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| Sunday, 22 February 2004 |
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| News Business Features Editorial
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Tourism boom will go on unless violence erupts by ELMO LEONARD The political uncertainty in the country and the general election scheduled for April, would not affect the increasing influx of foreign tourists and high spending by travellers, unless violence erupts in the country, according to a cross-section of the tourism trade. Tourist arrivals in the month of January is expected to be more than that for the corresponding month of 2003, hoteliers said. The Ceylon Tourist Board (CTB) is expected to announce January arrivals, later this week. In December 2003, a total of 57,722 tourists arrived in Sri Lanka, an increase of 36.8 percent, compared to that of December 2002, according to the latest CTB statistics released. December 2003 arrivals, is the highest on record for the month of December, since 1967, a CTB official said. A total of 500,642 tourists visited the country last year, an increase of 27.3 percent over that of 2002, according to CTB statistics. Taj Airport Garden, a 4-star hotel in Seeduwa is an example of the increased trend in revenue recorded by the local tourism industry in the past few months. Taj, had to increase room charges, with demand exceeding supply. "Our promotions are regular, but revenue is on the increase," a hotel spokesman said. Besides top class, lesser star hotels, such as Royal Oceanic and Blue Oceanic hotels, under the Jetwing umbrella, situated by the Negombo beach, have raised their room rates to $80 per day for tourists. Royal and Blue have an occupancy capacity of 94 and 91 per cent respectively for their 200-room hotels. Five-star hotels, charge $150 to 200 per night. Hotels Association President, Malin Hapugoda said that the demand for better quality hotels had gone up by 50 to 60 percent, over the previous year. Four-star hotels recorded an increased demand of 78.5 percent, Five-stars by 76.7 percent and three-stars by 56.0 percent, according to official statistics. With this tourist inflow, 4-star employees take away Rs. 10,000 per month as service charge revenue, in addition to their salaries, Hapugoda said. According to CTB statistics, up to November, occupancy rates had increased by 12.2 per cent reaching 63.1 percent as against 50.9 percent in the same month of last year. Sri Lanka has 232 tourist hotels in operation with 13,623 rooms, whereas a year ago, there were 217 hotels with 13,562 rooms. Foreign guests now spend an average of 10.5 nights, an increase of 28.7 percent, while local guest nights had increased by 65.7 percent. The country has 13 five-star hotels with 3,000 rooms, mostly concentrated around Colombo and on the southern beach stretch, two in Kandy and one in Sigiriya and, eight four-star hotels, with 873 rooms. Other prime earners for the tourism industry are the 600 ayurvedic rooms, eco-tourism lodges, nature and adventure tourism. With increased earnings, hoteliers are planning to build 15 to 18 hotels in the near future. Most of the higher star hotels are also planning to refurbish their hotels when the current tourist season ends in April, and have requested the government to grant concessions for the import of materials for the purpose. Despite the peace process, the war-torn areas in North and East, are largely closed for tourists, except John Keells Club Oceanic and Mercantile's Nilaweli Beach hotels along the Nilaweli stretch. But, some of the big time hoteliers have purchased prime parcels of land along this stretch and would begin construction if a definite peace plan is struck, Hapugoda said. Meanwhile, the north has just a few rest house type hotels to speak of. Hotel construction is high cost intensive, being around Rs 8 to 10 million per room, for a high class hotel, Hapugoda said. |
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