Focus on Indian Tourist Market and Overall Growth of Sri Lanka Tourism

March 2025 review of Sri Lanka’s Tourism Strategies, Performance, and Focus on the Indian Visitors Market

Sri Lanka aims to increase Indian tourist numbers, leveraging its compact size, varied attractions, and cultural links.

Indian tourism experts highlight Sri Lanka’s appeal due to its proximity and the upcoming Colombo casino, catering to India’s gaming tourism market beyond Goa and Sikkim.

Although India is already Sri Lanka’s largest tourism source, with over 400,000 visitors in 2024, there’s a belief that untapped potential remains within India’s large outbound travel market.

Key figures have encouraged Indians to explore Sri Lanka’s heritage and culture, suggesting a significant opportunity for growth.

Sri Lanka is actively pursuing strategies to significantly boost its tourism sector, with a strong emphasis on attracting the burgeoning Indian outbound travel market.

Indian tourists are recognised as high spenders, making them a valuable demographic.

Key initiatives include targeted marketing campaigns, visa-free entry, the promotion of cultural and spiritual connections (such as the ‘Ramayana Trail’), enhanced air connectivity, and a focus on diverse tourism offerings including MICE (Meetings, Incentives, Conferences, and Exhibitions) and luxury experiences.

Initiatives have resulted in a substantial increase in Indian visitor numbers, solidifying India as Sri Lanka’s top source market.

Overall, Sri Lanka’s tourism sector demonstrated a strong 2024 market, surpassing 2 million arrivals.

Challenges have been overcome with a new government administration:

such as the introduction of a now cancelled confusing visa system which was unnecessarily and confusing to tourists
political instability
competition from other destinations offering free visa for wealthy countries

Main Themes and Important Ideas/Facts

Strategic Focus on the Indian Tourist Market:

Sri Lanka has identified India as a crucial source market due to the high spending capacity of Indian tourists abroad. According to a report by the International Trade Administration (ITA), “Indian tourists are alleged to be one of the highest spenders per visit abroad, which contributes to the economies of the countries they visit.”
Various initiatives are in place to attract Indian visitors, including the ‘Ramayana Trail’ which leverages cultural and spiritual ties by offering visits to “50 important locations connected to the Hindu epic, the Ramayana.” Sites include “The Seeta Amman Temple is believed to be where Sita prayed during her captivity,” and “Rumassala Hill is said to be part of the Himalayas brought by Hanuman.”
Sri Lanka Tourism is intensifying promotional strategies in India, highlighting the country’s “diverse tourism offerings” through events like networking evenings on the Ganges in Kolkata and B2B roadshows in various Indian cities (Indore, Vadodara, Surat, Bengaluru, Chennai, Cochin, Kolkata, Ahmedabad, Pune, Mumbai, and New Delhi).
Visa-free entry for Indian tourists has been “date extended” to further boost a few select counties including India visitor numbers.
Enhanced air connectivity is a key enabler, with “95 Flights Connect Sri Lanka to 9 Indian cities,” facilitating short travel times and smooth transactions with India’s UPI. Now, “Indians can roam around while spending their Rupee currency.”
The previous Honourable Minister of Tourism expressed “gratitude to India for consistently supporting Sri Lanka’s tourism development.”

Significant Increase in Indian Tourist Arrivals:

In early 2024, Sri Lanka witnessed a “significant influx of Indian tourists, with nearly 200,000 visitors from India.”
From January to 7th July 2024, “198,161 tourists arrived from India,” representing “18% of the total tourism arrivals.”
In October 2024, Indians were the “largest group of foreign tourists in Sri Lanka, with 36,000 visitors, representing 26.8% of total arrivals.” This trend continued into November.
For the full year of 2024, India remained the “biggest source market, accounting for 416,974 visitors out of a total of two million arrivals.” This was “more than double of second-placed Russia.”
The Sri Lanka Tourism Promotion Bureau (SLTPB) has a “bold roadmap targeting 500,000 Indian tourists in 2025 — a substantial jump from the previous year’s 400,000 arrivals.”

