25
Executive summery The assignment is based on the subject of marketing which is about the actions or business of promoting and selling products or services, including market research and advertising. Author of the report is served as a management consultant in to the ministry of tourism in increasing the tourism volumes of the country. Tourism industry of Asia and Sri Lanka has analyzed in terms of internal and external environment in identification of the current status and the raking of Sri Lankan industry of tourism in the world market.And marketing objectives have newly established with the objective of the ministry of tourism. To reach the objectives by next three years new marketing strategies have been implemented by the growth strategy and market targeting, segmentation and positioning. To support the strategies implemented the marketing mix by 4 P’s has used in supporting the findings and new strategies. Also customer experiences has analyzed in terms of the practices, productivity and the effectiveness of the industry in order to enhance the tourists volumes of the Sri Lankan tourism industry.

Executive summery

Embed Size (px)

Citation preview

Executive summery

The assignment is based on the subject of marketing which is about the actions or business of

promoting and selling products or services, including market research and advertising.

Author of the report is served as a management consultant in to the ministry of tourism in

increasing the tourism volumes of the country.

Tourism industry of Asia and Sri Lanka has analyzed in terms of internal and external

environment in identification of the current status and the raking of Sri Lankan industry of

tourism in the world market.And marketing objectives have newly established with the

objective of the ministry of tourism. To reach the objectives by next three years new

marketing strategies have been implemented by the growth strategy and market targeting,

segmentation and positioning. To support the strategies implemented the marketing mix by 4

P’s has used in supporting the findings and new strategies. Also customer experiences has

analyzed in terms of the practices, productivity and the effectiveness of the industry in order

to enhance the tourists volumes of the Sri Lankan tourism industry.

1.0. Introduction

Tourism is the business of providing services such as transport, places to stay, or

entertainment for people who are on holiday (Cambridge dictionary, 2015).Tourism is an

industry which is booming in Asian sector specially in Sri Lanka as the 30 years’ war has

ended. Ministry of tourism of the country is expecting advices up on the increase of tourist

volumes of the country, the author of the report is advising them in their need.

Sri Lanka is already known as a cosmopolitan, multi-cultural destination in Asia which is

worth visiting either for business or holiday reasons as already provides a unique products as

leisure and eco-tourism products in the Asian tourism industry. Identification of market

climate is much important in developing a market plan and Industrial analysis will help in

identification of the current market situation according to the surveys conducted by Sri

Lankan tourism department, ICRA Management consultancy Sri Lanka and tourism

development strategy 2015 established by government. Strategic setting of market oriented

objective will be help further in increasing the tourist volumes and ethical business standards

of the country, Along with identification of the market mix and targeting and positioning of

the industry. Customer experience will be also taken in to consideration for further

development of the industrial practice in advising the ministry of tourism of Sri Lanka

according to the many researches conducted in both local and international surveys on Sri

Lankan tourism industry.

2. Situation analysisSri Lanka is located in Indian Ocean in South Asia as the tropical island, nation where the

original soul of Buddhism still flourishes and where nature’s beauty remains abundant and

unspoilt. As a result of its location in the path of major sea routes, as of 2010 Sri Lanka was

one of the fastest growing economies of the world. As country is in the development stage

country is offering such remarkable combination of natural and beautiful landscapes,

authentic beaches, captivate cultural heritage and unique experiences as the island of magical

proportions as named as serendib, Tabrobane and the pearl of Indian Ocean within a mere

area of  65,610 kilometers lie 8 UNESCO World Heritage Sites. According to the Industry

life cycle the industry is identified as a growing industry as a low rivalry and high growth

with weak buyers with low entry barriers.

Title: Industry life cycle

Figure No: 01

Source: (Johnson and Whittington et al, 2011)

“Welcome to Sri Lanka, Wonder of Asia” the slogan set by Ministry of tourism and the

upcoming programs set by the government with the full involvement of the country residents

as they are being facilitated by this industry.

2.1. Tourism industrial climate of Sri Lanka (Internal environment)

Tourism development authority (SLTDA) has formed as Apex body of Sri Lanka tourism

under section 2 of Tourism act (No.38 of 2015) is formally established as Sri Lanka Tourism

board under ministry of tourism which is established under Sri Lankan government in

responsible for all the tourism activities of the country and which committed towards

transforming Sri Lanka in to Asia’s foremost tourism destination and SLTDA is starved in

developing the industry of tourism in terms of unique and quality tourism services and

products that would make Sri Lanka as a unique destination globally, Activities including

identifying and developing tourist specific and unique products and services, formulating and

implementing Ministry has implemented Tourism Development Guidelines and facilitating

and implementing the legal and administrative process for new product and service

Sri Lanka Industry of tourism

development for the industry while keep monitoring the detailed statistics about the visitors

to the country.

