S Africa's Sun City to invest $800 m

Record 820,000 visitors, $800m revenue in 2011:

South Africa's Sun City resort will invest $ 800 million in a tourism project in Sri Lanka, Tourism Board chairman Dr Nalaka Godahewa said yesterday.

Sun City resort is run by South African gaming and hotels group Sun International Ltd.

It will be the largest ever investment in the country's leisure sector, which is booming since the end of a 25-year war in May 2009.

"Sun City of South Africa is now going to make an $800 million investment in a 200-acre private property," Dr Godahewa, told Reuters in an interview.

The investment will be made on Sri Lanka's hotel city in Katana, he said.

"That decision is finalized. That is one of the biggest investments."

Sri Lanka has seen a remarkable rise in its post-war leisure industry with tourist arrivals expected hit a record 820,000 and revenue to rise to a record $800 million, jumping 25 percent and 39 percent from a year earlier.

"Next year, more than the number, we are concerned about the revenue. So the expectation is to hit $1 billion revenue and perhaps 950,000 arrivals," Godahewa said.

He expects 1.3 million tourist arrivals in 2013 and 1.6 million in 2014, gradually reaching the country's 2016 target of 2.5 million visitors with a target revenue of $1,000-$1,100 per tourist. Reuters