Diversification of Tourism Offerings:

Sri Lanka is moving beyond traditional beach tourism to encompass “sports, culture, spirituality, and history.”
There is a growing focus on luxury tourism, with offerings like “boutique properties, heritage villas, wellness resorts, plantation bungalows to beachfront retreats.”
The MICE sector is being aggressively promoted, with a target of “earnings of over $550 million in 2024 and $ 1.36 billion by 2026.” India is a “key target market for MICE travel.” The MICE arrival constituted “9.5% in 2023 compared to the overall tourist arrival and is expected this percentage to grow up to 12% in 2024.”
A new casino is set to open in Colombo mid-2025, which Indian tourism officials believe “will provide Indian travellers with more reasons to visit,” given the limited gaming options in India beyond Goa and Sikkim.

Overall Tourism Performance and Recovery:

Sri Lanka’s tourism sector recorded “over $1.25 billion during the first four months of 2024” and surpassed the “$2 Billion Milestone in 2023.”
The goal for 2024 was to attract 2.5 million tourists, and while the actual number reached “2,053,465,” this still represents a “38.07%” increase compared to 2023.
December 2024 saw “248,592 tourists” welcomed, a “35% increase compared to November” and an “18.18% boost compared to December of 2023.”
Europe emerged as a “dominant player” in December 2024, accounting for “51.9% of total visitors,” followed by “Asia and the Pacific with 41% of arrivals.” India was the top source market in December 2024 with “52,881” arrivals, representing “21.3%” of the total.
The UNWTO projected that international tourism would fully recover to pre-pandemic levels by the end of 2024. Sri Lanka’s 2024 arrivals were the “highest number of annual tourist arrivals since 2018.”

Challenges Affecting Tourism Growth:

The introduction of a “New Visa System” caused “confusion and delays”
“Elections and Political Instability” influenced travellers’ decisions.
“Travel Warnings and Safety Concerns” deterred tourists.
“Delays in Infrastructure Development” affected the quality of tourist experiences.
“Competition from Other Destinations” offering visa-free access for Europeans posed challenges as Europeans chose competing destination that offered them free visas, rather than the costly Sri Lankan USD52 entry.
Despite aiming for 2,180,000 (conservative) or 2,363,475 (optimistic) arrivals in 2024, the actual figure fell slightly short, indicating a “deficit of only 126,535 visitors
European visitors were significantly lower by percentage as compared to previous years due to visa charges still being applied.

Future Strategies and Targets:

The global marketing campaign “You’ll Come Back for More” was launched to attract tourists.
SLTPB actively participated in international travel trade shows like SATTE, WTM London, ITB Berlin, and ATM Dubai.
There is a focus on digital marketing campaigns and engaging influencers to tap into niche travel segments.
Sri Lanka delayed to add 39 more countries to its visa-free list in 2025, resulting in Europeans and MINA. UAE visitors choosing other destinations.
The target for Indian tourist arrivals is “over Five Million” (headline from one source, though the body specifies 500,000 for 2025).
The MICE sector is aiming for a “11% increase in MICE arrivals annually.”

7. Perspectives from Indian Tourism Experts:

Indian tourism officials view Sri Lanka as a “top choice for Indian travellers due to the destination’s close proximity, food similarity cultural ties, and diverse attractions.”
Sri Lanka is highlighted as a “unique tourism product that has yet to be discovered by a vast majority of Indians” and urged Indian travellers to “come and discover the rich heritage, culture and architecture of Sri Lanka.” India’s significant outbound market is estimated as 20 million.

Thoughts:

Sri Lanka is making significant strides in revitalising its tourism sector, with a well-defined strategy to attract the substantial Indian outbound travel market. Leveraging cultural ties, offering tailored experiences like the Ramayana Trail, and ensuring seamless travel through visa-free entry and enhanced air connectivity are key components of this approach.

