Listed blue chip companies that diversified into the tourism sector have performed well in 2011 and 2010 financial year with a remarkable growth of 46 percent in tourist arrivals last year.
Last year the overall occupancy rates increased by 22 percent recording an average of 70 percent and the industry is expected to grow considerably over the coming years. The tourism industry anticipates an investment of US $ 3 billion to increase the national room strength to 36,000.
Hemas Holdings PLC in their 2011 and 2010 Annual Report said their leisure sector comprising Serendib Group and Diethelm Travels generated revenues of Rs 1 billion, a 37.6 percent year on year growth. Sector performance marked a good year recording a profit attribute to the group of Rs 51 million compared to Rs 6 million posted in 2009 and 2010. The group's hotels recorded an impressive average occupancy in excess of 80 percent for the period.
Club Dolphin achieved an annual occupancy of 84 percent. For the year the hotel posted a revenue growth of 12 percent. Hotel Serendib achieved a revenue growth of 52 percent while maintaining a bottom line growth of 872 percent. Hotel Sigiriya posted a revenue growth of 66 percent and bottom line growth of 945 percent while showing an average occupancy of 71 percent in comparison to 53 percent recorded in the previous year. Under the management of the group Kani Lanka has maintained average occupancy of 90 percent.
John Keells Hotels PLC which has properties in the Maldives and Sri Lanka says Group earnings before interest and tax amounted to Rs 1104.8 million during the year 2010/2011 against the Rs 825.2 million achieved in previous year representing a year on year increase of 34 percent.
The consolidated profit before tax was Rs 833.1 million from Rs 506.3 million last year while the Group recorded a net profit of Rs 526 million.
This is an increase of Rs 320.8 million from the Rs 205.2 million achieved last year and represents a year on year growth of 156 percent.
During the financial year under review Yala Village achieved the highest revenue growth in Sri Lanka for the second year in succession, closely followed by Chaaya Citadel while Bentota Beach continue to be the largest revenue contributor in Sri Lanka.
Aitken Spence Group's tourism sector achieved a 17.1 percent increase in its revenue for the year 2010/11. Its profit before tax nearly doubled in comparison to the previous year to Rs 1.6 billion which accounted for 41.0 percent of the total group profit before tax. The sector invested Rs 706.5 million on property, plant and equipment during the year and its total asset base stood at Rs 16.4 billion as at the end of the financial year.
The Aitken Spence strategy of investing in upgrading and refurbishment of properties and maintaining minimum brand standards even during periods of downturn has paid off in the post-war era.
The fourth Heritance property, Heritance Ayurveda Mahagedara is due to be launched during the first quarter of 2011/12. Built on the site of Aitken Spence's first resort in Sri Lanka, it is an authentic ayurveda and wellness resort which is already attracting heavy demand.
Construction will begin during the year on the Group's proposed joint venture with Six Senses Resorts and Spas to establish the first Six Senses property in Sri Lanka estimated to cost over US$ 40 million. The project will comprise a Six Senses resort and spa as well as beach front residential villas on a 10.5-acre plot, adjoining Heritance Ahungalla on the southern coast. The resort will have a further extension of approximately 16 carbon free high end luxury eco villas on a 27-acre island nearby in the backwaters, and is expected to be one of the best up market resorts in Sri Lanka.
Upgrades and refurbishments earmarked for the coming year include the entire refurbishment of the newly acquired resort in Kalutara which will be re-branded in December 2011. Further construction will begin in mid-2011 on 100 additional rooms to make it a 200 room complex. The construction of an international conference hall along with limited refurbishments of the rooms on the Dambulla wing is planned during summer 2011 at Heritance Kandalama. The Group continues to examine its options to develop a resort complex that will make the best use of its 100 acre land on the Nilaveli Beach, Trincomalee.
Hayleys 2010/2011 annual report said the newly formed leisure and aviation sector which was previously included under the transport sector made a contribution of 1.7 percent to the group turnover. This sector contributed 4.2 percent to the group's operational profits. In particular this sector includes results of Hotel Services (Ceylon) Plc and Hunas Falls Plc, which are accounted as subsidiaries. (AS)
source - www.dailynews.lk
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