It is hard not to notice that tourism is increasingly the most important source of foreign exchange for developing countries around the world, and increasingly for countries emerging from conflict. The death of the leader of the Tamil Tigers, Velupillai Prabhakaran, and the subsequent end of the brutal civil war in May 2009 drew almost immediate attention to the development of tourism in Sri Lanka. According to the Sri Lanka Financial Times of May 31, 2009, “everyone wants a piece of the action and foreign contractors are pouring into town, already housed in five-star hotels.” Similarly, following years of conflict, 2009 saw a tourism boom in Lebanon with nearly 2 million tourists visiting the country, a record that surpasses even the glamorous pre-Civil War years, when Beirut was known as the Paris of Middle East.

As Catherine Heald, Co-Founder and CEO of Remote Lands (Asia’s ultra-luxury private tour operator based in New York and Bangkok), stated: “Sri Lanka is one of the world’s perfect travel destinations… From its extreme to its physical beauty, to its diversity of experience, to the friendliness of its people, Sri Lanka really has it all.” However, due to the serious internal conflicts that the country has faced during the last two and a half decades and the devastating tsunami of 2004 that killed more than 40,000 people, tourism on the island has had great difficulties. However, after the disappearance of the Tigers, the island paradise once again attracted visitors with its rich art and culture, ancient architecture, wonderful beaches and impressive hills, 5-star hotels and much more.

Then the global recession hit, bringing international tourism to a near halt between late 2008 and 2009. Thus, Sri Lankan tourism has been affected by both internal and external crises, and the fact that it remains buoyant says a lot. for industry resilience. Over the past three years, there has been a year-on-year drop in arrivals of 11.7% and 11.2% respectively. Despite these tremendous odds, the industry has continued to maintain its position as Sri Lanka’s fourth largest earner of foreign exchange, along with textiles and clothing, tea, and workers’ remittances. In this context, it should also be noted that, unlike other foreign exchange-generating sectors, tourism is almost a 100 percent value-added industry.

The key for Sri Lankan companies to take advantage of recession relief in 2010 will be their marketing tactics. During the civil war, marketing efforts focused on Sri Lanka’s cultural diversity with package tours revolving around the safer areas of southern Sri Lanka outside of conflict areas. However, as Rohan Karr, General Manager of the 5-star Cinammon Grand Hotel in Colombo, says, there is a whole range of new opportunities and destinations in Sri Lanka that have now opened up to tourism. Places like Trincomalee or Jaffna, which were previously inside the conflict zone, can now attract tourists again.

Similarly, Lebanon’s tourism industry experienced unprecedented growth during 2009. In figures released to the Associated Press on January 19, 2010, the Lebanese Ministry of Tourism said that 1,851,081 tourists visited the country last year, an increase of 39 percent over the previous year. The previous record was 1.4 million tourists in 1974, just before the outbreak of the disastrous Civil War of 1975-1990. The booming tourism sector is the latest sign of progress in Lebanon, a country that, over the years, has become notorious for kidnappings, car bombings and political assassinations. However, the country is now seeing much greater stability, attracting an increasing flow of foreigners to its snow-capped mountains and stunning Mediterranean coastline.

During the Civil War, tourists simply stopped coming, spooked by reports of Westerners being kidnapped from the streets of Beirut. A thriving tourism industry that drew Hollywood stars to the Middle East all but dried up. The industry was beginning to recover in 2005 when Lebanon’s billionaire former prime minister, Rafik Hariri, the power behind the multibillion-dollar postwar reconstruction, was killed in a mass bombing in Beirut. In July 2006, Israel waged a devastating 34-day war that killed 1,200 Lebanese and destroyed billions of dollars in infrastructure. Thousands of Lebanese tourists and expatriates on vacation were evacuated from the country due to the fighting. Finally, clashes between opposition and pro-government gunmen broke out in Beirut in 2008 after the government took steps to curb Hezbollah’s military communications network. More than 80 people were killed in the ensuing violence. However, Lebanon has seen much greater stability recently and last year formed a unity government. The New York Times named Beirut the best place to visit in 2009, and as a result, it has helped further boost the country’s image.

The economic crisis hasn’t stifled people’s desire to travel, but it has affected what people are willing to spend on travel. In this way, it goes without saying that destinations that offer good value for money with favorable exchange rates will have the advantage as price becomes a key issue. The low price of the currency in both the Lebanese pound and the Sri Lankan rupee will therefore be extremely attractive to British travelers in 2010, especially given the recent strengthening of the pound sterling which makes the currency exchange much more affordable. What these two countries offer is an authentic and exciting trip with a special touch at a good price. As I mentioned in my previous article, this is what travelers coming out of a recession are looking for, and given the recent pain of these two magnificent destinations, let’s hope so.