The impressive growth in Indian visitor numbers underscores the success of these initiatives. Furthermore, the diversification of tourism offerings to include luxury and MICE segments positions Sri Lanka to attract a broader range of international travellers.

While 2024 demonstrated a strong recovery and exceeded the 2 million arrival mark, it did fall short of hopeful targets highlighting ongoing challenges that need to be addressed to ensure sustained growth and achieve future tourism goals.

Continued focus on strategic marketing, infrastructure development, and maintaining a stable and welcoming environment will be crucial for Sri Lanka to realise its full potential as a leading global tourism destination.

FAQ

Frequently Asked Questions regarding Sri Lanka Tourism Trends

1. What is the current state of Indian tourist arrivals in Sri Lanka and why is this significant?

In 2024, India has consistently been the top source market for Sri Lanka’s tourism. By early July 2024, nearly 200,000 Indian tourists had visited the country, and by the end of December 2024, this number reached 416,974, accounting for 20.3% of total arrivals for the year. This is significant because Indian tourists are noted as being among the highest spenders per visit abroad, contributing substantially to Sri Lanka’s economy. The consistent top ranking and high expenditure make the Indian market a crucial driver for the growth and financial stability of Sri Lanka’s tourism sector.

2. What key initiatives has Sri Lanka implemented to attract more Indian tourists?

Sri Lanka has actively pursued several strategies to attract more Indian tourists. These include the introduction of special tour packages like the ‘Ramayana Trail’, which highlights cultural and spiritual ties by connecting visitors to significant sites from the Hindu epic. Visa-free entry for Indian tourists has been extended to make travel more seamless. Sri Lanka Tourism has also intensified promotional efforts through B2B roadshows and networking events in various Indian cities, such as Kolkata (including a networking evening on a cruise over the Ganges), Indore, Vadodara, and Surat, showcasing the country’s diverse attractions and fostering partnerships with Indian travel agents and industry stakeholders.

3. How has the extension of visa-free entry impacted Indian tourist numbers?

The extension of visa-free entry for Indian tourists is considered a significant factor in boosting visitor numbers to Sri Lanka. By removing the barrier of visa applications and associated costs, Sri Lanka has made it easier and more appealing for Indians to choose the country as a travel destination. This policy has likely contributed to the substantial increase in Indian tourist arrivals observed in 2024 and is expected to continue driving growth in the future.

4. Beyond leisure, what other tourism sectors is Sri Lanka focusing on to attract Indian visitors?

While leisure travel remains a primary draw, Sri Lanka is increasingly focusing on attracting Indian visitors to other sectors, particularly MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism. The Sri Lanka Convention Bureau is actively promoting the country as a preferred MICE destination, highlighting enhanced venues and accessibility. India is a key target market for MICE, with efforts aimed at increasing revenue from this segment. Additionally, Sri Lanka is promoting its cultural and spiritual offerings, as evidenced by the Ramayana Trail, as well as luxury holidays, destination weddings, surfing, and wellness tourism to diversify its appeal.

5. What is the significance of the ‘Ramayana Trail’ for Indian tourism in Sri Lanka?

The ‘Ramayana Trail’ is a unique tour package introduced by Sri Lankan Airlines specifically for Indian visitors. It offers visits to approximately 50 locations in Sri Lanka that are believed to be connected to the Hindu epic, the Ramayana. This initiative is significant as it directly leverages the deep cultural and spiritual ties between India and Sri Lanka, appealing to a large segment of the Indian population with religious and historical interests. By highlighting these shared heritage sites, the trail not only provides a unique travel experience but also strengthens the historical connections between the two countries and positions Sri Lanka as a key destination for spiritual tourism from India.

6. How is Sri Lanka working to strengthen its global tourism presence beyond the Indian market?

While India remains a top priority, Sri Lanka Tourism is also actively working to strengthen its global presence.

