Tourism earnings top $ 2 b in first eight months

• Jan.-Aug. earnings up 66% to $ 2.16 b; matches total revenue generated for entirety of 2023
• August earnings at $ 282.1 m reflect 25% YoY increase
• Average daily spend by a tourist during first eight months was $ 181.15

Despite the shortfall in arrivals, Sri Lanka’s tourism industry has managed to rake in over $ 2 billion in revenue during the first eight months of 2024.

Tourism earnings from January to August registered over $ 2.16 billion, reflecting a substantial 66.1% year-on-year (YoY) increase, the latest Central Bank data release showed.

 The tourism earnings for the first eight months have now matched the total revenue generated for the entire year of 2023, showcasing a yield improvement.

However, the sector is still grappling with a 25% shortfall in revenue, compared to its benchmark performance in 2018.

In August, the industry registered earnings of $ 282.1 million, marking a noteworthy 25% YoY increase. 

The $ 345.7 million recorded in February remains as the highest monthly earnings registered in 2024 thus far. 

As per the latest Sri Lanka Tourism Development Authority (SLTDA) data released, the average expenditure per tourist, per day from January to August 2024 was $ 181. 15. 

In a month-to-month comparison, the SLTDA fell short of its projected arrival figures and missed monthly targets throughout the first eight months of the year so far.

The average duration of stay in August was 9.46 days, with the overall average tourist stay at 8.64 nights. July recorded the highest average duration so far in 2024 with 9.65 days. The cumulative tourist nights recorded from January to August was 11,773,452.

Industry leaders have voiced concerns about a decline in earnings since mid-April, following changes to the visa system. The delayed enforcement of the Electronic Travel Authorisation (ETA) system, despite a Supreme Court order for its immediate reactivation, was cited as a contributing factor to the drop in both revenue and tourist arrivals. 

As a result, industry stakeholders pointed out that around 45,000 arrivals, and earnings by an estimated $ 75-80 million, were lost in August alone.

The industry warned that the country may struggle to attract even 2 million tourists if the issues persist. 

Sri Lanka Tourism has set a target of 2.3 million arrivals and $ 2.4 billion in revenue for 2024, an ambitious goal that appears increasingly challenging to meet.