Sri Lanka’s tourism earnings up 87% to $ 1.4 billion in first five months
Daily FT: Sri Lanka’s tourism industry continues to chalk up a striking performance, raking in over $ 1.4 billion in revenue during the first five months of 2024, marking a staggering 87% surge compared to the same period last year.
The boost in revenue generation during the first five months is particularly significant, as it took the country almost nine months to reach a similar milestone the previous year.
The robust performance not only attributes to a strong recovery, but also highlights the industry’s potential for growth and resilience in the face of adversity.
Tourism earnings in May amounted to $ 154 million, reflecting 54% increase year-on-year (YoY) indicative of the industry’s seasonal fluctuations. The month of May saw a total of 112,128 tourist arrivals, which registered a 35% YoY increase. However, on a month-on-month basis, May earnings saw a 32% decline. Despite this, 2024 May earnings remain the highest recorded post-COVID.
Since the Easter Sunday attacks in 2019, Sri Lanka’s tourism industry has faced numerous challenges and emerged stronger. This resilience has instilled renewed confidence in the sector’s ability to bounce back and thrive.
Ongoing promotional efforts and a renewed focus on safety and visitor satisfaction position Sri Lanka to reclaim its status as a top global tourist destination.
Sri Lanka crossing the 900,000 arrivals milestone so far in 2024, underscores the optimistic outlook, representing a significant increase from the previous year.
Looking ahead, Sri Lanka Tourism aims to attract 2.3 million visitors and generate over $ 4 billion in income for 2024. As tourism remains a crucial source of foreign exchange earnings for the country, efforts are underway to attract high-end tourists, with plans to increase the average spending per visitor to $ 4,000.
The Sri Lanka Tourism Development Authority (SLTDA) is targeting 2.5 million visitors to spend over $ 500 per day, with a focus on attracting high-spending travellers, who currently constitute a significant portion of tourists visiting the country.
OSL take:
The steadily growing tourism industry in Sri Lanka has become a key revenue generator for the country as well. The steady growth in tourist arrivals to the country has also increased the number of flights operated to Sri Lanka by international airlines. All these movements have resulted in the expansion of business/investment opportunities in Sri Lanka’s tourism industry and affiliated sectors. The growth in the tourism industry are mainly surrounding the leisure and hospitality sectors as well as the development of infrastructure and supplementary infrastructure facilities required by the growing demand in line with the tourism concepts being promoted by Sri Lanka’s tourism industry. The interest shown by international leisure and hospitality brands in entering Sri Lanka’s leisure and hospitality sectors is further indicative of the growing business potential in the country’s tourism industry. Local businesses engaged in the leisure and hospitality sectors are also engaged in expansion programmes. Given the clear growth path of Sri Lanka’s tourism industry, foreign businesses/investors could explore the expanding opportunities in the industry.