This involves participating in major international travel trade shows such as:

World Travel Market in London
ITB in Germany
B2B roadshows have also been conducted in Australia and Türkiye.
Arabian Travel Mart in Dubai

Additionally, Sri Lanka is engaging in B2C initiatives, including hosting media personnel and influencers from various countries to showcase the destination’s readiness to welcome tourists. The global marketing campaign “You’ll Come Back for More” aims to attract a wider range of international visitors, highlighting Sri Lanka’s diverse offerings beyond just beaches.

7. What were the overall trends in Sri Lanka’s tourism sector in 2024 in terms of visitor numbers and revenue?

In 2024, Sri Lanka’s tourism sector showed strong signs of recovery, with total tourist arrivals reaching 2,053,465 by the end of December, the highest number since 2018. This represented a 38.07% increase compared to 2023. Tourism earnings also saw significant growth, exceeding $2 billion in 2023 and surpassing $1.25 billion in the first four months of 2024. While the total arrivals in 2024 fell slightly short of the government’s more ambitious targets, the overall performance indicates a steady recovery and positions Sri Lanka as a growing tourism hub. India, Russia, the United Kingdom, Germany, and Australia were key primary markets driving this growth.

8. What challenges did Sri Lanka’s tourism sector face in 2024, despite the growth in visitor numbers?

Despite the significant growth in visitor numbers and revenue in 2024, Sri Lanka’s tourism sector faced several challenges that hindered it from reaching its full potential and ambitious targets. These challenges included the introduction of a new visa system which may have caused confusion, elections and political instability that could have deterred travelers, travel warnings and safety concerns, delays in infrastructure development affecting tourist experiences, regional geopolitical factors influencing travel choices, and increased competition from other destinations offering visa-free access or strong marketing campaigns. Addressing these challenges will be crucial for sustaining and enhancing the growth of Sri Lanka’s tourism sector in the future.

Questions and thoughts about Sri Lanka’s tourism industry, with a focus on attracting Indian tourists and also overall tourism trends in 2025

Key Themes to Consider:

India as a Primary Source Market: Understand why India is crucial for Sri Lanka’s tourism sector, including visitor numbers and spending habits.
Strategies for Attracting Indian Tourists: Identify the specific initiatives and marketing efforts aimed at the Indian market, such as the Ramayana Trail, visa-free entry, and roadshows.
Overall Tourism Recovery in 2024: Analyse the data on tourist arrivals, growth rates, and source markets to understand the extent of Sri Lanka’s tourism recovery.
Challenges and Opportunities in Tourism Growth: Recognise the factors that have both hindered and supported the growth of Sri Lanka’s tourism sector.
Diversification of Tourism Offerings: Note the shift beyond traditional beach tourism to encompass cultural, spiritual, MICE, and luxury tourism.
MICE Tourism: Understand the growing importance of the Meetings, Incentives, Conferences, and Exhibitions sector for Sri Lanka.
Air Connectivity: Appreciate the role of airline routes and key departure airports in facilitating tourist arrivals.
Future Projections and Targets: Be aware of Sri Lanka’s tourism goals for 2024 and 2025, particularly concerning Indian visitors.
Global Tourism Context: Understand how Sri Lanka’s tourism recovery aligns with global trends.

Review Questions:

What evidence suggests that Indian tourists are economically valuable to Sri Lanka?

