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‘‘Determinant factors of LabourDemand and Supply Forces:

Sri Lanka Tourism Perspective’

Malraj. B. KiriellaDirector International Relations & ResearchSri Lanka Tourism Development Authority

Sri Lanka: An OverviewSri Lanka: An Overview

Set in the Indian Ocean off the southern tip of India in South Asia, Sri Lanka offers the traveller a remarkable combination of experiences, from captivating cultural heritage to stunning landscapes all within a compact location - hardly more than 400 kilometres long and about 250 kilometres wide.

Sri Lanka is made for travel and adventure and genuinely ranks as one of the great “spirit of travel”experiences on earth.

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Product offerProduct offer•• Cultural and heritage experienceCultural and heritage experience that highlights the islandthat highlights the island’’s s

seven World Heritage sites, including the medieval city of seven World Heritage sites, including the medieval city of PolonnoruwaPolonnoruwa, the mysterious , the mysterious SigiriyaSigiriya Rock Fortress, the remarkable Rock Fortress, the remarkable DambullaDambulla Caves that houses more than 150 Buddha statues and Caves that houses more than 150 Buddha statues and 20002000--yearyear--old murals;old murals;

•• Nature/Environment ExperienceNature/Environment Experience can make up of a visit to the can make up of a visit to the rolling hills of rolling hills of NurawaNurawa EliyaEliya at an altitude of almost 2000 metres, at an altitude of almost 2000 metres, where it is produced the worldwhere it is produced the world’’s best tea, and even enjoy the ecos best tea, and even enjoy the eco--tourism aspects of the exciting wildlife on the island.tourism aspects of the exciting wildlife on the island.

•• Colombo ExperienceColombo Experience shows off the bustling city of old and new. shows off the bustling city of old and new. Visitors enjoy the unique and great value for money shopping! Visitors enjoy the unique and great value for money shopping! Exquisite Exquisite homewareshomewares, beautiful handicrafts, colourful markets, a , beautiful handicrafts, colourful markets, a range of galleries and museums, and gems; a range of culinary range of galleries and museums, and gems; a range of culinary experiences and entertainmentexperiences and entertainment

•• Adventure ExperienceAdventure Experience such as elephant trekking and leopardsuch as elephant trekking and leopard--watching in day safaris, or mountain biking in the natural terrawatching in day safaris, or mountain biking in the natural terrains, ins, or hotor hot--air ballooning over World Heritage sites.air ballooning over World Heritage sites.

•• Health TourismHealth Tourism-- Includes traditionalIncludes traditional AyurvedaAyurveda to state of the art to state of the art Medical facilitiesMedical facilities

TOURIST ARRIVALS TO SRI LANKATOURIST ARRIVALS TO SRI LANKAFROM 1966 TO 2008FROM 1966 TO 2008

0

100000

200000

300000

400000

500000

600000

66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Problem

July 83 riots

Problem 88-89

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Tourist Arrivals: 2003Tourist Arrivals: 2003--20082008

0

100000

200000

300000

400000

500000

600000

200320042005200620072008

2003 2004 2005 2006 2007 2008

Tourist Arrivals by Market Tourist Arrivals by Market -- 20082008

MarketsMarkets RankRank ArrivalsArrivals•• India India 11 85,23885,238•• UK UK 22 81,33181,331•• Maldives 3 31,564Maldives 3 31,564•• GermanyGermany 44 30,62530,625•• AustraliaAustralia 55 19,53619,536•• RussiaRussia 66 15,79715,797•• USAUSA 77 14,05314,053•• Netherlands 8 13,030Netherlands 8 13,030•• France 9 10,594 France 9 10,594 •• Canada 10 10,258 Canada 10 10,258

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☺ 438,475 tourists

☺ 9.5 average duration of stay

☺ Av. Daily spend per tourist US$ 77

☺ US $ 320 million in earnings

☺ 60% Charter/beach round trip groups, 27% FIT, 4% MICE, 8% Others , 1% Ecotourism

Where we are …

Tourism is the 4th largest Foreign Tourism is the 4th largest Foreign Exchange Earner in Sri LankaExchange Earner in Sri Lanka

20072007 RsRs. Billion. Billion

Textiles & Garments Textiles & Garments -- 369.6369.6Private Foreign RemittancesPrivate Foreign Remittances -- 276.7276.7TeaTea -- 112.9112.9TourismTourism -- 42.542.5

