Sri Lanka touristry was institutionally setup in 1966. In 2005, new touristry act was passed taking into history new desires, aspirations and future waies of touristry that resulted in division of Srilanka Tourism into four independent entities funded by by Tourism Development Fund:

The Sri Lanka Tourism Development Authority

The Sri Lanka Tourism Promotions Bureau

Sri Lanka Institute of Turism and Hotel Management

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Sri Lanka Convention Bureau

The Sri Lanka Tourism Promotions Bureau ( SLTPB ) is responsible for all selling and promotional maps. Due to communal crisis in Sri Lanka, Sri Lanka touristry had a unsmooth, roller coaster drive in the past 25 old ages. During this period touristry in Malaysia, Thailand and Singapore have dramatically increased while Srilanka touristry has lagged far behind.

Sri Lanka Tourism Promotions Bureau late changed its official logo from ‘Sri Lanka, Land Like No Other ‘ to its new logo ‘Sri Lanka Small Miracle ‘ steering its touristry in a new epoch. The study evaluates Sri Lanka Tourism Promotions Bureau ‘s selling scheme and communications scheme & A ; the message it is conveying to its audience.


Tourism industry operates in a planetary environment and hence are really sensitive to external environment ( such as safety, political stableness, exchange rates, etc ) . PEST analysis bases for ‘Political, Economic, Social and Technological analysis ‘ and is used for scanning the external environment to place the cardinal macro-environmental factors and tendencies impacting the company. A systematic external environment scanning is of import to maintain up-to-date with alterations in the market environment.

Political Factors

Sri Lanka has a multi-party democracy which is rather stable.

Uncertainity due to the Sri Lankan authorities ‘s war against LTTE has effected the touristry industry. Though the authorities has delclared triumph against LTTE, there are still many LTTE leftovers in parts of northern and western part and therefore there is a potency of instability in those part.

Srilankan Tourism Promotion Bureau is funded by a separate entity – ‘Tourism Development Fund ‘ that is under the authorities ‘s control.

Srilanka has had good dealingss with its lone neighbouring state ( India ) which is an advantage over other south Asian tourer finishs like India, Pakistan, etc. They do hold their ain internal jobs ( communal crisis ) but it is diminution now after the triumph of authorities.

Economic Factors

Cost of life in Srilanka is low which helps in pulling tourers who look for inexpensive options to pass vacations.

A loan of $ 2.5 billion has been approved by International Monetary Fund to set about economic reforms and to reconstruct countries damaged due to the internal struggle between the authorities and the LTTE

Due to the Tsunami in 2004 and the belligerencies between the authorities and LTTE, the economic state of affairs has been hampered. But, they are easy and steadily reconstructing.

Roadss are the chief manner of transit in Srilanka but status of roads are hapless and unequal and are largely congested. Condition of railroads is bad with hapless paths and Bridgess doing derailments and important holds.

Decrease in strength of lb against Euro is altering the impression of Britishers traveling for a ‘cheap vacation in Europe ‘ , doing them take surrogate options which Sri Lanka can profit from.

Inflation in Sri Lanka is about 9 %

The exchange rate of Sri Lankan rupee rather low ( 186 LKR = 1 GBP )

Social Factors

Due to instability in northern and western countries of Srilanka ( the war zone ) , tourers are still loath to see.

Crime rate in Srilanka is high which is besides another factor impacting the figure of tourers vising Srilanka.

Asiatic Tsunami in 2004 in which Srilanka was one of the worst hit, is besides another factor impacting determination to go as people fear if something similar could go on once more.

English linguistic communication ability has been in diminution due to which some tourers might confront troubles in pass oning

Several mosquito-borne diseases are present in the state. Besides, medical installations and exigency aid is badly limited or unavailable in many countries of Srilanka.

Technological Factors

Secure engagement system for taxis to forestall offense

Medical installations are non advanced in many parts of Srilanka. Hospitals are non adequatly equipped with latest engineering equipments so for any major job, tourers need to be flown to neighboring states for intervention.

Many tourer attractive forces in Srilanka do non hold nomadic webs and some of them have really minimum land line phones discontinuing the manner of communicating.

Srilankan Tourism Promotion Bureau have started taking advantage of the cyberspace by re-launching their web site with a new expression. In add-on, they have besides planned a competition for the blogging community for marketing touristry in Srilanka. There are many pictures available on-line showcasing the beauty of srilanka which will assist them pull many visitants.

Entree to go maps, route maps and tour maps are readily available on the cyberspace.

Roadss and railroad lines in Srilanka have been in hapless doing terrible break in conveyance which is a disadvantage.

With the above analysis it can be seen that there are assorted powerful forces impacting Sri Lankan touristry industry at the macro degree which needs to be taken attention of through its selling scheme.

Market Analysis of Sri Lanka Tourism

SWOT Analysis

SWOT analysis helps in fiting a house ‘s resources and capablenesss to the competitory environment in which it operates. Using the method we weigh up Sri Lanka Tourism ‘s internal strengths and failings against external chances and menaces.