Title: Tourist arrivals in the destinations of Asia

Table No: 01

Source: (ICRA Management consultancy survey, 2010)

End of the 30 years of war in Sri Lanka the industry of tourism has shown a dramatically

development and tourism arrivals has increased to meet the competition in sector of Asia and

Asian sector have been identified as tourism’s boom of the world. When comparing the

tourism arrivals with the other tourist operators of the world Sri Lanka has shown

competitiveness during the years as Sri Lanka offers cultural, eco-tourism as well as coastal

tourism which leads with leisure tourism. Major tourist attractions in Asia Maldives, India,

Thailand, Malaysia, Philippines are offering different products in tourism. Ex: Maldives

cannot offer what Sri Lanka has and the same goes to Sri Lanka. That is the main reason why

there wouldn’t be competition between the two countries in the tourism industry. Sri Lanka

has average market share in the Asian sector tourism which is in growth stage.

Title: Tourist arrivals and arrival targets

Figure No: 02

Source: (Tourism development authority, 2015)

2.2. Tourism industry of Asian sector (External environment) by PESTEL analysis

Industry Environment Analysis is a study which done to assess the current industry

environment. This exercise helps understand the various aspects and predict trends of the

industry, Stakeholder practices, competitions and developable aspects of the industry.

Political - Sri Lanka is a democratic, socialist republic and a unitary state which is governed

by a semi presidential system with a mixture of a presidential system and parliamentary

systems and constitutes a parliamentary system governed under the constitution of Sri Lanka.

Main focus of the industry and facilitating the National Tourism Strategy introduced in 2011

to develop the tourism sector as making facilitations to the industries where growing and

backbone of the economy. Promotional activities conducted by the government in 25 trade

and travel fairs worldwide with travel industry participation in direct market promotions that

were held in the UK, China, Germany, India and the Netherlands and other countries.

Regulations imposed by the government in respect of minimum room rates for each class of

hotels. Launch of Sri Lanka travel and tourism club in collaboration with Ministry of

Economic development to develop tourism

Economical - Sri Lanka is recognized as a fast growing middle income country. Sri Lanka is

in terms of per capita income with nominal value of US $2,435 and PPP value of US $5,220.

It recorded a GDP growth of 8.3% in 2011.The development of domestic infrastructure

facilities, strategic investments by global hotel chains, promotional campaigns, new tourist

attractions and identified zones in the Northern and Eastern Provinces for tourism

development activities, gave Sri Lanka a stronger stand in international promotions. surveyed

by Jones (2011) and as per Schwab (2011), classifieds Lanka as an emerging market in 2010

and Citigroup classified it as a 3G country in February 2011.Also Sri Lanka ranked well

above other South Asian countries in Human Development Index (HDI) with 0.658 points

and Earnings from tourism exceeded US Dollar 1 billion, Tourism Development Zones in

Kalpitiya, Kuchchaveli and Yala are being promoted for investment with a view to

developing tourism on different themes. Ex: Shangri-La Asia Limited.Sri Lanka Tourism

Development Authority (SLTDA) together with the Urban Development and Authority

(UDA) continued its tourism zone identification process in the districts of Mulativu, Mannar

and Jaffna in the Northern Province.

Social - Sri Lanka has a population of little over 20 million people and is far ahead of South

Asian neighbors in the accomplishment of human development goals. As per Department of

Census and Statistics (2013), As the society developed many industries were facilitated as the

tourism industry has fed by educated and skilled natives as the travel and trade industry

related subjects are mainly focused in secondary education. Development in mass media and

word platforms are transferring the information of the country to the world and to meet new

clients and fine indicator to showcase such developments taking place in the changing

attitudes and consciousness of people of Sri Lanka as increasing trend of domestic tourism as

a result of increasing living standard of people and there is a tendency of guest arrival from

European countries

Technological – Higher rate of growth in technology reduces the cost of industrial practices

and in the business processing of the country as development in information communication

technologies, transactions online banking, and communication and operations sophistication

as Schwab (2011), Sri Lanka has around 2 million internet users in 2011 and

telecommunication is one of the fastest growing sectors in Sri Lanka. Sri Lanka's cellular

subscriber base has shown a staggering 550% growth, from 2005 to 2010. Sri Lanka

Railways, spans1, 447 kilometers The recently opened Southern Motorway has link Colombo

and the down south to middle of the country, As by National Science Foundation (2012),

According to the figures about Sri Lanka had spent more than 5 billion us dollars on research

and development(R & D) in 2008.

