Former United Nations Environment Programme (UNEP) Executive Director Eric Solheim asserted that Sri Lanka must look beyond visitor numbers and focus on pricing its unique environmental assets higher to drive economic growth.
Speaking on the potential of the tourism sector during a recent visit to Sri Lanka, Solheim highlighted that while the industry is a primary job creator globally, Sri Lanka has yet to fully monetise its natural and cultural resources effectively.
This call for a strategic pivot comes amidst data revealing a stark disconnect between the visitor volumes and financial yield. While Sri Lanka recorded an all-time high of 2.36 million tourist arrivals in 2025-a 15 percent increase from the previous year-tourism earnings remained largely stagnant, growing by a marginal 1.6 percent to US $ 3.2 billion. Crucially, average spending per visitor declined significantly during the period, underscoring the urgency of Solheim’s argument for a high-value, low-volume model.
Solheim drew comparisons to Rwanda, where viewing gorillas in their natural habitat commands a fee of US $ 1,500-approximately Rs.500,000-per person for a single hour. He noted that such premium pricing strategies not only generate significant revenue but also create a robust local economy centred on conservation. When local communities derive their livelihood from high-value tourism, they become the primary protectors of wildlife assets. He suggested that Sri Lanka’s wildlife experiences, particularly regarding the elephants in the wild, could similarly be positioned as premium offerings.
The former diplomat pointed out that the modern tourists increasingly demand sustainable travel options, particularly regarding transport. Citing examples from China and Nepal, Solheim remarked that the electrification of transport is rapidly becoming a standard expectation globally. He noted that Nepal has reached a point where 80 percent of new cars are electric and suggested that Sri Lanka has significant room to modernise its fleet of tourist vehicles-including buses, cars and three-wheelers-to appeal to environmentally conscious travellers.
Solheim also advocated for the development of “eco-circuits”, similar to those recently established in Tamil Nadu, India. These circuits link various environmental centres, such as dugong sanctuaries, mangrove forests and bird observatories, into a cohesive product. He emphasised that Sri Lanka’s unique geography, which allows tourists to experience diverse attractions-from beaches to ancient heritage sites-within short distances, offers a competitive advantage for creating similar high-value circuits.
(NF)
