EMPOWERING LOCAL ENTREPRENEURS: REVITALIZING SRI LANKA'S TOURISM INDUSTRY

After many crises in Sri Lanka, now it’s time to rethink and restructure all leading sectors. At the moment one of the leading sectors is Tourism which has been affected a lot since the easter attack and covid. Rebuilding the tourism industry through small businesses in Sri Lanka is crucial for the country's economic recovery. Small businesses in the tourism industry provide employment opportunities and contribute to the local economy by generating income through the sale of goods and services. Additionally, small businesses play an important role in preserving and promoting the country's cultural heritage. Governments can coordinate small businesses across the tourism sector to create the same economies of scale and liquidity that large businesses rely on. Governments, local communities, and businesses all benefit. As do tourists, who increasingly wish to leave a positive impact on the communities they visit.

Sri Lanka is a popular tourist destination known for its beautiful beaches, lush jungles, and rich cultural heritage. Small businesses, such as guesthouses, restaurants, and tour companies, play a significant role in the country's tourism industry. These businesses provide employment opportunities and contribute to the local economy. However, the COVID-19 pandemic has had a significant impact on the tourism industry in Sri Lanka, and many small businesses have been affected. The government has implemented measures to support these businesses and promote domestic tourism to help revive the industry.

To rebuild the tourism industry through small businesses in Sri Lanka, the following steps can be taken:

·        Promoting domestic tourism: Encouraging Sri Lankans to travel within the country and to support local businesses can help to revive the tourism industry and support small businesses.

·        Developing infrastructure: Investing in the development of infrastructure such as airports, roads, and public transport to improve access to tourist destinations and to support small businesses.

·        Providing financial assistance: Providing loan guarantees and tax relief to small businesses affected by the pandemic can help to support their operations and allow them to recover.

·        Improving the quality of service: Providing training and skills development for small business owners and employees can improve the quality of service provided to tourists.

·        Implementing regulations and standards: Implementing regulations and standards to ensure the quality and safety of tourism services can protect the interests of tourists and small business owners.

·        Encouraging e-commerce: Encouraging small businesses to adopt e-commerce platforms to increase their reach and adapt to the current situation.

·        Encouraging eco-tourism: Encouraging small businesses to develop eco-tourism activities, which not only promote sustainable tourism but also contribute to the conservation of natural resources.

·        Creating special zones for tourism: Creating special zones for tourism in various parts of the country, providing facilities and infrastructure for small businesses to establish and operate.

·        Advertising the country: Advertising the country as a safe and welcoming destination for tourists will help to attract visitors and increase business for the small tourism business.

So, a combination of these measures can help to rebuild the tourism industry through small businesses in Sri Lanka and support the economic recovery of the country.

Tourism Small Businesses’ contribution to Sri Lanka

Small and Medium Enterprises (SMEs) play a significant role in Sri Lanka's tourism industry. These businesses, including locally owned hotels, restaurants, and tour operators, contribute to the country's economy by generating employment opportunities and income for local communities.

According to data from the Central Bank of Sri Lanka, in 2019 the tourism industry accounted for 4.3% of the country's GDP and provided employment for over 1.3 million people. Of these employment opportunities, a significant portion is generated by SMEs.

Furthermore, the Sri Lanka Tourism Development Authority reported that in 2020, out of the total of approved tourist accommodations, over 70% were small and medium-sized enterprises (SMEs) and small-scale enterprises (SSEs).

Additionally, according to the Sri Lanka Tourism Development Authority, in 2020, out of the total of approved tourist accommodation, over 70% were small and medium-sized enterprises (SMEs) and small-scale enterprises (SSEs).

In summary, SMEs are a vital contributor to Sri Lanka's tourism industry, providing employment opportunities and income for local communities, and accounting for a significant portion of the country's GDP.

Common challenges Tourism Small Businesses in Sri Lanka

Tourism small businesses in Sri Lanka face a variety of challenges. Some common challenges include:

·        Competition: There is a high level of competition among small businesses in the tourism industry, making it difficult for them to stand out and attract customers.

·        Seasonality: The tourism industry in Sri Lanka is heavily dependent on the peak season, which is usually from December to April, and this makes it difficult for small businesses to sustain their operations during the low season.

·        Lack of access to finance: Small businesses often struggle to access the financing they need to expand or improve their operations. This can be due to a lack of collateral or a lack of understanding of the financial system.

·        Limited marketing and promotion: Small businesses often have limited resources for marketing and promotion, which makes it difficult for them to compete with larger businesses.

·        Lack of infrastructure: Poor infrastructure can make it difficult for small businesses to provide a high-quality service to tourists. This includes issues with transport, communication, and basic amenities.

·        Lack of skills and training: Small business owners and employees may lack the skills and training needed to provide a high-quality service to tourists.

·        Lack of regulations: A lack of regulation can lead to a lack of standards and quality control, which can be detrimental to the industry as a whole and to the small business owners.

·        Natural disasters: Sri Lanka is prone to natural disasters such as floods, landslides, and tsunamis, which can damage infrastructure and disrupt tourism.

Small tourism businesses in Sri Lanka need to be adaptive and adaptive to the ongoing changes in the industry and should be supported by the government and other organizations to overcome these challenges.

Covid versus Small Businesses in Sri Lanka

The COVID-19 pandemic has had a significant impact on small businesses in Sri Lanka, particularly those in the tourism industry. With international travel restrictions in place, the number of tourists visiting Sri Lanka has dropped dramatically, resulting in a significant loss of revenue for small businesses that rely on tourism for their livelihood. This has had a ripple effect on the local economy, as many small businesses have been forced to close or reduce their operations, resulting in job losses and a decrease in economic activity.

The Government of Sri Lanka has implemented measures to support small businesses affected by the pandemic, such as providing financial assistance, tax relief, and loan guarantees. Additionally, the government has been promoting domestic tourism to help revive the industry and support small businesses.

Overall, the pandemic has had a negative impact on small businesses in Sri Lanka, particularly those in the tourism industry. However, with government support and the gradual reopening of international borders, it is hoped that these businesses will be able to recover and continue to contribute to the country's economy and cultural heritage.

Best policies for tourism Small Businesses introduced in Sri Lanka

The Government of Sri Lanka has introduced a number of policies to support small businesses in the tourism industry. Some of the best policies include:

·        Financial assistance: The government has provided financial assistance to small businesses affected by the COVID-19 pandemic through loan guarantees and tax relief.

·        Promotion of domestic tourism: The government has been promoting domestic tourism to help revive the industry and support small businesses. This includes campaigns to encourage Sri Lankans to travel within the country and to support local businesses.

·        Development of infrastructure: The government has invested in the development of infrastructure such as airports, roads, and public transport to improve access to tourist destinations and to support small businesses.

·        Skills development: The government has implemented programs to provide training and skills development for small business owners and employees to improve the quality of service provided to tourists.

·        Implementing regulations and standards: The government has implemented regulations and standards to ensure the quality and safety of tourism services. This helps to protect the interests of tourists and small business owners.

·        Encouraging e-commerce: The government has encouraged small businesses to adopt e-commerce platforms to increase their reach and to adapt to the current situation.

·        Encouraging eco-tourism: The government has encouraged small businesses to develop eco-tourism activities, which not only promote sustainable tourism but also contribute to the conservation of natural resources.

·        Creating special zones for tourism: The government has created special zones for tourism in various parts of the country, providing facilities and infrastructure for small businesses to establish and operate.

So, these policies aim to support small businesses in the tourism industry, promote sustainable tourism and enhance the overall tourism experience for tourists, as well as support the local economy.