Environmental - Sri Lanka enjoys a tropical climate with varying temperatures according to

location. Coastal or upland areas benefit from Cool Mountain or sea breezes all year round

Monsoon season is between May to September in the South & West and October to April in

the North & East of the country. Environment healthy concepts have introduced to the

country as ecofriendly hotels and green organizations concept. Government and private sector

institutions have added the saving of the environment in to their corporate social

responsibility while the environment authority has initiated some regulatory frame work in

saving the natural habitat of the country especially in related business of industry of tourism.

Legal - Ministry of Justice of Sri Lanka (2015), The Legal system of Sri Lanka is a highly

complex mixture of several laws. Sri Lanka has strong labor policies which clearly stipulate

the working hours, age limits and prohibition of child labor, industrial safety etc. and the

salaries are paid monthly. Regulatory system of the country has implemented special

immigration laws for the foreigners who visits the country in avoidance of violence and

implemented special police units in tourism areas to secure the visitors to the country.

Tourism board has implemented regulatory frame work in all kind of tourism related

businesses in its practices in guaranteeing the quality output and maintenance of loyalty.

2.3. SWOT analysis

Strengths

Excising Tourists attraction and arising volume of tourism arrivals in to the country, Sri

Lanka currently has numerous strong tourism markets. Western European countries as

U.K., Germany, France, Italy and Netherlands have been the main markets. Recently

tourist arrivals from Asian countries such as India, Russia, China and Japan as well as

visitors from Scandinavian countries have also picked up becoming major markets.

Natural resource base to support wide array of tourism opportunities/products and related

businesses and tropical forests possess a high level of biodiversity ( 25 biodiversity hot

spots in the world). Varying topography and unique ecosystems provide excellent

opportunities for adventure seekers.

Skilled labor force for employment in hospitality and tourism industry available

domestically at relatively low labor cost. Education and training focused in secondary

education and vocational institutes.

Fully facilitated accommodations totals to 14500 rooms catering to the tourism industry

as per end 2010 statistics the country has only 22,735 SLTDA approved hotel rooms.

Table No:02

Accommodation Type Number Number of Rooms

Tourist Hotels 256 14,948

Boutique Hotels & Villas 50 577

Home Stay Units & BB Units 181 560

Guest Houses 679 6393

Heritage Homes 49 257

Source: (SLTDA, 2010)

This means the industry has a task of adding around 22,500 rooms to the current capacity,

during the next five years. The new Tourism Act in 2007 established 4 institutes to handle

different aspects of tourism as follows,

1. The Sri Lanka Tourism Development Authority - new tourism product,

destination, and market development, planning and policy

2. The Sri Lanka Tourism Promotion Bureau - marketing and promotion

3. The Sri Lanka Institute of Tourism and Hotel Management: Human resource

development

4. The Sri Lanka Convention Bureau

Weaknesses

Variety of ecotourism and green concept, opportunities available the policy makers are

still concentrating on traditional sun and beach mass tourism. Despite lucrative income

mass tourism has its own negative socio cultural and environmental impacts. All the

recently developed tourism development projects are focused on beach destinations.

Alternative sustainable forms of tourism such as ecotourism are less prioritized.  

Limited service destinations and operation which even are not under international

standards.

Less attention in authorities to develop infrastructure at tourism destinations in the

country infrastructure such as information centers, restrooms, resting areas/huts, lodging

and camping sites are lacking or poorly maintained in some destinations,

Education and interpretation is a key aspect of tourism and shortage of skilled tourism

specialists and competent interpreters at tourism destinations. Severe shortage of such

specialists who are capable of communicating in foreign languages.

Although there is a national tourism policy it emphasizes less on alternative forms of

tourism. Scope and goals of tourism often conflict with the mass tourism. Hence there’s a

need for a national policy and action plan for tourism in Sri Lanka. 

Limited national air connectivity

Opportunities

European travelers are particularly becoming environmentally aware, for such traveler

markets ecotourism is an ideal product to capture revenues. The existing biodiversity rich

diverse ecosystems provide numerous opportunities for ecotourism development as never

as the other main Asian tourist attractions such as Maldives, Thailand India and

Indonesia.

Title: Top Ten Source Markets of Sri Lankan Tourism (2013 & 2014)

Table No: 03

Source: (Tourism development authority, 2014)

Due the eradication of terrorism from north and east part of the country new opportunities

for foreign and domestic tourism have emerged. National parks which were closed for

public are now opened as new opportunities for tourism is widely available in northern

area.

Effective marketing and promotion programs can be launched especially using internet

and modern technology to reach new and existing markets

Growing political and economic relationship with China and India as emerging markets

and foreign investments.

There are formal institutes including universities that particularly can conduct studies on

tourism sector. Most tourism studies are conducted on economic impacts of tourism.

Research should more focus on new markets, alternative forms of tourism, demand and

supply, behavior and policy.

