Upgrading hotels and enhancing room capacity:
Tourism sector invests $ 10 b
Annual earnings to surpass US$ 500 m:
Sanjeevi Jayasuriya
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. |