Budget vs High End Visitors?

By Rukmankan Sivaloganathan
Friday, 10th January 2025
For years, the conversation about Sri Lanka’s tourism strategy has focused on whether or not we should position ourselves as a high-end destination and attract only affluent tourists, however my view is that this position doesn’t take into account some key factors.

First, I feel Sri Lanka simply lacks the infrastructure and ecosystem that high-end tourism demands:

  • Cultural sites and museums lack modern maintenance and facilities expected by luxury travelers.
  • Luxury transport options are limited—there are limited regular domestic plane services or helicopter transfers that are standard at high-end destinations.
  • Service standards are warm and friendly but fall short of professional excellence, as top hospitality talent often migrates to the Maldives or the Middle East.
  • Tourist sites lack basic amenities such as clean restrooms, proper signage, and modern visitor centers.

Second, the argument against budget tourism fundamentally misunderstands how modern tourism works:

  • Young travelers from developed countries often start as budget tourists, forming lasting impressions that influence future high-end travel choices.
  • These travelers become unofficial ambassadors, creating authentic content through blogs, videos, and social media.
  • Budget travelers integrate with local communities, supporting small businesses and fostering broad-based economic benefits.
  • They pioneer new destinations—Ella, Hiriketiya, Arugam Bay, and Hikkaduwa all gained popularity through early budget travelers.

This pattern isn’t unique to Sri Lanka. Thailand’s Koh Phi Phi and Croatia’s Hvar Island demonstrate similar evolution: initial discovery by budget travellers, followed by organic growth through social media exposure, eventually attracting luxury developments while maintaining diverse visitor profiles.

Reconsidering My Approach

While I still believe the argument for high-end only tourism is flawed, recent developments have led me to reconsider some aspects of my position. The issue isn’t about market segments anymore but about sustainable growth and improving overall quality.

Three key challenges are driving this shift in my thinking:

Infrastructure Strain

  • Major sites like Sigiriya face overwhelming crowds with inadequate management
  • Yala’s wildlife suffers from unregulated safaris, sometimes with dozens of jeeps surrounding a single leopard
  • Beach towns struggle with waste management, water supply, and poor road infrastructure
  • Popular sites lack proper crowd control and visitor facilities

Economic Vulnerability

  • Over-reliance on tourism creates mono-economies, replacing traditional industries
  • Local communities suffer inflationary pressure, making everyday life more expensive
  • Workforce skills become narrowly tourism-focused, increasing vulnerability to downturns
  • Traditional crafts risk being lost or reduced to tourist souvenirs

Volume Management

  • While Indian tourists at present are mostly affluent travellers from the main metros, there is a huge budget segment there that currently visit Thailand
  • Without regulation and management, this segment presents a significant incentive for the development of large 2-3 star resorts to cater to them
  • Given the difficulties faced by large destinations like Phuket in dealing with large budget groups, our small beach towns will not be able to handle this potential influx

Moving Beyond Market Segments

Rather than focusing on whether Sri Lanka should target budget or luxury travelers, I believe we need a more nuanced approach. This means thinking carefully about managing tourism’s impacts while developing our infrastructure and services in a way that appeals to quality-conscious travelers across different price points.

Sri Lanka already has incredible assets – the challenge now is how we present and deliver these experiences in a compelling, consistent way. While the specifics of how we do this need to emerge from broader industry discussion, here are some ideas I think are worth considering.

Defining Our Identity:

  • Create a powerful brand message like “Small Island, Big Trip” (credit to be attributed if existing) that captures our unique value proposition of exceptional diversity within a compact geography
  • Position ourselves to attract quality-conscious travelers across price points by focusing on authentic experiences and cultural immersion rather than just luxury amenities
  • Develop distinctive marketing narratives for different regions (Cultural Triangle, Hill Country, Coast) while maintaining their connection to our overall national identity
  • Create a clear visual and storytelling framework that sets us apart from similar destinations like Thailand, Bali, and the Maldives

Industry-wide Alignment:

  • Bring together everyone in tourism – from large hotel chains to local guides – through regular meetings and planning sessions to work toward common goals
  • Create clear guidelines for how we talk about and present Sri Lanka, so visitors get the same quality information whether they’re at a luxury resort or a small guesthouse
  • Provide training materials and resources that help tourism workers deliver great experiences while staying true to their individual strengths
  • Help tourism businesses work together through shared marketing and learning opportunities that benefit the whole industry

