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 MarketingAccommodation Sector

Hotels/MotelsGuest houses/ Bread & breakfastApartments/Flats/Villas/CottagesHoliday Centres/Vacation Villages

Conference/Exhibition CentresStatic and Touring Caravans

MarinasCondominiums

Attraction SectorTheme Parks

Museums & GalleriesNational ParksWildlife Parks

GardensHeritage Sites and Centres

Sports/Activity CentresLeisure/Entertainment Centres

Festivals and Events

Transport SectorAirlines

Shipping Lines/ FerriesRailways

Bus/Coach OperatorsCar Rentals

Travel Organizors’ SectorTour Operators

Tour wholesalers/brokersRetail travel agents

Conference OrganizersBooking agencies (e.g.

Accommodation)

Destination Organization Sector

National tourist OfficesDestination Marketing Organisations

Regional/State Tourist officesTourist 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

6000001966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Years

Nu

mb

er

of

Arr

ivals

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

$ M

illio

ns

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

Nu

mb

er

of

Em

plo

ym

en

t

Op

po

rtu

nit

ies

Rapid Expansion of the Tourism Sector

Growth of Tourist Accommodation Sector 1966 -

2005

0

2000

4000

6000

8000

10000

12000

14000

16000

19

66

19

69

19

72

19

75

19

78

19

81

19

84

19

87

19

90

19

93

19

96

19

99

20

02

20

05

Years

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

Nu

mb

er

of

Arr

iva

ls

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

Date post:	20-Sep-2014
Category:	Travel
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