Can handle 900,000 tourists with current capacity – Hotels Chief

By Cheranka Mendis

Tourist Hotels Association Chairman Anura Lokuhetty says that the industry’s current room capacity is adequate to cater to 900,000 tourists per annum.

“Sri Lanka has 15,000 formal and 7,000 informal rooms that can host 900,000 tourists a year,” Lokuhetty said adding with the average tourist stay being six to seven days, Sri Lanka can easily host 900,000 tourists a year.

Lokuhetty stated that this year’s summer period, which falls between the time period of May and October, will bid welcome to a lesser number of tourists with a low number of visits from the traditional European market.

“Going by the previous records of 2009 and 2010, it could be said that the growth figure of arrivals during the months April, May and June will not be too great. However, the possibility of arrivals reaching 800,000 is a realisable one,” Lokuhetty said.

The country has two seasons for tourism – the winter period which is fixed between the months of November and April and the summer period. The winter seasons 2011/2012 will see more rooms adding up to the inventory, he said. Sri Lanka now aims at promoting the country in emerging markets such as Russia and Canada.

“It’s not just the numbers we must look at, but also the quality of the growth,” he asserted.

Kalpitiya and Kuchchaveli, named as two hot spots for future tourism and expected to add in a large number of rooms, however are still tied in their usual chaos.

Kuchchaveli was part of the land area which received cabinet approval for land to be sold under a 99-year lease agreement at Rs. 20 million an acre and was a seal-deal with five MOUs being signed in March this year. However, it is moving ahead at snail’s pace with only one investor moving ahead with construction.

General Manager Sri Lanka Convention Bureau Vipula Wanigasekera, who could not give specific reasons for this delay, stated: “There is a lot of documentation with investments. Even though we have created a one-stop-shop which has shortened the pending approval period from three years to two months, I do not know the reason behind the delay.”

Kalpitiya island development, which saw the tenders of all 11 bidders being rejected previously, is still under evaluation, he said.

Hotel Serendib closed for upgrade

Serendib Hotels Plc said yesterday that its Serendib Hotels in Bentota will remain closed until November 15 for refurbishment.

Hotel Serendib will be refurbished and repositioned as a design hotel with an investment of Rs. 650 million, of which Rs. 501 million will be equity financed.

For the latter, Serendib Hotels Plc had one for four rights issue preceded by a sub division of five into one. These are for both voting and non voting shares. Voting rights issue were priced at Rs. 24.50 each and non voting at Rs. 18.25 each.

Hotel Serendib in Bentota was themed on an 18^th Century Dutch village by Sri Lanka’s worldfamous architect, Geoffrey Bawa. It has 90 rooms including 44 standard rooms, 42 superior rooms and one suite.