Tourism Skills Strategy and Action Plan for Polonnaruwa - Skills for Inclusive Growth
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Tourism Skills Strategy and Action Plan for Polonnaruwa
Table of Contents List of Figures ................................................................................................................................... iii List of Tables..................................................................................................................................... iii Acknowledgments ............................................................................................................................ iv Acronyms .......................................................................................................................................... v Executive Summary ...................................................................................................... vii Chapter 1 Introduction................................................................................................ 122 1.1 Introduction ............................................................................................................................ 122 1.2 Background…………………………………………………………………………………………………………………………..13 1.3 Approach used to develop SSAP……………………………………………………………………………………..…….14 1.4 Content of SSAP……………………………………………………………………………………………………………………14 Chapter 2: Development potential and strategic direction of the Tourism sector ........ 166 2.1 Introduction .............................................................................................................................. 16 2.2 The Macro Economy ............................................................................................................... 166 2.3 The regional economy ............................................................................................................ 188 2.4Tourism sector in Polonnaruwa district .................................................................................. 199 2.5 Policy Directions for the Tourism sector: national and district level...................................... 233 2.6 Institutional support system ................................................................................................... 255 Chapter 3 Challenges, Strategies and Action Plan for skills development ....................... 27 3.1 Introduction .............................................................................................................................. 27 3.2 Stage of skills development in Polonnaruwa district................................................................ 27 3.3 Challenges and opportunities for skill development ................................................................ 29 3.4 Vision for the skills development in Tourism Sector of Polonnaruwa District ......................... 31 3.5 Strategies and action plan for skills development.................................................................... 32 pg. ii
List of Figures
Table 2.1 Competitiveness of Travel and Tourism Industry in Sri Lanka 17
Table 2.2 Life Cycle of Skills Development in Tourism Industry of Polonnaruwa district
18
Table 2.3 Guest Nights in Tourist Hotels (Polonnaruwa- Girithale, 2016) 20
Table 3.1 Stage of skills development in Polonnaruwa district 28
Table 3.2 Demand drivers and barriers to training 28
Table 3.3 Transformation framework for skills development in Polonnaruwa district
33
Table 3.4 Balancing of key themes of skills strategy in Polonnaruwa district 34
Table 3.5 Projected increase in guest nights in Polonnaruwa district (000) 37
List of Tables
2.1 Institutional providing training in Polonnaruwa district 26
3.1 Challenges of skills development in Polonnaruwa district 30
3.2 Core strategies and interventions 36
3.3 Action Plan 38
pg. iii
Acknowledgments
We would like to thank all the stakeholders who supported the development of the Skills
Strategy and Action Plan (SSAP) for Polonnaruwa district by taking part in the discussions,
e-mail communications and consultations.
We would especially like to thank Mr.V.G.Ranjith Ariyarathna, the District Secretary and
Mr. E.M.D.S.Ekanayake, the Additional District Secretary for their committed interest and
administrative support in preparing the SSAP for Polonnaruwa.
Further, we take this opportunity to thank the senior officials of the Technical and Vocational
Education and Training (TVET) institutions in Polonnaruwa and officials of the Ministry of
Skills Development and Vocational Training (MSDVT) and Tertiary and Vocational Education
Commission (TVEC) in Colombo for sharing information and guiding us throughout the study.
iv
Acronyms
ADB Asian Development Bank
BOI Board of Investment
CBSL Central Bank of Sri Lanka
DCS Department of Census and Statistics
DoA Department of Ayurveda
DoSS Department of Social Services
FDI Foreign Direct Investment
F&B Food & Beverages
GAFA Gross Additions to Fixed Assets
GCE General Certificate of Education
GCI Global Competitiveness Index
GDP Gross Domestic Product
GJI Gem and Jewellery Industry
GoSL Government of Sri Lanka
HRD Human Resource Development
H&T Hotel and Tourism
ICT Information and Communication Technology
ICTA Information and Communication Technology Association
IE Informal Economy
ISIC International Standard Industrial Classification
IT Information Technology
MLRM Ministry of Labour Relations and Manpower
MoF Ministry of Finance
ITA National Industrial Training Authority
NPD National Planning Department
v
MID Ministry of Industrial Development
MoTDCRA Ministry of Tourism Development and Christian Religious Affairs
MSE Micro and Small-scale Enterprises
MSME Micro, Small and Medium Scale Enterprises
MST Ministry of Science and Technology
NCC National Crafts Council
R&D Research and Development
QLFS Quarterly Labour Force Survey
SLITHM Sri Lanka Institute of Tourism and Hotel Management
SME Small and Medium Scale Enterprises
TVEC Tertiary and Vocational Education Commission
UoM University of Malaysia
UoR University of the Rajarata
UoS University of Sabaragamuwa
VTA Vocational Training Authority
vi
Executive Summary
The Polonnaruwa district is blessed with historical, archeological, religious, cultural and wild
life assets, and is highly attractive to guests from foreign and local markets. The tourism
industry in the Polonnaruwa district has been operating at sub-optimal level due to
institutional and market failures. This has been exacerbated by skills gaps and labour
shortages, all of which impact negatively on the growth potential of the tourism industry in
the district. The most significant demand and supply constraints are summarized as follows:
Demand side Supply side
• lack of Public Private Partnership • narrow program mix
• lack of HRM practices in tourism • a dearth of qualified trainers
industry
• low preference towards tourism sector
• absence of collective efforts to jobs by new entrants to the labour
promote tourism by the private sector market
players
• limited access to vulnerable groups
• dominance of micro and small-scale
establishments • absence of local flexibility in delivery
• low demand for employing disabled • inadequate resources
and female workers
• protracted and disjointed government
• failure to market Polonnaruwa as a decision making limited diversity and
tourist destination inclusiveness
• low levels of skills of the employed in • ineffective Career Guidance
the tourism sector
vii
Significant opportunities face the tourism and hospitality sector, including the following:
• High growth potential of the regional tourism market
• Unexploited tourism related assets e.g. Natural Beauty, Heritage, Cuisine and Culture
• Around 3700 school leavers joining the labour market on an annual basis after OL
(1824) and AL (1883) examinations. Another 2700 also join the labour market before
OL examination.
