High growth continues in hotels and restaurants:

Tourism earnings hit US$ 1.7 billion

by Uditha Kumarasinghe

The hotels and restaurants sub sector has continued its high growth trajectory by achieving 22.3 percent growth in 2013, compared to 20.2 percent in 2012.

According to the Annual Report 2013 issued by the Central Bank of Sri Lanka, the sub sector has performed commendably to attract over 1.27 million tourists during the year recording a 26.7 percent, year-on-year growth, increasing tourism earnings to US$ 1.7 billion.

The growth surpassed the achievements in 2012 for the second consecutive year despite the unfavourable global environment. These arrivals had exceeded the United Nation’s World Tourist Organisation’s (UNWTO) tourist growth estimate of six percent for the Asia Pacific Region and the five percent growth for the entire world.

The report said the coordinated efforts of the relevant authorities spearheaded by the Sri Lanka Tourism Development Authority (SLTDA) to attract outbound tourists from non-conventional markets reflected an increase in the number of tourist arrivals from China and Eastern Europe.

Even though, the industry has strong potential in the country, the continuity of the growth momentum is heavily dependent on the industry’s ability to cater to the emerging trends in the tourism industry. As a country with a large number of attractions in natural and cultural resources, Sri Lanka will be further promoted as a niche destination for eco-tourism which encourages more local participation and is more sustainable in the long run than conventional mass tourism.

The rising income of the middle class populace of India and China coupled with Sri Lanka’s close proximity to those regions should also be capitalised. The recently concluded CHOGM also provided a rare opportunity for Sri Lanka to reposition itself as a key tourist destination.