Sri Lanka aims to enhance luxury tourism appeal
Daily FT: With continued focus and strategic planning, Sri Lanka can harness its full potential as a premier destination for high-spending tourists, driving economic growth and enhancing its global tourism profile, a top official opined.
“Sri Lanka’s tourism sector is on the brink of significant growth driven by substantial investments and a strategic push to attract high-spending tourists over a long-term strategy. The sector is poised for a major boost amid rising demand,” Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando told the Daily FT.
He highlighted the developments and challenges, outlining the current progress and future plans for the industry.
“During the first half of 2024, the SLTDA’s Investment Relations Unit (IRU) received 39 project proposals for new hotels, totalling 713 rooms and representing investment of about $ 55 million. By the end of June, 16 of these projects were approved, adding 224 rooms with an investment value of $ 26 million,” he said, adding that this surge in interest reflects growing confidence in Sri Lanka’s tourism potential and the country’s appeal as a premier destination.
A pressing concern raised by Fernando is the potential shortfall in accommodation for high-spending tourists by the end of 2025.
“Sri Lanka has around 10,500 rooms suitable for high-end tourists at present, with rates exceeding $ 250-300 per night. These hotels are experiencing high occupancy rates, indicating a strong demand,” he said.
He cautioned that, without addressing the potential shortfall in accommodation for high-spending tourists, Sri Lanka may struggle to meet the demand from affluent travellers.
To mitigate this challenge, Fernando stressed the importance of aligning the quality of tourism products with international standards and expectations of significant growth in tourism related investments.
“Ensuring that the accommodations and services meet international standards is vital for maintaining Sri Lanka’s reputation as a luxury destination. This alignment is essential for sustaining the growth in high-end tourism and assuring that visitors have a positive experience,” he stressed.
Fernando also detailed the SLTDA’s strategy of allocating specific lands for tourism development to the private sector to boost accommodation and services. “Areas identified for these projects include Kalpitiya, Kuchchaveli, Bentota, Delft Islands, and Mannar,” he said.
He also highlighted plans to repurpose idle State lands for tourism-related investments. “The SLTDA is prepared to facilitate investments, ensuring that it is put to productive use for tourism-related development,” he added.
Acknowledging the importance of an investor-friendly environment, Fernando reaffirmed SLTDA’s commitment to streamlining processes and providing robust support to attract foreign direct investment (FDI). “Enhancing Sri Lanka’s appeal as an investment destination is crucial for sustaining tourism industry growth and meeting the escalating demand for high-quality accommodations,” he added.
For 2024, Sri Lanka Tourism is aiming to attract 2.3 million tourists and generate over $ 4 billion income.
OSL take:
Sri Lanka’s tourism industry has become one of the fastest growing industries in the country and has also become a key revenue generator to the country. The many promotions carried out overseas by the local tourism authorities and the international exposure received by Sri Lanka as a must visit tourist destination through global travel publications have all yielded results with a growth in the tourism industry. Sri Lankan tourism authorities are also on the constant lookout for new tourism concepts to be promoted in key tourist source markets. Sri Lanka is fast gaining in sectors such as culture, medical, wellness, cruise and MICE tourism apart from the usual leisure, eco and adventure tourism. It is in such a backdrop that Sri Lanka is looking at improving on promoting luxury tourism. While the overall growth in the tourism industry has opened up a host of business/investment opportunities in the country while luxury tourism has created a host of new opportunities in the industry. These business/investment opportunities range from the development of infrastructure and supplementary infrastructure facilities and also cover the leisure and hospitality sectors. The growth and business potential in Sri Lanka’s tourism industry is not lost on international leisure and hospitality brands given the interest shown by them in entering Sri Lanka’s tourism industry. Given the steady growth in Sri Lanka’s tourism industry that would see a further growth in the coming months, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the industry.