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Tourism in Countries Emerging From Disaster – Focus on Lebanon and Sri Lanka

It is hard not to notice that tourism is increasingly the most important source of foreign exchange for developing countries around the world, and increasingly for countries emerging from conflict. The death of Tamil Tiger leader Velupillai Prabhakaran and the subsequent end of the brutal civil war in May 2009 brought almost immediate attention to tourism development in Sri Lanka. According to the Sri Lanka Financial Times on May 31, 2009, “everyone wants a piece of the action and foreign contractors are pouring into the city, already housed in five-star hotels.” Similarly, after years of conflict, 2009 saw a tourism boom in Lebanon with nearly 2 million tourists visiting the country, a record that surpasses even the glamorous years before the Civil War, when Beirut was known as the Paris of the Middle East.

As Catherine Heald, co-founder and CEO of Remote Lands (the private operator of ultra-luxury tours in Asia based in New York and Bangkok) stated: “Sri Lanka is one of the world’s perfect travel destinations… From its extreme physical beauty , to the variety of experiences, to the kindness of its people, Sri Lanka truly has it all.” However, due to the serious internal disputes the country has faced over the past two and a half decades and the devastating 2004 tsunami that killed over 40,000 people, tourism on the island has suffered greatly. However, after the death of the Tigers, the island paradise began to attract visitors again with its rich art and culture, ancient architecture, wonderful beaches and stunning mountains, 5-star hotels and much more.

Then came the global recession, bringing international tourism to a near standstill between the latter part of 2008 and 2009. Therefore, Sri Lankan tourism has been hit by both internal and external crises and the fact that it is still alive speaks volumes. so much for the resilience of the industry. For the past three years, there has been a year-on-year decline in arrivals of 11.7 percent and 11.2 percent, respectively. Despite these tremendous odds, the industry has continued to maintain its position as Sri Lanka’s fourth largest foreign exchange earner, next to textiles and clothing, tea and workers’ remittances. In this context, it should also be noted that, unlike other foreign exchange earning sectors, tourism is almost a 100 percent value added industry.

The key for Sri Lankan businesses to benefit from the easing of the recession in 2010 will be their marketing tactics. During the civil war, marketing efforts centered around Sri Lanka’s cultural diversity with tour packages revolving around the safer, southern areas of Sri Lanka outside of the conflict zones. However, as stated by Rohan Karr, General Manager of the 5-star Grand Cinammon Hotel in Colombo, there is a whole range of new opportunities and destinations in Sri Lanka that are now open to tourism. Places such as Trincomalee or Jaffna, which were previously within the conflict zone, are now able to attract tourists again.

Similarly, Lebanon’s tourism industry witnessed unprecedented growth during 2009. In figures released to The Associated Press on January 19, 2010, Lebanon’s Ministry of Tourism said that 1,851,081 tourists visited the country last year, an increase of 39 per percent from a year ago. The previous record was 1.4 million tourists in 1974 – just before the outbreak of the disastrous 1975-90 Civil War. The booming tourism sector is the latest sign of progress in Lebanon, a country that has, over the years, become notorious for kidnappings, car bombs and political assassinations. However, the country is now seeing much greater stability and is attracting a steadily increasing flow of foreigners to its snow-capped mountains and stunning Mediterranean coastline.

During the Civil War, tourists simply stopped arriving, frightened by reports that Westerners were being kidnapped from the streets of Beirut. A thriving tourism industry that lured Hollywood stars to the Middle East, but withered. The industry was just beginning to recover in 2005 when Lebanon’s billionaire former prime minister Rafik Hariri, the power behind the multibillion-dollar post-war reconstruction, was killed in a mass bombing in Beirut. In July 2006, Israel then waged a devastating 34-day war in which 1,200 Lebanese were killed and billions of dollars worth of infrastructure was destroyed. Thousands of holidaying Lebanese tourists and expatriates were evacuated from the country due to the fighting. Most recently, in 2008, clashes broke out between the opposition and pro-government gunmen in Beirut after the government moved to curb Hezbollah’s military communications network. More than 80 people were killed in the ensuing violence. However, Lebanon has seen much greater stability recently and last year formed a unity government. The New York Times named Beirut the best place to visit in 2009 and, as a result, has helped to further enhance the country’s image.

The economic crisis has not stifled people’s desire to travel, but it has affected what people are willing to spend on travel. As such, it goes without saying that destinations that offer value for money with favorable exchange rates will be preferred as price becomes a key issue. Currency freedom in both the Lebanese pound and the Sri Lankan rupee will therefore be extremely attractive to British travelers in 2010, particularly with the recent strengthening of sterling making currency exchange much more affordable. What these two places offer is authentic and exciting travel with a good value twist. As mentioned in my previous article, this is what travelers coming out of a recession are looking for, and given the recent travails of these two great destinations, let’s hope so.

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