Market Trends of Hospitality Industry in Sri Lanka
This section covers the major market trends shaping the Sri Lanka Hospitality Market according to our research experts:
Sri Lanka is Recovered Quickly from Easter Terror Attacks and is Attracting More Tourists
Terror attacks on Easter in April 2019, cost Sri Lanka to lose a 70.8% decrease in tourist arrivals and made to record the lowest number of arrivals of around 37,000 in May 2019 and caused a huge gap to the percentage change for the same month in 2018. Yet, the country managed to bounce and regained its momentum over time in tourism arrivals. The percentage change in arrivals between 2018 and 2019 was around 57% in June, 46.9% in July, 28.3% in August, 27.2% in September, 22.5% in October and 9.5% in November 2019. Indians occupy the highest share of foreign visitors to Sri Lanka followed by China, United Kingdom, Germany and Australia with making around 20%, 11.3%, 10.9%, 6.7%, and 4.7% respectively of total visitors to the country.
Kuchchaweli Beach Resort Tourism Zone has been Attracting More Investments
With the destruction that happened to Sri Lanka due to the 2004 tsunami, the Sri Lanka Tourist Board has introduced the concept of tourism zones that are open for investments. Developing these zones will help the country to generate revenues and are open to foreign investors as well. Out of all the Kuchchaweli Beach Resort has gained momentum and is attracting more investors to date as the landscapes that the location offer has more ability to attract visitors. This zone is located at Eastern province which is 300 km away from Colombo. This zone has 445 acres of land that is available for investors at a price of 20 million per Acer. Sri Lanka Tourism Board is offering 99 years leasing period. A hotel is already in operation at this location with 4 under construction hotel projects.
