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We are thl . Listed on the NZX and ASX. A global family of RV brands delivering the most enriching way to experience the world. Championing a way of traveling that creates true value for the people, places and environments we touch.

Together, we are more vertically integrated, globally connected, and ambitious than anyone else in RV. We design and build. We rent. We sell. Delivering to hundreds of thousands of customers every year across our operations in New Zealand, Australia, United Kingdom & Europe, USA, and Canada; and franchises in Southern Africa and Japan. Amplified by our connections into the broader tourism industry and manufacturing sectors.

Collectively we represent over 30 brands, each with strong brand equity and local heritage in the markets they operate.

  • RV Design & Build: KEA, Talvor, Windsor, Winnebago (ANZ), Coromal
  • RV Rentals: maui, Apollo, Britz, CanaDream, Road Bear RV, El Monte RV, Just go, Bunk Campers, Mighty Campers, Cheapa Campa, Hippie Campers
  • RV Sales: RV Super Centre, Apollo RV Sales, Kratzmann, GeorgeDay, Sydney RV, CamperCo
  • Manufacturing: Action Manufacturing, Fairfax, Freighter, TransCold
  • Tourism: Discover Waitomo (Waitomo Glowworm Caves, Blackwater Rafting, Ruakuri Caves, Aranui Caves, Waitomo Homestead), Kiwi Experience, TripTech (including CamperMate)

We are always moving forward and always evolving. Holding the keys to future possibilities that we cannot even imagine today. At thl we believe that anywhere is possible.

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Apollo Tourism & Leisure

Au000000atl0, apollo tourism & leisure : proposed merger with tourism holdings limited.

10 December 2021

Proposed merger with Tourism Holdings Limited

only Apollo Tourism & Leisure Ltd (ASX:ATL) (" Apollo " or the " Company ") today entered into a Scheme Implementation Deed with Tourism Holdings Limited (NZX:THL) (" thl ") in relation to a proposed merger via Scheme of Arrangement.

HIGHLIGHTS:

For Apollo is pleased to announce that it has entered into a Scheme Implementation Deed (" SID ") with thl under which the companies have agreed a proposed merger to establish a leading diversified travel company across the key markets of Australia, New Zealand, North America, the United Kingdom and Europe.

  • thl currently holds 898,150 Apollo Shares, representing ~0.5% of Apollo Shares on issue as at 10 December 2021. Whilst the percentage of the Combined Group attributable to all Apollo shareholders including thl is 25.0%, the percentage of the Combined Group attributable to Apollo shareholders excluding thl is 24.9%.
  • Conversion at NZDAUD FX rate of $0.9503 as at 9 December 2021.
  • See the investor presentation lodged with ASX in relation to the Proposed Transaction for additional details. References to synergies in this announcement are to estimates only. While Apollo and thl have undertaken due diligence to ensure there is a reasonable basis for such estimates, the synergies are subject to a number of assumptions and actual results may differ due to a variety of risks, uncertainties and other factors. There can be no assurance that the

synergies will be achieved. Apollo shareholders should refer to the section entitled "forward-looking statements" at the end of this announcement.

While earnings to date in FY22 gives the Apollo Board confidence that Apollo will achieve improved results when compared with FY21, an underlying loss is still anticipated in FY22. Due to the ongoing uncertainty of the current trading environment,

only Apollo is not in a position to provide earnings guidance for FY22. Refer to the investor presentation lodged with ASX in relation to the Proposed Transaction for additional information on trading conditions generally.

The Proposed Transaction will provide the Combined Group with the financial strength to:

  • emerge faster from COVID-19;
  • take advantage of near-term growth opportunities as borders reopen and cross-border tourism ramps up; and
  • improve operational agility and resilience against any ongoing or new impacts from the pandemic such as the continuation of travel restrictions and supply chain challenges.

use The Apollo Board believes that the merger will accelerate the timeframe to re-establish normalised earnings and recommence the payment of dividends more quickly than Apollo on a standalone basis.

Transaction Summary

The Proposed Transaction will be implemented under the Scheme, pursuant to which Apollo shareholders will receive 1 thl Share for every ~3.68 Apollo Shares held as at the Scheme record date. 4 Following implementation of the Proposed Transaction, Apollo shareholders together will own 25% of thl Shares on issue, with existing thl shareholders owning the remaining 75%. 5 This implies a value of:

thl is currently listed on New Zealand's Exchange (" NZX "). As part of the Proposed Transaction thl has agreed to apply for a foreign exempt listing on ASX, with approval for such listing a condition precedent of the Proposed Transaction.