• New investments to address supply side deficiencies e.g. New Language School,
Dancing Centre in Thamankaduwa, Establishment of a National Vocational Training
Institute (NVTI)1etc.
• Pro- private sector policy of the government
• Cultural Triangle Development Project Initiated by the government
• Development Partners’ willingness to participate in human capital development
activities initiated by the government
This plan provides the framework for tackling the constraints, addressing skills and labour
shortages, and for responding to the opportunities outlined above. The plan will provide
strategic direction for the sector over the 2018 to 2020 period. In addition, a series of actions
for implementation over this period are identified.
The content of the plan is based on empirical evidence on the tourism industry, policy
directives developed for the national and district levels, and extensive consultations with
government representatives and key stakeholders, particularly at district level. The
methodological approach employed in the preparation of the skills strategy and action plan
(SSAP) is illustrated below.
Transformation Framework for skills development in Polonnaruwa district
Key Core Key Action
transformational Programs
Strategies Interventions
themes
09 18 54
03
1
This is under the Polonnaruwa integrated development program.
viiiIn order to realize the full potential of the tourism industry the district must be transformed
in to a high-skilled equilibrium. A variety of strategies have been developed under the
following transformational themes:
• attraction of school leavers and retention of existing workers
• integrating vulnerable groups
• institutional and business support
Within the strategy there are 18 interventions and 54 action programs to be delivered by
2020. Each action program is assigned with a lead agency responsible for delivery and
relevant partner organizations. A timeframe for implementation and an estimate of impact
have been developed. The strategy is inclusive in nature, covering all persons in the labour
market in this district regardless of age, gender, disability or geographical location.
The funding for implementation comes from government led initiatives, or through the
government working in partnership with stakeholders, development partners, NGOs and
employers.
The Skills Strategy and Action Plan (SSAP) covers strategies and subsquent actions to support
transformation in the three thematic areas outlined above and they include the following:
In order to attract school leavers and retain existing workers the following strategies will
be implemented:
• Demand generation (support increased demand for employment in tourism)
• Human capital formation (facilitate up-skilling and re-skills of the existing workforce)
• Expand skill program mix (introduce new and higher level quality skills programs for
tourism and related value chains )
On the second thematic area, promotion of inclusive growth the focus will be upon:
• Empowerment of vulnerable groups (increase access to training for those with
disability thorugh incentives and different measures)
• Support environmental sustainability (educate employers on waste management
technology and promotion of the local ecology)
• Promotion of female participation (encourage more females to enter the sector
through career guidance, incentives and other measures)
ixFor the final thematic transformational area, the strengthening institutional and business
support systems the following strategies will be implemented:
• Social marketing (conduct tourism awareness and improve water and sanitation
facilities)
• Business development (promote economic activities using business incubators)
• Strengthen institutional support (build capacity of government planners and support
training providers to deliver quality leanring outcomes)
A total of 54 action have been identified to elevate the tourism industry in Polonnaruwa
district towards a high-skilled equilibrium stage by 2020. It should be noted that disability
and gender are main-streamed into each action. Some of the key action include:
• provision of basic training under the • first aid training for Tour Guides
Basic Skills Project
• training in tour guiding for Tuk-Tuk • new courses developed for Beauty
drivers Culture, Photography and Performing
Arts
• accredited training for tour guiding • the provision of skills development in
e-marketing
• incentives to promote re-entry to the • key skill programs will be targeted at
labour market among middle aged vulnerable groups include training of
unemployed single headed household persons with disability in selected
women, war widow’s females trades such as Culinary & Cookery,
Dance & Music and Entrepreneurship
• scholarships for persons with disability • Vocational English for enterprises
to follow courses targeted at tourism operating in Tourism and Hospitality
sector
The low demand for tourism sector jobs will be transformed with the support of several
programs including awareness programs to educate school leavers on available job
opportunities in the tourism sector, supporting to develop career guidance information for
school leavers on career prospects in tourism. (e.g. leaflets, role models, videos, etc). The
action programs also cover community participation in tourism (e.g. promote local village
life; village level functions during harvest time), supply of better facilities for guests at places
of historical archeological value and strengthening of private sector players in tourism (e.g.
provide coordination support to set up a Tourism Association in Polonnaruwa).
xThe proposed action programs cannot be implemented solely by the government or a group
of partners. It requires well-coordinated collaboration by all the key holders of the tourism
industry. In fact, the SSAP presents a real opportunity for the district to develop collective
responses to its skills and employment challenges, through embracing strong stakeholder
partnership. Some of the donors have already made firm commitments towards skill
development efforts at district level. The estimated economic benefits of these interventions
would be an incremental increase of guest nights ranging from 132,000 to 169,000 between
2017 and 2020. In terms of incremental income from foreign guests would be in the range
of US$ 26 to 32 Mns during the same period.
The SSAP would increase employment levels by 2000 workers, both in direct and indirect
terms. The quality of employment will be raised in terms of cognitive, non-cognitive and soft
skills. As a result, the SSAP, the tourism industry in Polonnaruwa district would become more
competitive and the estimated business impact would be in the range of 450,000 to 487,000
guest nights in 2020. The incremental income benefit from foreign guests would be in the
range of US$ 26 to 32 Mns in 2020. Given the inclusive character of the proposed action plan,
it is expected that these benefit streams would percolate down to a cross section of
vulnerable groups in the district. Finally, it may also lead to reductions in unemployment,
inequity and poverty.
xiChapter 1: Introduction
1.1 Introduction
Most commonly referred to as Sri Lanka’s second ancient capital, the city of Polonnaruwa is a
magnificently preserved city with rich archaeological monuments and natural beauty. Located in
Sri Lanka’s North Central Province, Polonnaruwa has both its ancient city, an adjoining “old town”
as well as a “new town” located about 6 km away from the ancient city. It offers a range of tourist
attractions for both foreign and local guests interested in history, archeology, manmade tanks
and irrigation systems and wild life. It was also the second most ancient kingdom of Sri Lanka.
