Sunday, July 6, 2025

Why Sri Lanka must rethink tourism – permanently

Crisis in the Middle East, crisis at home

by damith
July 6, 2025 1:08 am 0 comment 63 views

By Dr. Dietmar Doering

In an increasingly interconnected world, even a regional conflict can jolt the global tourism market. The immediate victims aren’t just in the war zones. They include island nations thousands of miles away, such as Sri Lanka, where a single crisis abroad can unravel months of carefully rebuilt tourism efforts.

The war in Ukraine, the pandemic, and now the Middle East conflict — these episodes have exposed a bitter truth: Sri Lanka’s dependence on short-term tourism is economically hazardous.

The data tells a troubling tale

According to the Sri Lanka Tourism Development Authority (SLTDA), in 2023, Sri Lanka welcomed 1.48 million tourists, with most visitors hailing from India, Russia, the UK, and Germany. The average length of stay? Just 10.6 days. A flash in the pan.

Short-term tourists are notoriously sensitive to global shocks. Cancellations skyrocket at the first sign of unrest — even if it’s nowhere near our shores. While their contribution is welcome, it’s erratic, seasonal, and vulnerable.

Many of these travellers use low-budget tour packages, stay in lower-tier accommodations, and tend to cluster during peak seasons (December–March), leaving hotels, guides, and restaurants struggling during the off-season months.

The alternative: Permanent Tourism

But what if there was a way to make tourism less volatile and more reliable?

There is. It’s called Permanent Tourism, and it could very well be Sri Lanka’s golden ticket to sustained economic stability.

Unlike short-term tourists who come and go with the seasons — or global crises — Permanent Tourists are retired expatriates who choose to settle down in paradise. These are pensioners, typically from Europe (Germany, Austria, Switzerland), who receive a stable monthly income from their home countries and inject it directly into the Sri Lankan economy — month after month, year after year.

They don’t cancel plans due to war or weather. They don’t book bargain packages. They live, shop, dine, hire local services, and pay rent or buy homes. And most importantly: they stay.

The German example: pensions in paradise

Take Germany, for instance. According to the German Pension Insurance Association (Deutsche Rentenversicherung), over 240,000 pensions are currently paid abroad, with growing numbers going to Southeast Asia.

The average monthly pension for a retired German is approximately 1,200 to 1,600 euros — that’s between Rs. 420,000 and Rs. 560,000 per month at current exchange rates.

Even if 1,000 retirees chose Sri Lanka as their final home, the island could gain an estimated Rs. 500 million every month in inflows — completely independent of war zones, flight disruptions, or travel warnings.

Multiply that by 10,000 retirees, and you have a game-changing Rs. 5 billion monthly boost to the economy, quietly powering local pharmacies, supermarkets, domestic travel, utilities, and housing — all year round.

Permanent Tourists, permanent benefits

Permanent Tourism isn’t about mass tourism. It’s about quality over quantity. These individuals don’t seek noisy nightlife or one-time excursions. They want peace, affordable healthcare, ocean breezes, and companionship.

They are low-risk, respectful, and culturally adaptive. They become part of the local community, often sponsoring village children, engaging in volunteer work, and even starting small local businesses —employing Sri Lankans along the way.

Unlike seasonal tourists, they also don’t overload infrastructure. They assimilate. They invest.

The Visa wall: A missed opportunity

But here’s the catch: Sri Lanka makes it difficult for these golden guests to stay.

The existing visa structures are cumbersome. Yearly renewals. High fees. Complex bureaucracy. Often, retirees are forced to leave the country and re-enter to comply with visa laws—causing stress and uncertainty.

By contrast, Thailand, Malaysia, and even Panama offer long-term residence visas specifically for retirees. Malaysia’s “My Second Home” program offers 10-year renewable visas. Thailand provides similar retirement visas with basic conditions such as proof of pension and age.

So why can’t Sri Lanka do the same?

A simple solution: The Silver Visa scheme

It’s time to introduce a “Silver Visa Scheme” — a 10-year renewable residence visa for retirees who can prove:

* A stable foreign income (e.g., pension or rental income)

* Basic health insurance

* Clean criminal record

No property ownership required. No employment status. Just a commitment to live peacefully and spend regularly in Sri Lanka.

A simple system could be administered through the BOI or a new Tourism Residency Division under the Ministry of Tourism.

Sri Lanka doesn’t need millions of backpackers to fill every room. It needs a few thousand loyal, long-term residents who become part of our social and economic fabric.

Infrastructure that works both ways

Permanent tourists also support the real estate sector. Already, private developments along the west and south coasts are building retirement-style bungalows, many using local materials and labour. These homes generate construction jobs, utility revenue, and recurring services like home care, garden maintenance, and local cleaning staff.

Imagine a retirement village in Marawila, Galle, or Trincomalee, filled with senior European citizens who receive foreign pensions but spend it locally.

The economic ripple effect would be profound.

Time for a policy shift

If Sri Lanka wants to break the boom-bust cycle of short-term tourism, Permanent Tourism is the answer.

A well-planned strategy could include:

* Launching a “Live and Retire in Sri Lanka” campaign in Europe

* Creating specialized Visa Desks at embassies abroad

* Developing public-private partnerships for Senior Living communities

* Offering simplified taxation and customs rules for retirees bringing personal goods

* And most critically: introducing the 10-year renewable Silver Visa Stability in an unstable world

Crises such as the Israel-Iran conflict remind us that the global tourism sector is extremely vulnerable. Sri Lanka cannot afford to tie its economic future to short-term, flighty visitor numbers.

We must diversify. We must attract residents, not just guests.

Permanent Tourism provides exactly that — a stable, peaceful, and profitable alternative. Not just for crisis times, but for all times.

Sri Lanka has the beaches. It has the hospitality. It even has the healthcare potential. What it lacks is the vision — and the visa.

Let’s change that.

Let’s make Sri Lanka not just a place to visit — but a place to stay.

The writer is a Social Scientist and a Tourism Promoter from Germany living in Sri Lanka

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