The commercial rationale for combining Apollo and thl is underpinned by:

Of these synergies, 69% are fixed cost synergies relating to the duplication of corporate costs or property, the majority of which are expected to be realised by the end of FY23. The remaining 31% of these synergies are variable, and realisation will

For be dependent upon the pace of the global recovery from COVID-19 and its associated impacts.

A significant fleet rationalisation of up to ~1,250 vehicles is expected as the Combined Group will be able to service rental perations with a smaller, more optimised fleet. This is expected to result in a one-off debt reduction of ~A$38 million 6

(~NZ$40 million) with a potential additional ~A$28.5 million 6 (~NZ$30 million) one-off debt reduction subject to the execution of operational efficiency improvements. The Combined Group will also benefit from a lower net replacement capital expenditure resulting from the operation of a smaller fleet. This benefit has not been quantified.

  • The consideration shares of shareholders with an address other than in Australia, New Zealand, the United Kingdom or other jurisdictions agreed by Apollo and thl will be issued to a nominee and sold with the proceeds paid to the shareholder.
  • See footnote 1 above.

Total one-off implementation costs are expected to be between ~A$3.8 million - ~A$6.7 million 7 (~NZ$4 million - ~NZ$7 million), with the majority of these to be incurred by the end of FY23. Refer to the investor presentation lodged with ASX in

only relation to the Proposed Transaction for additional disclosures on synergies and costs.

Grant Thornton Corporate Finance Pty Ltd (" Independent Expert ") has been engaged to provide an independent expert's report as to whether the Proposed Transaction is in the best interests of Apollo shareholders. Additional details on the Scheme, consideration and timetable will be included in the Scheme Booklet that will be sent to shareholders in due course.

Apollo directors and founding family shareholders

The directors of Apollo consider the Proposed Transaction to be in the best interests of the Apollo shareholders and unanimously recommend that Apollo shareholders vote in favour of the Scheme, in the absence of a superior proposal and

use Apollo was founded by the Trouchet family in 1985. Entities associated with Luke Trouchet and Karl Trouchet (" Founding Family Shareholders ") own ~53.4% of Apollo Shares on issue and intend to vote in favour of the scheme on the same basis.

subject to the Independent Expert concluding that the Proposed Transaction is in the best interests of Apollo shareholders. All Apollo Directors intend to vote all their shareholdings which they own, control or have a relevant interest in, consistent with their recommendation.

The Founding Family Shareholders remain committed to the long-term value creation opportunities available to the Combined Group and will enter into voluntary escrow arrangements in relation to 90% of their thl Shares received under the Proposed Transaction (90% for 12 months, and 50% for 24 months, from the implementation date of the Scheme) (" Escrow Arrangements ").

Combined Group governance

The Combined Group will benefit from a highly experienced Board and senior executive team that draws on the broad skills and experience from both Apollo and thl .

Managing Director comment

Apollo Managing Director, Luke Trouchet said, "The two businesses have similar operations and like-minded cultures, and we both strongly believe in the potential of the global RV market. The proposed merger would give us a better platform to meet For the ongoing impacts of COVID-19, continue to offer our guests the best combination of products, services and prices possible,

and better leverage the re-opening of global travel.

"With a more diverse portfolio of brands, strong presences in the key RV travel markets and a more robust balance sheet, the combined business will be better able to capitalise on near-term growth opportunities as borders re-open and cross-border tourism begins to return to pre-pandemic levels.

"I am very much looking forward to joining the Board and executive of thl and am excited by the prospects of what the two companies can achieve together. Karl and I will have a substantial holding and intend to be long term shareholders of the Combined Group, reflected in the voluntary escrow of 90% of our thl shares."

7 Conversion at NZDAUD FX rate of $0.9503 as at 9 December 2021.

thl Chief Executive Officer Comment

thl Chief Executive Officer, Grant Webster, said, "Being able to deliver value uplift for shareholders of both companies,

creating a more resilient business in terms of navigating our next phase on the world stage is a very significant step for us both. I'm looking forward to the opportunity to work with Luke and his crew to create a new future."

Scheme Implementation Deed

The SID includes exclusivity arrangements (including "no shop", "no talk" and "no due diligence" restrictions and notification obligations, subject to customary fiduciary carve-outs), a matching right regime in favour of thl , and reciprocal break fees in favour of both parties.

Timetable and next steps

Apollo shareholders do not need to take any action in relation to the Proposed Transaction at this stage.

A Scheme Booklet containing information in relation to the Proposed Transaction, reasons for the Apollo Directors' recommendation, an Independent Expert's Report and details of the Scheme will be sent to shareholders in due course.

It is anticipated that the Proposed Transaction will complete prior to the end of financial year 2022.

Apollo is being advised by Morgans Corporate Limited and Ernst & Young as financial advisers, Hamilton Locke as lead For corporate legal counsel, Jones Day as competition legal counsel and Deloitte as tax adviser.