The archaeological sites are in a compact layout, within easy distance of each other, and tours
are easily arranged either on foot or more popularly explored on bicycle. The Ancient City of
Polonnaruwa has been declared a World Heritage Site. At present however, foreign guests use
Polonnaruwa as a transit center to various other parts of the island e.g. Trincomalee, Batticaloa,
Kandy and Anuradhapura. As a result, development of value added services in the tourism value
chain is less developed in the district.
The district capital Polonnaruwa is 216 km away from Colombo and is well connected to the other
parts of the country through its road network and railway service. Other basic infrastructure
facilities such as water supply and sanitation, electrical power supply and communication
services are present but not accessible to all. For instance, 75.3% of the district households have
sustainable access to safe drinking water and 53.4% have access to improved sanitation.
In addition, 41.4% of the households are using electricity and only 11% use telephone. The district
is ranked 9 in the combined consumption poverty and human poverty ranking of 17 districts (17
being the poorest).
121. 2 Background
The Skills for Inclusive Growth (S4IG) program is an initiative of the Australian Government’s aid
program and is implemented in collaboration with the Ministry of Skills Development and
Vocational Training (MSDVT), Tourism Authorities, Provincial and District Level Administration,
and Industry and Community Organizations. The Program will improve the tourism value chain
in Sri Lanka through an integrated approach to skills development. In this context, the S4IG will
support sustainable job creation and enhance income of marginalized groups, including the
disadvantaged and people with disabilities and women. It is expected to enhance the capacity of
skills development planning at regional and district levels, improve coordination, reduce
mismatches and generate demand for skills. Further, strategies will be adopted to shift the
informal sector towards more formal, and improve e productivity in the tourism value chain,
leading to sustainability.
Objectives
The overall objective of the Skills Strategy and Action Plan (SSAP) for Polonnaruwa district is to
promote inclusive growth in the regional economy by transforming the learning experience for
individuals and employers to create a sustainable, dynamic, entrepreneurial and innovative
culture, responsive to future business opportunities. More specific objectives of are:
• to identify the main challenges facing skills development with a specific focus on Tourism
and related value chain sectors
• to develop action plans to promote skills development of the district through inclusive
growth
• propose recommendations that lead to structural transformation and a more inclusive
growth path through employment creation
131.3 Approach used to develop the SSAP
The analysis for the SSAP is based on existing body of data and research evidence on growth
performance and skills development of tourism industry at the national and district levels. In
terms of policy direction, it is mainly guided by the following policy documents and six other
policy documents developed at district level:2
• Public Investment Program, 2017-2020
• Tourism Strategic Plan 2017-2020
• Vision 2025, A Country Enriched and
• Budget Speech, 2018
The approach is also based on extensive consultations with key stakeholder groups such as
business owners, policy makers & administrators at national and district level, training providers
(both public and non-public), employees in tourism & related industries and job seekers (school
leavers). The strategy is guided by labour market equilibrium and growth models employed in
the literature on skills development. The assessment covers status of the tourism industry at
district level, challenges faced by skills development, strategic options and action plan for
implementation over the next three years e.g. 2018-2020. This SSAP is expected to provide
specific actions for skills development of tourism industry representing wide cross-section of
target beneficiaries.
1.4 Content of the SSAP
The next part presents the development potential and strategic direction of the Tourism sector
(chapter 2). This chapter deals with development potential and strategic direction of the tourism
industry at national and district level. The evidence points to strong need for transformation of
tourism industry in order to exploit its full growth potential. However, existing institutional
support system seems to be a major constraint in the transformation process initiated at
national, provincial and district level. A collaborative and inclusive approach by all stakeholder
groups seems to be the best option for skills development of tourism industry in Polonnaruwa
district.
2
For details see Section 2.3 of Chapter 2.
14Chapter 3 provides by an outline of challenges and action plan strategies for implementation. At
present, skills development in the tourism industry, Polonnaruwa district facing significant skill
gaps and shortages. As a result, the industry is operating at a sub-optimal level and its full
development potential could be realized through a set of skills development strategies targeted
at high-skilled equilibrium stage of skills development. This chapter deals with this issue using
multi-institutional ad inclusive approach covering a period of 3 years: 2018-2020. It includes nine
core strategies, 18 interventions and 54 action programs including possible partner organizations
for implementation.
15Chapter 2: Development potential and strategic direction of
the Tourism sector
2.1 Introduction
This chapter presents the current status of the tourism industry in Polonnaruwa district focusing
upon: industry profile, skill mix, institutional support system, training providers and the structure
of the labour market. This foundational knowledge base provides the basis for industry specific
strategy formulation and preparation of action plans for skills development.
2.2 The Macro Economy
Sri Lanka, is a middle-income economy with a per capita income of US$ 3,835 in 2016, and has
performed relatively well since 2009. The small economy has shown resilience in the aftermath
of the global financial crisis and following the resolution of the internal conflict, with an average
annual real GDP growth rate of 5 percent between 2010 and 2015. Since then, it has reduced to
4.4 in 2016 and projected growth rate over the next three years is around 5 percent. Sri Lanka's
tourism sector has exhibited strong growth in recent years, achieving a 14.2 percent compound
average growth rate, as it has benefited from policy initiatives and investment incentives by the
government during the post conflict period. The sector has a significant impact on the economy
as it is the third-largest foreign exchange earner, contributing over 12 percent to the foreign
exchange earned in 2016. Employment generated in the tourism sector (both direct and indirect)
increased by 6.3 percent making 312,186 employees in 2016. Similarly, arrivals have increased to
2,050,832 (14% growth) and earnings per average room night have increased from $164.1 to
$168.2 between 2015 and 2016. The share of domestic and foreign tourism in Sri Lanka is 35 and
65 percent respectively in 2016.
