Tourism earnings slump to four-month low in September

Monday, 7 October 2024 04:38 - - {{hitsCtrl.values.hits}}

September earnings at $ 181 m
reflect lowest since June and 20% dip from August
First nine months’ earnings up 61.2% YoY to $ 2.34 b,
but still 28% down compared to same period of benchmark year 2018
Industry needs to boost efforts to lure 815,192 visitors and generate over $ 1.65 b to meet 2024 targets

Tourism earnings in September dipped to a four-month low in tandem with low arrivals amid the visa crisis.

September saw tourism revenue rise by 19% year-on-year (YoY) reaching $ 181 million, but lower by 20% in comparison to August due to decline in arrivals, a development attributed to complications emerged from the outsourcing of the visa processing system — a challenge which adversely impacted the industry’s growth in recent months.

With the Government restoring Electronic Travel Authorisation (ETA) on 26 September, tourism stakeholders are rejoicing and expressed renewed confidence in the sector’s potential for growth.

However, during the first nine months of 2024, the tourism industry has seen a significant rebound in revenues at $ 2.34 billion, resulting in a 61.2% YoY increase.

The level of accomplishment is particularly impressive, as the industry has already surpassed the $ 2.06 billion generated in the whole of 2023.

Reflecting on the golden days of the 2018 benchmark year, the first three quarters witnessed tourism earnings totalling $ 3.25 billion. In contrast, foreign exchange revenue from tourism in the nine-month stretch of 2024 saw a 28% decline.

The $ 375.7 million generated in February 2024 remains the highest monthly earnings registered since 2020.

Tourism is a key driver of the economy, contributing around 10% of Sri Lanka’s GDP. The sector is identified as a net foreign exchange earner for the country, with currency outflows on account of inputs is minimal.

For 2024, Sri Lanka Tourism aims to draw 2.3 million visitors and achieve an ambitious income of over $ 4 billion. With just three more months left in 2024, the industry needs to ramp up its efforts to lure 815,192 visitors and generate over $ 1.65 billion to meet its targets.

Being a 100% private sector driven industry, tourism boasts the potential to grow to $ 10 billion by 2030.

The two leading tourism associations – The Hotels Association of Sri Lanka (THASL) and Sri Lanka Association of Inbound Tour Operators (SLAITO) recently called on the newly elected President Anura Kumara Dissanayake to intervene and ensure the implementation of the global promotional campaign which will increase awareness of the destination ahead of the winter tourist season.