A SURGE in foreign investment and trade missions to Sri Lanka is expected to grow the destination’s business travel segment, as well as its ability to host business events.

Speaking to TTG Asia e-Daily on the sidelines of a Sri Lanka Business Association investment seminar, Duminda Ariyasinghe, executive director (investment promotion), Board of Investment of Sri Lanka, said: “Increased trade missions to Sri Lanka will benefit tourism arrivals, while property investments will boost the country’s infrastructure. Singapore arrivals into Sri Lanka are growing (up 34.3 per cent between 2010 and 2011), and trade missions and business trips are playing a part.”

“Then, there is Shangri-La Hotels and Resorts, which is going to open two hotels in Sri Lanka,” he added.

The Hong Kong-based hotel chain will open the 661-key Shangri-La Hotel, Colombo in mid-2015. Its second property in Sri Lanka, the 315-key Shangri-La’s Hambantota Resort & Spa, will open in 2014, and will be surrounded by an 18-hole golf course.

Other upcoming foreign investments include an US$800 million resort development in Katana by South Africa’s Sun City; the US$250 million Havelock City luxury residential, commercial and lifestyle project in Colombo, backed by Singaporean S.P. Tao who was also behind the capital’s World Trade Centre; and a US$115 million mixed-use development by Singapore’s Mustafa Shopping Centre.

According to Ariyasinghe, the Sri Lankan government is also planning to establish a waterfront development in Colombo comprising a convention centre as well as commercial and entertainment outlets, although no timeline has been set as yet.

Hiran Cooray, chairman, Jetwing Hotels, said Sri Lanka was “poised to (become) a premium MICE destination”. “We may not build something like Resorts World Sentosa right away; maybe within the next five years,” he added.

Meanwhile, Jetwing Hotels is busy expanding its portfolio to cater to the increasing number of Asian visitors to Sri Lanka. The group has overhauled and repositioned the former Blue Lagoon in Negombo from a two-star resort into the luxurious Jetwing Blue Negombo, complete with meeting facilities including a grand ballroom for 800-pax (theatre-style).

A CHECK by TTG Asia e-Daily on Kingfisher Airlines’ inventory offered via the various GDSs has indicated that the beleaguered airline is progressively suspending all bookings on international routes.

Starting with Mumbai-Hong Kong on March 12, the suspension will involve all international services by March 25. Delhi-London (Heathrow) flights will be suspended on April 10. Overseas destinations affected include Bangkok, Colombo, Dhaka, Dubai, Hong Kong, Kathmandu, London (Heathrow) and Singapore.

A check on the Kingfisher website confirms the route cull as the latest flight schedule shows flights only up till March 25. So far, the airline has not provided instructions on recourse for passengers already booked beyond this date.

In a statement released on March 14, Kingfisher’s vice president – corporate communications Prakash Mirpuri said: “We would like to confirm that we are curtailing our wide body overseas operations that are bleeding heavily. To this end, we have already returned one Airbus A330-200 to the lessor in the UK.”

Debt-laden Kingfisher is seemingly banking on an equity sale to a foreign carrier to lift its prospects. Mirpuri said at the close of his statement: “The (Indian) government’s final verdict on removing the restriction on investment by a foreign airline…is awaited. We can confirm that there is interest from prospectives on this basis.”

Current regulations restrict foreign ownership of an Indian airline to a 49-per cent stake.

MOVENPICK Hotels & Resorts is to manage a new resort on Huma Island in Palawan, the Philippines.

Andreas Mattmüller, COO, Mövenpick Hotels & Resorts, Middle East & Asia, said: “This is our second resort in the Philippines after our property in Cebu, and it is a magical place that I am sure will cast an unforgettable spell over anyone that visits.”

The Mövenpick Resort & Spa Huma Island will feature 80 over-water bungalows with private jacuzzis when it opens in 4Q2012. There will be six F&B outlets offering Lebanese, Italian, Asian and seafood dishes as well as an entertainment room, a library, a fitness centre and a spa with six treatment rooms.

The island will be accessible from the mainland via seaplane and luxury speedboat.

The Huma Island resort is one of 15 new hotels in Asia to be opened by Mövenpick Hotels & Resorts by 2015. The region has been a major focus for expansion by the Swiss hospitality group, which already operates two properties in Thailand, two in Vietnam and one each in India, the Philippines and Singapore.