stated that Sri Lanka remains safe and fully welcoming to international tourists, and is ready to prioritize the needs of tourists, as well as provide all services as before the pandemic.

In addition, most hotels, motels and tourist attractions in this island nation currently have policies to support or reduce prices for international visitors, depending on the time and number of bookings. However, visitors should contact the travel agency directly because it is difficult to find this information on online travel sites as before.

In fact, there are still quite a few tourists who choose to visit Sri Lanka at this time. Emma Boyle from England is one of them. She read the newspaper, knew what was going on but still decided to come. The hotel where Boyle stayed was still operating normally. She shared that she was served breakfast with freshly baked croissants, cakes and bread along with local specialties such as sambol coconut rice, seafood...

Andy and Edward were also two guests who did not cancel their Sri Lanka tour. They visited the white sand beaches of Nilavali town and were warmly welcomed by the locals. They had no trouble getting around the island.

Welcome Vietnamese tourists

For most Vietnamese, Sri Lanka is still an unfamiliar destination, although the island nation is one of the countries with a large number of tourists coming to Vietnam. Partly because there are currently no direct flights between the two countries; visitors to Sri Lanka will have to transit in Kuala Lumpur (Malaysia), Changi Airport (Singapore) or Bangkok (Thailand).

But that does not mean that there is no tourism connection between Vietnam and Sri Lanka. Just on March 24, 2022, the Embassy of Sri Lanka in Hanoi in coordination with the Sri Lanka Tourism Promotion Agency and the Hanoi Travel Association (VISTA Hanoi) announced the exploitation of the first tours from our country to this island nation in the near future. Previously, the parties also organized the first famtrip for a group of 13 travel businesses from Hanoi, Ho Chi Minh City, and Da Nang to Sri Lanka on March 13.

"Light at the end of the tunnel"

Since the event when President Gotabaya Rajapaksa's government declared bankruptcy, a new destination has appeared on the map of Sri Lanka: the protest village Gotago Village (Gotagogama).

The name Gotagogama is a combination ofGotta goandgammawith the meaning "Gotabaya Go Home" (President Gotabaya, please resign). This is where the people gathered to protest, they set up tents and shared daily activities together. Quickly, Gotago Village appeared on Google Maps as a new and attractive destination for tourists.

An international travel site describes this place:The newest must-see attraction for tourists is Gotagogama – a place used by the people to fight against the country’s ruling elite. Gotagogama has little cultural, historical or natural value for Sri Lanka, but it is a place of national significance. In less than a month since it was added to Google Maps, Gotagogama has become a sacred place for the younger generation, as well as adults who want to see a brighter future for the country.

Perhaps, the optimism and hospitality of the people is the “light at the end of the tunnel” for the Sri Lankan tourism industry at this time. If you decide to come to Sri Lanka at the present time, you will certainly encounter many obstacles or lack of amenities. But if you look at it from another angle, Sri Lanka is not an impossible choice for a safe tourist destination, imbued with religious identity and ancient cultures. This island is still ready to welcome anyone with good intentions to visit, and even with a more attentive attitude than when the roads are full of tourists.

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