HRM Challenges in Sri Lanka's Tourism Industry: Rebuilding After Crisis.

 

Few industries in Sri Lanka have faced as much turbulence as tourism. The Easter Sunday attacks of 2019, the COVID-19 pandemic, and the economic crisis of 2022 delivered consecutive blows that left the sector struggling to recover its workforce, its reputation, and its institutional knowledge. Tourist arrivals collapsed from nearly 1.9 million in 2019 to just 194,000 in 2021 (Sri Lanka Tourism Development Authority, 2022). The human cost behind those numbers was enormous, and HR departments in the sector are still dealing with the consequences today.

When hotels and travel operators shut down or scaled back dramatically, thousands of trained hospitality workers lost their jobs. Many moved into other sectors or left the country entirely. When tourism began recovering from 2022 onwards, operators found themselves facing a skills vacuum. Experienced front-desk staff, tour guides, chefs, and guest relations managers were simply not available in the numbers needed. It is described that this pattern as a recurring vulnerability in Sri Lankan tourism HRM, where crisis-driven redundancies destroy years of accumulated human capital in a matter of months (Jayawardena, 2020).

Figure 1: Tourist arrivals to Sri Lanka from 2019 to 2024 showing the impact of crisis and gradual recovery (Source: Sri Lanka Tourism Development Authority, 2024)

Beyond the immediate staffing shortage, there is also a deeper problem with how the industry manages and develops its people in stable times. Wage levels in Sri Lankan hospitality remain low relative to neighboring destinations like the Maldives and Thailand, making it difficult to attract and retain talented graduates. It is also identified that poor career development structures and limited training investment as longstanding weaknesses in Sri Lankan hotel HRM, and those weaknesses have not improved significantly in the years since (Ranasinghe and Jayawardena, 2003) .

Building a More Resilient Tourism Workforce:

The path forward requires both immediate and structural responses. In the short term, operators need to work with institutions like the Sri Lanka Tourism and Hospitality Institute (SLTHI) to run accelerated training programs for new entrants. The industry cannot afford to wait years for talent pipelines to refill naturally when tourist arrivals are recovering at pace. Cross-training existing staff to cover multiple service functions is one of the fastest ways to close operational gaps during periods of rapid demand growth (Sivapalan, 2023).

In the longer term, tourism operators need to rethink how they position hospitality careers. Structured career paths, competitive compensation linked to service quality, and investment in formal management development programs can change the perception of tourism work among young Sri Lankans. The industry needs people who choose it by design, not by default.

Figure 2: Key HR challenges shaping the recovery of Sri Lanka’s tourism workforce after consecutive crises.

Strategic HR Approaches to Improve Tourism Workforce in Sri Lanka:

1. Implement Strong Employee Retention Strategies
Introduce better salary packages, career growth, and recognition programs to reduce high employee turnover and migration.
Example: Offering loyalty bonuses and clear promotion paths to prevent skilled staff from moving abroad.

2. Develop Continuous Training and Skill Development Programs
Invest in training to address skill shortages in key areas like hospitality and customer service.
Example: Regular training programs for kitchen, front office, and housekeeping staff to improve service quality.

3. Introduce Flexible Work Arrangements
Rigid working hours discourage many potential employees, especially women, so HR should promote flexibility.
Example: Shift-based schedules or part-time roles to attract more female employees into the industry.

4. Promote Gender Diversity and Inclusion
Create policies that encourage female participation and ensure a safe working environment.
Example: Providing transport facilities and safe accommodation for female employees working late shifts.
(Tourism workforce is heavily male-dominated due to social and work barriers.)

5. Strengthen Employer Branding and Industry Image
Negative perceptions about tourism jobs should be improved through HR initiatives and awareness programs.
Example: Campaigns showing career growth opportunities in hotels and tourism careers.

6. Improve Compensation and Benefits Packages
Low wages push employees to migrate abroad, so HR must offer competitive compensation.
Example: Providing service charges, incentives, and performance-based bonuses.
(Over 60% of staff exits were due to overseas employment opportunities.)

7. Enhance Employee Engagement and Motivation
HR should focus on recognition, rewards, and a positive work environment to increase motivation.
Example: “Employee of the Month” programs and team appreciation events.

8. Strengthen Recruitment Strategies
HR should collaborate with educational institutions and training centers to attract young talent.
Example: Internship programs with hotel schools and universities.

9. Focus on Work-Life Balance and Well-being
Long and stressful working hours can lead to burnout, so HR must support employee well-being.
Example: Rotational shifts and providing mental health support programs.

10. Build Career Development and Growth Opportunities
Employees leave when there is no career progression, so HR should provide clear development paths.
Example: Structured career ladders from trainee to managerial positions.

11. Encourage Knowledge Transfer and Mentoring
Loss of experienced staff weakens the industry, so HR should promote mentoring systems.
Example: Senior chefs mentoring junior staff to maintain service standards.
(Migration of experienced workers reduces knowledge transfer.)

12. Adopt Crisis-Ready HR Strategies
Tourism is highly vulnerable to crises, so HR must be prepared with contingency plans.
Example: Cross-training employees to handle multiple roles during low staff periods.

Personal Reflection:

Sri Lanka's tourism industry has an extraordinary product to offer the world. The landscapes, the culture, and the warmth of hospitality are genuinely world-class. What has always held the sector back, in my view, is the treatment of the people who deliver that experience. When a skilled hotel employee leaves for the Maldives because the pay and respect are better, that is not just an individual loss; it is a systemic failure. Getting HRM right in tourism is not separate from rebuilding the industry. It is the foundation of it.

Conclusion:

Sri Lanka's tourism industry has shown remarkable resilience in recovering from back-to-back crises. But recovery in arrivals does not automatically mean recovery in workforce quality. The HRM challenges of skills shortages, low wages, and weak career development structures need deliberate attention from both operators and policymakers. A tourism industry that invests in its people as seriously as it invests in its infrastructure will be far better prepared for the next challenge, whenever it comes.

References:

• Jayawardena, C. (2020). Tourism and hospitality industry crisis management in Sri Lanka: Past, present and future. Worldwide Hospitality and Tourism Themes, 12(3), pp. 289-304. doi: 10.1108/WHATT-02-2020-0006.
• Ranasinghe, M. and Jayawardena, C. (2003). Challenges facing tourism in Sri Lanka. International Journal of Contemporary Hospitality Management, 15(3), pp. 171-175. doi: 10.1108/09596110310470172.
• Sivapalan, S. (2023). Workforce recovery and reskilling in post-crisis hospitality: Evidence from South Asia. Journal of Hospitality and Tourism Management, 54, pp. 180-192.
• Sri Lanka Tourism Development Authority (2022). Annual Statistical Report on Tourism 2021. Colombo: SLTDA. Available at: https://www.sltda.gov.lk