Sri Lankan arrivals surge as hoteliers flock to country
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International visitor arrivals to Sri Lanka have showed strong double-digit growth in 2016, and international hotel groups are now flocking to the island to capitalise on the rising demand for rooms.
According to data from Sri Lanka’s Tourism Authority, the island nation welcomed 1.7 million visitors in the first 10 months of 2016, marking a 14.6% year-on-year increase. India, China and the UK were the top three source markets for Sri Lanka during this period.
But the country still faces a struggle to meet its ambitious full-year target; Sri Lanka is aiming to attract 2.2 million visitors for 2016, which would mark a growth rate of 26% compared with 2015. This means that Sri Lanka will need to achieve half a million more visitors in the final two months of the year.
Nevertheless, the country’s tourism industry remains on a strong upward trajectory. An increase in the number of direct flights to Sri Lanka from other countries, backed up by the development of a new terminal at Colombo’s Bandaranike International Airport and discussions over an “open skies” policy, are likely further boost arrivals the country in future.
And hotel supply is increasing to meet rising demand from visitors. According to data from STR, Sri Lanka’s room supply has expanded 4.2% in the first 10 months of 2016, with around 900 new rooms added to the country’s inventory. And while this has resulted in a slight dip in nationwide occupancy (-0.7% to 66.3%), the opening of new luxury hotels and resorts has led to a sharp increase (+15.6%) in Sri Lanka’s average daily rate (ADR), which now stands at LKR15,855 (approx. US$105). This rises to about US$113 for hotels in Colombo.
And this upswing of hotel inventory will increase even further in the coming years; STR forecasts that approximately 4,200 rooms will come online over the next two to three years. These will include four new projects for Marriott International and others from IHG, Shangri-La, Hyatt and Mövenpick.
These insights were revealed on the first day of the Asian Hotel Tourism and Investment Conference (AHTIC) in Colombo.
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