Long-term Commitment:

  • Learn from successful campaigns like “Malaysia, Truly Asia” by studying how they maintained message consistency while adapting to changing market conditions over two decades
  • Maintain consistent branding across administrations that helps build brand equity and memorability..
  • Set clear rules for protecting our heritage sites and wildlife parks – like enforcing sustainability measures at monuments and national parks.
  • Work with local communities to ensure traditional crafts, festivals, and ways of life aren’t lost as tourism grows

Moving From Vision to Action

While creating a strong tourism identity is essential, turning this vision into reality requires thoughtful implementation. I don’t claim to have definitive solutions to the complex challenges our tourism industry faces – these need to emerge from broader industry discussion and careful strategic planning. However, based on my experience, here are some key areas I believe we need to address:

Upgrade Basic Infrastructure

  • Transform visitor facilities at heritage sites with modern amenities – from clean restrooms and clear signage to shaded rest areas and proper parking
  • Create visitor management systems at wildlife parks – implement online booking, set jeep limits per zone, and train drivers in sustainable safari practices
  • Develop an integrated transport network connecting major sites – reliable public transport, quality roads, and clear route information
  • Build proper visitor centers at key attractions with multilingual information, emergency services, and local food options

Raise Service Standards

  • Create a national certification program for tourism workers – from hotel staff to tuk-tuk drivers
  • Set up a support system for small businesses – provide training, marketing help, and guidance on maintaining quality
  • Establish a tourism helpline and feedback system to quickly address visitor issues
  • Work with hospitality schools to develop programs that match industry needs

Support Local Communities

  • Help traditional craftspeople and artists develop sustainable business models around tourism
  • Create opportunities for locals to start tourism-related businesses – from food stalls to guided experiences
  • Set up programs to teach English and digital skills in tourism-heavy areas
  • Ensure a percentage of tourism revenue goes back into community development

Learning from Success Stories

As we develop these elements, we can learn from other destinations that have successfully managed similar challenges:

  • Japan shows us excellence in visitor management. Their information centers combine traditional hospitality with modern efficiency – multilingual staff, digital assistance, and spotless facilities. Most importantly, they’ve maintained cultural authenticity while improving accessibility.
  • New Zealand demonstrates sustainable nature tourism through intelligent capacity controls and booking systems. Professional guide certification ensures high standards while creating quality employment. Conservation remains central to the tourism experience, justifying premium pricing through visible preservation efforts.
  • Singapore exemplifies infrastructure integration, with seamless connections between transport and attractions. Their consistently high standards across all touchpoints create an ecosystem where premium prices feel justified through reliable service delivery.

A Call for Engagement

The future of Sri Lanka’s tourism industry depends on making the right choices now. As visitors return in increasing numbers, we have a rare opportunity to reshape our tourism model – moving beyond the simple high-end versus budget debate to create something truly sustainable and uniquely Sri Lankan.

Success will require input from multiple stakeholders:

  • Local communities to share their experiences of tourism’s impact and help shape development that preserves their way of life
  • Tourism operators to identify operational challenges and opportunities based on frontline experience
  • Environmental experts to guide sustainable practices that protect our natural treasures
  • Cultural heritage specialists to ensure we preserve and celebrate our living traditions
  • Infrastructure planners to coordinate development that serves both visitors and residents

The goal should be to create a tourism model that:

  • Preserves Sri Lanka’s natural and cultural heritage for future generations
  • Provides high-quality travel experiences across different price points
  • Ensures sustainable economic benefits for local communities
  • Maintains Sri Lanka’s authentic character while meeting global standards

But this isn’t just about planning – it’s about action. We need to move beyond endless discussions about market positioning and start implementing practical improvements, from basic infrastructure to service standards. The ideas I’ve shared here are just a starting point. What matters now is bringing together different perspectives and experiences to create a tourism model that works for everyone – visitors, communities, and the industry alike.

What’s your vision for Sri Lanka’s tourism future? How can we create experiences that work for everyone while preserving what makes our island special? Share your thoughts in the comments.

https://www.4hoteliers.com/features/article/16999

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