Analyst / Investor call

Apollo will host an investor call at 10.00am AEDT / 9.00am AEST on 10 December 2021. Investors must pre-register to attend this call by following this link: https://s1.c-conf.com/diamondpass/10018479-rh5ms2.html .

Authorised by:

only Luke Trouchet

Managing Director and Chief Executive Officer Apollo Tourism & Leisure Ltd

For more information please contact:

Luke Trouchet, Managing Director and CEO T: 07 3265 9222

E: [email protected]

W: www.apollotourism.com use About Apollo Tourism & Leisure Ltd

Apollo Tourism & Leisure Ltd is listed on the Australian Securities Exchange (ASX code: ATL). Apollo is a multi-national, vertically integrated manufacturer, rental fleet operator, wholesaler and retailer of a broad range of RVs including motorhomes, campervans and caravans.

Forward-looking statements

This announcement contains forward-looking statements concerning Apollo , thl and the Combined Group which are made as at the date of this announcement unless otherwise specified, including statements about intentions, beliefs and expectations, plans, strategies and objectives of Apollo , thl and the Combined Group, the anticipated timing for and outcome and effects of the Scheme (including expected

personal benefits to shareholders of Apollo and thl ), indications of and guidance on synergies, future earnings or financial position or performance, expectations for the ongoing development and growth potential of the Combined Group and the future operation of Apollo , thl and the Combined Group.

Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those contemplated by the forward-looking statements as a result of a variety of risks, uncertainties and other factors, many of which are outside the control of Apollo , thl and the Combined Group. Such factors may include, among other things, risks relating to funding requirements, COVID-19 impacts including border closures and travel restrictions, competition and market risks, regulatory restrictions and risks associated with general economic conditions. Any forward-looking statements, as well as any other opinions and estimates and statements regarding synergies, market and industry trends, provided in this announcement are based on assumptions and contingencies which are ubject to change without notice and may prove ultimately to be materially incorrect. Synergy estimates are based on fixed foreign exchange rates across its operating geographies at the time of calculation. Variations in foreign exchange rates will impact the degree to which synergies are able to be realised or how they are reflected in the Combined Group's reporting currency.

There can be no assurance that the Scheme will be implemented or that the plans for the Combined Group will proceed as currently xpected or will ultimately be successful. You are cautioned not to place undue reliance on forward-looking statements, including in respect of the financial or operating outlook for Apollo , thl or the Combined Group (including the realisation of any expected synergies), articularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the ongoing COVID- 19 pandemic.

Except as required by law or the ASX listing rules, Apollo and thl assume no obligation to provide any additional or updated information or For to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this

announcement will, under any circumstances (including by reason of this announcement remaining available and not being superseded or replaced by any other presentation or publication with respect to Apollo , thl or the Combined Group, or the subject matter of this announcement), create an implication that there has been no change in the affairs of Apollo or thl since the date of this announcement.

Not for release or distribution in the United States

This announcement may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement nor anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.

This is an excerpt of the original content. To continue reading it, access the original document here .

Attachments

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Apollo Tourism & Leisure Ltd. published this content on 09 December 2021 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 09 December 2021 22:01:09 UTC .

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thl agrees merger terms with Apollo Tourism & Leisure