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EmploymentEmployment

•• DirectDirect -- 51,85751,857

•• IndirectIndirect -- 7272,599,599

Every 4 tourist arrivalsEvery 4 tourist arrivalsmakes one jobmakes one job

Growth stimulus & indirect job Growth stimulus & indirect job creation in other sectorscreation in other sectors

••Handicrafts Handicrafts

••Batik Batik

••GemsGems

••JewelleryJewellery

••Agriculture Agriculture

••FisheriesFisheries

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Tourist Arrivals by MonthTourist Arrivals by Month--20082008

0

10,000

20,000

30,000

40,000

50,000

60,000

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Arrivals

Sri Lankan EconomySri Lankan Economy--Key IndicatorsKey Indicators•• Population: 20 Population: 20 MnMn..•• Age DistributionAge Distribution

00--14yrs : 25%14yrs : 25%1515--64yrs : 65%64yrs : 65%65 & over: 10%65 & over: 10%

•• Literacy Rate: 92.5%Literacy Rate: 92.5%•• Poverty Poverty –– Population below US $ 1 a dayPopulation below US $ 1 a day--6%6%

-- Population below US $ 2 a dayPopulation below US $ 2 a day--42% 42% •• Employed personsEmployed persons-- 7 7 MnMn. . •• Employed by sectors : Agriculture Employed by sectors : Agriculture --31%31%

Industry Industry -- 27%27%Services Services --42%42%

•• LabourLabour Force Participation Rate: 49.8 %Force Participation Rate: 49.8 %•• Unemployment Rate : 6 % (per cent of Unemployment Rate : 6 % (per cent of LabourLabour Force)Force)

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Direct Employment by CategoryDirect Employment by CategoryDirect Employment in Tourist Industry -

2007

1

2

3

45

6

7

8State Sector

NTO

Guides

Tourist Shops

Recreational Facilitators

Airlines

Travel Agencies & Tour Operators

Hotels & Restaurants

Direct Employment in the Tourism Direct Employment in the Tourism Industry Industry --2005 to 20072005 to 2007

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2007 2006

Technical, Clerical Allied andSupervisoryMannual & Operative

Managerial, Scientif ic &Professionals

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Hotel School Graduates Passed out Hotel School Graduates Passed out from Year 2002from Year 2002-- 2008 2008

118118868690907474797948484646Graduates Graduates Passed outPassed out

20082008200720072006200620052005200420042003200320022002YearYear

NO OF GUIDE LECTURES LICENCED BY CATEGORY NO OF GUIDE LECTURES LICENCED BY CATEGORY 20082008

•• National GuidesNational Guides -- 6161•• Chauffer GuidesChauffer Guides -- 128128•• Area GuidesArea Guides -- 1,0201,020

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Training: VisionTraining: Vision•• Identification of areas connected to the tourism industry where Identification of areas connected to the tourism industry where

training of personnel is neededtraining of personnel is needed and obtaining the services of the and obtaining the services of the best academic and professional trainers is essential;best academic and professional trainers is essential;

•• Development of curriculaDevelopment of curricula in identified areas of study,in identified areas of study,•• To provide To provide tertiary education and vocational trainingtertiary education and vocational training in subjects in subjects

related to tourism, to such extent as the same is required for trelated to tourism, to such extent as the same is required for the he development of tourism; development of tourism;

•• To To coco--operate with persons or bodies on training persons both operate with persons or bodies on training persons both local or foreignlocal or foreign to engage in work wholly or partly connected with to engage in work wholly or partly connected with tourism; tourism;

•• To To award certificates of participationaward certificates of participation to each individual indicating to each individual indicating the nature of the qualification obtained from the Institute;the nature of the qualification obtained from the Institute;

•• To own, manage and participate in the ownership and To own, manage and participate in the ownership and management of schools and training management of schools and training centrescentres wholly or partly wholly or partly connected with tourism; and connected with tourism; and

•• To To exercise, perform and discharge the powersexercise, perform and discharge the powers, , duties and duties and functionsfunctions conferred or imposed on the Institute by or under the conferred or imposed on the Institute by or under the NewNew Act or any other law in force for the time being for the Act or any other law in force for the time being for the purpose of the attainment of its objectives. purpose of the attainment of its objectives.

