Key note address by HE Robyn Mudie, Australian High Commissioner
Annual Chairman’s dinner, Sri Lanka Institute of Hospitality
Thursday 1 November 2012
Chairman and Committee of the Sri Lanka Institute of Hospitality, members of the hospitality industry, distinguished colleagues and friends.
I am delighted to have been invited to speak at the annual Chairman’s dinner of the Institute of Hospitality at a time when there is so much going on in Sri Lanka’s tourism and hospitality sectors. 2012 has already been a year of significant growth and development in these sectors in Sri Lanka – and there is much more to come, as we are reminded on a daily basis by the billboards announcing the coming of new hotels and resorts, advertisements for new restaurants and cafes and media information about growing tourist numbers.
Lonely Planet’s recent announcement that Sri Lanka was their top travel destination for 2013 will no doubt add further impetus to this dynamic growth. Australia is famous for its intrepid travelling public, who are always keen to travel to the newest and most attractive destinations, so we at the Australian High Commission are preparing for a significant increase in tourist numbers in the coming years. Tourist numbers from Australia are already high. In 2010 37 200 Australians visited Sri Lanka and this grew to 44 600 in 2011. In the six months to the end of June, 28 000 Australians had visited Sri Lanka this year.
As you would all know much better than I, growth in tourism means growth in hospitality, so we are also hoping and expecting to see a further expansion of Australian involvement in the Sri Lankan hospitality sector.
Growth in our links in the tourism and hospitality sectors will add to our longstanding and strong bilateral ties with Sri Lanka. The modern bonds the two countries have built are the sum of many parts, and include a history of partnership in areas such as migration, education, trade and investment, people-to-people links and development cooperation. Australia has been a development partner from the time of Sri Lankan independence and we remain committed to contributing to the economic and social development of Sri Lanka.
As a regional neighbour and friend, Australia has a long-term interest in seeing Sri Lanka become a stable and prosperous nation which contributes to economic prosperity and security in the strategically important Indian Ocean. To this end, Australia has invested in Sri Lanka’s future through a significant development assistance program, which this year is valued at AU $47.1 million.
Our trade and investment relationship also continues to grow. In 2011-12, two-way trade between Australia and Sri Lanka increased by 12.4 per cent to AU $362 million. This has continued the solid upward trajectory of growth which we’ve seen over the past few years.
People to people links between Australia and Sri Lanka are strong, based on migration, education, shared membership of the Commonwealth and – of course – cricket and other sport.
Australia welcomes regular and legal migration from many countries and we are a popular migration destination for Sri Lanka, especially through the skilled migration scheme. Our Sri Lankan born community has increased steadily over the years and our latest census listed more than 86 000 Sri Lankan born people in Australia. Taking into account second generation Australians of Sri Lankan origin, our Sri Lankan community is well over 100 000.
Australia and Sri Lanka cooperate closely to combat the shared issue of people smuggling which has become a serious and difficult issue for both of our countries in recent years. Australia makes a practical, targeted contribution to Sri Lanka’s efforts to stem the irregular departure of people from this country through cooperation, capacity building, law enforcement and other activities. We have very much appreciated Sri Lanka’s willingness to engage with us on this issue and, in particular, the cooperation extended to send clear signals to would-be people smugglers and passengers that there is no advantage in trying to reach Australia by illegal means.
These diverse and close ties with Sri Lanka are very much in line with the Australian government’s strong and enduring interest in maintaining and building on our strong and robust engagement with Asia.
On 28 October, the Australian Prime Minister Julia Gillard released a White Paper on Australia in the Asian Century. The White Paper recognises that the rise of Asia is a defining feature of the 21st century. It acknowledges that the staggering economic and social growth of the region has profound implications for people everywhere. The Paper lays out an ambitious plan for Australia to navigate this period of economic and social change. It recognises that Australia’s future is interwoven with the continued prosperity, sustainability and stability of our region.
The White Paper provides a roadmap for the whole of Australia—governments, business, unions, and the broader community—over coming decades. The Australian Prime Minister’s goal is to secure Australia as a more prosperous and resilient nation that is fully part of our region and open to the world.
