It is hard not to realize that tourism is increasingly the most important source of foreign exchange for developing countries around the world, and increasingly for countries emerging from conflict. The death of Tamil Tiger leader Velupillai Prabhakaran and the subsequent end of the brutal civil war in May 2009 brought almost immediate attention to the development of tourism in Sri Lanka. According to the Sri Lanka Financial Times of May 31, 2009, “everyone wants a piece of the action and foreign contractors are coming to town, already staying in five-star hotels.” Similarly, after years of conflict, 2009 saw a tourism boom in Lebanon with almost 2 million tourists visiting the country, a record that surpasses even the glamorous years before the Civil War, when Beirut was known as the Paris of Middle East.
As Catherine Heald, co-founder and CEO of Remote Lands (Asia’s ultra-luxury private tour operator based in New York and Bangkok), stated: “Sri Lanka is one of the world’s perfect travel destinations…From its extreme physical beauty, to its diversity of experiences, to the friendliness of its people, Sri Lanka really does have it all.” However, due to the serious internal conflicts that the country has faced during the last two and a half decades and the devastating tsunami of 2004 that killed more than 40,000 people, tourism on the island has had great difficulties. However, after the disappearance of the Tigers, the paradise island began to attract visitors again with its rich art and culture, ancient architecture, wonderful beaches and impressive hills, 5-star hotels and much more.
Then the global recession hit, bringing international tourism to an almost complete halt between the end of 2008 and 2009. Thus, Sri Lankan tourism has been affected by both internal and external crises, and the fact that it remains buoyant says a lot. for industry resilience. Over the last three years, there has been a year-on-year drop in arrivals of 11.7% and 11.2%, respectively. Despite these tremendous odds, the industry has continued to maintain its position as Sri Lanka’s fourth largest foreign exchange earner, alongside textiles and clothing, tea, and workers’ remittances. In this context, it should also be noted that, unlike other foreign exchange earning sectors, tourism is almost 100 per cent value-added industry.
The key for Sri Lankan businesses to take advantage of the recession relief in 2010 will be their marketing tactics. During the civil war, marketing efforts focused on Sri Lanka’s cultural diversity with package tours revolving around the safer areas of southern Sri Lanka outside of conflict areas. However, as Rohan Karr, General Manager of the 5-star Cinammon Grand Hotel in Colombo, says, there is a whole range of new opportunities and destinations in Sri Lanka that have now opened up for tourism. Places like Trincomalee or Jaffna, which were previously inside the conflict zone, can now attract tourists again.
Similarly, Lebanon’s tourism industry experienced unprecedented growth during 2009. In figures provided to the Associated Press on January 19, 2010, Lebanon’s Ministry of Tourism said that 1,851,081 tourists visited the country last year, a 39 percent increase from the previous year. The previous record was 1.4 million tourists in 1974, just before the outbreak of the disastrous Civil War of 1975-1990. The booming tourism sector is the latest sign of progress in Lebanon, a country that has, over the years, become notorious for kidnappings, car bombs and political assassinations. However, the country is now seeing much greater stability and attracts an ever-increasing flow of foreigners to its snow-capped mountains and stunning Mediterranean coastline.
During the Civil War, tourists simply stopped coming, frightened by reports of Westerners being kidnapped on the streets of Beirut. A thriving tourist industry that drew Hollywood stars to the Middle East has all but dried up. The industry was just beginning to recover in 2005 when Lebanon’s billionaire former prime minister, Rafik Hariri, the power behind the multibillion-dollar post-war reconstruction, was assassinated in a massive attack in Beirut. In July 2006, Israel waged a devastating 34-day war in which 1,200 Lebanese were killed and billions of dollars worth of infrastructure was destroyed. Thousands of vacationing Lebanese tourists and expatriates were evacuated from the country due to the fighting. Finally, in 2008 clashes broke out between opposition and pro-government gunmen in Beirut after the government took steps to curb Hezbollah’s military communications network. More than 80 people were killed in the violence that followed. However, Lebanon has seen much greater stability recently and last year formed a unity government. The New York Times named Beirut the best place to visit in 2009, and as a result, it has helped further boost the country’s image.
The economic crisis has not stifled people’s desire to travel, but it has affected what people are willing to spend on travel. In this way, it goes without saying that destinations that offer good value for money with favorable exchange rates will have the upper hand as price becomes a key issue. The low price of the currency in both the Lebanese pound and the Sri Lankan rupee will therefore be extremely attractive to British travelers in 2010, especially given the recent strengthening of the British pound which makes currency exchange difficult. much more affordable. What these two countries offer is an authentic and exciting trip with a special touch at a good price. As I mentioned in my previous article, this is what travelers coming out of a recession are looking for, and given the recent suffering of these two great destinations, let’s hope so.