What are the key features of Sri Lanka’s “Ramayana Trail” and what is its purpose?
How significant was the number of Indian tourist arrivals in Sri Lanka during various periods in 2024?
What strategies has Sri Lanka Tourism implemented to specifically target the Indian market?
What were the total tourist arrivals in Sri Lanka for 2024, and how does this compare to previous years?
Which countries were the top source markets for Sri Lanka’s tourism in December 2024 and for the entire year?
What were the main reasons for tourists visiting Sri Lanka in December 2024?
How is Sri Lanka promoting itself as a MICE destination?
What are the key airline connections and departure airports for tourists travelling to Sri Lanka?
What are Sri Lanka’s tourism targets for 2025, particularly concerning Indian visitors?
What challenges did Sri Lanka’s tourism sector face in 2024?
How does Sri Lanka’s tourism recovery compare to the global tourism recovery trends?
What are some of Sri Lanka’s diverse tourism offerings beyond beaches?
How has the visa policy impacted Indian tourist arrivals?
What role do events like SATTE play in Sri Lanka’s tourism promotion?

By considering these questions while reviewing the source material, you will strengthen your understanding of the key aspects of Sri Lanka’s efforts to attract Indian tourists and its overall tourism performance.

Quiz On Indian Visitors to Sri Lanka

According to the International Trade Administration (ITA), what is notable about Indian tourists travelling abroad? Why is this significant for destination countries like Sri Lanka?
Describe the “Ramayana Trail” initiative by Sri Lankan Airlines. What is the main objective of this tour package?
Based on the provided data, approximately how many Indian tourists visited Sri Lanka in the first seven months of 2024? What percentage did this represent of total tourist arrivals during that period?
What are some of the promotional strategies that Sri Lanka Tourism has employed to attract more Indian visitors, as mentioned in the sources? Provide at least two examples.
What was the total number of tourist arrivals in Sri Lanka in 2024? How does this figure relate to previous peak years for Sri Lankan tourism?
Identify the top three source markets for tourist arrivals in Sri Lanka for the year 2024. Which of these markets showed the largest numerical increase compared to 2023?
What was the primary purpose of visit for the majority of tourists arriving in Sri Lanka in December 2024? What other significant purposes of visit were noted?
Explain Sri Lanka’s focus on developing its MICE (Meetings, Incentives, Conferences, and Exhibitions) sector. What are the projected earnings from this sector by 2026?
Name two of the main last departure airports and two of the main airlines used by tourists travelling to Sri Lanka, according to the December 2024 data.
What is Sri Lanka Tourism Promotion Bureau’s target for Indian tourist arrivals in 2025? What strategies are being used to achieve this goal?

Answers

The ITA report states that Indian tourists are among the highest spenders per visit abroad. This is significant for countries like Sri Lanka because it means that attracting Indian tourists can lead to substantial economic contributions through their expenditure.
The “Ramayana Trail” is a special tour package introduced by Sri Lankan Airlines that includes visits to 50 important locations connected to the Hindu epic, the Ramayana. The main objective is to attract Indian visitors by leveraging the cultural and spiritual ties between India and Sri Lanka and offering a unique heritage experience.
From January to 7th July 2024, nearly 200,000 (specifically 198,161) tourists arrived in Sri Lanka from India. This represented 18% of the total tourism arrivals during that period, making India the top source market.
Sri Lanka Tourism has intensified promotional strategies towards Indian travellers by highlighting diverse tourism offerings in key Indian markets like Kolkata through networking events, such as a cruise over the Ganges. They have also conducted B2B roadshows and networking events in cities like Indore, Vadodara, and Surat to establish a stronger brand presence and attract more visitors.
Sri Lanka welcomed a total of 2,053,465 tourist arrivals in 2024. This marked the fourth instance of Sri Lanka surpassing 2 million tourist arrivals and represented the highest number of annual tourist arrivals since 2018, indicating a steady recovery in the tourism sector.
The top three source markets for tourist arrivals in Sri Lanka in 2024 were India, the Russian Federation, and the United Kingdom. India showed the largest numerical increase in tourist arrivals compared to 2023, with a rise from 302,844 to 416,974 visitors.
Leisure and vacations were the primary purpose of visit for the majority (52%) of tourists arriving in Sri Lanka in December 2024. Other significant purposes included visiting friends and relatives (7%) and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism (5%).
Sri Lanka is focusing on developing its MICE sector by highlighting enhanced venues and accessibility to attract corporate events, recognising that MICE travellers spend significantly more. The projected earnings from the MICE sector are over $550 million in 2024 and are targeted to reach $1.36 billion by 2026.
Two of the main last departure airports for tourists arriving in Sri Lanka in December 2024 were Dubai and Doha Qatar. Two of the main airlines facilitating these arrivals were Sri Lankan Airlines and IndiGo.
The Sri Lanka Tourism Promotion Bureau aims to attract 500,000 Indian tourists in 2025. Strategies to achieve this include enhanced trade engagement, digital marketing campaigns, luxury offerings promotion, MICE development, and leveraging expanded visa-free access for Indian travellers.