16Figure 2.1 Competitiveness of Travel and Tourism Industry in Sri Lanka
Business
Environment
Cultural 6 Safety and
Resources and… 5 Security
Natural 4 Health and
Resources Hygiene
3
Tourist Service 2 Human
Infrastructure 1 Resources and… Sri Lanka
0
Ground and Port Asia- Pacific
ICT Readiness
Infrastructure
Air Transport Prioritization of
Infrastructure Travel &…
Environmental Intenational
Sustainability Openeness
Price
Competitiveness
Source: WEF, 2015.
In the global competitiveness index for Travel and Tourism, Sri Lanka ranked at 63rd out of 141
countries in 2015 while some of its competitors such as India, Thailand and Malaysia were placed
at 52nd, 35th and 25th positions in the same year. Its relative competitiveness is significantly low
in Cultural Resources and Business Travel (Figure 2.1). Similarly, its ranking is low relative to Asia
Pacific region in terms of Human Resources and Labour Market and ICT readiness.
Traditionally Polonnaruwa has been a transit town where visitors make day trips from
Anuradhapura or pass through on their way to the East Coast. For example, guests to Batticaloa
travel through Polonnaruwa and it is about an hour and half by road from Pasikudah and about
two hours from Trincomalee. The challenge for Polonnaruwa is to make it interesting enough for
tourists to want to spend a few days. It would be interesting to look at the option of recreating
the experience of an ancient kingdom in Polonnaruwa, while preserving the local culture and
traditions. As stated in National Tourism Strategy, Sri Lanka’s tourism industry lies along the
continuum from exploration to development depending on the destination. In this continuum,
Polonnaruwa is placed at early stage of development characterized by high investments,
increasing trend of demand and product diversification (Figure 2.2).
17Figure: 2.2 Life Cycle of Polonnaruwa Tourism industry
Rejuvenation
Stagnation
Consolidation
No of Tourists
Decline
Development
P
o
l
n
Involvement
n
a
rExploration
u
w Time
Source: MTDCRA (2017) a
2.3 The regional economy
Agriculture is the key economic activity in the reginal economy of Polonnaruwa. The primary
sector (e.g. Agriculture and forestry) dominates both in terms of employment and output of the
district. The majority of households live from subsistence (paddy) farming. The secondary sector
(e.g. industry) also covers range of industries such as dairy farming and milk processing, inland
fishing and ornamental fish. Other potential growth sectors include ornamental plants, garment,
cane, brick-making and light engineering. The tertiary sector (e.g. services) of the district include
several subsectors with high growth potential e.g. wholesale& retail trade, transport & storage,
public administration, health & education and accommodation & food services.
The accommodation and food services sub-sector in particular offer several opportunities for
growth including investment opportunities. Polonnaruwa is part of the Cultural Triangle3 and is
blessed with places of historical and cultural value which could attract more guests both from
local and foreign markets.
3
The Cultural Triangle is a well-known tourist attraction in the centre of Sri Lanka consisting of the World Heritage
cultural sites of the Sacred City of Anurahapura, the Ancient City of Polonnaruwa, the Ancient City of Sigiriya, the
Ancient City of Dambulla and the Sacred City of Kandy.
18The unemployment rate in Polonnaruwa lies between 6.3 and 7.7 percent, which is relatively high
compared to other districts. The underemployment rate is between 6.5-10.9 percent and is one
of the highest in the country. The district shows the highest male contribution to the
economically active population e.g. 69.2 percent. The participation rate of the informal sector in
the non-agriculture sector is 54.4 percent, which is slightly higher than the national average of
51 percent. The high number of 5,056 non-registered enterprises against 2,894 registered
enterprises confirms the importance of the informal economy. The district of Polonnaruwa is
served by a dense institutional setting represented by central, provincial and district level
administration, business development service providers, banks, economic support organizations
and other development organizations that have a stake in the district economy. Although the
institutional network appears to be rather complex, it provides promising perspectives for
dialogue and initiate joint work at district level. With respect to the tourism sector, there is clear
evidence of growing awareness on tourism sector development in the district amongst policy
makers and political authorities and the donor community.
2.4 Tourism sector in Polonnaruwa district
The total market size is around 25, 000 guests per month and it is shared among foreign and local
guests by 75 and 25 percent respectively. Monthly guest nights by local and foreign guests are
analyzed in Figure 2.3 and the evidence reveals that over 25,000 guests visit Polonnaruwa per
month except for April, May, June, September and October. In terms of foreign and local markets
however, the foreign segment has grown at an annual rate of 13 percent during this period while
the local segment has marked a declining trend of 15 percent per annum. Based on current
growth rates for foreign guests and assumed growth rate of 2 percent per annum for local guest’s
total demand is expected to increase up to 430,000 guest nights in Polonnaruwa district in 2020.
As stated, Polonnaruwa district is part of the Cultural Triangle and blessed with range assets
which could attract more guests both from local and foreign markets. At present, the tourist
traffic has been largely concentrated in cultural and historical sites of the ancient city. This could
be expanded to promote potential tourist spots like Somawathiya Temple, Wasgomuwa National
Park, hot springs in Boruvila and Nelumwewa, caves of Puleegoda and ecosystems of the
Mahaweli river basin as well as agro-based traditional rural lifestyle. Tourists prefer staying
overnight in Habarana and hence, the local economy suffers from poor value chain linkages that
exists at present. An improved value chain with new tourist products, destination marketing,
better facilitation and more importantly, effective management of visitor traffic within the area
would be critical for the province to leverage gains from the existing and potential surge in
tourism (Asia Foundation, 2017).
