Wrong focus

Continuous improvement in tourism infrastructure is important,” John Holden tells Benchmark.  “The airline industry is still in a challenging position. We have seen recessions before, we have experienced the Asian financial crisis and 9/11. This time it’s on a global scale, affecting both passenger and cargo.
Asian carriers are hit especially hard because airlines such as Singapore, Malaysia, Cathay and Thai focused on premium travel and demand has disappeared in the past few months.
Cargo is also an important revenue-generating area for Asian carriers. And again, cargo yield and volume have dropped significantly.
So you could say that it’s a double-whammy for us,” John Holden told Benchmark Special Correspondent Ms. Savithri Rodrigo recently.
Elaborating on strategies adopted by carriers in the region, Holden, Cathay Pacific Airways’ Country Manager for Sri Lanka and the Maldives added: “Because revenue for passengers and cargo has declined in the past year, one of the main areas airlines have looked at is, of course, controlling cost.
And most airlines in the region have looked at rationalising the routes they fly to make sure they are profitable. Many airlines have reduced and also retired old and inefficient aircraft. In fact we have parked some aircraft until demand returns.”
But there have been some successes with budget airlines offering a more cost-effective option which Holden admits bodes well for the industry as a whole.
“If you look at the successes you will see airlines such as Air Asia have capitalised on this and created a new customer segment. They have generated more publicity for people who have never traveled before. So that is a positive sign,” Holden said.
Touching on action by various carriers to woo tourists to Sri Lanka, Holden confirmed that many, including his airline have conducted familiarisation tours from within the region. “We have conducted several familiarisation tours from places including Korea, Japan, Singapore, China, Hong Kong, Singapore and Thailand to visit Sri Lanka. And I’m also aware that other airlines are engaged in similar activities,” he added.
Among concerns, Holden alludes to the need for urgent infrastructure Improvement in all areas-both in the public and private sectors. “Continuous improvement in tourism infrastructure is important, especially when tourism is a very big income earner for Sri Lanka. This must be looked at from two aspects: public and private. From a public perspective, the most important I think, is transportation as well as power, water supplies and communications. Domestic air services can be improved, especially to areas with travel potential. And as Sri Lanka is an island, water transport is also important from a leisure angle-those who go whale and dolphin watching for example, should have top-of-the-line boats and yachts.
Private investment into the infrastructure needs of star-class hotels, as well as more international restaurants, shopping facilities and entertainment options need to be addressed,” Holden said.
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