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10 December 2021 MEDIA | NZX RELEASE TOURISM HOLDINGS LIMITED (thl) THL AGREES MERGER TERMS WITH APOLLO TOURISM & LEISURE Merger will create a global leader in the commercial RV rental market Summary: o thl and Apollo Tourism & Leisure Limited (ASX:ATL) (ATL) have entered into a conditional Scheme Implementation Deed to merge through an Australian Scheme of Arrangement whereby thl acquires all shares in ATL o The merger will result in ATL shareholders owning approximately 25% and thl shareholders owning approximately 75% of thl* o Significant anticipated cost out synergies are expected to deliver a steady-state EBIT benefit of $17M to $19M per annum, and fleet rationalisation is expected to generate in excess of $40M of net debt benefit o The transaction is subject to approval of Apollo shareholders, as well as funding, court and regulatory approvals in Australia and New Zealand and other conditions specified in the Scheme Implementation Deed o thl will apply to be dual listed on the Australian Securities Exchange (ASX) through a foreign-exempt listing o As consideration, thl will issue 1 new ordinary thl share for every ~3.68 ordinary ATL shares held by ATL shareholders (excluding thl)* thl has entered into a conditional agreement to merge with Apollo by acquiring all outstanding shares of Apollo Tourism & Leisure Ltd (ASX:ATL). The proposal contemplates that the merger be effected by way of an Australian Scheme of Arrangement and the parties have entered into a Scheme Implementation Deed (SID). The consideration is payable by thl issuing 1 new fully paid thl ordinary share for every ~3.68 ordinary shares held by Apollo shareholders, resulting in a post-merger ownership ratio of approximately 25% to Apollo shareholders and approximately 75% to thl shareholders.* thl Chair, Rob Campbell, said that "thl is proactively moving to build a more resilient business and expand its international reach, rather than seeking to wait out market uncertainty from the pandemic." "We're able to make this move thanks to our prudent balance sheet management through the pandemic period", he said. "Importantly, this merger assists both entities to better manage market uncertainty over the next phase, due to compelling cost synergies now and greater fleet efficiency in future years. By realising significant cost synergies, the merged business will be better positioned to face a longer than expected recovery period, should that eventuate", said Mr Campbell. thl Chief Executive, Grant Webster, said "the strategic logic of merging thl and Apollo's networks is clear and the dynamics of the current market mean that the synergies available from merging are compelling." "Being able to deliver value uplift for shareholders of both companies, while creating a more resilient business in terms of navigating our next phase and competing more effectively on the world stage is a very significant step for us." "This takes thl into more markets, as a global commercial RV rental leader with businesses in Canada and the US, Europe and the UK as well as our Australasian operations, supported by strong manufacturing capability and retail vehicle sales in Australia and New Zealand." said Mr Webster. The proposed merger remains subject to approval by Apollo shareholders and finalisation of appropriate funding arrangements for the merged entity. In addition, there are various court and regulatory approvals in Australia and New Zealand, including Australian and New Zealand competition regulatory clearance. Mr Webster said these shareholder and regulatory approvals would likely take until at least the start of the second quarter of 2022. "We welcome Luke and Karl Trouchet as a major shareholder. Together they have a wealth of experience in the RV industry and have a long-term commitment to thl." Apollo Managing Director, Luke Trouchet, said "the two businesses have similar operations and like-minded cultures, and we both strongly believe in the potential of the global RV market. I am very much looking forward to joining the Board and executive of thl and am excited by the prospects of what the two companies can achieve together." Mr Webster said "a merger also aligns with thl's Future Fit commitment to improve the sustainability of the business. Apollo shares our commitment to being a business that focusses on multiple stakeholder impacts and benefits. The fleet synergies alone demonstrate the strong linkage between the environmental and commercial benefits of such a transaction, creating an opportunity to do more with fewer resources and less environmental impact." "The merger would also pave the way for thl to dual list on the ASX, enabling Apollo shareholders to be unaffected by the transition as well as paving the way for Australian investors who may not have had a mandate for NZX stocks to invest in thl." An investor presentation has been released today with further detail on the transaction, including the strategic rationale, expected synergies and the proposed process timetable. Jarden acted as Financial Adviser, MinterEllisonRuddWatts as New Zealand Legal Adviser, MinterEllison as Australian Legal Adviser, Baker Mckenzie as North American Legal Adviser, KPMG as Accounting Adviser and Synergy Due Diligence, Deloitte as Tax Adviser and Richard Wallace as Banking Adviser. * thl currently holds 898,150 ordinary shares in ATL, representing 0.5% of Apollo ordinary shares on issue. Whilst the share of the merged entity attributable to all ATL shareholders (including thl) is 25.0%, the share of the merged entity attributable to ATL shareholders (excluding thl) is 24.9% and the share of the merged entity attributable to thl shareholders is 75.1%. END Authorised by: Rob Campbell Chair, Tourism Holdings Limited For further information contact: Grant Webster thl Chief Executive Officer Direct Dial: +64 9 336 4255 Mobile: +64 21 449 210 End CA:00384467 For:THL Type:TRANSACT Time:2021-12-10 10:29:02

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Apollo tourism & leisure to merge into tourism holdings limited.

Apollo Tourism & Leisure to merge into Tourism Holdings Limited

MELBOURNE, AUSTRALIA: Apollo Tourism & Leisure (ASX:ATL) and Tourism Holdings Limited (NZX:THL) have entered into a conditional Scheme Implementation Deed for the purpose of merging the two entities.

The merger is proposed to be implemented by way of an Australian Scheme of Arrangement conducted by Apollo whereby Tourism Holdings Limited (thl) acquires all outstanding shares in Apollo.

Apollo and thl are two highly complementary businesses which together will create a leading diversified RV travel company across the key markets of Australia, New Zealand, North America, Europe and the United Kingdom.

The merger will result in Apollo Tourism & Leisure shareholders owning 25% of the combined group. The Scheme consideration represents an attractive premium to the Apollo share price. The shareholders of Apollo are being offered 1 new ordinary thl share for every 3.68 Apollo shares held.