Assortment of attractive forces in Srilanka ( handle fringed beaches, warm Waterss, diverse landscapes, ancient civilization, humanistic disciplines, universe heritage sites ) and its friendly people make Srilanka an worthwhile touristry topographic point.

Pleasant conditions with ethinically, linguistically and sacredly diverse state

Good blend of Board of Directors consisting representatives from Tourists Hotels Association of Srilanka, Srilanka association of inward circuit operators, Association of little and average endeavors in touristry.

In-house PR section with bureaus runing in 6 different finishs ( UK, France, Germany, Russia, Middle E and India ) have been started to aim high output markets ( peculiarly the young person markets in the parts )

The authorities recognises that touristry makes a important part to societal and economical development of Sri Lanka


Inadequate information channel – Many tourer topographic points do n’t hold cell phone web handiness and some have limited land line telephone entree.

Destruction due to natural catastrophe – Asiatic Tsunami caused terrible harm to several coastal countries. Most countries have recovered but some are still in the procedure of retrieving.

Safety & A ; security – Though the state has declared triumph over LTTE, there is still unrest in northern and eastern state of Srilanka where most Tamils are based

Inadequate conveyance – Roadss are the anchor for conveyance sector in Srilanka but conditions and criterions of roads are unequal and are largely congested. Condition of railroads is bad with hapless paths and Bridgess doing derailments and important holds.

Medical installations and exigency aid is badly limited or unavailable in some countries

Crime rate across the state is high with north and the western part being the most accomplished.

Decline in English linguistic communication talking ability in rural countries.

Image of Srilanka has been hampered due to the internal battle since the past 25 old ages.


Victory over Liberation Tigers of Tamil Eelam ( LTTE ) in 2009 after more than 25 old ages of civil struggle.

Decrease in strength of lb against Euro is altering the impression of ‘going for a inexpensive vacation in Europe ‘ , doing them take surrogate options ( like Srilanka )

Increased hotels installations at tourer finishs

Government playing an active function in development of touristry in the state.

An advertisement bureau has been hired to construct trade name image and increase market make

Eco-tourism is now deriving popularity

Many parts in Srilanka are yet to be explored


Other Asian states holding similar tourer attractive forces could deviate the tourers.

As people are acquiring more cognizant of clime alteration, they may seek to diminish the consequence on it by taking fewer flights.

Development of consumer attitutes and outlooks ( consumers expect more now )

The go oning recognition crunch is set uping the touristry industry negatively

Fluctuating oil monetary values have resulted in increased air ticket monetary values therefore doing prospective clients reluctant to travel for Tourss

Better monetary values and installations provided by other states

With the above analysis it can be seen that Sri Lanka touristry is confronting a batch of menaces and internally they have rather a figure of failings which they need to get the better of.

Marketing aims and ends of SLTPB for re-branding


Make a individual nucleus thought that can alter people ‘s perceptual experience of the state

Selling and advancing Sri Lanka straight or indirectly as a tourer or travel finish of quality in conformity with the Tourism Development Plan.

Promoting Sri Lanka as a gateway to South Asiatic part

Making Sri Lanka known as Centre of excellence in touristry direction and development in the part.


Become Asia ‘s most preferable finish by 2010

Become the 4th highest income-earner in Sri Lanka by 2010

Focus on selling and range high output markets

Prosecute a major public dealingss drive

Competitive Advantage of SLTPB

Michael Porter ‘s Generic Strategies

Michael Porter suggested that for an administration to accomplish a sustainable competitory advantage, they should follow either one of three generic schemes:

Cost Leadership – Administration taking to be lowest cost manufacturer in the industry

Differentiation – Administration strive to be different

Niche Strategies – Administration focuses all attempt on one peculiar section

Some administration attempt to make all three and are left stuck in the center. Such administration do n’t hold a clear scheme doing gross revenues to fall ensuing a autumn in market portion.

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PORTER ‘s Five Forces

Barriers to entry

Tourism industry in about all the states are positioning themselves unambiguously ( diffrentiation ) to derive a competitory advantage. James barries to entry for touristry industry includes:

Infrastructural costs – Beautiful landscapes, varied civilization, costs to link different tourers musca volitanss, good railroads, nice roadways

Ease of entree – Easily accessible finishs

Language – Locals talking English linguistic communication

Safety and Security – Enough security for tourers should be in topographic point to pull them.

Dickering power of providers

Attraction Sector ( Beaches, Parkss, etc )

Accomodation Sector ( Hotel Industry, B & A ; B, flats, etc )

Conveyance Sector ( Airlines industry, Railways, Roadways, etc )

Travel Organizers ( Travel agents, circuit operators, etc )


Dickering power of clients

Evolved tourers ( more outlooks )

Infrastructural factors

Service and safety factors


Cost related factors

Natural or alone factors

Menace of replacements products/services



Home diversion ( theme Parkss, shopping promenades )

Competitive Competition




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