Departures for Foreign Employment by Country & Departures for Foreign Employment by Country & Manpower Level 2007Manpower Level 2007

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Determinants of Determinants of LabourLabour DemandDemand•• Excess demand for Skilled Excess demand for Skilled labourlabour•• Three decade of war in the N/E provinces has brought Three decade of war in the N/E provinces has brought

various adverse effects in tourismvarious adverse effects in tourism•• lack of career opportunities and advancement in the lack of career opportunities and advancement in the

tourism industries which resulted a reluctance to enter tourism industries which resulted a reluctance to enter the tourism the tourism labourlabour market, particularly by young people. market, particularly by young people. They prefer to join for various academic & professional They prefer to join for various academic & professional courses other than tourism courses other than tourism

•• Low number of female participation due to social barriers Low number of female participation due to social barriers & negative perception& negative perception

•• Continued high Continued high labourlabour mobility and mobility and ‘‘draindrain’’ of skilled of skilled employees seeking employment in other industries and employees seeking employment in other industries and overseas because of wages and working conditions in overseas because of wages and working conditions in the tourism industriesthe tourism industries

•• Perceived Low wages and Perceived Low wages and unfavourableunfavourable working working conditionsconditions

Determinates of Determinates of LabourLabour SupplySupply

•• Excess supply of unskilled Excess supply of unskilled labourlabour•• High number of skilled High number of skilled labourlabour immigrants to other immigrants to other

countries (such as the Middle East and Maldives)countries (such as the Middle East and Maldives)•• Lack of skilled Lack of skilled labourlabour at the professional and at the professional and

management levelmanagement level•• Lack of career advancement opportunitiesLack of career advancement opportunities•• Low number of young people choosing to enter the Low number of young people choosing to enter the

tourism industriestourism industries•• Lack of investment in training by SME establishmentsLack of investment in training by SME establishments

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Sri Lanka Tourism TargetsSri Lanka Tourism Targets--20162016

•• Tourist Arrivals - 2.0 Mn.• Hotel Rooms - 25,218• Average duration of Stay (nights) -10.5• Average spending per day per tourist –US $130• Direct and Indirect Employment - 450,000• Earnings - Rs. Billion 327

• Dutch Bay” Development Project in Kalpitiya4100 acres including 12 Islands in the Dutch Bay area in Putlum District in the North Western Province.Infrastructure development commencing in 2009. Resort will consists of 3000 rooms of 4-5 star categories, 18 hole golf course, yacht marina, amphibian aircraft landing pier and a fast ferry transporting the tourists from Putlum to Dutch Bay and excursions to Wipattu Wildlife Park.

• Dedduwa Resort in Bentota1100 acres of land surrounded by Bentota river will be developed as a major recreational activities centre with a golf course, horse riding activities,500 seat convention hall cum theater and other recreational activities with 1000 rooms of 4-5 star categories, water sports & marina.

Product Development & NewProduct Development & NewEmployment OpportunitiesEmployment Opportunities

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Tourism Zones in Sri LankaTourism Zones in Sri LankaKalpitiyaKalpitiya, , MarawilaMarawilaWaikkalWaikkal, , NegomboNegomboColombo, Mt. Colombo, Mt. LaviniaLaviniaWadduwaWadduwa, , KalutaraKalutaraBeruwalaBeruwala, , BentotaBentotaDedduwaDedduwa, , MaduMadu GanagaGanagaAhungallaAhungalla, , HikkaduwaHikkaduwaGalleGalle, , UnawatunaUnawatuna,,KoggalaKoggala, , WeligamaWeligama,,MataraMatara, , TangalleTangalleHambantotaHambantota, , TissamaharamaTissamaharama,,YalaYala, , ArugambayArugambay, , PassekudahPassekudahTrincomaleeTrincomalee, , NilaweliNilaweliPinnawalaPinnawala, Kandy, KandyNuwarNuwar EliyaEliya, , BandarawelaBandarawela, , MaskeliyaMaskeliya,,Polonnaruwa,HabaranaPolonnaruwa,Habarana, , AnuradhapuraAnuradhapura,,Victoria, Victoria, MataleMatale , , DambullaDambullaSigiriyaSigiriya, , GiritaleGiritaleUdawalawaUdawalawa, , RatnapuraRatnapuraWasgamuwaWasgamuwa

