Monday, July 12, 2010

Tourism sector invests $ 10 b: Annual earnings to surpass US$ 500 m:


Tourists with an elephant. ANCL file picture

Sri Lanka’s tourism sector is gearing to face the increase of tourist arrivals by investing US$ 10 billion to enhance the room capacity and upgrade the hotels. It is necessary to carry out brand building and image enhancement activities. Brand development is needed to improve credibility, dependability, believability and acceptability in the minds of the tourists, Jetwing Hotels Ltd Chairman Hiran Cooray said.


Hiran Cooray
He was speaking at a seminar on currant development and future prospects in the tourism sector organized by Acuity Stock Brokers (Pvt) Ltd held last week in Colombo.

Approximately 2,000-3,000 new hotel rooms will be constructed during 2010.

The country aims to add approximately 20,000 hotel rooms in the next six years to cater to the anticipated boom in tourism.

The Tourism Development Authority has already approved the construction of new hotels in Passekudah and Batticaloa to promote eastern beaches as a tourist destination. Further, new zones which are being developed as tourist hotel sites are, Kuchchaveli north of the eastern port and five islands in Kalpitiya, which would be similar to the Maldives.

As developing tourism related infrastructure facilities, the Government plans to build a domestic airport at Uchchamunai, an under-water amusement park in Kandakkuliya, a golf course in Dutch Bay, a race course and a cricket ground in Kalpitiya. Fishing Tourism, Leisure Tourism and Ayurvedic Tourism are some of the concepts the Government is planning to implement to attract the global appeal.

For the year 2009 the tourism sector enjoyed total earnings of nearly Rs 40,133 million which is equivalent to US$ 350 mn an increase of 8 percent over 2008. Also with higher post war rate structure expected after November 2010, annual earnings should surpass US$ 500 million.

Global tourist arrivals Growth
* 438 million in 1990 * 684 million in 2000
* 922 million in 2008
Regional growth
* All the regions have shown growth rates less than 4 percent * Middle East reached a growth rate in excess of 15 percent in 2008





The occupancy rates of the hotels which were mainly hit by the three decade of war saw a remarkable growth subsequent to May 2009. The overall occupancy rate hit an average of 48.4 percent in 2009 when compared with the corresponding period of 43 percent. Further the occupancy rates hit an all time high for the first three months of 2010 at an average of 82 percent.

The average spending per tourist decreased to US $ 728.6 in 2008 showing a decrease of 7.8 percent as compared to US $ 791 in 2007. However the average spending increased to US $ 781 a 7 percent increase in 2009.

Considering the top ten contributors to Sri Lanka, India continued its position as the top producer in 2008 and 2009, though the arrivals from India decreased by 2 percent in absolute terms. UK retained its second position with an increase of 263 tourists in 2009. The top five contributors in 2008, who were India, UK, the Maldives, Germany and Australia were able to retain its position in 2009 as well. Remarkable growth of 19 percent was evident from Australia compared to the corresponding year. France which occupied the ninth position in 2008 moved to sixth position with a drastic increase of 50 percent in arrivals.

It is a noteworthy feature that new source markets like Canada and Japan is featuring in the list. Meanwhile, Japan which was dropped from the list in 2008 has come back to the top ten arrivals as a result of the Japanese Government relaxing their travel advisories on Sri Lanka.

source - www.dailynews.lk

No comments: