Why do tourism operators favour international visitors over local tourists?


Domestic tourism can yield high returns if stakeholders find new ways to market local destinations. — SHAARI CHEMAT/The Star

Just as borders are reopening again around the world, some tourists are facing another kind of barrier – this time in the form of racial discrimination. Domestic travellers in Sri Lanka have complained of discriminatory practices by certain tourism establishments that will only accept foreign visitors.

Local authorities have been quick to react, with the Sri Lanka Tourism Development Authority (SLTDA) threatening stern action against establishments practising a “foreigners only” policy.

The SLTDA said it would not hesitate to cancel the licence of a tourist property if it is found to have been discriminatory after receiving a formal complaint.

“Should there be formal complaints, and if found to be discriminatory, we would not hesitate to suspend or cancel licences, including informing travellers and notifying online travel agencies to abstain from taking bookings (for them),” the authority said in a statement.

The authority has received several complaints alleging that local tourists are being barred from staying in hotels in certain tourist areas of Sri Lanka. Some of these properties had allegedly even put up “foreigners only” boards outside, according to an industry official.

SLTDA said that such practices go against Sri Lanka’s constitution that guarantees equal rights.

“Our constitution affords equal right to all citizens, where no person shall, on the grounds of race, religion, language, caste, sex, or anyone on such grounds, be subjected to any disability, liability, restriction, or condition concerning access to shops, public restaurants, hotels, places of public entertainment and places of worship,” said SLTDA.

The authority also pointed out that domestic tourists have been instrumental in the recovery of the country’s tourism sector during the pandemic.

A worrying trend

The matter of preferential treatment being given to international tourists isn’t exactly a new issue.

Last year, The Star highlighted a trend where some tourism operators tend to favour international visitors over domestic tourists.

ALSO READ: Can Malaysians really be tourists in their own country?

One traveller from Penang said she observed traders at a popular beach spot being friendlier and more accommodating towards foreign tourists.

It’s a conundrum that should be viewed from an economic angle, say tourism experts.

“We can’t entirely blame industry players for focusing more on international visitors due to their higher spending power. Although the domestic tourist segment looks attractive as a market potential, their spending pattern is not convincing,” said Asean Tourism Research Association president Prof Dr Neethiahnanthan Ari Ragavan.

According to Prof Neethiahnanthan, the purchasing power of foreign tourists greatly outranks the spending of locals.

“In 2019, the country recorded a RM103.2bil income from 239.1 million domestic tourists as compared to the RM80.1bil income from only 26.1 million international visitors. This shows that 10% of the international tourist market contributes bigger than 90% of the domestic market,” he explained.

What this translates to is that each domestic tourist in Malaysia spends approximately RM330 (per holiday) on average, whereas each international tourist spends about RM3,000.

Key to recovery

At the same time, travel experts have indicated that the recovery of the tourism sector this year will continue to be dominantly spurred by domestic tourism.

They added that tourism stakeholders should find new ways to market destinations to appeal to locals in the near future.

A recent report by the World Travel & Tourism Council (WTTC) and Trip.com group identifies that domestic travel will continue to lead the recovery of the travel and tourism sector.

The report reveals that severe and confusing travel restrictions around the world drove a significant rise in domestic tourism, with a surge in domestic hotel bookings.

“Travellers around the world have shown their eagerness to travel, whether limited to domestic travel or able to cross borders, we see a huge amount of pent-up demand steadily being released,” said Trip.com group chief executive officer Jane Sun in a statement.

Sun also stressed that in order to expedite tourism recovery, the industry must adapt to emerging trends such as domestic tourism.

The report noted that domestic travel may slow down proportionally as international travel returns, but added that the trend to rediscover domestic destinations is likely to linger in the long term.

SLTDA for one, has called upon tourism stakeholders in Sri Lanka to treat locals better.

“Domestic tourists have stood by our industry during difficult times, and it is our citizens who have supported our industry, for which we should be grateful,” the authority said.

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