Sri Lanka welcomed a record 2.36 million tourists last year, earning $1,360 per visitor, down from nearly $1,900 in 2018. The Seychelles earns about $3,000 per visitor.
“You don’t monitor only tourism arrivals, just to make the headlines. You monitor the value,” says Sherin Francis, its Principal Secretary for Tourism. She discussed how a small island outearns its larger neighbour, and what Sri Lanka could take from it.
Sri Lanka had 38,200 rooms registered with the tourist board in 2018 and 59,500 by 2025, up 56%. The average tourist stay fell from 10.8 nights to 8.3. What can Sri Lanka learn from the Seychelles about managing inventory?
Small guest houses are not the problem. But growth has to be managed, because too much of it can kill the very industry it feeds. Before any hotel project in the Seychelles goes to planning, the developer must apply to us for rooms. We study what our roads, workers and communities can handle before approval.
You prefer “higher-value tourism” to the word “premium”. What does that mean and why should it matter for Sri Lanka’s guest houses and family businesses?
Because premium does not mean luxury. It means earning more value from every visitor. Take a guesthouse that sells a room for $30 a night. It cannot cover its costs, so it can never afford to improve. The country pays too. Every visitor uses roads, water and waste services. A visitor should be spending at least $90 to $100 in our economy. Below that, taxpayers are subsidising their holiday.
How does the Seychelles help small operators out of that trap?
We do not leave them to fight on price. Our Small Establishment Enhancement Programme helps them raise their standards and train their staff. We expect each business to climb a step every year, and we reward those that do. A small guest house can deliver a premium product.
What should Sri Lanka change first?
Decide what kind of tourism it wants, and what is most valuable. For us, that is the environment. Then the government and industry must tell the same story. A five-star hotel cannot succeed in a two-star destination. In the Seychelles, the government has changed twice, but our direction has not.