Sri Lanka Tourism faces downturn

By David Sabapathy - TNS

COLOMO - Sri Lanka's struggling tourism industry faces crisis with further drop of tourist arrivals in August. In August 2008, monthly tourist arrival figures fell by 31.4 percent compared to last year to 30,672 from 44,742, according to Tourist Board.

In July the tourist arrival drop by 25 percent to 32,982 from 44,742 and in the first eight months of 2008, arrivals indicated an increase only in January, March and May, while during that eight-month period overall arrivals fell by 8.2 percent to 288,000 from 313,000 in 2007.

Tourist arrivals have recorded alarming slides in the last three months, according to industry officials. The conflict between the Tamil Tigers and government forces, and with security concerns increasing in Colombo, the capital, the traditional tourist are staying away from Sri Lanka, they further said.

Also those who still coming are staying away from Southern and eastern coast according to the statistics. The travel to south coast drops from 46.7 percent to 36.3 percent. Also the government claims of total eastern liberation the Travel to East coast drops to 14.3 from 21.7.

Tourism contributed about US$1.03 billion, or about 3 percent of gross domestic product, in the last year, according to the Sri Lankan Tourist Board.

With the world faces serious credit crunch situation, the tourist arrivals bound falls further, warns a Economist in the Capital Colombo.