Of the number of “tourists” quoted as 194,000 plus in the year 2021, how many fit in to the definition of a tourist is therefore worth looking into. There are reportedly around 7,500  Chinese labour, but could be far more, given the fact even the Labour  Department is unaware of exact numbers of directly employed foreign  unskilled and semi-skilled labour in the country

What has tourism to do with “national development?” How valid and accurate are claims about tourism contributing to development?  

“A major breakthrough” is how Tourism Minister Prasanna Ranatunga had proudly announced Sri Lanka recording nearly 200,000 tourist arrivals in 2021 amidst the pandemic, reported Daily FT on January 3, 2022. The news report said the Minister expects around 100 - 125,000 tourist arrivals during this month of January. Another news report on January 5 said the minister has fixed a target of around 2.3 million tourists for this year (2022), with a 4.5-billion-dollar foreign income. Certainly, a remarkable target even if partly achieved. According to Daily FT, leading the list of countries with most number of tourist arrivals in Sri Lanka in the year just gone by was India, followed by Russia, UK, Germany and Ukraine, with a new focus on Middle East this year.  

There are serious issues that are taken for granted when talking of tourism. First is the number of “tourists” calculated perhaps on arrivals on “tourist visa”. Are all who enter the country with a “tourist visa”, bona-fide tourists? Of the two major categories of visas provided to enter Sri Lanka, one is the “Visit visa” with two sub-categories. One for “tourism” and the other for “businesses”. A bona-fide tourist for purpose of visa approval is one, “who wants to enter Sri Lanka for sightseeing, excursions, relaxation, visit relatives or yoga training for a short period of time”, according to the Immigration Department web site.   

It is not only such bona-fide tourists who enter Sri Lanka with tourist visas. There are many others who come to Sri Lanka for short stays to do petty businesses and usually do not travel outside Colombo city. Over the last decade or so, there is also a growing trend in bringing labour for especially privately funded and contracted foreign projects. Labour for such projects brought on “tourist visa”, are mainly from countries like India, Nepal and Bangladesh. Over five years ago, the Chinese government through its embassy in Colombo had negotiated for a 5-year “work permit” for labour brought in. Though not legally established, it is said the validity period agreed upon was one year, unless extended later. It is not known whether the government has taken a similar stand regarding nationals of other countries like India and Bangladesh.  

Of the number of “tourists” quoted as 194,000 plus in the year 2021, how many fit in to the definition of a tourist is therefore worth looking into. There are reportedly around 7,500 Chinese labour, but could be far more, given the fact even the Labour Department is unaware of exact numbers of directly employed foreign unskilled and semi-skilled labour in the country. Of them, how many have entered Sri Lanka with tourist visa is not known. Strict monitoring of foreign unskilled labour in the country is not possible as the Immigration Department lacks resources for such regular checks at district level.   

The other major issue that goes without mention is the amount of foreign money tourists bring with them and how much balance they take back on departure. In fact, what is important is not numbers coming in, but money brought in and spent here. While the BOI claims tourism and leisure industry is the third largest foreign exchange earner for Sri Lanka, calculations on foreign earnings are actually miscalculations as with the apparel industry earnings. It is not clear how “tourist income” is calculated in dollars when there are no clear declarations to check money brought into the country and the balance taken back. This has become far more difficult over the years with middle-class tourists using credit and debit cards for payments during their stay.   

Annual income from tourists that can be accounted for comes from only the “visa fee” charged apart from a few millions from archaeological sites like Sigiriya and botanical gardens as in Peradeniya. Rest of the billions are assumed calculations by State “Tourist Authorities”. On what basis the assumptions are made for calculating, are also very questionable. Yet another double-count comes from “cost of inputs, marketing and other benefits and concessions” not accounted for in calculating “earnings and profits”. For instance, what is the total value of tax concessions and benefits given to the tourism and leisure industry and cost of food, beverage and material imported by them in earning US$ 4.4 billion in 2018? Annually, there is big money spent on tourism promotion with SL Tourism Promotion Bureau (TPB) creating projects for marketing Sri Lanka on very many platforms that are not accounted for in calculating dollar earnings. In 2019 a total of US$ 31.5 million was set aside for international marketing activities by the TPB.

Another is the projection of “direct employment”. This direct employment is not permanent as in other industrial sectors. Security of employment is therefore not guaranteed to a large majority of “direct employees” with the two tourist seasons on the two coastal belts in the West and the East. Thus 169,000 direct employment the SL Tourist Development Authority’s “Annual Statistical Report 2018” calculated, are not “permanent” employment though “direct”. It only means they were employed directly by hotels, tourist authorities and off ices as guides, tour operators, drivers and salesgirls and boys in their souvenir and handi-craft shops. Most in hotels, guest houses and lodgings are laid off during the “off-season”, except maintenance staff while other direct employees are compelled to shift to the informal sector.  

Nor is environmental havoc ever calculated when promoting and expanding tourism. Whole beaches in West, Southwest and East in particular are ruined with massive illegal constructions and encroachments in coastal and beachfront areas. The beachfront stretch along the marine drive from Dehiwala bridge up to the Dehiwala railway station is ample proof how illegal constructions mushroom with all State institutions providing services like electricity, pipe-borne water, telephone services etc. officially. The “Coastal Zone and Coastal Resource Management Plan 2018” valid till 2023, says “Expanding tourism industry” is the third of the seven factors in coastal pollution. “The development of tourism sectors has led to an increase of structures along the coastline and increased pollution of beaches and coastal waters.” it says, adding, “The coastlines of Hikkaduwa, Beruwala, Unawatuna and Arugam Bay have been severely affected due to the expanding tourism sector in the region.” How are these devastation valued and audited with tourism income?   

Wildlife sanctuaries and national parks are also exploited with destruction to fauna and flora. Everything illegal in hotel trade and tourism stays with political patronage and heavy corruption. Politically controlled and managed tourism agencies of the State, obviously keep no tabs and counts of these violations.   

Call it “development”? As with Forex crisis we are in right now that grew continuously over four decades, tourism and hotel trade has merely swallowed all concessions and privileges fostered on it within growing corruption and political patronage very much at provincial levels. All governments since JR as Minister of State established the “Ceylon Tourist Board” in 1966 along with the Ceylon Hotels’ Corporation, have been adding more muscle into them at taxpayers’ expense. With all concessions, privileges and benefits annually added by every government on the premise “tourism contributes to national development with foreign exchange earnings”, what have we honestly gained during the last 55 years, since the establishment of the Ceylon Tourist Board? 55 years of State patronage at the expense of public funds creates only around 150 - 175,000 “direct but temporary” employment. Solid calculable foreign income being “visa fees”, the rest in dollar billions are assumed calculations, to claim importance for tourism in gaining continued State patronage and numerous concessions and privileges. Pollution and devastation to coastal zones, beachfront, mangroves, forestry, national parks, and wildlife have increased with no serious and genuine efforts at controlling and managing the decline.