Tourism eyes $ 2.5 b earnings by 2016

Tuesday, 19 April 2011 00:51 - - {{hitsCtrl.values.hits}}

By Cheranka Mendis

Sri Lanka Tourism hopes to up the foreign exchange earnings of the tourism industry to USD 2500 million by 2016 from the current USD 506.1 million brought in, in 2010. Tourism officials told the Daily FT that with the projected 2.5 million tourists by end 2016, the possibility of bringing in USD 2500 million is an easy task.

Backed by the high flying arrivals and growth during the past few months, Sri Lanka Tourism is also expecting foreign earnings of USD 600 million in 2011. Sources revealing the projections for the next few years mentioned foreign earnings expectations to be USD 980 million in 2012, USD 1360 million in 2013, USD 1740 million in 2014 and USD 2120 million in 2015.

Average spending per tourist per day is to see an increase of USD 97.1 by the end of this year, a 7.53 per cent increase from 2010 figure which is recorded as USD 90.3. This number is said to rise to USD 130 by end 2016, sources said. Over the next few years the Authority hopes to see a gradual increment of USD 103.9, USD 110.7, USD 117.5 and USD 124.3 during the 2012 to 2015 period.

“Room capacity which stood at 14, 932 in 2010 is expected to rise up to 15,000 by the end of this year followed by 21, 960 in 2012,” sources said. To welcome the number of tourists expected by 2016 room capacity will rise to 49, 800 by 2016.

With the increasing numbers average duration (nights) will see a decline from the 8.9 per cent in 2010 to 8.6 per cent this year to end with a 7 per cent by 2016.

The increasing room capacity and tourism related infrastructure will increase the total employment of people to 600,000 by 2016 with 250, 000 direct employers and 350,000 indirect employers. In 2011 the number is said to increase to 163, 637 from 150,574 in 2010. In 2011 the number engaged in direct employment is expected to be an approximate 68,182 while indirect numbers will cover 95, 455 people.