Tourism Holdings Limited (thl) is a global tourism operator headquartered in Auckland, New Zealand, with its shares publicly traded on the NZX since 1986. thl is the largest provider of RVs for rent and sale in Australia and New Zealand, and the second largest in North America

In New Zealand and Australia, thl operates under the Maui, Britz and Mighty rental brands, and has a network of RV Super Centre retail and sales branches. Within New Zealand thl also owns Action Manufacturing, New Zealand’s largest motorhome and specialist vehicle manufacturer, and a number of tourism businesses, being the Discover Waitomo group (which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co) and the hop-on-hop-off coach transport business Kiwi Experience.

In the USA, thl owns Road Bear RV Rentals & Sales and El Monte RV Rentals & Sales, and in the UK, thl owns 49% of Just go Motorhomes.

The combined group will be financially stronger than Apollo on a standalone basis. The Apollo directors believe this will likely result in a faster recovery from COVID-19, improved ability to weather any ongoing effects from the pandemic, and capability to take advantage of near-term growth opportunities.

The Apollo directors believe the combined group will be in a position to consider recommencing payment of dividends more quickly than Apollo Tourism & Leisure could on a standalone basis.

Both Apollo and thl operate a Build/Buy, Rental and Sell model. RVs are built at each company’s own manufacturing facilities or purchased directly from third-party manufacturers or dealers.

Both operate multiple RV rental brands across each of their operational jurisdictions, targeting specific segments of the rental market. Both own retail sales centres and also sell vehicles through a network of dealers.

www.apollotourism.com

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Tourism holdings and australian firm agree asset sale to progress merger.

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The proposed takeover of Apollo by THL prompted regulators on both sides of the Tasman to raise concerns. Photo: Unsplash / Lawton Cook

Campervan and tourism company Tourism Holdings (THL) and Australian operator Apollo Tourism & Leisure (ATL) have agreed to sell some assets to get a merger over the line.

The proposed takeover of Apollo by THL prompted regulators on both sides of the Tasman to raise concerns, with New Zealand's Commerce Commission worried it would dent competition.

The Australian Competition and Consumer Commission (ACCC) voiced similar concerns to their New Zealand counterpart on the merger, which was first proposed in December last year.

THL announced to the stock exchange on Friday morning both companies had agreed to sell certain ATL assets to a subsidiary of the Jucy Group for $45 million, in a bid to get the merger over the line.

It includes 310 motorhomes from ATL's New Zealand and Australian rental fleets, a proportion of the forward bookings, ATL's 'Star RV' motorhome brand, and the property leases for surplus depots.

The merged entity would supply 40 motorhomes to Jucy in 2023 in each of Australian and New Zealand markets, with the option to supply more in 2024, and would introduce Jucy to wholesalers who market the Star RV brand but do not have a relationship with the company.

"The divestment to Jucy remains subject to confirmation from the New Zealand Commerce Commission and the Australian Consumer and Competition Commission that it is satisfactory as part of their respective clearance reviews of THL's proposed merger with ATL, and clearance being provided on that basis," THL said in a stock market announcement.

New Zealand and Australia's competition watchdogs were expected to announce their decisions on Friday 23 September and Thursday 29 September, respectively.

If approved, THL said the asset sale to Jucy would be completed prior to the completion of its merger with ATL.

The merger would be subject to refinancing conditions being met, regulatory approval and support from ATL shareholders.

Copyright © 2022 , Radio New Zealand

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apollo leisure and tourism

Athul Prasad

Leaves rustled in the tall trees overhead, and I felt a cool breeze on my skin. I could hear the gurgle of a stream in the distance, and the sounds of chanting. I was in the tropical woodland surrounding a centuries-old Buddhist monastery, in Matara, Sri Lanka. Ramya Jirasinghe, a mindfulness coach and former Buddhist nun, was walking me through a one-on-one meditation session. At her suggestion, I submitted to the sensory experiences around me “without judgment,” listening to sounds without chasing them in thought. Slowly, the tension in my shoulders eased. My mind swirled with images of all that I had experienced in the previous week. As instructed, I let them flow freely.

I was at the end of a five-day journey that had begun in the UNESCO World Heritage site of Galle Fort, in southwestern Sri Lanka, and taken me across the southern tip of the island to the leopard reserve of Yala National Park. In between I had taken in the dramatic coastline of Weligama and had stopped for some beach time in Hiriketiya. Sri Lanka is a country I’m particularly fond of, so when I was asked to revisit to report this story, I seized the opportunity. Yes, I was dying to go back, but I’d had another motive for coming: I wanted to see if the island nation was ready to welcome international visitors again. 