Threats

Main Asian tourism attractions Maldives, Thailand India and Indonesia and world

tourism attractions and rising demand.

Under developed infrastructure      

Environmental and socio cultural degradation due to mass tourism and mal practices in

the society.

Lack of diversification in tourism products

Foreign exchange leakages occur in mass tourism.

Lack of Air Connectivity.

Changing needs and wants of tourists.

3. Marketing objectives towards the industry of tourism in Sri Lanka

Objectives are the specific end result that person or a entity is aimed to achieve, accomplish

with in a specific time frame with several conditions by suing the available resources.

Objectives are specific to the person or entity and easier to measure.as well the tool which

underlie all planning of strategies of the activities. Business objectives are major part of

business planning and describe what and how certain entity is expecting to chive something

valuable to them. Business objectives are included in to the business plan. Marketing

objectives are specific end result set by the business in promoting its products or services to

potential customers which should achieved in specific time frame. The strategic Marketing

objectives in developing the tourism industry of Sri Lanka for next three years are following,

1. Positioning Sri Lanka as a treasured island and a tourism earth lung working towards being

carbon neutral making Sri Lanka a top of mind in receiving a competitive advantage.

2. To promote tourism to achieve 3.00 million visitors by 2018

3. Building the Sri Lanka Brand as a “A Medium Sized Miracle” in home and abroad

4. To promote Tourism as a marketing niche (Niche tourism)

5. To promote Sri Lankan culture, heritage, arts and crafts in making an economical benefit

for small and medium scale businesses.

4. Marketing strategy

As per the Mission of Sri Lanka Tourism Promotion Bureau (2014),

Being a catalyst to improve, enhance and maintain the much needed infrastructure.

Establishing and enhancing a high quality product and service based to satisfy and delight

tourists focusing on their safety and security.

Ensuring a level of volume and yield generating tourists to sustain and grow investment

in tourism.

Positioning Sri Lanka as a treasured island and a tourism earth lung working towards

being carbon neutral making Sri Lanka a top of mind destination among potential

customers.

Meeting the human resource demands of the industry through development of

professionalism, skills development and training.

Involving all stakeholders in the formal and informal sectors, at the center and the

regions, and within and outside of the industry to develop and promote Sri Lanka tourism.

Expanding the base of domestic tourism to better serve the travel needs of Sri Lankans

and to help better promote international tourism.

The marketing strategies should be aligned with the Objectives and mission. Country

itself should enhance its mission statement that it aims its differentiation to give the

visitor an individualized experience and use its new brand “Sri Lanka”.

Market penitration1.Product penitration2.increase promotion3.Attract competition customers and dealers

product developement

1.Tourisam Nitch2.New products

Market development

1.New customers from geographical

markets

Diversification1.Multi destination

tourisam

4.1. Growth strategy – Ansoof matrices

It is important to understand the current market climate and the target market of Sri

Lanka, but also being aware of trends in deciding the growth strategies.

Title: Growth strategies

Figure No: 03

Source: (Author originated source)

Market penetration – Marketing and selling current products in the current market as a

market expansion and growth strategy, Sri Lankan Industry of tourism is using product

penetration in increasing the attractiveness of the product and taking on the challenge of the

competitors by reducing price. Ex: Sri Lankan arts and craft are introduced by international

arts and crafts exhibitions and sells for low price. This leads for increase the promotion in

international environment as well in local society of the Brand “Sri Lanka” and the Sri

Lankan culture. Encouragement of conducting promotions of Sri Lankan foods and

international foods by small and medium businesses in tourist attraction areas will help the

businesses to expand its market and to attract the tourists in to country in expanding the

market. Ex: promotion of foods by restaurants and boutique hotels in Galle fort. Sri Lankan

Product

Exciting New

Market

Excising

New

hotels have restructured their businesses due to the development of the industry and to meet

the competition, hence the customers, related businesses are being facilitated and market

share has expanded.

Product Development – New or improved products services in to the existing markets, Sri

Lankan industry of tourism is growing and surge to develop its market. Hence the tourism

nitch is the most upcoming trend as using the destination not only as a travel destination but

as a life important destination. Tourists are attracted and facilitated in celebrating their

wedding functions, anniversaries and Birth day in Sri Lanka. Hotels and the services

providers are arranged special packages in celebrations of this kind of new trends in Sri

Lanka according to Sri Lankan tradition or different traditions. And new products for the

tourists, Ex: New mobile communication packages for tourists by Air tel.

Market development – New customers from new countries can be attracted by using many

resources of the country. National carrier – Sri Lankan airlines can expand its flying

destinations in to new destinations to attract new countries. Sri Lanka can develop fully

equipped online tourist guide application in attracting the new customers from the world in

introducing the brand “Sri Lanka” and the growth of the Sri Lankan tourism.

