Promote Diving Tourism in Sri Lanka
1.
Introduction
Sri Lanka is one of the most attractive tourist destinations in the world. The scenic environment, the beautiful beaches, and the ancient ruins attract tourists to this small Island. Inbound Tourism in Sri Lanka grows rapidly. The Sri Lankan tourism industry currently contributes between 11%-12% of Sri Lanka’s Gross Domestic Production (GDP) annually and contributes greatly to creating jobs in the country. United Nations World Tourism Organization (UNWTO) reported that 2.3 million tourists arrived in Sri Lanka in 2018 and 5% increase on its 2.1 million visitors in 2017.According to the stats published by Sri Lanka Tourism Development Authority nearly 2 million tourists visited in 2019.The highest revenue ever recorded is 4380.628 million US$ received in 2018.
1.1 Present Situation of World Tourism
The tourism industry directly contributes 3.6% of the world’s GDP. About 1 in every 12 jobs and 3% of the world employment is generated based on tourism. This industry also represents about 12% of the world exports. As per the market expertise analysis of global market showed that travellers are more interested in Long-Haul travel, Neighbouring country tourism, Rural and ethnic tourism, Wellness and health holidays, Cultural tourism, Spiritualism, Ecotourism, Sport and adventure holidays, coastal tourism and cruises. A survey of tourists show that east and south Asian countries include the highest attraction, also the younger age group of tourist seems to be on the upswing in travelling all around the world. In the global market, tourism does not seem to be fallen apart, according to United Nations World Tourism Organization (UNWTO) is predicting to increase by 5% for long term travel each year and 3% for travel from region to region. Also, progressive infrastructure, targeted marketing and promotion efforts, easing air traffic, growing international partnerships and increasing public-private partnerships are the key drivers of tourism in the next decade. According to the United Nations World Tourism Organization (UNWTO) forecast for tourism in 2019, 18.8 A million tourists are expecting to arrive in South Asia by 2020. But even if it is lost in the Covid19 pandemic of 2020, this can be achieved in 2021. Table: 1 shows 1461.1 Million people travelled worldwide in 2019, and a significant number of tourists also visited South Asia too.
2. Promote Diving Tourism in Sri Lanka
Tourism is one of the fastest-growing industries in
Sri Lanka. Therefore most People started businesses in the tourism industry
utilizing the resources available to generate income. An entrepreneur who
enters the tourism industry should always follow modern strategies to
attract customers to the business. Entrepreneurial ideas always need to be
new and competitive.
2.1 What is Diving Tourism
Diving tourism is the industry based on servicing the requirements of recreational divers at destinations other than where they live. It includes aspects of training, equipment sales, rental and service, guided experiences and environmental tourism. There is a high demand for adventure travel in the World market. Also, most travellers travelling around the world are in young age groups. Therefore Diving Tourism providing business will be a one of successful business idea in A country like Sri Lanka. Diving tourism is not very popular in Sri Lanka but it is one of the most popular tourism concepts in tourism destinations around the world. Diving tourism in Sri Lanka began to grow in the 1970s but has not become a successful business opportunity until 2020. Sri Lanka’s coastline stretch over 1300km and most of the tourist attraction places are located in the coastal region. Sri Lanka’s diving tourism industry is currently in full swing in areas such as Hikkaduwa and Kalpitiya. If the entrepreneur is able to expand the diving tourism industry across the country, it can be a profitable business for both local and foreign tourists.
2.2 Hidden Diving Destinations in Sri Lanka
Although
there are many places to use in diving tourism, a very few destinations are
currently in use in Sri Lanka. If an entrepreneur properly maintains locations,
it can generate huge revenue. Areas that a diving tourism entrepreneur can
use are described below, along with possible
activities.
3. Applying Business Model to Diving Tourism
3.1 Value Propositions
Consumers in diving tourism primary looking for experience in adventure, environmental education and a variety of challenging activities in their tours. Since a Sri Lankan entrepreneur have to present Sri Lankan sea activities such as biodiversity researches, shipwreck explorations and night diving to experience the natural beauty of the Sri Lankan underwater world attract both domestic and foreign tourists. Introducing Live-aboard scuba diving activates first time in South Asia will be a positive impact on the business
Below are examples of quality and quantity
tour packages that an entrepreneur can offer to local and international markets
using navigable areas in Sri Lanka.