In 2022, Sri Lanka’s economic crisis made headlines around the world and resulted in an abrupt change of government. Tourism, already battered by COVID and a 2019 terror attack, took another severe hit. (According to the Sri Lanka Tourism Development Authority, visitor revenue slid from a peak of $4.4 billion in 2018 to just $507 million in 2021.) Sustainable tourism companies, which use visitor dollars to support local communities, had been particularly affected. To organize my visit, I turned to Ayu in the Wild, a Sri Lankan–owned sustainable tour operator that donates around 3 percent of its annual revenue to social and ecological causes.

At the start of my trip, Ayu in the Wild invited me to see one such initiative, a dance-therapy class for differently-abled children in Pinnaduwa, a village about five miles from Galle Fort. I was wary of going, concerned that the children and their parents might feel objectified. But Rangi Gamage, who is employed by the tour operator to teach the class, convinced me otherwise. 

Gamage is an artist trained in Pahatharata Natum, a traditional form of folk dance. She’s also a fantastic cook, and I first met her at a vegan lunch set up by Ayu in the Wild. Gamage had prepared a typical farmers’ meal and served it in a clearing between her family’s millet fields. 

I helped myself to a stir-fry of turkeyberry, leafy greens, chili peppers, and grated coconut; a dish of radish and jackfruit seeds; and an aromatic button-mushroom curry. All of it was accompanied by a regional variety of red rice, pickled vegetables, and crispy pappadums. The ingredients had all been grown within a stone’s throw of where we sat, and everything was packed with flavor. 

Sensing the stupor her meal had induced, Gamage went in for the kill. “They actually enjoy performing for guests,” she said, once again referring to her dance-therapy class. “In their regular schools the children are often left out of events. This makes them feel included.” Maybe it was the effect of her cooking, or maybe it was her obvious sense of pride in her work, but I finally agreed. 

As the energetic bhangra song played, the children let loose: freestyling, jumping, wriggling, kicking their feet up in the air, all the way through to the end.

The class was held in a large hall, open on three sides. I watched as 20 differently-abled children filled the room. They were, I was told, from the area’s most impoverished neighborhoods. As the music played, the children, several with impaired movement, imitated Gamage as she led the class from the front of the room. They struggled; they laughed and tried to keep up. Every so often Gamage would correct a child’s posture, or commend others for their hard work.

An hour later, as Gamage got ready to wind the class down, one young dancer tugged at her teacher’s sleeve and whispered in her ear, prompting her to laugh out loud. She wanted to dance for the “Indian guest” — me — to the song “Kala chashma,” from the hit Bollywood film Baar Baar Dekho . “Does he know the song?” the girl asked Gamage. I replied in the affirmative. As the energetic bhangra song played, the children let loose: freestyling, jumping, wriggling, kicking their feet up in the air, all the way through to the end.

It isn’t just Ayu in the Wild that is making travel to the island more sustainable: every one of the hotels I stayed at, whether it was a cute boutique hotel or a luxurious lodge, is making environmental and social causes a focus. At the eclectically designed Malabar Hill, a 12-villa property on the top of a forested hill a couple of miles inland from Weligama Beach, the owners fund training for young people interested in pursuing careers in hospitality and help women set up batik workshops, with the ultimate goal of using their fabrics within the hotel. 

Another key Malabar Hill initiative is to protect the wilderness that surrounds the hotel, which is home to more than 500 species of flora and 240 species of fauna — including such rare creatures as the purple-faced leaf monkey and the rusty-spotted cat. The resort’s logo features the Sri Lanka gray hornbill, another charismatic resident, which I saw dipping in and out of my villa’s infinity pool.

“This isn’t the first crisis Sri Lanka’s tourism industry has had to deal with,” Malabar Hill’s general manager, Sanjiva Gautamadasa, replied when I asked how they were coping. “Whether civil war or political upheaval, we’ve learned to roll with the punches.” Pivoting to local ingredients is just one way the country has adapted: Malabar Hill, too, sources 80 percent of its produce locally and also has its own kitchen garden.

I saw another example of conscious tourism at Wild Coast Tented Lodge, a 28-suite all-inclusive resort built on a strip of dryland forest between Yala National Park and the Indian Ocean. It’s a striking property: accommodation is contained within tented structures designed to resemble cocoons, while the public buildings mirror the boulders strewn across the landscape. But despite this high-concept design, nothing is fenced in; instead, elephants and other animals, even leopards, are allowed to roam freely through the property.

The hotel’s wastewater is treated and released into nearby watering holes for the benefit of wildlife. The lodge’s parent company, Resplendent Ceylon (a part of Sri Lanka’s famous Dilmah tea brand), finances conservation projects for elephants living inland at Udawalawe National Park, as well as for dugongs, an endangered marine mammal found off the country’s eastern and western shores. 