Diversification – New products in to new markets is a strategy in tourism as multi

destination tourism, In Sri Lanka the multi destination tourism has used in many instances as

efficient and profitable mean to develop and improve economic activity within many

communities in Sri Lanka as Tourists are offered variety of activities, traveling facilities,

learning opportunities and many more. Ex: Sri Lankan airlines are offering travel packages

which include accommodation, water sports, adventure and many more facilities, Hotels

which are specialized for adventure or watersports, Heritage cites in learning the heritage.

This helps in introduction, expansion of the market share while contributing economically to

the communities of the country.

4.2. Title: Market segmentation

Graph No: 01

4.3. Target markets

According to the current figures of SLTDA (2014), the highest proportion of visitors and the

target market of the Sri Lankan tourism is the Pleasure/Holiday category is 67.95% were

This particular market is a sub segment of the larger youth market. It removes certain purpose of visit segments such as education, business and employment. Instead the focus is on young visitors who have come to Sri Lanka for the purpose of a holiday or to visit friends and relatives. According to SLTDA (2014), 67.95% from all the tourisam arrivals are international Youth as they love in experiment and adventure.The highest proportion of visitors in thePleasure/Holiday category were from India (15%) followed by China (11%) and UK ( 9.1%).

International Youth - Travel,

Leisure

International and local families and their travel behaviours,interests, speding abilities in relation to their trips,activities within Sri Lanka is importnat for the industry as both parties are being facilitated.According to SLTDA (2014), 27.45% from all the tourist arivals are families as they love to travel with family and exploring the cultures,heritage and natural beauty with kids.

International and family

People from different countries and who are arriving for business purposes are much important for the country as they briging economical benift for the country and status of their activities with in the country shuld be strickly monitored.SLTDA (2014), 1.33% from all the tourist arivals are business visitores.

International Business visitors

Expactriates who are visits the country for employment oppertunities and for long term stay.the behaviours and the interfearances of the person should be taken in to the grant by the company who has sonserd the person to come to the country.5% from all the tourist arrivals to the country are international employees.

International employees

from India (15%) followed by China (11%) and UK (9.1%) due to the tourists attractions of

the country and the strategic market approach should be taken in to enhance the market share

in International Youth - Travel, Leisure.

4.4 Positioning

According to DiMingo (1988), Market positioning is the first step and is defined as the

process of identifying and selecting markets or segments that represent business potential to

determine the criteria for competitive success. Industry of tourism in Sri Lanka has positioned

well and positioned its services and products in satisfying customer needs and wants in

benefiting them at the right time even if the competitors are already offering a similar

solution as Maldives, Thailand, India, Malaysia are some of the major tourist attraction sites

in Asian sector. As Sri Lanka has identified the major tourist attraction sites and the

government have established important authorities Sri Lanka Tourism Promotion Bureau, Sri

Lanka tourism development authority. So country should pay more attention on policies and

procedures in related businesses, employee attitudes, customer relations and the myriad of

other details that combine to make the tourism experience high. There must be a consistency

among the various offerings. Sri Lanka can develop more tourism sites as Galle fort and

heritage sites as Sigiriya, Specially cites in northern area as position according to the user

class as youth leisure. Position by price value also can be applied in to Sri Lanka in delivering

low cost services and products as by relevant quality as Sri Lankan fine crafts. Position by

application, the adventure and water sports can be developed in targeting the target segments

of tourists.

5. Marketing Mix

The Marketing mix concept is a set of four decisions which needs to be taken before

launching any new product. These variables are also known as the 4 P’s of marketing. These

four variables help the companies in making strategic decisions necessary for the smooth

running of any product / organization. He variables are,

Product

Price

Place

Promotions

According to Borden (1964), having the right marketing mix at the start of the marketing plan

is absolutely essential. Over time the concept of marketing mix has provided a steady

platform for the launch of a new product or business. Sri Lanka industry of tourism should

have right marketing mix in planning its operations for next three years.

Product

Product is the combination of tangible and intangible elements. The tourism products in Sri

Lanka which is mainly the destination can only be experienced. The views of the location

travel to the destination, the accommodation and facility as well as the entertainment at the

destination all form the tourism product. Thus it is a composite product combination of

attraction, facilities and transportation. Each of these components has its own significance in

the product mix and in the absence of even single components the product mix is incomplete.

