Tourism marketing

International Conference on Social Sciences - Sri Lanka 2008 (ICSSL) -18th –20th July 2008
• Presentation By
• Dr. Kingsley Guruge
• Dept. of Geography,
• University of Kelaniya

Structure of the Presentation
 Introduction on Marketing and Marketing In Tourism
 Tourism Marketing Characteristics, Factors affecting Tourism
Marketing, Tourism Marketing Policy in Sri Lanka
 Tourism Promotion (Marketing) Strategies of Sri Lanka Since
Independence
 Recent Intensive Tourism Promotional Measures
Finding New Markets
Increasing the Accessibility
High Level Discussions to Promote Sri Lanka
Destination Branding
 Conclusions

What is Marketing ?
“ Marketing consists of the strategies and tactics used to
identify, create and maintain satisfying relationships with
customers that result in value for both the customer and
the marketer. ”
Key factor in successful marketing is understanding the
needs of customers. Marketing Concept suggests
marketing decisions should flow from FIRST knowing the
customer and what they want.
Source :www.knowthis.com

The Major Components of Tourism Marketing
Accommodation Sector
Hotels/Motels
Guest houses/ Bread & breakfast
Apartments/Flats/Villas/Cottages
Holiday Centres/Vacation Villages
Conference/Exhibition Centres
Static and Touring Caravans
Marinas
Condominiums
Attraction Sector
Theme Parks
Museums & Galleries
National Parks
Wildlife Parks
Gardens
Heritage Sites and Centres
Sports/Activity Centres
Leisure/Entertainment Centres
Festivals and Events
Transport Sector
Airlines
Shipping Lines/ Ferries
Railways
Bus/Coach Operators
Car Rentals
Travel Organizors’ Sector
Tour Operators
Tour wholesalers/brokers
Retail travel agents
Conference Organizers
Booking agencies (e.g.
Accommodation)
Destination Organization Sector
National tourist Offices
Destination Marketing Organisations
Regional/State Tourist offices
Tourist Associations

Marketing Characteristics in Tourism
 The product is not tangible until the tourist reaches the
destination
 The tour operator sells a tourist package to the consumer.
It offers the consumer (The Tourist) a set of facilities, that
he/she would be able to enjoy on reaching the tourist
destination.
 Therefore the consumer purchases “ A Set of Dreams” for
an agreed amount of money.
 it is the responsibility of the travel organizers (both at
origin and destination) to see that the “Traveller’s Dream”
becomes a reality

Factors Affecting Tourism Marketing
 Accessibility- 1. Distance to the destination
2. Time consumed to reach the destination
3. Travel Cost
 Nature of the Destination
 Purchasing power of the tourists
 Political stability (Globally and also within the destinations)
International Terrorism
Terrorism within destinations
 Economic Recessions in Tourism Generating Countries
 Destructions due to natural disasters

The Apparent Tourism Marketing Policy of Sri Lanka
 Tourism was introduced as a means of
earning foreign exchange
 A Rapid Expansion of the Tourism Sector
was expected
 Emphasis on Beach Tourism
 Relying on West European Market
 Insufficient attention on cultural tourism

Tourism Growth Trends from 1966-2006
0
100000
200000
300000
400000
500000
600000 1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Years
NumberofArrivals
Foreign Exchange Earnings from Tourism -1966-2006
0
50
100
150
200
250
300
350
400
450
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Years
US$Millions
Employment Generation in Tourism From 1970-2006
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Years
NumberofEmployment
Opportunities
Rapid Expansion of the Tourism Sector
Growth of Tourist
Accommodation Sector 1966 -
2005
Growth of Tourist Accommodation
Sector 1966 - 2005
Source; Sri Lanka Tourist Board, Annual Statistical Report of Sri Lanka Tourism 2006

Emphasis on Beach Tourism

Dependency on West European Market

Insufficient Attention on areas other
than "Pleasure”

Tourism Promotion (Marketing) Strategies of Sri Lanka
Since Independence
 in 1937 “Tourist Bureau” (By the British)
 “The Government Tourist Bureau.” (after 1948)
 In 1966, Ceylon Tourist Board (CTB) was established
by an act of parliament as a policy formulating body
 Establishment of Ceylon Hotel Corporation

Tourism Promotion (Marketing) Strategies of Sri Lanka
Since Independence (Continued)
 In (1953) a tourist office was established at the
passenger jetty of Colombo Port, with the aim of
promoting Sri Lanka through posters and press
advertisements.
 In 1959 the first charter flight arrived in Sri Lanka.
 1n 1967 “The Ceylon Tourism Plan” was introduced,
with the objective of achieving optimum growth in
international travel and tourism
 Introduction of the Second Tourism Master Plan in
1993

Tourism Promotion (Marketing) Strategies of Sri Lanka Since Independence
(Continued)
 Mice tourism was encouraged, in 1996, and as a result number of
tourists who visited Sri Lanka under this category grew by
more than four fold in 1997, relative to 1996
 Turnover Tax on hotel accommodation charges (I%) has been
removed by the 1998 annual budget proposals
 Import of goods for refurbishment and upgrading of hotels ,
and import of vehicles for transport of tourists were exempted
from import duty for a period of one year
 Corporate income tax on the tourist industry has been reduced
from 35% to 15% to ensure investments on tourist industry