3.2. Customer Segments
The
domestic and foreign tourists are the main consumers of diving tourism. If an
entrepreneur adopts conventional customer identification methods, the number of
customers who enter the business will be limited. Therefore for success in
the business, an entrepreneur in the Diving Tourism industry should focus on its
mass-market while offering their services to the niche market too.
The following chart shows the target consumer groups in the mass market and the niche
market that are able to attract the business.
3.3 Key Activities
Consumer’s
wants to experience recreational diving and diving license as the main
activity, since the main activities are aligned with the source of income an entrepreneur who provides diving tours has to introduce significant activities
to the market. This process requires good services also to establish good
relationship with customers. There are a few examples given below.
3.4 Sri Lanka’s Key Resources for Diving Tourism
Sri
Lanka’s premier natural resource for Diving Tourism is the fabulous coastal
belt. Lodging, Restaurant’s, ATM machines, Super Market, Hypermarkets, Parking
facilities varies amenities in diving tourism are considered as physical key
resources. Human Resource in Sri Lanka is also a key resource to the diving
industry.
3.5 Revenue Streams in Diving Tourism
The
main revenue stream comes from Domestic and International tourists. Repeat
travellers also generate revenue for the industry. Other sources of income
related to this industry are mentioned separately. (5. Identifying the Hidden Business Opportunities in Diving Tourism
Industry)
3.6 Cost Structure in Diving Tourism
Cost for running a Diving tourism business should be determined according to a specific model. The cost of human resources is one of the highest costs in this industry. Further costs of employee training, salaries for workers, porters, freelancers, Diving guides and instructors apply to this section. Operational costs such as costs for promotions, costs for infrastructure development and maintains, ecosystem controls are the expenditures which apply to the cost structure.
3.7 Using Channels to Promote the Dive Tourism in Sri Lanka
An
Entrepreneurs should identify the best way to reach their potential customers.
Special attention should be given to the easiest and best way to reach foreign
tourists or foreign markets. For this purpose the current information
technology media such as Websites, Facebook, Twitter, WhatsApp, Mails and
YouTube channels are the easiest and best ways that can be used. It is also
possible to participate in tourism exhibitions such as WORLD TRAVEL EXPO, THE
TRAVEL AND VACATION SHOW to promote the business.
3.8 Key Partnerships
A
diving tourism package provider has to start a partnership with various
individuals and organizations to create efficient and orderly operations to
minimize any business relate risks. Diving equipment suppliers, boat riders,
Diving guides or instructors and lodge and restaurant owners are the main
partners in the diving tourism industry. Building partnerships with world-renowned diving certification bodies such as PADI, SSI, CMAS SCUBA DIVERS,
GUE, NAUI to provide international service and teachings.
3.9 Customer Relationship
A diving tourism entrepreneur should have a good relationship with his customer segment in order
to ensure financial success and the sustainability of the business. This
can be done by maintaining direct contact with customers and providing them with quick solutions to their problems. Maintaining an official website for business
and providing up-to-date information, offering discounts for repeat tourists,
providing personal assistant to every customer also helps to maintain a good
customer relationship.
4. Production factors & SWOT analysis of Diving Tourism
4.1 Production Factors analysis
Based only in the beautiful environment and attractive beaches, it is impossible to conclude that
Sri
Lanka is suitable to start a diving tourism business, for this, the strength of
the production factors should be measured in order to provide services in the
tourism industry. Production factors are the key elements needed to create an
economic profit. Land, Labour, Capital and Entrepreneurship are taken as the
production factors. The land is considered as the primary factor of production. As
a land, Sri Lanka has everything to attract tourists. Beautiful nature, attractive
beaches and favourable climatic conditions are all the positive acceptance of the
land. Capital is the key component of the production factor and it is needed
for any industry to begin. Sri Lankan Government is introducing lending schemes
such as Enterprise Sri Lanka, Green Loan, and Jaya Isura to start-up businesses
to develop the Countries tourism industry. Under Enterprise Sri Lanka Entrepreneurs
receive a repayment period of two years with a 75% interest subsidy. Also, the
government provided opportunities to entrepreneurs to borrow loans on fixed
rates from state or non-government banks if necessary. These factors indicate
that there is a favourable environment in Sri Lanka for Entrepreneurs to seek
business capital. The active factor of the production factors is Labour.