All of this is funded by a superlative level of luxury. And the food was fantastic — which felt even more impressive considering the limited ingredients the chefs were able to source for the kitchen. At every meal I was offered a range of Sri Lankan and international dishes, and when nothing appealed, they were happy to whip up off-menu preparations: one morning I had an inexplicable urge to eat string hoppers, Sri Lanka’s classic breakfast dish of steamed rice noodles.

Though I seemed to find invention everywhere I looked, it wasn’t always prompted by necessity. Take Smoke & Bitters, a spacious open-air bar and restaurant across the road from Pehebiya Beach, in Hiriketiya, that champions regional ingredients in all its recipes. I ordered a negroni made with a Sri Lankan gin, Colombo No. 7, that has notes of native spices such as cinnamon.

Smoke & Bitters has put Sri Lanka on the world cocktail map, placing 29th on Asia’s 50 Best Bars list in 2024. It was set up in 2020 by two lifelong friends — Lahiru Perera, a graduate of Ireland’s prestigious Ballymaloe Cookery School, and Don Ranasinghe, a veteran of the U.K. bar and club scene. “Our thought was: how do we deliver Sri Lankan flavors but in a progressive and sustainable way?” Ranasinghe told me. Curious, I ordered another cocktail, this time choosing the Mai Chai, a twist on the tiki-bar classic. It’s made with a tea-infused rum, spiced orgeat, and triple sec, all three created in-house. Maybe it was the cocktails, but sitting under a web of lights strung between trees, surrounded by couples on date nights and groups of friends weekending by the beach, the mood felt defiantly, infectiously upbeat. 

Another occasion of great revelry was the evening I spent at a Galle Fort landmark, the Amangalla hotel. A serendipitous meeting led to drinks with friends from Mumbai, with whom I spent hours reminiscing over bottles of New World wine in the name of research for the wedding reception they were hosting at the hotel later that week. The building we were drinking in dates back to 1684, when the Dutch ruled over Sri Lanka. For centuries it housed army officers and administrators, travelers and traders until 1948, when the island gained independence from Britain. Today, the interiors are refurbished with polished teak floors, shuttered windows, and four-poster beds, and the amenities are every bit as modern as you would expect from the Aman brand, which took over the property in 2005.

In addition to Amangalla, there are dozens of well-maintained structures within Galle Fort, also known as the Old Town, that tell the history of the island. One evening I walked around the ramparts overlooking the Indian Ocean, where families sat enjoying the breeze. Elderly women played with their grandchildren. Men chatted outside a whitewashed mosque, its name in Urdu written in an Art Deco font. Kids ate ice cream and cotton candy, while teenagers played cricket in the narrow lanes between homes. I found it heartening to see that a place imbued with so much history hadn’t been forgotten, but continues to be lived in. 

“Galle Fort has changed a lot over the years,” Chirath De Silva, a third-generation resident, told me. He gave me a tour of the Old Town in his vintage open-top Beetle, taking me from its highest lookout point to churches and colonial-era offices that now house the local government. While many of the area’s heritage structures have been turned into hotels, shops, and restaurants, more than 2,000 people still live inside the Old Town. “This was the kindergarten I went to,” he said as we drove past a building that today houses a pan-Asian restaurant.

Nothing is fenced in; instead, elephants and other animals, even leopards, are allowed to roam freely through the property.

Some of Galle’s chicest addresses are housed in these buildings, including outposts of Colombo stores such as Spa Ceylon, which sells ayurveda-inspired beauty products, and Barefoot, known for its handmade crafts and textiles. But there’s still plenty of old-world charm at places like Shoba, where you can shop for authentic beeralu, a form of lace the Portuguese introduced to Sri Lanka. It’s produced on a device with dozens of bobbins, and there’s one right by the cashier’s counter. “Galle Fort may keep on changing, but for those of us who’ve grown up here, it will always be home,” De Silva said.

Back on the grounds of the Buddhist temple, my meditation session was almost at an end. Suddenly, the silence was interrupted by a ringtone-like sound: “popopopopo.” It was the call of a crimson-fronted barbet. I thought back to where I had learned to identify it: on a forest-bathing experience in Kanneliya, part of the Kanneliya-Dediyagala-Nakiyadeniya (KDN) Biosphere Reserve in south-central Sri Lanka, which I had visited after my stay at Weligama. Indika Siriseeli, a self-taught naturalist, was leading a group of us along a path to a secret waterfall. She’s a member of the Kanneliya Guides Association, a volunteer group that wants to make this region more accessible to nature-loving visitors. More than 300 plant species have been identified within KDN, with UNESCO designating 45 percent of them as rare.