YALA

NILAVELI

MARAWILAWAIKKALA

UDAWALAWA

WASGAMUWA

GIRITALE

MT. LAVINIARATNAPURA

HABARANA

TOURISM DEVELOPMENT ZONES OF SRI LANKA

Altitude in MetresAbove 500 100 - 500 0 - 100

Scale 1 : 1,650,000

LEGEND

Do mestic Airpor t Harbou r

Famous Buddhist Shrine

Famous Hindu Temple

Famous Chu rch Mosque

Archeo logical Site

Wor ld Heritage Site

Botanical Ga rdens

Popular Beach

Peak

Wildlife Re serve

A Class Road

Ra ilway

Water Fa ll

COLOMBO

KALUTARA

Batticaloa

TRINCOMALEE

Mullaitivu

Mannar

Puttalam

Vavuniya

Kilinochchi

ANURADHAPURA

MATALE

KANDY

Kurunegala

Kegalla

NUWARA ELIYA

Ampara

Monaragala

Gampaha

Jaffna

NEGOMBO

Chilaw

Avissawella

Badulla

BANDARAWELA

Turtle Hatchery

Marine Sanctuary

Coral Gardens

Blowhole

Rock Fortress

Rock Temple

WorldÕs End

SINHARAJA RAIN FORE ST

YALA NATIONAL PARK

SRI PADA (AdamÕs Peak)

GAL OYA NATIONAL PARK

WAS GOMUWA

NATIONA L PA RK

UDA WALAWE NATIONA L PARK

MA DURU OYA NATIONAL PARK

WILPATTU NATIONA L

PARK

PIDURUTALAGALA

SANCTUARY

BIRD SANCTUARY

Elephant Orphanage

SANCTUARY

POLONNARUWA

PINNAWALA

Peradeniya

Hakgala

DAMBULLASIGIRIYA

Temple of the Tooth

Mah

a wn

e li

Ga

ga

Katunayake

Chundikulam

Kankesanthurai

Pearl Banks

BIRD SANCTUARYKokkilai

KIRIGALPOTA

Sacred Bo Tree

Gems Bambarakanda

Diyaluma

Dunhinda

Dutch Fort

NAINATIVU

Nallur Kandaswamy Kovil

Madhu Church

Medirigiriya

St. AnneÕs

International Airport

Aluviharaya

YapahuwaRock Temple

PalaliPt. Pedro

DELFTWild Ponies

Mankulam

Mihintale

Thirukoneswaram Temple

Palavi

RajanganaAvukana

Munneswaram Temple

Kelaniya Raja Maha Viharaya

Lankatilaka

MahiyanganaRaja Maha Viharaya

Digavapi

Horton Plains

Tissamaharamaya

Kataragama

Laksapana

Kirindi Ella

Kurundu Oya

Dredu u Oya

Kelani

Ganga

Wa

e

law

Ga n

ag

Mad

u ru

Oya

Yan

O

ya

A

u

r uvi Ar

A B C

D

1

2

3

4

5

6

BAS ED ON MAPS P UB LISHED B Y THE SURV EY DE PARTMENT

GALLE

PASSIKUDAH

ARUGAM BAY

WADDUWA

BERUWALABENTOTA

HIKKKADUWA

KOGGALAUNAWATUNA

MATARAMIRISSA

TANGALLEHAMBANTOTA

KALPITIYA

MADUGANGA

DEDDUWA

TISSAMAHARAMAYA

MASKELIYA

VICTORIA

AHUNGALLABALAPITIYA

WELIGAMA

Tourism Developme nt Zon es

In SummaryIn Summary……..

•• Perception change for Perception change for ““tourism sector jobstourism sector jobs”” is is vitally importantvitally important

•• Suitable measures should be taken to absorb the Suitable measures should be taken to absorb the ““unskilledunskilled”” in to in to ““skilledskilled”” category and also the category and also the ““informalinformal”” in to in to ““formalformal”” categorycategory

•• Take measures to retain skilled Take measures to retain skilled labourlabour•• Must attract more youngsters & femalesMust attract more youngsters & females•• Development of methods to measuring of Development of methods to measuring of

employment is importantemployment is important

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