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SLTDA Chairman Priantha Fernando
By Charumini de Silva
With continued focus and strategic planning, Sri Lanka can harness its full potential as a premier destination for high-spending tourists, driving economic growth and enhancing its global tourism profile, a top official opined.
“Sri Lanka’s tourism sector is on the brink of significant growth driven by substantial investments and a strategic push to attract high-spending tourists over a long term strategy. The sector is poised for a major boost amid rising demand,” Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando told the Daily FT.
He highlighted the developments and challenges, outlining the current progress and future plans for the industry.
“During the first half of 2024, the SLTDA’s Investment Relations Unit (IRU) received 39 project proposals for new hotels, totalling 713 rooms and representing investment of about $ 55 million. By the end of June, 16 of these projects were approved, adding 224 rooms with an investment value of $ 26 million,” he said, adding that this surge in interest reflects growing confidence in Sri Lanka’s tourism potential and the country’s appeal as a premier destination.
A pressing concern raised by Fernando is the potential shortfall in accommodation for high-spending tourists by the end of 2025.
“Sri Lanka has around 10,500 rooms suitable for high-end tourists at present, with rates exceeding $ 250-300 per night. These hotels are experiencing high occupancy rates, indicating a strong demand,” he said.
He cautioned that, without addressing the potential shortfall in accommodation for high-spending tourists, Sri Lanka may struggle to meet the demand from affluent travellers.
To mitigate this challenge, Fernando stressed the importance of aligning the quality of tourism products with international standards and expectations of significant growth in tourism related investments.
“Ensuring that the accommodations and services meet international standards is vital for maintaining Sri Lanka’s reputation as a luxury destination. This alignment is essential for sustaining the growth in high-end tourism and assuring that visitors have a positive experience,” he stressed.
Fernando also detailed the SLTDA’s strategy of allocating specific lands for tourism development to the private sector to boost accommodation and services. “Areas identified for these projects include Kalpitiya, Kuchchaveli, Bentota, Delft Islands, and Mannar,” he said.
He also highlighted plans to repurpose idle State lands for tourism-related investments.“The SLTDA is prepared to facilitate investments, ensuring that it is put to productive use for tourism-related development,” he added.
Acknowledging the importance of an investor-friendly environment, Fernando reaffirmed SLTDA’s commitment to streamlining processes and providing robust support to attract foreign direct investment (FDI). “Enhancing Sri Lanka’s appeal as an investment destination is crucial for sustaining tourism industry growth and meeting the escalating demand for high-quality accommodations,” he added.
For 2024, Sri Lanka Tourism is aiming to attract 2.3 million tourists and generate over $ 4 billion income.