This project covers the entire island and will be a key contributor towards building provincial

level tourism. As setting up a “One Stop Shop” at SLTDA for tourism related investment

projects with the cooperation of BOI, UDA, CCD, EA and other relevant line agencies a

number of other tourism related projects have also been identified to support the overall

growth of tourism in the country for next three years. The potential investors are encouraged

to consider the following opportunities:

Golf Courses Race Courses Water Parks Theme Parks Marinas Shopping Malls Entertainment Studios Adventure Sports Light Aircraft Services/Sea Planes Boat Manufacturing/Boat Hiring Convention/Exhibition Centers Taxi Services Gaming Cities

Price

Pricing in tourism is a complex process. Pricing includes the prices of other services like Air

travel, Bus, Railways, Hotels, food, Leisure activities as in Sri Lanka Air Lines and hotels

have arranged tourism packages for easy pricing. Pricing also depends on the Geographic

location of the destination, Ex: White water rafting at kithulgala – Water sports packages.

This pricing also depends on Seasonality. Seasonality is the most important factor in pricing.

To match demand and supply tourist managers try to get either discount. Ex: Cinnamon

hotels and Cinnamon Air is the tourist attraction in Sri Lanka. Pricing is also based on

competitors pricing. Pricing is also subject to government regulations. Ex: Cinnamon and Sri

Lankan Air taxi price changes tourism package also changes, if Hotel charges change then

also tourism package changes. Pricing of the tourist product is a complex matter because of

its composite nature. Geographical location of the destination affects the pricing decision. At

the same time seasonality factor and varying demand cannot be overruled. The objective of

pricing is based on the tourism regulations of the country in any other firms is to fetch a

target market share to prevent competition and to take care of the price elasticity of demand

by next three years of time.

Place

Different distribution strategies have selected Tourism marketing in Sri Lanka. Tourism as a

product is distributed as a travel. Internet is also used widely. There is an also internet agents,

web sites, Ex: Agoda, Aitken Spence and agents Internet based, Ex: Trip advisor plays a role

of place. Large travel companies, Ex: Jet wing they act as wholesalers and these wholesalers

also act as a retailer. The tourism marketer may not have adequate choice of the tourist center

because in most of the case the tourist destinations many be natural, historical attraction. But

infrastructure facilities, transportation, communication are important for the development of

the tourist centers in tourist attraction cites to meet the demand by next three years. Here in

Sri Lanka all this people are combined to gather and has arranged special tourist packages,

decision that the tourism marketer takes regarding distribution is relating to the channel of

choice and channel members (Whale watching tour packages). The two major functions

performed by the distribution system in tourism marketing in Sri lanka are,

To extend the number of points of sales or access away from the location at which

services are performed or delivered

To facilitate the purchase of service in advance

Different distribution strategies have selected in achievement of the objectives by next three

years as the middleman may be tour operators (Sri Lankan airline or Jet wing tours), who buy

tourism products in bulk and make them available to travel agents who are retailers (Agoda).

The range of tourist products which are bought by the tour operators are airline seats, hotel

accommodation, bus for local sightseeing. They may also sell directly to customers.

Promotion

Promotions are important in tourism in creation of awareness has a far reaching impact. The

government, tourist organizations bear the responsibility of informing, persuading and

sensing the potential tourists in a right fashion. Government has taken the initiative in Sri

Lanka by Sri Lanka Tourism Promotions Bureau in promoting the Brand “Sri Lanka” in to

world. Newly implemented in celebrating the world tourism day, concept is "Cruise Tourism"

which is worth 21.7 million worldwide guests with Sri Lanka registering a number of fifty

thousand plus for the year 2015 is targeting a 100,000 visitors by end 2018.Also conducting

culinary, trade and fair, gems and jewelry exhibitions in collaboration with Asian sector

countries will be good promotional tool for next three years of target. The marketers need to

use the various components of promotion optimally so that they succeed in increasing the

number of habitual users. Promotion helps in maximizing the duration of stay, frequency of

visit by offering new tourist products in the same country to areas, which have remained

untapped or partially tapped. The various dimensions of tourism promotion are as,

Advertising - Advertisement gives important information to the actual and potential tourists.

A Sri Lankan airline is using advertisements to bring up Sri Lankan heritage hospitality in to

the world as a promotional tool. Its coverage is wide. Arrangement and take part of World

celebrations as beauty queen contest, world youth summit and world tourism day will be an

added advantage in promoting the country as a tourism destination and by many factors to

increase the market share by next three years.

6. Customer experience

For the tourists who come to the country should receive what they expected as a percent

experience. So the identification of the needs and wants of the customers in terms of different

perspectives (Marketing Mix) are very much important in tourism Sri Lanka mainly targeted

on Leisure tourism as Youth who expects adventure should guide correctly, the customer

experience should be developed in Sri Lanka as the availability of the information should be

developed with information centers in Airports and major tourist attraction areas. Even in the

airport the availability of information and proper guidance are less. Tourists are penalized by

immigration laws and unusual practices of the authorities. Those should be monitored by

Ministry of Tourism.