Sri Lanka is a country with a literacy ratio of 96.3% and a workforce of 52%
in the country’s total population, primary and secondary education are also the best
in the country. Government and private institutions conducting diploma and
degree courses for Travel and Tourism Management, Hospitality management. Hotel
management etc. to provide skilful and knowledgeable employees to the job
market. Therefore it is not difficult for Entrepreneurs to obtain skilful labour
in Sri Lanka for their new ventures. Entrepreneurship is the most important
part of the production factors, they are the ones who are setting up new
businesses in the country. There is a great need among the youth to start new
businesses in Sri Lanka and the Sri Lankan government has to be very supportive in
promoting new Entrepreneurs in the tourism industry. The government reduced Vat and
levies on hotel sector and tour operators up to 5% and provided low-interest
loans to encourage youth to start new businesses, also government provided
industrial knowledge for a low price through The Sri Lanka Institute of Tourism
and Hotel Management for young entrepreneurs who are willing to start a
business. Considering the above production factors there is a favourable
situation in Sri Lanka to start diving tourism businesses.
4.2 SWOT analysis
SWOT the analysis is the strategic planning method used to identify the Strength,
Weaknesses, Opportunities and Threats of an industry, sector or Business to
give advantages over others. Below is the SWOT analysis of Diving Tourism
Industry
5. Identifying the hidden Business
Opportunities in Diving Tourism Industry
As
mentioned earlier Diving Tour package providing business is a successful
business venture because there are hidden business opportunities associated
with it. An Entrepreneur can expand his business using many opportunities
instead of one. Below are some of the additional sources of revenue
6.
Techno -preneurship Ideas in Diving Tourism Industry
Diving
Tourism providers can use the latest IT or technological opportunities to earn
extra income for their business. These Techno- preneurship opportunities will
give a big boost to the promotion of diving tourism industry and will add
additional income to the entrepreneurs. Below are the techno preneurship opportunities
in Diving Tourism industry
7. Conclusion
Diving tourism is one of the most successful
business venture in an Island nation like Sri Lanka. There are also hidden
business opportunities associated with this industry. Due to the rich
production factors in the country and the government support, it’s easy for an entrepreneur
to start diving tourism in Sri Lanka. This Industry will also attract a large
number of tourist to Sri Lanka. Introducing Live-Aboard diving activities that
have not yet been launched in South Asia is the biggest achievement of Sri
Lankan in this diving tourism industry. Good adventure activities can also
create using Ship wrecks and hidden attractions in Sri Lanka. And the major
positive impacts from this industry are can earn a good foreign revenue to the
country and can create jobs for un employed Sri Lankans.
8. References
·
https://www.ukessays.com/essays/tourism/the-tourism-in-sri-lanka-tourism-essay.php
·
https://www.e-unwto.org/doi/pdf/10.18111/9789284421152
·
http://www.gidb.org/tourism-current-global-tourism
·
https://www.ceicdata.com/en/indicator/sri-lanka/labour-force-participation-rat
·
http://www.statistics.gov.lk/PopHouSat/CPH2011/Pages/Activities/Reports/FinalReport/FinalReport.pdf
·
https://str.com/data-insights-blog/6-tourism-industry-trends
·
https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-01/UNWTO_Barom20_01_January_excerpt.pdf
·
https://www.ceicdata.com/en/indicator/sri-lanka/tourism-revenue
·
http://www.colombopage.com/archive_19A/May07_1557241333CH.php
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