19Figure 2.3 Guest nights in Tourist hotels- Polonnaruwa/Girithale (2016)
25000
Foreign
Local
20000
Guest Nights
15000
10000
5000
0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
2016
Note: Includes classified, unclassified and boutique hotels
Source: SLTDA (2016)
The tourism sector in Polonnaruwa is anticipated to undergo significant changes due to several
factors such as increasing trend of tourist arrivals at national level, competition from other local
tourism locations, on-going infrastructure development work and the levels of disposable income
available for recreational activities. Currently the district is undergoing a major development
programme initiated through "Awakening of Polonnaruwa” and it envisions the development of
all sectors including comprehensive development of roads, electricity, agriculture, health and
environment. Over the past decade, the region has benefitted from significant investments in its
infrastructure, ranging from construction of main roads connecting the North and East,
infrastructure development of education, training, health and telecommunication sectors. Other
important capital projects in the district include investments in integrated health and care and
improved access to energy. These developments are reshaping the region’s geography
considerably, and provide important new opportunities for regional economy including the
tourism industry.
20A number of skills needs have been identified within the sector in Polonnaruwa with evidence
suggesting that there are large skills gaps in the workforce. As revealed by the Enterprise Survey
(S4IG, 2017b), Polonnaruwa district reported highest proportion of vacancies (44%) as against
other three districts covered by the S4IG project. Within sub-sectors, vacancies are highest for
hotels sector (87%) followed by restaurants (67%) and homestay units (67%). These findings
demonstrate significant skill shortages across all business sectors. By type of skill category, the
percentage of unfilled vacancies was 60 for low skilled workers as against a mere 14% for highly
skilled workers. Among low skilled workers, highest proportion of unfilled vacancies for more
than 6 months were reported for Doorman’s (50%), Room Boys (39%), Bell Boys (33%), Cleaners
(25%), Waiters (23%), Maintenance Workers (19%) and Helpers (8%). Among middle–level
workers, shortages were reported for kitchen staff and restaurants (e.g. Cooks (56%), Bakers
(54%), Fast Food Perpetrators (40%), Kitchen Stewards (32%), Bar Supervisors (80%), Wine
Waiters (33%), Barmans (75%)), front of house staff (e.g. Guest House Keepers (33%), Floor
Supervisors (56%), Receptionists (29%)) and support workers (Drivers (40%) and Gardeners
(42%)). With respect to high-skilled occupations the shortages were found in the categories of
management (Managers (25%), F&B Managers (50%), Front Office Managers (27%), Stores
managers (20%), Executive Chefs (25%), Sous Chefs (50%), Chief Kitchen Stewards (42%), Head
waiters (33%), Restaurant Supervisors (42%), Account officers (50%) and Administrators (25%).
Besides skill shortages, skill gaps were also found among high, middle and low-skill workers in
terms of cognitive, non-cognitive and technical skills. The first, cognitive skills were defined to
include numeracy skills,4 literacy skills,5 and fluency in English, Sinhala and Tamil languages. The
second, non-cognitive skills, were defined to include six different types of traits: communication
skills, team work, problem solving, correctness/integrity, ability to work independently and
punctuality. Finally, gaps in technical skills were measured in terms of seven criteria: technical
skills, management skills, customer service skills, computer literacy or IT knowledge, planning
and organizational skills, appropriate level of education and work experience. Using these
multiple criteria, the severity of skill gaps was measured and the evidence on cognitive skills
clearly indicates absence of English language skills as a major area of skill deficits in tourism
industry. This is similar to findings by Dunder et al., (2014)6 and very important in the context of
tourism industry as the entire staff of tourism industry need to interact with customers form both
domestic and foreign markets who use English as a common language of communication. The
ILO (2015) study on skill gaps in four industry sectors including tourism sectors also identified
4
Ability to use numbers and solve problems.
5
Refers to awareness of sounds of languages (phonic awareness), print, relationship between letters and sounds,
vocabulary, spelling and comprehension.
6
For example in Dunder et al. (2014) 80 percent of employers expect a higher-skilled worker to know English and
40 percent expect that of less skilled workers.
21English language skills as critical for development in the long-term and must be developed as a
matter of urgency. Lack of literacy and numeracy skills are also major issues affecting employee
productivity and career progression.
Managers lack skills in customer service, leadership, event management, management,
organizational and planning and knowledge in regulatory and compliance requirements. Tour
Guides lack Specific Recreational Skills, Cultural and Heritage Skills, Foreign Language Skills. As
reported by Dunder et al. (2014), the prevalence of skills gaps in hospitality and tourism across
Sri Lanka remains high compared to the overall economy. The skills most often found lacking in
the workforce were planning and organizational skills (55%), followed by customer handling skills
(51%). At national level, the tourism sector overall shows that these skills are most likely needed
in customer facing and management roles.
The evidence from a survey of Guest House owners revealed both regulation and legislation as
potential barriers to growth in the tourism sector e.g. inability to serve soft liquor, problems in
organizing a musical show at guest house premises, security of the guests near Parakrama
Samudra Tank area etc. There are a number of barriers identified to accessing training for staff,
which includes: a lack of available time to undertake staff training; a lack of available financing
and; a lack of appropriate training. Sector specific issues also include a high level of staff turnover
as well the seasonal demands of work.
Besides skill gaps there are several other constraints affecting skills development in tourism
sector in the district. For example, survey undertaken by the Asia Foundation (2017) identified
the following constraining gaps in skills and capacities to promote tourism in the Polonnaruwa
district.