Title: customer value, benefits /sacrifices

Figure No; 04

Source: (Author originated source)

Hence The Sri Lanka Tourism Board has strictly monitored the activities f the industry. The

expected quality should be offered by the country to make them a valuable experience. Also

tourists are experiencing some social violence and unusual social practices as Theft, These

should avoided by tourist police stations established in areas. Also tourists are being tortured

in several ways when they attend social places and events of the cities, Ex: Tourists are being

charged high prices for food and accommodation, People are cheating on them. These are

affecting the brand name of “Sri Lanka” and the loyalty of the customers, impression towards

the country. Communication strategy should established by new media platforms to transfer

the information to the world. Tourists should offer extraordinary experiences stand out

against malpractices of the society as SLTDA has given a common telephone number for 24

hours tourist quarries. Also the health and safety issues of the leisure activities, locations and

equipment’s are arising in the industry tourists are making negative impression on that.

Professional knowledge is less in Sri Lanka and updated equipment’s. Also the quality

standards should be established and monitored by the development authority.

Efforts should focused on attracting the leisure bound traffic from new potential markets

which have not been fully exploited whilst reverting to the traditional markets as historically

the ‘mass’ of our annual arrivals, (as much as 75% – 80%) have been from the leisure end of

business and to prevent all the negative customer experiences by the country. other

competing tourism offers by other regions as holding a special meaning for the tourist as

tourism nitch strategy and new product development strategies as team building activities in

adventure based theme parks as adventurous, physically/psychologically challenging and

moment of personal development as valuable experiences by UNESCO heritage sites or Sri

Lanka. Sri Lanka is suggested development of a best practice Eco Lodge as in the Sinharaja

Rainforest, sea side resorts in northern areas, cruise tourism providing assistance and

supported to the institute of tourism and hotel management, in terms of management,

curriculum development and strategic planning by concepts of eco-tourism and green resort

concept as differentiation strategies as bare foot concept and tourists are offered in house

demonstrations of food processing and learning food habits of country.

7. Conclusion

Sri Lankan industry of tourism as a growing industry in Asian sector it has many

potentialities in further development for its future sustainability as the state government has

taken the responsibility of initiate the facilities and infrastructure in the expansion of the

market. As a growing market the rivalry is low and entry barriers also law.in development of

any industry should make positive impact in to the country so still the government of the

country needs to take more responsibility in facilitating, encouraging the both government

and private sector and also the foreign investments and projects in order to make an economic

benefits for the country while strictly monitoring all the tourism related activities in

avoidance of any harm in to the country. Both private and government sector should widely

investigate the resource requirements and the upcoming trends, strategies of the world in

industry of tourism in order to meet the demand and to make sustainable competitive

advantage in to the country by Asian sector tourist operators.

8. List of references

Anon.n.d., The Hotel and Tourism industry in Sri Lanka [Pdf] Available at: http://www.tvec.gov.lk/pdf/hotel_and_tourisum.pdf [Accessed date 8th of November 2015]

Aziri B. and Nedelea A.2013., Business strategies in tourism [Pdf] Available at: http://www.ecoforumjournal.ro/index.php/eco/article/viewFile/21/12 [Accessed date 17th of november 2015]

Bing.2015., Sustainable Tourism in Sri Lanka [Online] available at: http://sustainabletourismsrilanka.blogspot.com/2012/12/ecotourism-sector-in-sri-lanka-swot.html [Accssed date 15th of november 2015]

Cambridge dictionary online.2015., Meaning of “tourism” in the English Dictionary [Online] Available at: http://dictionary.cambridge.org/dictionary/english/tourism [Accessed Date 5th of November 2015]

Charles SCHWAB.2011., 2011 TEENS 8: MONEY SURVEY FINDINGS INSIGHTS INTO MONEY ATTITUDES, BEHAVIORS AND EXPECTATIONS OF 16- TO 18-YEAR-OLDS in Sri Lanka [Pdf] Available at:http://www.schwabmoneywise.com/public/file/P-4192268/110526-SCHWAB-TEENSMONEY.pdf [accessed date 10th of november 2015]

DiMingo, F. 1988., The Fine Art of Positioning. The Journal of Business Strategy, March/April, pp. 34-38.