 In 2006 SLTB participated in several international travel fairs held in
India, U K, Germany, France, China, Hong Kong, Japan, Korea and
Middle East to promote Sri Lanka as a friendly Destinatio
 The World Spice Festival was held in Colombo for the 2nd successive
year form 14th to 26th September 2006. 13 International Chefs were
flown down to Colombo and were assigned to all five star hotels and
03 specialty restaurants to promote an international culinary fiesta as
a tourist attraction.
Recent Intensive Tourism Promotional Measures

 The Sri Lanka Festival in Tokyo + Sri Lankan Week was another
important marketing strategy launched to attract Japanese
tourists. To fulfill this target the Festival was equipped with
cultural shows, food festivals, and a special event named
“Capturing Nature’s Wonders .
 The New Tourism act no. 38 of 2005, will come into operation with
effect from October 1st 2008, and accordingly Tourism Development
Authority will be established. It is expected that this act will provide
a suitable environment to attract 1.5 million tourists to the island in
the year 2010.
Recent Intensive Tourism Promotional Measures (Continued)

Finding New Markets
 Tapping other Asian Markets such as Pakistan, Bangladesh,
Thailand, Malaysia and China was considered as a priority issue
 In 2002 Sri Lanka was identified as an official destination by
China. Arrivals from China increased from 4338 in 2002, to 7251
in 2003. ( 67% increase) By 2006 Arrivals from China increased
to 16364 ( 277 % increase relative to the figure of 2002)
 In May 2003 The Ministry of Tourism and Civil Aviation signed a
bilateral agreement with Maldives to promote tourism between
the two countries.
 A similar agreement was signed with Pakistan in 2003.

Finding New Markets.. (Continued)
BIMST-EC, (Bangladesh, India, Myanmar, Sri Lanka and Thailand) a
regional grouping of countries for greater fast track economic co-operation
was established in 1997. Six key sectors were chosen for this Economic
grouping, and among them was Tourism
In 2005, India emerged as the leading producer of tourism to Sri Lanka with
113,323 arrivals, accounting for 20.6 per cent of the total traffic. Market
share of South Asia has expanded from 14.4 per cent in 1999 to 27.9 per
cent in 2005 and to30.0 per cent in 2006.
Western Europe continued to be the single largest source of tourism to Sri
Lanka, accounting for 41.3 per cent of the total arrivals.

Tourist Arrivals to Sri Lanka by Regions
0
50000
100000
150000
200000
250000
300000
2000 2001 2002 2003 2004 2005 2006
Years
NumberofArrivals
North America Western Europe Eastern Europe
ASIA Australasia
Recent Market Trends

 By 2003 Sri Lanka was operating to 33 destinations in 21
countries
 In May 2003 The Ministry of Tourism and Civil Aviation
signed a bilateral agreement with Maldives to promote
tourism between the two countries.
 A similar agreement was signed with Pakistan in 2003.
 Flight arrangements were made with eight other
countries. (Oman, Singapore, Qatar, Egypt, Switzerland,
UAE, France and Indonesia)
Increasing the Accessibility

High Level Discussions to Promote Sri
Lanka
During June 2007, Development and Invest Promotion
Minister Dr. Sarath Amunugama held discussions with
Germany’s Travel sector representatives in order to
inform them that there is no threat to visitors from the LTTE
(The Island. 18th June 2007)
In a recent visit to Doha, Qatar, the Deputy Minister for
Tourism Hon. Faizer Mustapha launched a major publicity
campaign aimed at winning over the large tourist market in
the Gulf.

Destination Branding : The Importance of Branding to Tourism:
 Every tourist destination in the world has a “Brand Image".
 The brand serves to differentiate a destination from competing
destinations. A strong brand is differentiated from others
 In tourism, while factors such as cost of travel, convenience, and
quality of facilities are important, the strongest motivator is
"image” of the particular destination
 Image creates an emotional appeal, to visit the destination

 From the very beginning Sri Lanka was marketed based on “Beach
Tourism”
 A recent interest was witnessed on Marketing tourist facilities other
than the beaches (such as Eco-Tourism, MICE Tourism Etc.)
 But, with ongoing security issues in the country, Anuradhapura and
Polonnaruwa are considered as risky areas
 Tour operators are of the opinion that Sri Lanka can get a much
larger share of tourist arrivals from places like European countries if
a re-branding is done to the destination by removing the cultural tag.
Destination Branding : The Case of Sri Lanka:

 The latest attempt on branding Sri Lanka as a tourist destination is
the Xerox, Sri Lanka Tourist Board partnership, which aims to
Promote Sri Lanka as “The Island of Colour.” (Date of Agreement
May 2008)
 Commenting on the proposal, Chairman, Sri Lanka Tourism,
Renton de Alwis said, “This is a high tech – high touch initiative
where Sri Lanka Tourism benefits from the high end resources
offered by a leading global brand. This brand promotion is for the
benefit of all stakeholders and we invite all to involve themselves in
its implementations.”
Destination Branding : The Case of Sri Lanka:

Conclusions
 “Accessibility” factor is not in a favorable position to tap the
European source areas
 European market segment is gradually thinning, Special
marketing strategies should be adopted to promote the Asian
Tourism sector which is emerging since the year 2000.
 Current emphasis on Beach Tourism should not be encouraged
further, because already the popular beaches are congested with
tourism infrastructure facilities and experiencing various social
and environmental problems

 Prompt attention should be given to market tourist
attractions other than the beaches
 On going war has damaged the “Image” of Sri Lanka,
and it is essential to develop ways and means to
overcome this situation through innovative
marketing strategies
Conclusions (continued)

Thank You For Your Attention

Tourism marketing

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