• lack of innovative tourist product development (e.g. activates currently offered are
limited to a day’s worth site visits; there are no incentives for tourists to say overnight in
the district)
• lack of skilled labour and lack of awareness on opportunities in tourism sector
• facilities are not sufficient in tourist places (poor visitor facilities at places such as
Archaeological Museums, transport terminals etc.)
• absence of an institutional support system to promote business interests of the tourism
sector establishments
222.5 Policy Directions for the Tourism sector: national and district level
There are several documents at district level dealing with action programs for the development
of tourism sector industries in Polonnaruwa district: and include the following:
• “Pibidena Purawara, Pulathisi Asiriya,” 2015-2020 (President’s Office, 2015);
• Pibidemu Polonnaruwa (2016- 2020);
• Proposals to Promote Tourism in Polonnaruwa, 2017 by the Department of
Archeology (DoAch), Polonnaruwa;
• Proposed Forestry Projects to Promote Tourist Attraction in Polonnaruwa by
Dimbulagala DS Division (2017);
• Strategies to Promote Tourism in Polonnaruwa district, Thamankaduwa, DS
Division. 2017;
• Places of Tourist Attractions for Development, Elahera DS Division (2017).
The first, the Pibidena Purawara, Pulathisi Asiriya, covers 20 major projects including education
(e.g. School education, Pirivena education and Vocational education) while the second includes
289 projects7 with an estimated cost of Rs. 9755 Mns for 2017. Most of these projects are linked
with infrastructure development while some are indirect linked with tourism industry. The rest
of the project documents prepared by the DoAch, and DS Divisions are directly linked with
development of tourism industry in Polonnaruwa District.
At national level, the policy of the government is to transform Sri Lanka as the World’s most
treasured island for tourism (NPD, 2016). It highlights the need for promoting nature, cultural
historical and adventure based tourism with a special focus on the promotion of Ecotourism.
Similarly, the Tourism Strategic Plan (2017-2020) emphasizes the need for transforming tourism
industry to make Sri Lanka competitive in global travel and tourism market. It further states that
to continue up with growth curve, Sri Lanka Tourism sector must reframe its value proposition to
conserve assets, develop and better define new markets and products and include and involve
citizens and local communities as participants in the tourism economy.
7
One of them is establishment of a Dancing Centre in Thamankaduwa for an estimated cost of Rs. 75 Mns.
23The latest policy document at national level, Vision 2025, states that the tourism sector has not
achieved its full potential and to exploit this vast potential, Sri Lanka needs a transformation in
the tourism strategy to increase investments and employment. It further states that poor
coordination between Government ministries, institutions and stakeholders have hampered the
progress of the industry. The lack of emphasis on human capital development and tourism
research has hindered development (Vision, 2025, pp.23-24). The aim of Vision 2025 is to
establish Sri Lanka as high-value destination reflecting Sri Lanka’s natural and cultural heritage,
while making the industry socially inclusive and environmentally responsible. With respect to
SMEs, it states the following.
“We will establish a conducive institutional framework for SMEs in the tourism industry
to flourish. We recognize the services by these SMEs, which account for over 90% of all
tourist establishments. Appropriate training facilities will be made available to develop
this sector with peripheral services.” (Vision 2025, p.24).
The Budget Speech, 2018 devoted 18 paras to address some of the key policy issues affecting
growth and development of the tourism industry particularly in the MSME sector. Some of the
vital ones include rationalizing liquor licensing fee structure8 and capacity building9 and
regulation of Tuk-Tuk wheelers (paras 141-143).
From the above policy statements, it is explicit that the tourism industry requires complete
transformation both at national and district level in marketing its environmental assets. Skills
development is one of the key determinants of this transformation process and it will be further
examined in Chapter 3.
8 For example, para 129 stated “ The liquor licensing fee structure will be rationalized. License issuance mechanism will be
revamped with a view to promoting tourism, especially in Guest houses, Boutique Hotels etc. A tax file number will be one of the
essential requirements when issuing these licenses.”
9For example, Para 142 stated, “ The SLTDA and SLTPB will initiate a programme to introduce a “Tourist Friendly “tuk tuk”
where the “tuk tuk” drivers will be trained in collaboration with the hospitality industry, to be tourist guides and register them
with the Bureau. A special sticker issued by the SLTPB will be displayed on the “tuk tuk”‘s once the drivers have successfully
completed these courses which will be offered free of charge.”
242.6 Institutional support system
Presence of an efficient institutional support system is a pre-condition in promoting growth
performance of tourism industry both at national and district level. Appendix 4, provides a broad
overview of the key institutional structures and stakeholders that directly and indirectly influence
employment and skill developments in the tourism sector. Accordingly, at the national level, the
Ministry of National Policies and Economic Affairs coordinates development policies among
various sub-sectors of the economy. Beneath this coordinating structure are the line Ministries
that formulate strategies and guide the direction of their respective sectors. Most significant line
Ministries to skills development of the tourism sector are the Ministry of Tourism Development
and Christian Religious Affairs and the Ministry of Skills Development and Vocational Training.
Beneath the national organizations are provincial and district ones that will implement policy
directives from the top and action programs initiated at district level. Besides government,
private sector organizations, other stakeholders and many donors operate in skills development
of the tourism sector in Polonnaruwa district.10 Of this multi-institutional structure, the biggest
institutional structure, public sector organizations, lack capacity to deliver efficient services
particularly in skills development sector and accommodating vulnerable groups to the work
force.
As viewed by the stakeholders in North Central Province (NCP), the Provincial Government) is yet
to recognize tourism as a priority sector for development; current priorities are on education,
health, and agriculture. The stakeholders have also identified non-existence of a proper
coordinating or liaison structure at the provincial level as a major shortcoming on growth and
development of tourism industry at district level (Asia Foundation, 2017, p.53).
