Hotelier says weaker rupee compelling reason for tourists to pick Sri Lanka

Although the weaker rupee has turned the lives of Sri Lankans upside down since its free fall begun on March 7, sending the prices of everything through the roof, the same could woo foreigners to select Sri Lanka as their top travel destination, as the country has become cheaper to visit and thus offers them a better deal financially.  

According to Rohan Karr, Managing Director at The Kingsbury PLC, a leading city hotel in Sri Lanka, the weaker rupee is a compelling reason for the global travellers to visit the island nation, due to its affordability.

“Looking for a silver lining, the depreciation against the dollar offers a lucrative opportunity for tourists to have an affordable holiday in Sri Lanka,” Karr said in the company’s annual letter to the shareholders.  Until March 7, a dollar spent by a foreigner could enjoy products and services in Sri Lanka worth Rs.203 but now they can buy stuff worth Rs.365 in return for a dollar spent in the country.  However, that makes little sense, as they may not have much to buy at any price in Sri Lanka, due to the persistent shortages of commodities, making their visit a not so enjoyable experience, offsetting any benefits that they may have from the cheaper rupee against the dollar. 

Last week, the tourism industry highlighted the shortage of imported liquor in the country, due to the acute dollar shortage and import controls.  However, the restrictions have been relaxed. Alcoholic beverages have been slapped with a hefty impot surcharge, making them pricey by at least 100 percent. 

These exponential prices the foreigners will have to incur on what they consume here, will more than offset the depreciation impact they might have from the sharp fall in the rupee. 

Further, the uncertainty over sudden outbreaks of violence by angry crowds over the insurmountable economic hardships, fuel shortage and daily power cuts could also hamper the foreigners’ experience in the island during their stay. 

At the onset of the daily power cuts, a popular foreign blogger left the country, as he was unable to operate as he pleased.  

Sri Lanka earlier planned to woo digital nomads as part of a broader strategy to increase tourist arrivals but the daily power cuts scuttled the plans even before they took off.