Sri Lanka is bouncing back after three years of crises and is targeting the Middle East as a key market due to the mix of high-spending Emiratis and expatriates.
Speaking at the Arabian Travel Market (ATM), Udaya Indrathna, ambassador at the Sri Lanka embassy in Abu Dhabi, said: “Sri Lanka has had its challenges but I’m pleased to say most have passed.”
He went on to refer to the 2019 bomb attack, Covid-19 pandemic, and recent political and economic turmoil. He said the new president has surrounded himself by young talent to steer the country in a new direction, with tourism positioned as a promising economic pillar.
In this new chapter of Sri Lankan tourism, the country has shifted its focus from quantity to quality, with the Middle East region – home to a healthy mix of high-spending Emiratis and expatriates – being aggressively targeted.
According to official figures, expats from the region tend to stay an average of four to five days and Emiratis for two weeks, enjoying luxury accommodation and experiences.
Dushan Wickramasuriya, director of marketing, Sri Lanka Promotion Bureau, noted: “The UAE in particular is unique because 80 per cent of the population are expat residents from places like India, Europe, the US and Canada. These are all key markets for us, so when we target this region, we’re not only reaching Emiratis but other nationalities as well.”
Minister of tourism, Harin Fernando, said the ministry has set a target to increase visitor spend from the current average of US$200 to US$250, to between US$400 and US$500 by next year.
“The Middle East market is crucial as we are now seeking quality tourists over quantity. We slowly want to focus on the right markets and right people over numbers,” he noted, adding there are no plans to make Sri Lanka an expensive destination – instead it will appeal more to the “affordable luxury” segment.
At ATM, Emirates also signed a Memorandum of Understanding to actively promote Sri Lanka as a leading tourist destination.
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Results from the Southeast Asia Summer 2023 Domestic Travel Survey, conducted by consumer research firm Milieu Insight, reveals interesting insights on the willingness to travel domestically, concerns for safety, and the number and duration of trips planned for the year.
The survey involved 2,500 working individuals aged 20-65 in Indonesia, Thailand, Vietnam, Philippines, and Malaysia in April 2023.
Findings show a positive outlook for the travel industry in the region, with about eight in 10 respondents (76%) keen to travel in their own country; 85% of respondents across the region plan to embark on at least two domestic trips this year.
Four in 10 respondents in Thailand intend to take four or more trips this year, the highest across the region for domestic travel intent. This suggests that travel companies should consider offering packages and promotions that cater to multiple trips to boost the frequency of travel.
Additionally, the duration of travel per trip remains stable across markets, with the majority preferring an average of three to four days per trip. This information is valuable for travel companies when planning their packages and promotions.
Interestingly, the promotion of the destination is less impactful than a recommendation from family/friends in most countries, except Malaysia and Thailand, which means the tourism offices have done well in boosting local tourism.
The survey also revealed that concerns about Covid-19 safety have waned across most of the countries surveyed, with the Philippines showing the highest level of concern, likely due to rising cases in the country as reported by the Department of Health (4,456) in the last week of April 2023.
Travel spots and sceneries rank highest in key considerations for domestic travel in Indonesia (69%), Thailand (66%) and Vietnam (58%), while the safety of travel (69%) tops the list of considerations for respondents from the Philippines.
Of noteworthy mention is that while costs of the whole vacation do have an impact on travel decisions, especially for domestic travellers in Indonesia (61%), Malaysia (61%) and Thailand (60%), the weather of the destination takes precedence especially for those living in Thailand (62%) and Vietnam (55%). This could likely be due to concerns about extreme weather events that can happen quite frequently in both countries, reflecting the negative impacts of global warming.
Beach holidays are popular across the region, with destinations known for their beautiful beaches ranking first in each country: Boracay in the Philippines, Bali in Indonesia, Danang in Vietnam, Sabah in Malaysia, and Phi Phi Island in Thailand.
Waterfalls across Thailand are hotspots for domestic travellers, with 24% of respondents choosing them as favourite travel destinations.
National carriers (full-service airline) are top choice among respondents in the Philippines, Indonesia and Vietnam: Philippine Airlines (76%), Garuda Indonesia (74%), and Vietnam Airlines (72%).
In Malaysia (84%) and Thailand (83%), low cost carrier AirAsia is the airline of choice, likely due to higher price sensitivity for travellers in both the countries.
When planning holiday activities, South-east Asians prove to be foodies, with about five in 10 planning a food trip experience, while four in 10 respondents from Indonesia, Malaysia and Vietnam are keen to shop locally.
Beach holiday activities are especially popular among Filipinos, with five in 10 respondents choosing swimming and other beach activities like paragliding or parasailing (13%).
Among Thai respondents, 65% is keen to join tours, which is also a popular activity for Malaysians (45%), Indonesians (40%) and Filipinos (43%).
Museum visits are especially popular among respondents in Vietnam and Malaysia, with at least two in 10 inclined to visit a museum while on vacation.
From sightseeing to relaxing holidays, travel planners should consider that South-east Asian travellers are drawn to activities that offer them opportunities to relax and unwind. With the diverse food culture in different states, the opportunity to eat like a local and discover hidden food gems will definitely be a draw.