Benelux in Sri Lanka tourism: Perspective for future-learning from past
16 Jul 2015 - {{hitsCtrl.values.hits}}
By Punartha Perera
The Benelux [Belgium, the Netherlands and Luxemburg] has been an important region in the current tourism sector of Sri Lanka. The purpose of the study was to investigate the following questions. Why the Benelux region is an important tourism market in Sri Lanka? Are Sri Lankan hotel prices competitive enough for them to sell in this region, compared to other destinations? Are the current government efforts that have been implemented adequate enough to promote Sri Lanka as the demanded tourist destination in this region? What are the plausible solutions for this problem?
The research was mainly carried on with a questionnaire interviewing the top Sri Lanka selling tour operators in the region. Data was collected out of 20 tour operators in the Benelux region (Sample group) who have Sri Lanka as the top destination or under the top five destinations. The research revealed that most of the tour organisers disagreed with the fact that arrivals from the region increased after the end of the civil war following their performance (according to the Sri Lanka Tourism Promotion Bureau (SLTPB) statistics). Importantly it was noticed also that Sri Lanka is still a sellable destination for the majority of tour operators, considering that the hotel rates have been increased significantly after the war period.
In addition, this study found out the lack of Sri Lanka government participation or marketing in the region for tourism. Suggestions included giving workshops and presentation to the region’s agents, organising familiarization tours for travel agents to visit Sri Lanka and also to restart the tourist office in the Benelux region or at least allocate tourism officers immediately. Unless, these policy measures are implemented, it would be impossible for Sri Lanka to receive 2.5 million tourists by the end 2016.
An overview of the countries
The kingdom of the Netherlands (commonly referred to as Holland) is a country of 41,528 square kilometres and located on the North Sea. The annual per capita gross domestic product (GDP) [ppp] is over $ 40,000 estimated in the year 2012 for the Netherlands, making it one of the 20th richest countries in the world. Also, according to the Organisation for Economic Cooperation and Development (OECD) Better Life Index, the Netherlands is ranked as the eighth best place to live and work for the year 2012.
The Kingdom of Belgium is located in North West Europe and is a small country of 30,528 square kilometres. Belgium is strategically located between Europe’s economic and urban ‘backbone’ to the south and the world’s primary seaboard, where Brussels is the economic capital of Europe and the European Union.
The grand Duchy of Luxembourg is the smallest country in the region of Benelux with a land area of 2586 square kilometres consisting of 511,000 inhabitants. Luxembourg is the only landlocked country in the region and has the world’s highest per capita GDP income. In 2011, it was considered that Luxemburg had a per capita income (nominal) of US $ 115,000 which is three times higher than that of the European Union average. Also, the highest minimum legal salary in the whole of the European Union (EU) is paid in Luxembourg, which stood in 2013 as $ 2404 per month for the unskilled employers above 18 years.
Results
Out of the sample size of 20 tour operators, 12 were from the Netherlands, six from Belgium and two from Luxembourg (in proportion to the arrival figures from each country).
With regards to the promotion of Sri Lanka, the question was asked on the rate of change of clients departing for a Sri Lankan holiday during the last three years (2011-2014). The answers were all on equal basis where six (30 percent) of all correspondents replied saying that the number of clients have increased, six (30 percent) responded saying that the number has decreased and six (30 percent) and six (30 percent) answering that the volume of clients to Sri Lanka has remained the same. Ten percent (two) tour operators denied to give an answer.
Currently, Sri Lanka was still a sellable destination compared to other destinations in the region. This was revealed by 16 tour organisers (80 percent). Those who mentioned Sri Lanka is a sellable destination, reasoned their decision over the major facts that Sri Lanka prices are cheaper than Malaysia and Indonesia, availability of good hotels and culinary and the value for money factor. On the other hand, the rest 40 percent who disagreed said it is difficult for the country to be sold in the Benelux market, mainly reasoned out commenting on entrance fees and also the transport rates being high compared to other destinations like Thailand and India.
With regards to the local DMC competition in the Benelux, Luxembourg tour organisers agree that there is a low competition in their country – (100 percent of the sample). Belgian tour organisers thought still there is opportunity for the DMCs to tap the market since four out of six (66 percent) in Belgium, replied that there was low competition. However, the Netherlands tour operators generally thought there is heavy competition in the market (seven out of 12 in sample-58 percent).
The important question was asked, whether the tour organisers believe that the Sri Lankan government will achieve its long-term goal by bringing in 2.5 million tourists in 2016 to the island. Fifty percent of the sample size, disagree by saying that this is not possible, while 25 percent agreed on the fact that it is possible while 25 percent did not want to answer on the question.
Another important aspect was revealed through the satisfaction of the tour organisers on Sri Lanka government’s effort to promote tourism. Seven out of the 12 sample size in the Netherlands (58 percent) disagree saying the government tourism marketing is limited or not existent. Tour organisers in Belgium had equal views on the government promotions where three out of six (50 percent) each replied with opposing answers. All tour operators in Luxembourg were not satisfied with the government promotion related to tourism in the country. Overall 12 tour organisers (60 percent) in the region were not satisfied with the Sri Lanka government’s tourism promotions.
The travel organisers who disagreed mentioned that there is no promotion to be seen, the embassies are not in contact with the agents and not much marketing is being done about Sri Lanka in the media. Most of the Sri Lankan specialist said that they are not dependent or on the watch out for government marketing activities and they are carrying on with local DMC assistance. One travel organiser said that the marketing tools are old fashioned and that the ones being used 30 years back are still being reused for tourism promotional activities in the region. Not targeting the right tourist was also a comment.
Analysis and discussion
From the views of the Benelux tour operators, we can stabilize a view point for Sri Lanka tourism in the future.
Sri Lanka is still a sellable destination for the tour organisers in the Benelux but their request is for the prices of the hotels to be decreased in order to gain more tourists in the long run and to achieve the government’s long-term ambition. It is very encouraging to hear that Sri Lanka is demanded by the Benelux clientele and sellable but a decrease in the hotel prices in the future can boost the arrival figures.
There are some other suggestions in order that Sri Lanka can improve her tourist arrivals from the region. Some of these are starting a Sri Lanka Tourism office in Benelux region or at least allocating tourism officers who speak the native language, having workshops and presentations for the regional tour organisers, promoting a Dutch website of Sri Lanka Tourism in the Benelux, organising familiarization trips for the potential operators to Sri Lanka, providing information to travel agents during the regional fairs not only on the business days but also on other days of the fairs, getting involved in regional television promotions, having a separate Sri Lanka tourism stand at regional fairs (not together with private companies), focusing mainly on promoting the north and the eastern part of the country which could not be travelled before, promoting experiences instead of photos of attractions are some of these steps according to them.
Also, it is time for the policymakers not to forget the traditional markets like Benelux in Western Europe. It is suggested that a sufficient budget is also allocated to the Benelux, while Sri Lanka Tourism is pursuing new markets such as Russia and China and Eastern Europe.
(Punartha Perera (DTTHM (Canada), BA (Econ)-CMB, MBA (UK)) is a young veteran in the tourism sector in Sri Lanka. He has worked in the managerial level in one of the largest destination management companies (DMCs) in Sri Lanka for more than five years and is currently pursuing his Master’s in tourism in Belgium. You can comment on this article on [email protected])
