Batticaloa/Passikudah: A Visitor Flow Assessment

In 2018, Australia’s Market Development Facility, operating under ’s Ministry of Tourism Development, carried out a Visitor Flow Assessment in the Eastern Province. The findings for the three main areas selected – Trincomalee, and Arugam Bay – present a look into one of Sri Lanka’s most promising emerging destina- tions for tourism, and what could be done to help it reach potential.

What is a Visitor Flow Purpose of Study Assessment? The Eastern Province is an ‘Emerging A Visitor Flow Destination’ with high tourism Assessment potential. MDF is working with analyses the provincial bodies and businesses to composition improve destination management of visitors in the region, and the first step is to a destination, understanding the need and the gaps. categorising them by granular features such as preferences This is where the Visitor Flow Assessment comes in. and behaviour (for example, Batticaloa is one of the three key destinations in the mode of travel, activities East (the other two are Trincomalee and Arugam engaged in and spending Bay). The analysis looks at key visitor flows to the patterns), as well as by destination, barriers to tourism growth and broad country/region. recommendations for improvement. Destination Profile

Main tourist season: comprises July and August smaller hotels and guesthouses Visitor perceptions: catering to the more The destination is made budget-oriented up of two distinctive international or locations – the historical domestic market Batticaloa town and beach-centric Arrivals: Estimated Passikudah. Overall, at 70,000 visitors a relaxed and nature- annually focused destination. Key groups: Accommodation Flashpackers, options: Organized A strong luxury segment Western Groups, available in Passikudah Diaspora Tourism, beach, with several Backpackers, Divers upmarket resorts; the (Niche) and Sports rest of the destination Events

Key Visitor Flows BACKPACKERS:

INDEPENDENT DOMESTIC Batticaloa/Passikudah tends to be TOURISTS (HIGHER-SPENDING): more of a transit point for backpackers travelling between Arugam Bay and Groups of friends/families visiting Trincomalee. Spending is limited to Passikudah for the beach and Batticaloa USD20-40 per day, with an average stay for history and culture, typically spending of only 1-2 nights. USD80-150 per day. Arrivals peak in March, May, September and December. CORPORATES AND OFFICIALS:

LOCAL TOURISTS Predominantly male, aged 35-50. Visits (LOWER-SPENDING): on work. Typically spends USD50-80 per day. Stays 1-3 nights. Groups of families, traveling on public holidays/weekends. Visits friends/family, religious sites. Typically spend USD10-50 INDIAN PILGRIMS: per day. Not a substantial visitor flow, as the FLASHPACKERS: religious sites in the area are not as significant as the sites in areas Flashpackers visit Batticaloa/Passikudah like Trincomalee. as part of a longer trip through Sri Lanka and often decide about local destinations DIASPORA: spontaneously, e.g. while travelling in the Cultural Triangle. This group is drawn The segment comprises to the beach, dive activities or available now living in the US, the UK, Germany or authentic experiences. Flashpackers Switzerland. Visits for family/friends and source information online or use the the beach. Typically spends USD100-150 main travel guide books. per person per day. CHINESE GROUPS: estimated 1,000 MICE visitors (higher than Trincomalee) but is still below Chinese groups so far only visit potential due to accessibility issues. Passikudah and not Batticaloa. The main Groups are channelled mainly through ‘pull’ factors are the beach and, to some large firms in and specialised extent, diving. Peak travel is during MICE providers. Chinese New Year in February. DIVERS: WESTERN GROUPS: Typically 25-50 years of age and mostly Batticaloa/Passikudah are included in from Europe. Average stay is up to 7 larger itineraries by the international days and spend is USD100-150 per day. travel agents (and their Sri Lankan Divers predominantly visit during the Dry counterparts) organising the trips for Season, with peaks in July and August. Western Groups – but only to a limited extent, as these older tourists prefer HONEYMOONERS: to visit beach destinations elsewhere. Average stay duration is up to 2 nights, Honeymooners visit for upmarket resorts with peaks during July and August, in a warm climate near a beautiful beach, spending USD150-200 per day. The typically spending USD150-250 per day. segment sources its information through travel agents, online sources and word SCHOOL GROUPS: of mouth. Insignificant in terms of numbers BEACH & RELAX: and spending.

Limited to Passikudah, where visitors NGO WORKERS AND spend 1-2 weeks in an upmarket resort ‘VOLUNTOURISM’: and do not leave the premises often except for meals at restaurants nearby. There seems to be a reasonably Information is sourced online and significant visitor flow of NGO workers booking is via OTAs, while some or volunteers visible in the destination. visitors organise their trip via Numbers were high immediately after source-country-based travel agents. the end of the civil war in 2009 and the Indian Ocean Tsunami in 2004. MEETINGS, INCENTIVES, Average spending is USD20-50 per day CONFERENCES AND per person. The group spends several EXHIBITIONS (MICE): months to years in the location and hence builds local knowledge. Their MICE tourism is focused mainly on own employers are important Passikudah; there is a dearth of facilities influencing channels. in Batticaloa. Passikudah sees an Recommendations DEVELOP ACTIVITIES/ EXPERIENCES TARGETING INTRODUCE NEW ACTIVITIES HIGHER-SPENDING VISITOR FLOWS Batticaloa/Passikudah has sufficient room inventory, therefore setting up new Flashpackers, Organized Western hotels would only drive down prices. Groups, Diaspora Tourism, Backpackers Introducing new, different activities to the and Divers are among high-spending destination would engage visitors better visitor flows; exploring and further and result in longer stays. developing activities targeted at these groups would increase revenues FOCUS ON VISITOR FLOWS in the region. WITH DIFFERENT PEAK TIMES IMPROVE ACCESS TO Visitor flows differ according to season, INFORMATION AND with multiple peaks. Identifying these MARKETING/PROMOTION and marketing activities accordingly would ensure strong business revenues There is a lack of information online and throughout the year, instead of relying on offline on activities/experiences available, a narrow tourist season of a few months. prices and how to book. Filling these gaps would increase tourist footfall. PRUDENT ACCOMMODATION Better and more targeted marketing PRICING AND REVENUE (particularly on digital/social media) MANAGEMENT would be useful.

Due to the narrow tourist season PROVIDE COST-EFFICIENT and relatively low number of guests, TRANSPORT SERVICES accommodation providers can be motivated to earn all their revenues The long distance from Colombo, as through a few guests – by hiking prices well as the distances between hotspots, drastically. This can, however, negatively is a key barrier to visiting Batticaloa/ affect the experience of guests who may Passikudah. Comfortable and affordable feel that they are being unfairly charged. (reasonably priced) transport options Prudent pricing based on demand/ which can be booked online – such as revenue management can be useful in tourist bus services – are a key need. this regard.

Market Development Facility (MDF) is Australia’s flagship private sector development program. In Sri Lanka, MDF’s focus is on diversifying tourism with new products and services and supporting authentic Sri Lankan products. MDF is implemented by Palladium in partnership with Swisscontact.