Further Questions on Increasing Indian Visitors to Sri Lanka

Analyse the significance of India as a source market for Sri Lanka’s tourism industry. Discuss the various strategies Sri Lanka has implemented to attract Indian tourists and evaluate their potential effectiveness.
Evaluate the recovery of Sri Lanka’s tourism sector in 2024. Identify the key factors that contributed to its growth and discuss the challenges that hindered it from reaching its initial targets.
Discuss Sri Lanka’s efforts to diversify its tourism offerings beyond traditional beach holidays. In what ways could focusing on cultural, spiritual, and MICE tourism contribute to the long-term sustainability and growth of the industry?
Assess the role of air connectivity and visa policies in influencing tourist arrivals in Sri Lanka, particularly from India. How might further developments in these areas impact Sri Lanka’s tourism targets for the future?
Compare and contrast Sri Lanka’s approach to attracting Indian tourists with Australia’s efforts as outlined in the initial source. What lessons can be learned from these different strategies in promoting tourism to this key demographic?

Glossary

Source Market: A country from which tourists originate or travel. In this context, India is a primary source market for Sri Lanka.
Tourist Arrivals: The number of tourists visiting a particular destination over a specific period.
GDP (Gross Domestic Product): The total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. While not directly mentioned, tourism contributes to a country’s GDP.
Ramayana Trail: A specific tourism product offered by Sri Lanka, focusing on sites related to the Hindu epic the Ramayana, primarily aimed at Indian visitors.
Visa-Free Entry: A policy allowing citizens of certain countries to enter another country without the need for a visa. Sri Lanka extended this to Indian tourists.
MICE (Meetings, Incentives, Conferences, and Exhibitions): A sector of tourism focused on business-related travel for events and gatherings.
B2B (Business-to-Business): Transactions or interactions between businesses, such as the roadshows connecting Sri Lankan tourism operators with Indian travel agents.
Roadshows: Promotional events where businesses travel to different locations to present their products or services directly to potential customers or partners.
FAM Tours (Familiarization Tours): Trips organised for travel agents and media to experience a destination firsthand, so they can better promote it.
Digital Marketing Campaigns: Use of online platforms and channels to promote products or services, such as through social media, websites, and influencers.
Luxury Tourism: A segment of the tourism industry catering to high-spending travellers seeking premium experiences and services.
Airline Connectivity: The availability and frequency of flights between different locations, crucial for facilitating international tourism.
Transit Hubs: Airports that serve as major connecting points for travellers flying between different destinations.
Market Diversification: The strategy of expanding into new or less traditional customer segments or geographic markets to reduce reliance on a few key areas.
UNWTO (United Nations World Tourism Organization): The United Nations agency responsible for the promotion of responsible, sustainable and universally accessible tourism.
WTTC (World Travel & Tourism Council): A forum for the travel and tourism industry, working with governments and international institutions to pursue sustainable growth.
SLTPB (Sri Lanka Tourism Promotion Bureau): The national tourism organisation responsible for marketing and promoting Sri Lanka as a tourist destination.
SLCB (Sri Lanka Convention Bureau): The body responsible for promoting Sri Lanka as a MICE destination.

Attracting Indian Tourists