International investment bolsters Sri Lanka's tourism hopes

International hotel groups are ploughing millions of dollars in to new and refurbished developments in Sri Lanka, bringing confidence to the Middle East's near neighbour that it is on track, despite the set back of the 2004 tsunami, to achieve its goal to become a top class tourism destination. More than 250 new rooms are set to boost luxury accommodation offering for the island nation, with well in excess of USD$150 million being invested in hotel properties.

Recent refurbishments, the opening of new coastal properties, keen investment interest from big players in the international hospitality industry and a positive tourism outlook are all strong indicators that Sri Lanka is on track for a return to double-digit growth in tourist arrivals. "These developments make a strong statement to the international investment community that the country has enormous potential for top class tourism," Sri Lanka Tourist Board (SLTB) Chairman, Udaya Nanayakkara said.

Among major international hotel groups, construction has begun on the US$100 million 245-room Hyatt Regency Colombo. The 43-storey property, set on prime land on Galle Road, in the heart of Colombo, will house both the Hyatt Regency hotel and luxury apartments and is scheduled for completion in December 2008.

One of Sri Lanka's biggest hotel operators, Aitken Spence, has announced that two of its largest luxury hotels will reopen shortly following major refurbishments.

The 152-room Kandalama Hotel, designed by the internationally acclaimed Sri Lankan architect Geoffrey Bawa, has undergone an extensive US$5 million refurbishment and is scheduled to reopen in December.

Newly refurbished bedrooms will feature luxurious furnishings and timber floors. The two upper levels of the Sigiriya Wing will be transformed into a premium wing comprising eleven suites, complete with butler service. The Kandalama, located in the heart of the Cultural Triangle near Sigiriya, will showcase two theme restaurants - The Kaludhiya Restaurant will offer fine dining, while the Kashyapa Restaurant will be a la carte, offering Sri Lankan, South Asian, Eastern and Western cuisine.

A unique addition to the property will be the internationally acclaimed Six Senses Spa, designed to blend seamlessly into the wilderness overlooking the picturesque Kandalama "tank" - a huge artificial lake which dominates the landscape in front of the hotel.

Sheraton is also moving ahead with its plans to establish its luxury brand name in Sri Lanka. The company's Colombo property will be a fully-fledged business hotel with 300 rooms and modern conference facilities. It will be constructed on three acres of land with an initial investment of more than US$25 million.

The Triton Hotel in Ahungalle, on the island's south coast, will reopen in January next year following a US$8 million makeover. Also designed by Geoffrey Bawa, it was Sri Lanka's first five-star beach hotel.

The refurbished 155-room Triton will offer a new lounge bar, discotheque and supper club, as well as an exclusive new restaurant. It will also have its own international spa with a unique oceanic theme, managed by Six Senses, providing the visitor with an ambience and pampering never before experienced in Sri Lanka.

A brand-new, luxury four-suite villa, called Saffrons Beach Villa, is scheduled to open in December this year. Situated just metres from the Indian Ocean at Habaraduwa the villa will provide a stunning private retreat for up to eight people. Owner Bryan Smith said he is positioning Saffrons Beach Villa at the very top of the market.

The six-suite Apa Villa Thalpe, just eight kilometres south of the Galle Fort, has also reopened following an extensive makeover.

The mood among the top-class boutique hotel owners is upbeat as occupancy rates recover. Galle Fort Hotel owner Karl Steinberg says there are very strong indicators that tourist numbers are on the rise.

"In recent weeks, Galle Fort Hotel is seeing holiday-only tourists returning," said Mr Steinberg. "They are not here to rebuild anything - the tourists are simply here to have a holiday. It's very exciting," he added.

Further evidence of growing confidence among Sri Lankan hotel groups was reflected recently in the acquisition of two historic hotels in Kandy - The Queens Hotel and Hotel Suisse - by Sanjeev Gardiner's Gardiner Group. The acquisition of the two Kandy hotels follows the major refurbishment of the company's flag ship property, the Galle Face Hotel in Colombo.

Asia's Grand Dame of historic hotels now offers up-market travellers 82 themed rooms and suites, a 'Piazza' shopping arcade, specialty restaurants, a museum and a luxury spa, as part of the new Regency, the refurbished section of the hotel.

Courtesy: Strategiy