Bright future for hotel stocks
Harshini PERERA
Sri Lanka's tourism sector has developed after the war resulting in
heavy trading in hotel sector stocks.
Tourist arrivals on the rise |
Analysts expect the market will be soon be over valued where
investors can aim for higher profits in the tourism sector in future.
Foreign investors are active in the CSE through funds and therefore
they show less trading in the hotel sector.
Capital Trust Securities Director Sarath Rajapakse said they expect
Indian and European investors to trade in hotel stocks in the future.
"There were many adverse travel advisories on visiting Sri Lanka before
the end of the war. The situation has changed now. Our tourism industry
is progressing well," he said.
"Our tourism industry depends heavily on Western countries. It took
sometime for tourists to make up their minds to visit Sri Lanka. There
is a tremendous increase in arrivals in the first two months of this
year," Rajapakse said.
Most of the companies related to tourism are doing well now due to
the healthy market condition in tourism.
Most of the hotel sector trading has been done by local investors,
Asha Phillip Securities Director/CEO, Dimuthu Abeysekera said.
Companies in the local hotel sector are planning expansion projects
in the North and East. Some companies have diversified into the hotel
sector to reap benefits.
"The increase in tourist arrivals has been substantially high despite
the global economic crisis. A lot of hotels will do very well in the
future as Sri Lanka is a famous tourist destination," a stockbroker
said. |