As we walked, the sunlight filtered through the forest canopy, creating patterns on the path under my feet. The barbet, along with a chorus of other endemic birds, provided the soundtrack. A short distance in, Siriseeli pointed to what I thought was a bright green creeper uncoiling against a rock. As I squinted to examine it more closely, a yellow eyelid opened to reveal a blank stare. I quickly stepped back: the creeper, about five inches long, was actually a green vine snake. Farther ahead Siriseeli showed us a tree whose bark is used in tribal medicine to cure stomach ailments, and another whose leaves are juiced to heal wounds. 

As we settled on boulders to watch a stream come down from the mountains, it struck me that the ability of people like Siriseeli — to recognize bird calls, to spot reptiles in thick foliage, to forage for medicines and food — comes from an understanding of a world that is completely alien to city dwellers like me. In that moment, my own urban issues seemed trivial, even meaningless. 

I HEARD jirasinghe, who had been leading me in meditation, say: “Move your fingers, move your toes, gently open your eyes…” I was being nudged out of my reverie. It had been blissful, recollecting all that had happened on the island. And even more blissful that my teacher hadn’t been able to tell that my thoughts were drifting.

As we made our way out of the forest, Jirasinghe offered to show me the inside of the monastery’s temple. The Kurumbure Raja Maha Viharaya is a mix of colonial and Sri Lankan architecture, with European-style columns and a terra-cotta-tiled roof. It’s said to date back to the 18th century, when the kings of Kandy, in northern Sri Lanka, ruled over the whole island. Inside, a seated idol of the Buddha, its face illuminated by light streaming in from above, projected an air of serenity and hope. The walls of the sanctum were covered by hand-painted frescoes, in which the Portuguese, Dutch, and English, as well as East Asians and Arabs, were all depicted — scenes from a time when Sri Lanka was an important stop on the Maritime Silk Road and visited by people from around the globe.

As we turned to leave, Jirasinghe said, “When you see these paintings, you realize how prosperous we once were. Which only means we can do it again.”  

See the Best of Sri Lanka

Amangalla: In the heart of Galle’s Old Town, the Amangalla offers atmospheric rooms, a superlative spa, and heartfelt service.

Fort Bazaar: Fort Bazaar is an intimate, style-forward property where every stay comes with complimentary spa vouchers, sundown gin and tonics, and guided walks around Old Town.

39 Coffee, Bistro & Wine Bar: This spot, which serves meze and Mediterranean entrées at the Fort Printers hotel, is one of Galle’s best-kept secrets.

Isle of Gelato: A cubbyhole of a place on Pedlar Street sells artisanal ice creams, including vegan recipes, that have amassed quite a following. 

Ropewalk: Modeled on a 1920s speakeasy, Ropewalk bar champions arrack, Sri Lanka’s national spirit, and also serves classic cocktails. 

Barefoot: One of Sri Lanka’s iconic brands, Barefoot is your best bet for consciously produced souvenirs, handicrafts, and textiles.

Shoba: Shop for traditional Sri Lankan lace at Shoba , the Pedlar Street cafe and gallery.

Spa Ceylon: The Galle outpost of Colombo’s favorite ayurveda-inspired beauty brand also has a spa , so you can try the goods before you buy them.

Urban Island: Born as a skills-development project for rural artisans, Urban Island produces high-quality handmade homewares and textiles.

Var Vara: Russian transplant and designer Elena Shnyreva works with local artisans to create chic resort wear from batik fabric.

Smoke & Bitters: Set among palm trees near Pehebiya Beach, this spot is currently No. 29 on Asia’s 50 Best Bars list. The cocktails are the main event, but be sure to line your stomach with the excellent modern Sri Lankan food.

The Wallawwa: An 18th-century home turned boutique hotel, The Wallawwa , located near the airport, is easily the most comfortable place to get over your jet lag. The gardens provide fruits and vegetables for the hotel’s kitchen.

Malabar Hill: A 12-villa eco-aware property, Malabar Hill is decorated with a mix of Moroccan, Rajasthani, and Sri Lankan styles. While it’s built on a hillside a couple of miles inland, it also has a restaurant and bar on Mirissa Beach.

Yala National Park

Wild Coast Tented Lodge: An all-inclusive Relais & Châteaux property designed for wildlife lovers, Wild Coast Tented Lodge has cocoon-shaped suites with four-poster beds, claw-foot tubs, and leather trunks that double as minibars.

How to Book

Sustainable travel specialist Ayu in the Wild can set up tours of Sri Lanka that include visits to community projects, as well as stays at boutique and high-end hotels.

A version of this story first appeared in the October 2024 issue of  Travel + Leisure  under the headline "Back to Sri Lanka"

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