Department of Census and Statistics.2015., Publications [Online] Available at: http://www.statistics.gov.lk/page.asp?page=Publications [Accessed date 12th of november 2015]

Department of government information. 2015., The 1st ever Cruise Tourism Marketing Plan presented to the New Tourism Minister [Online] Available at: http://dgi.gov.lk/press-releases/847-2015-10-12-6 [Accessed date 16th of november 2015]

Fyall A. and Garrod B.2007., Tourism Marketing: A Collaborative Approach [e-book] Available at: https://books.google.lk/books?id=lY1xFcp9mgIC&pg=PA96&lpg=PA96&dq=market+penetration+strategies+in+tourism&source=bl&ots=8f-owY201-&sig=B_EnQNafLwBFYKfwj5nlVr9UyvA&hl=en&sa=X&ved=0ahUKEwim7e6byp_JAhXQno4KHcjCCM0Q6AEIODAE#v=onepage&q=market%20penetration%20strategies%20in%20tourism&f=false [Accessed date 16th of November 2015]

International monitory fund. 2015., Survey on Sri Lanka and the IMF [Online] Available at: https://www.imf.org/external/country/lka/index.htm?type=55 [Accessed date 15th of november 2015]

International monitory fund.2011., Annual reort review [Online] Available at: https://www.imf.org/external/pubs/ft/ar/2011/eng/ [Accessed date 11th of november 2015]

ICRA Lanka.2011., travel and tourism [Pdf] Available at: http://www.icralanka.com/images/pdf/Sri%20Lanka%20Travel%20and%20Tourism%20Sept%2015%20Final.pdf [Accessed date 15h of november 2015]

Johnson G. and Whittington R. et al.2011., Exploring strategy.9th edd, Pearson education limited: United kingdom

Lumsdom, L. 1997., Tourism Marketing. Thomson Business Press : UK.

Ministry of economic development. 2011., Tourism Development Strategy 2011 - 2016 [PDF] Available at: http://www.sltda.lk/sites/default/files/English.pdf [Accessed date 12th of november 2015]

Middleton, V. 2005., Marketing in Travel and Tourism. Third edd, Butterworth Heinemann: Oxford

Nubbin W. 2002., Sri Lanka: Current Issues and Historical Background [Online] Available at: http://books.google.com.au/books?id=Iudi2JJLaUAC&pg=PA129&lpg=PA129&dq=168+seats+TULF&source=bl&ots=H90NTV9zew&sig=h1goxyEy95HNxR6-wo52_0KQRWU&hl=en&sa=X&ei=KAj4UsWrIMXNiAf0poGYDQ&ved=0CCwQ6AEwAQ#v=onepage&q=168%20seats%20TULF&f=false&gt [Accessed date 2nd of november 2015]

Parliament of the democratic socialist republic of sri lanka.2005., tourism act, no. 38 of 2005 [Pdf] Available at: http://www.sltda.lk/sites/default/files/Tourism_%20Act_%202005_0.pdf [Accessed dae 17th of november 2015]

Queensland Government.2012., 2020 Strategic Marketing Plan[Pdf] Available at: http://teq.queensland.com/~/media/94C05ED8A67444A886531D828DC73AE5.ashx?la=en [Accessed date 11th of November 2015]

Sri Lanka Board of tourism, 2015., Sri Lanka at glance [Online] Available at: http://www.srilanka.travel/srilanka-at-a-glance [Accessed date 2nd of November 2015]

Sri Lanka tourism Tourism act No.38 of 2015., Provisions to the tourism n Sri Lanka [Online] Available at: http://www.commonlii.org/lk/legis/num_act/ta38o2005175/ [Accessed date 3rd of November 2015]

Sri Lanka Board of tourism .2015., Monthly Statistical Bulletins 2015 [Online] Available at: http://www.sltda.lk/node/704 [accessed date 3rd of November 2015]

Sri Lanka wonder of Asia. 2015., Planning and sustainability [ Online] Available at: http://www.sltda.gov.lk/planning_and_sustainability [Accessed date 15th of november 2015]

Sri Lanka Tourism Promotion Bureau.2010., Refreshing Sri Lanka, wonder of Asia [Pdf] Available at: http://www.parliament.lk/papers_presented/10082012/annual_report_srilanka_tourism_promotion_bureau_2010.pdf [Accessed date 10th of november 2015]

Sri Lanka tourism development authority.2014., Annual Statistical Report 2014 [Pdf] Available at: http://www.sltda.lk/sites/default/files/Annual_Statistical_Report-2014.pdf [Accessed date 18th of november 2015]

The institute of charted accountants of Sri Lanka. 2014., Top CA case study analysis [Pdf] Available at:https://www.casrilanka.com/casl/images/stories/content/student/suggested_solutions/2014/top_ca_case_study_examination_may_2014.pdf [Accessed date 10th of november 2015]

Vox and Co. 2012., Are Sri Lankan Tourism Objectives Achievable? [Pdf] Available at: http://www.voxonline.biz/downloads/Vox_Co_Tourism_Outlook_2012.pdf [Accessed date 13th of november 2015]

YUKON. 2013., The 2013–2016 Tourism Marketing Strategy [Pdf] Available at: http://www.travelyukon.com/sites/default/files/tourism-marketing-strategy-2013-2016final.pdf [Accessed date 12th of november 2015]