Australia’s focus on Asia is not new. Our nation has a long history of engagement with the countries of Asia. But in this Asian century Australia must enter a new phase of deeper and broader engagement.
The White Paper recognises that the Asian century brings opportunity for all in the region, including Australia. We recognise that just as our region has a lot to offer us, we have a lot to offer our region.
Our engagement with Sri Lanka is part of this roadmap and vision and the key themes of the White Paper will help shape our relationship in the coming years.
Building our links with the growing tourism and hospitality sectors in Sri Lanka will be part of this engagement. As I said earlier, the growth of these sectors is already well underway and we see evidence of that every day here in Colombo and elsewhere around the country.
Of course, this growth is taking place in the context of the current global economy. As a long-haul market, like Sri Lanka, Australia has to work hard to win market share among people travelling from Europe and North America. We understand that the current economic climate is making it harder to attract tourists from some of these markets and that we have to work hard to sell our countries as destinations. We share common interests and common challenges with Sri Lanka in this area. And representatives of our industries have scope to work together to share lessons learned and exchange information on what is needed to attract and retain a strong market share for the long-term.
Notwithstanding these challenges, the growth in tourism and hospitality creates significant opportunities for Australian suppliers of food, beverage, and hospitality services in Sri Lanka.
As Sri Lanka moves up the ladder to a middle income status economy and disposable incomes grow, consumer sophistication will increase local demand for a more diverse hospitality sector. This will increase market opportunities for suppliers of food and beverage.
The country has also seen a deeper penetration of supermarkets throughout the country providing an ideal channel to market food and beverage. Sri Lanka’s industrial business sector is also an important market. Manufacturers of bakery products, ice cream, biscuits and confectionery all rely on imported raw materials, as do manufacturers in the brewing industry.
Significant opportunities also exist in the tourism and hospitality sectors. Sri Lanka has almost doubled the number of tourists arriving in the country since the end of the conflict in May 2009. Sri Lanka has recorded over 800,000 tourist arrivals and has a target of 2.5 million tourists per annum by 2016. To achieve this, Sri Lanka needs to build new hotels –many are on the way already – and this in turn will increase demand for service products, hotel supplies and fine food.
Australia has key strengths it can bring to this emerging market. Australian brands are recognised here as supplying quality products in the food and beverage sector. Many Australian brands are household names in Sri Lanka – Meadow lea, Berri Juice, Bega Cheese, Leggos, San Remo.
Similarly Australian wines are much sought after in the hospitality industry.
Australia is also well placed to offer education and training to hospitality and tourism staff. The requirement for highly skilled hospitality management staff is growing all the time. While local hotel training is producing good staff, exposure to and experience in international standard hotel management is critical to the success of the sector in the long term. Australia is also looking to expand its contribution to vocational training in Sri Lanka. Australia’s vocational training system is highly regarded, and there are opportunities for Australia to share its knowledge and experience with Sri Lanka, including in the hospitality sector.
As you can see, Australia has a lot it can offer to the continued growth of the tourism and hospitality sectors in Sri Lanka and we are keen to expand and deepen our engagement and contribution to this fast growing area of the Sri Lankan economy. This is just one facet of our growing interaction with Sri Lanka, and it will add to what is already a vibrant and mutually beneficial relationship.
To end with a personal observation. One of the best ways of getting to know a place is to share a meal and conversation with its people and to experience a little of the real life of a country. You in the hospitality industry provide the means for this sort of interaction whether by providing good quality food which is then offered in homes and restaurants or welcoming visitors to your beautiful hotels. I have already been privileged to enjoy Sri Lankan hospitality in many different settings and I can vouch for the fact that you offer places to eat and stay which are beautiful and memorable, food which is unsurpassed, and very hard to resist, and a welcome whose warmth has made this country feel like home even after the relatively short time I have lived and worked here.
Extending all of this to the many visitors who will continue to travel to Sri Lanka in the coming years will do this country proud, and the sector you represent will play an important role.