Sri Lanka’s allure as a premier tourist destination for Indian travellers continues to grow exponentially, marked by a significant influx of visitors from across the border. In the first half of 2024 alone, Sri Lanka welcomed a staggering 198,161 tourists from India, underscoring India’s status as the largest source market for Sri Lankan tourism. This surge not only highlights the deep cultural and historical ties between the two nations but also underscores Sri Lanka’s strategic efforts to enhance bilateral tourism relations.
India: Sri Lanka’s Leading Source Market
With a robust increase in arrivals from India, which now represents 18% of Sri Lanka’s total tourist arrivals, the island nation has strategically extended visa-free entry for Indian tourists, further facilitating seamless travel experiences. Direct flights connect Sri Lanka to nine key Indian cities, ensuring convenient access and reducing travel times, complemented by smooth transaction processes enabled by India’s Unified Payments Interface (UPI). This enhanced connectivity has significantly contributed to fostering a conducive environment for Indian travellers to explore Sri Lanka’s diverse offerings.
Economic Impact and Tourism Revenue
Sri Lanka’s tourism sector has been a cornerstone of its economic growth, contributing over $1.25 billion in the first four months of 2024. Building upon the milestone achievement of surpassing $2 billion in tourism earnings in 2023, Sri Lanka aims to sustain this momentum with projections of earning over $550 million from the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector in 2024, with an ambitious target of reaching $1.36 billion by 2026.
Strategic Initiatives and Promotional Campaigns
To solidify its position as a preferred destination for Indian tourists, Sri Lanka Tourism has implemented a series of targeted initiatives. Key among these efforts are high-impact networking events and roadshows hosted across India’s major cities, including Kolkata, Bengaluru, Chennai, and Mumbai. These events serve as platforms to showcase Sri Lanka’s diverse attractions, ranging from pristine beaches and ancient heritage sites to vibrant cultural experiences.
Networking Events and B2B Engagements
Highlighting its commitment to fostering tourism ties, Sri Lanka Tourism recently hosted a landmark networking evening aboard a cruise on the Ganges in Kolkata. Attended by prominent travel agents, industry leaders, and media representatives, this event was a collaborative effort involving the Sri Lanka Convention Bureau (SLCB), Sri Lanka Tourism Promotion Bureau (SLTPB), and numerous destination management companies, hotels, resorts, and service providers from Sri Lanka.
Ministerial Support and Strategic Vision
Mr. Harin Fernando, the Honourable Minister of Tourism, Lands, Sports, and Youth Affairs, expressed gratitude to India for consistently supporting Sri Lanka’s tourism development. He highlighted Sri Lanka’s progress into a middle-income nation with strong economic indicators, overcoming past challenges.
In 2023, tourism earnings exceeded $2 billion, and by April 2024 revenues had already surpassed $1.25 billion. The goal for 2024 is to attract 2.5 million tourists and this looks achievable since almost 1 billion tourists have arrived to date. To achieve this goal, a global marketing campaign called “You’ll Come Back for More” was launched. Sri Lanka has actively promoted its attractions at major international events and conducted roadshows in key cities worldwide. India remains our top source with 18% of total tourism arrivals being Indians in the past 5 months and the extension of visa-free entry for Indian tourists further aims to boost visitor numbers.
Mr. Chalaka D. Gajabahu, Chairman of the Sri Lanka Tourism Promotion Bureau, emphasized tourism as the third-largest revenue stream for the island, noting its growth beyond beach tourism to encompass sports, culture, spirituality, and history. Since 2023, Sri Lanka established a strong presence in India with B2B roadshows in cities like Bengaluru, Chennai, Cochin, Kolkata, Ahmedabad, Pune, Mumbai, and New Delhi, in addition to participating in major travel trade shows like Outbound Travel Mart (OTM) in Mumbai and South Asia’s Travel & Tourism Exchange (SATTE) in New Delhi.
The strategy shifted towards impactful events in the West and Middle East, including participation in prominent trade shows such as World Travel Market in London, ITB in Germany, and Arabian Travel Mart in Dubai. Furthermore, B2B roadshows were conducted in Brisbane, Sydney, and Melbourne in Australia, as well as in Turkey, complemented by B2C initiatives involving influencers and media programs by hosting around 300 media personnel from 15 countries, showcasing Sri Lanka’s readiness to welcome tourists.
Mr. Thisum Jayasuriya, Chairman of the Sri Lanka Convention Bureau, highlighted Sri Lanka’s growth as a preferred MICE destination, with enhanced venues and accessibility attracting corporate events. The country’s MICE sector saw success with the 3rd MICE expo in May 2024, featuring 100 international buyers and 113 local suppliers. India remains a key target market for MICE travel, with efforts to increase revenue from this segment.
The collected data shows that the MICE arrival comes to 9.5% in 2023 compared to the overall tourist arrival and is expected this percentage to grow up to 12% in 2024, aiming for earnings of over $550 million. By 2026, the target is $1.36 billion in earnings and 10% of total arrivals from MICE tourism. The bureau aims for an 11% increase in MICE arrivals annually, as MICE travellers spend significantly more than other tourist segments.
Diversification and Sustainability Efforts
Beyond traditional beach tourism, Sri Lanka has diversified its offerings to include sports, cultural immersion, spiritual retreats, and historical exploration. This diversification strategy has resonated well with Indian travellers seeking year-round destinations, positioning Sri Lanka as a multifaceted tourism hub in South Asia.
Future Projections and Growth Trajectory
Looking ahead, Sri Lanka remains steadfast in its pursuit of sustainable tourism growth, with a keen focus on enhancing MICE facilities and infrastructure. The country’s MICE sector, characterized by world-class venues and accessibility, has witnessed substantial growth, attracting corporate events and international conferences. With targeted efforts to increase MICE arrivals and revenues, Sri Lanka aims to capture a larger share of the lucrative corporate travel market.
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