Colombo skyline
Industry players are optimistic that tourism in Sri Lanka has growth potential, but its continued success will hinge on political leadership, concluded the first Asia Hotel & Tourism Investment Conference (AHTIC) which took place in Colombo earlier this week.
Data from ForwardKeys showing a 12 per cent growth in visitor arrivals by air during the past year, more than double that achieved by the Asia-Pacific region as a whole. Further information from STR revealed that the country’s hotels had maintained occupancy levels above 66 per cent and lifted ADR to nearly 16,000 Sri Lankan rupees (US$107.12).
And at the recent AHTIC, the Sri Lankan government announced a series of tourism development zones. The president also promised that the next three years, 2017-19, would be designated investment years with special concessions for overseas investors.
A delegation of Chinese investors expressed enthusiasm for opportunities in the destination, seeing potential in its diverse attractions, the current shortage of high-quality properties outside Colombo, the willingness of the government to invest in core infrastructure such as new roads and a British-based legal system.
Also optimistic is WTTC chairman Gerald Lawless, who cited the recent restoration of peace, improved air connectivity and infrastructure investment as some critical factors to the destination’s success for tourism.
However, Roman Scott, chairman of the Calamander Group, raised the concern of Sri Lanka’s proposed lifting of VAT from 11 per cent to 15 per cent and corporation tax to 28 per cent.
In the face of stronger competition from rival countries around the Indian Ocean for foreign investments, Scott, like other industry leaders, urges the Sri Lankan government to effectively brand and promote the destination, prioritise infrastructure development and create a fiscal and regulatory regime that guarantees commercial as well as social and environmental sustainability.