Table 2.1 presents total training institutes that provide training related to the tourism value chain
in Polonnaruwa District. The public-sector training providers jointly offer 21 training programs
representing both direct (05) and indirect (16) skills needed for tourism value chain. All these
programs are targeted at school leavers with GCE O/L qualifications. This is grossly inadequate
both in terms of coverage and output relative to the market demand for labour in the tourism
industry. In terms of internship facilities, only six major hotels are engaged in providing training
facilities for trainees. It is mainly in four areas of tourism trade: Front Office, House Keeping, F&B
and Kitchen. Except one hotelier all the others prefer both male and female trainees on equal
basis.11
10For example, Fridsro is actively engaged in helping disabled persons in Polonnaruwa district.
11For more details on tourism value chain related programme mix (both direct and indirect) see Scope Global Pvt. Ltd. 2017e
pp.64-66.
25Table 2.1: Institutions providing training in Polonnaruwa District
Name of the Institute No of programs Address
Public Directly Indirectly
relevant relevant
1 DVTC, Polonnaruwa 3 Nagalakanda Road, Minneriya
2 VTC, Kaduruwela 1 1 Janapada Road, Sada Nivasa Building,
Kaduruwela.
3 Technical College, Polonnaruwa 7 Vidyapura, Polonnaruwa
4 NAITA District Office, Polonnaruwa 4 5 103, Irrigation Place, New Town,
Polonnaruwa
5 District Public Employment Service Department of Manpower and
Centers, Polonnaruwa Employment,
New town, Polonnaruwa
6 Industrial Development Board, 28th Mile Post, Polonnaruwa
Polonnaruwa
Private and NGO
1 Advanced Construction Training Dharmasiri Building, Kaduruwela,
Academy Polonnaruwa
2 Sarvodaya, Polonnaruwa New town, Polonnaruwa
Source: Scope Global Pvt. Ltd. 2017e
26Chapter 3: Challenges, Strategies and Action Plan for skills
development
3.1 Introduction
This chapter presents the challenges, strategies and action plan for skills development in tourism
and related sub-sectors in Polonnaruwa district. It begins with an explanation of the stage of skills
development, challenges, opportunities and strategies for skills development in tourism industry
of Polonnaruwa district.
3.2 Stage of skills development in Polonnaruwa district
The tourism sector in Polonnaruwa is in transition from “low-skills equilibrium” to a stage of
“skills gaps and shortages” (see figure 3.1). The low-skills equilibrium is characterized by low level
of enterprise development, weak education and training structure, lack of infrastructure support
and weak institutional and policy support systems. During the post-conflict period, there has
been major investments in infrastructure development and improvement in tourism industry
both in terms of foreign and domestic guests in Polonnaruwa district. As a result, there is a high
demand for skilled workers in the tourism industry in Polonnaruwa district. In contrast, responses
form the supply side is not adequate to meet the demand for workers in tourism and related
sectors both in quantitative and qualitative terms.
The demand drivers for tourism and related sectors include several factors representing market
forces, investments in infrastructure development and regulatory system (Figure 3.2). Of these
factors, the market forces seem to be key driver of skills development in tourism and related
sectors. More specifically, increasing trend of customer demand both from foreign and domestic
sources and competitive pressures from adjoining districts are strong driving forces for skilled
workers in the tourism sector. Similarly, on-going infrastructure development work under
“Polonnaruwa Awakening” program and investments by the hoteliers in tourism sector in the
district contributes towards high demand for tourism sector services and high demand for skilled
workers.
The supply side however is confronted with several barriers in responding market demand for
skilled workers in the tourism industry. As shown in Figure 3.2, some of the major barriers to
training include limited access to training services, lack of appropriate training to meet needs,
high levels of staff turnover, seasonality of work, dominance of MSMEs and perceptions towards
tourism sector occupations.
27Figure 3.1: Stage of Skills Development in Polonnaruwa District
Supply
Low High
High
Skills gaps and shortages High skills equilibrium
Demand
Low skills equilibrium Skills surplus
Low
Figure 3.2: Demand drivers and barriers to training
Demand drivers
Changes Changes New Regulation Increase in Highly Investments
in in development and Household Competitive in
Customer Customer programs Legislation Income Tourism infrastructure
Trends- Trends - Markets development
foreign Domestic
Barriers to training
Access to Can't Lack of High levels Seasonality Dominance Perceptions
training spare staff appropriate of staff of work of MSMEs towards
services time training to turnover tourism sector
meet needs occupations
283.3 Challenges and opportunities for skill development
Having identified the current stage of skills development we are able to move on to the next
stage of analysis- challenges of skills development in tourism and related sub-sectors in
Polonnaruwa district. It is based on the value chain (Appendix 3) developed by the S4IG team in
its rapid assessment (S4IG, 2017a) and can be summarized as follows:
• The primary sector includes agriculture, forestry and fisheries sub-sectors which play a
prominent role in Polonnaruwa district. They are also valuable assets which could add
more value to tourism sector related activities including eco-tourism.
• The secondary sector represents manufacturing, construction, electricity, water and
waste treatment & disposal activities. Its performance efficiency has a direct impact on
quality standards of tourism sector related value-added services.
• Finally, the tertiary sector covers range of services directly linked with value chin of the
tourism sector.
Challenges
The value chain effect of the above three sub-sectors on tourism sector results in creating indirect
employment for the reginal economy of Polonnaruwa. The Sri Lanka Tourism Development Board
(SLTDA) assumes 1: 1.14 ratio in estimating indirect employment in tourism sector. The indirect
employment opportunities are those most likely to support the employment of women and those
with disabilities, and are vital to achieving S4IG’s outcome of inclusive growth for all. However,
within each of these sub-sectors there are significant challenges that prevent them from
achieving their full growth potential, most significant demand and supply constraints are shown
in table 3.1.
