Ground-breaking ceremonies in Colombo and Hambantota :

Massive boost for tourism with Shangri-La entry

by Shirajiv SIRIMANE

Sri Lanka's tourism sector, which is aiming for a golden double of one million tourist arrivals and US$ one million in revenue this year, received a major boost for this drive when a leading global hotel chain, Shangri-La broke ground last week to build two hotels, in Colombo and Hambantota.

This move, while adding nearly 800 rooms from both properties, would bring value as a destination to Sri Lanka.

The Hong Kong-based Shangri-La Hotels and Resorts, one of the world's most respected hotel companies, currently owns and/or manages 72 hotels under the Shangri-La and Traders brands, with a rooms inventory of over 30,000.

Over almost four decades, the group has established its brand hallmark of 'Hospitality from the heart'. The group has substantial developments in the pipeline with projects in Austria, Canada, mainland China, India, Macau, Malaysia, Philippines, Mongolia, Russia, Qatar, Sri Lanka, Turkey, and the United Kingdom.

All these hotels and their websites would display images of the Sri Lankan properties and automatically market Sri Lanka as an up-market destination. This investment is also a stamp of investor confidence in Sri Lanka and the fact that Shangri-La is investing in Sri Lanka would lure their competitors also to look at Sri Lanka in a new light.

High spending tourists would also undoubtedly tour Sri Lanka, thereby bringing in additional revenue to other hotels in Sri Lanka as well as other stakeholders in the tourism sector.

Minister Basil Rajapaksa being ushered in Minister Basil Rajapaksa views details of the Shangri-La complex

Shangri-La Hotel, Colombo will be built according to sustainability guidelines, with 661 rooms offering some of the largest accommodation in town at 45 square metres to 55 square metres (484 square feet to 592 square feet). This also includes 43 suites ranging in size from 90 square metres to 225 square metres (968 square feet to 2,421 square feet).

A health club, spa with eight treatment rooms, an outdoor junior Olympic-sized lap pool at 25 by 12 metres and two outdoor tennis courts will complete the recreational facilities.

Together with Shangri-La's Hambantota Resort and Spa, the hotel fits strategically into the group's ongoing expansion plans to link the Indian subcontinent and its South East Asia developments. The Sri Lankan properties will be fully integrated into the local community from the very beginning, offering employment opportunities and infrastructural support.

Shangri-La Asia Limited will invest US$ 408 million on its Colombo hotel project. The star-class hotel with 30 storeys will be completed in 2015.

Shangri-La is also planning to construct its second hotel in Hambantota, to open in 2013, on 115 acres of land with 315 rooms and an investment of US$ 120 million with the 315-room city resort on 145 acres of land.

Economic Development Minister Basil Rajapaksa graced the event.

Deputy Minister of Economic Development Lakshman Yapa Abeywardhana, Chairman Shangri-La Asia Kuok Khoon Ean, Vice Chairman of Kerry Group George Yong-Boon Yeo, Associate Director - finance Shangri-La Asia Kuok Meng Xiong, Executive Director Shangri-La Asia Madhu Ramachandra, Director Shangri-La Hotels Lanka (Pvt) Ltd. and Shangri-La Investments Lanka (Pvt) Ltd., Sajad Mowzoon and Mayor for Colombo A.J.A. Muzzammil were also present.

A ground-breaking ceremony was also held last Friday for Sino Lanka Hotel Holdings, a joint venture between Singapore and Sri Lanka which has begun work on a hotel in the capital city of Colombo which would offer 150 star-class rooms.

The 3.5 star hotel, to be managed by Thailand's Onyx group under the Ozo brand, will cater to mid-market tourists, officials said.

The group will construct two more star class hotels with 410 rooms in Galle and Kandy with initial investments of Rs. 4.5 billion over the next two years.