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More ventures planned: 

Sun shines on tourism sector

by Elmo Leonard

Tourist arrivals in Sri Lanka have been very encouraging and leading hoteliers are planning to build more luxury hotels in the near future, President, Hotels Association, Malin Hapugoda said.

Hapugoda said that according to Ceylon Tourist Board (CTB) statistics, 49,950 tourist arrivals were recorded in January this year, 22.9 per cent higher than during January 2003.

Arrivals for February and March of this year are yet to be computed, but the trade feels that the numbers are on the rise.

Tourist arrivals in the country last year passed the 500,000 figure, according to CTB statistics.

The local travel trade is aggressively marketing Sri Lanka at international travel fairs, and going by the responses received, a 20 to 25 per cent increase is anticipated in travellers arriving in the country this year, over 2003.

With escalating tourist arrivals, the industry wants to build an additional 6,000 hotel rooms, from the current 12,500 rooms, during the next three to four years.

The extra rooms would provide direct employment to between 12,000 and 15,000 persons and indirect employment to 24,000 persons, Hapugoda said.

With the conclusion of the winter tourist season, most hotels are refurbishing for the next anticipated traveller influx. Two years ago, a tourist spent $63 per night, which increased by 10 per cent, at end-2003.

With tourists to the island tending to spend more, the industry has targeted a tourist to spend $90 to $100 per night by 2006 or 2007. During 2003 and 2004, hotel rates increased by 15 to 20 per cent, according to official statistics.

Hapugoda said that demand for better quality hotels had gone up by 50 to 60 per cent over the previous year. Four-star hotels recorded an increased demand of 78.5 per cent, five-stars by 78.7 per cent and three-stars by 56 per cent, according to official statistics.

Foreign guests are now accounted to spend 10.5 nights, an increase of 28.7 per cent. Local guest nights have increased by 65.7 per cent over the past few years. The country has 13 five-star hotels with 3,000 rooms; most of them concentrated around Colombo and on the Southern beach stretch.

Two are in Kandy and one is in Sigiriya.

There are eight four-star hotels with 873 rooms. Other prime earners for the tourism industry are the 600 Ayurveda rooms, eco-tourism lodges and the nature and adventure tourism sector.

With increased earnings, hoteliers are planning to build 15 to 18 hotels in the near future.

The former theatres of war are largely closed to tourists, except for the John Keells' Club Oceanic and Mercantile Investments' Nilaweli Beach Hotels along the Nilaweli stretch of Trincomalee. 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, the trade said.

In the North, only a few rest house type hotels are found.

Hotel construction is high cost intensive, being in the range of eight to 10 million rupees per room, for a high class hotel, Hapugoda said.

www.imarketspace.com

www.Pathmaconstruction.com

www.ceylincoproperties.com

www.continentalresidencies.com

www.ppilk.com

www.singersl.com

www.crescat.com

www.peaceinsrilanka.org

www.helpheroes.lk


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