29Table 3.1 Challenges facing Skills development in tourism industry in Polonnaruwa District
Demand side Supply side
• lack of Public Private Partnership • narrow program mix
• lack of HRM practices in tourism industry • a dearth of qualified trainers
• absence of collective efforts to promote • low preference towards tourism sector
tourism by the private sector players jobs by new entrants to the labour
market
• dominance of micro and small-scale
establishments • limited access to vulnerable groups
• low demand for employing disabled and • absence of local flexibility in delivery
female workers
• inadequate resources
• failure to market Polonnaruwa as a
tourist destination • protracted and disjointed government
decision making Limited diversity and
• low levels of skills of the employed in the inclusiveness
tourism sector
• Ineffective Career Guidance
30Opportunities
Despite these challenges, the district of Polonnaruwa offers several growth opportunities for
growth and expansion of the tourism industry and skills development of its workforce. The
following are some of the major opportunities open for the government and non-government
organizations, private sector partners and development partners to make interventions in skills
development of Polonnaruwa district.
• High growth potential of the regional tourism market
• Unexploited tourism related assets e.g. Natural Beauty, Heritage, Cuisine and
Culture
• Around 3700 school leavers joining the labour market on annual basis after OL
(1824) and AL (1883) examinations. Another 2700 also join the labour market
before OL examination.
• New investments to address supply side deficiencies, e.g. New Language School,
Dancing Centre in Thamankaduwa, Establishment of a National Vocational
Training Institute (NVTI)12etc.
• Pro- private sector policy of the government
• Cultural Triangle Development Project Initiated by the government
• Development Partners’ willingness to participate in human capital development
activities initiated by the government
3.4 Vision for the skills development in Tourism Sector of Polonnaruwa
District
The vision and mission statements accepted by the district administrative authorities of
Polonnaruwa District are given below.
Vision
TO BECOME THE MOST PROSPEROUS DISTRICT IN SRI LANKA
Mission
OUR MISSION IS THE EFFECTIVE COORDINATION AND MANEUVER OF
RESOURCES AND INSTITUTES TO ACCOMPLISH THE PUBLIC
REQUIREMENTS EFFICIENTLY, REASONABLY, LEGITIMATELY AND
AMIABLY TO ENSURE A SUSTAINABLE DEVELOPMENT IN THE DISTRICT
12 This is under the Polonnaruwa integrated development program.
31The existing body of evidence and consultations with employers, policy makers, administrators,
training providers and employees engaged in different occupations of the tourism trade we
define the vision for skills development in Polonnaruwa district as follows:
TO ELEVATE THE TOURISM INDUSTRY IN POLONARUWA DISTRICT
TOWARDS HIGH-SKILLED EQUILIBRIUM STAGE IN 2020
In the context of the SSAP we set out skills development mission as follows:
TO UPGRADE THE STATUS OF THE TOURISM SECTOR FROM THE
CURRENT STAGE OF SKILLS DEFICITS TO HIGH SKILLED EQUILIBRIUM
THROUGH THE CREATION OF HIGHER VALUE JOBS IN TOURISM
VALUE CHAIN BY ADDRESSING BARRIERS TO TRAINING,
DEVELOPING EMPLOYABLITY SKILL, PROGRESSION PATHWAYS
AND INCLUSIVE GROWTH
3.5 Strategies and action plan for skills development
Consultations with employers in the tourism sector, policy makers, administrators, training
service providers and other stakeholders have formed the basis for the development of the skills
Strategy and Action Plan for tourism industry in Polonnaruwa district. In addition, existing
strategies and policy responses on tourism sector development at national level also provide
guidance to formulate strategies for skills development at the district level. Accordingly, there
has been overwhelming support for project intervention in skills development of tourism industry
under three major transformational themes:
• Attraction of school leavers and retention of existing workers,
• Integrating vulnerable group and,
• Institutional, policy and business support.
Implementation of these strategies to address these transformation themes involves a series of
action programs to be implemented both in the short and medium-term. The first, attraction of
school leavers and retention of existing workers is important for Polonnaruwa district which is
experiencing skills shortages in tourism and related sub-sectors. Equally important is ensuring
that demand for tourism sector is attractive both in terms of remuneration and career
32development to retain workers. Many low-skilled jobs in tourism sector have seen a low level of
interest in certain occupations which can be changed through concerted careers advice at school
level, and a better marketing of career prospects and rewards available in the tourism and related
sub-sectors.
At the same time, it is necessary that other disadvantaged groups are effectively integrated into
the tourism sector labour market. This may include unskilled females and disabled persons, who
in some cases continue to have poor labour market outcomes. It is important to note
disadvantaged groups may take longer to be trained and integrated to meet tourism sector skills
needs, but bringing them into the skills development system will be vital in order to avoid the
development of a dual regional economy involving the “skills rich” and the “skills poor”.
Similarly, if policy makers focus only on skills development of the unemployed, and do not work
with employers to address skills levels within the workforce itself, they may miss the problems of
skill deficits and fail to work towards more long-term goal of reaching high skilled-equilibrium. As
reported in Rapid assessment, only 8 percent of the employed in the tourism industry have
received some form of formal training. This was confirmed by respondents particularly employed
in guest houses and home stay units. Thus, it is essential that policy makers ensure that current
employees of tourism industry have access to high-quality education and training opportunities.
Finally, strengthening institutional and business support systems are equally important in
implementing skills development programs at district level.
To summarize, the approach taken to develop the SSAP for Polonnaruwa district is shown in
Figure 3.3. It presents transformation framework, strategy formulation and Action Plan for
skills development of tourism sector in Polonnaruwa district.
Figure 3.3: Transformation Framework for skills development in Polonnaruwa district
Key Core Key Action
transformational Programs
Strategies Interventions
themes
09 18 54
03
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