Sri Lanka Tourism a look back at 2018…..and what’s in store for 2019 –
BY Mr. Srilal Miththapala

Sri Lanka has been recording steady YoY growth in arrivals during its post war arena, 2017 recording 2.3 m arrivals, with a CAGR of close upon 19% over the past 5 years. Total arrivals for 2018 is expected to only marginally increase over 2017. In the absence of any strong and cohesive marketing campaign, which the private sector has been clamouring for over 2 years now, YoY growth percentage has been slowing down.

A positive aspect is that foreign exchange earnings have also increased in almost same proportion, reaching Rs. 3.9 Billion USD in 2018, with average tourist spend per night now standing at USD 170. From 6^th place among the leading foreign exchange earning sectors a few years ago, tourism has now climbed to 3^rd place, and today contributes close to 4.5% of the islands GDP.

The government withdrew the imposition of a minimum rate structure for star class hotels in the city, which had been in operation for about 7 years now. This has been met with mixed reactions, with travel agents welcoming the move, while many hoteliers oppose the move. This price control mechanism was imposed immediately after the end of the war, to correct the depressed price structure than was prevalent at that time.

Meantime many new hotels are being built, and consequently room stock is rapidly increasing. As at September 2018 there were 530 conventional hotel units, with 36,190 rooms, while the supplementary sector (boutique hotels, guest houses and home stay units) accounted for 1,809 units with 13,236 rooms. Thus the total room stock stands at 49,426, with another 5,192 new rooms expected to come on line in the next few years. This has fuelled wide spread concern of possible over supply in certain select areas, and consequent price wars.

Sri Lanka certainly received a big boost for 2019, when the Lonely Planet designated Sri Lanka as it’s No 1 destination for 2019.

This will certainly auger well for Sri Lanka, and efforts should now be made to maximize on this exposure and leverage greater visibly and awareness in more diverse, and newer markets worldwide.

Highlights

Number of International Tourists to Sri Lanka 2,33 m
Foreign Exchange Earnings US$ 3,924.9 Mn.
Average Duration of Stay 9 nights
Room Occupancy Rate of Graded Accommodation 73.27%
Tourist Gender Diversity Male: Female 82:18
Total Employment Generation (Direct Employment & Indirect Employment ) 359,215
Top 5 Tourist Source Markets India, China, UK, Germany & France

Bio- Mr. Srilal Miththapala

Srilal Miththapala has over 25 years’ experience in the hospitality industry. He has held several senior positions for over two decades in renowned hotel management corporations in Sri Lanka including the Confifi Group and Serendib Leisure companies. More recently in 2009 he was appointed the President of the Tourist Hotels Association of Sri Lanka 2008-10, and subsequently led an EU funded project ‘Greening Sri Lanka Hotels’ administered by the Ceylon Chamber of Commerce. He was appointed as a board member of the Sri Lanka Hotel Classification Committee until 2012, and again from 2018 onwards.

Now retired, he engages in various consultancy assignments in Sustainable Tourism Development, Environment & Wild Life. Apart from many private sector organizations, he has worked with the MDF (the contracting arm of the Australian DFAT program) and YouLead (a contracting arm of USAID).

He also worked as the Tourism specialist form the World Bank scoping mission to study the Buddhist Tourism circuit in India and its potential for development.

He has been a visiting Guest Lecturer to the Business School of Plymouth University of UK. He also functioned as a lecturer for the Final Year University of Plymouth degree program conducted in Sri Lanka.

He has also given presentations at Monash University, Sri Lankan Embassy in Canberra and other Sri Lankan Friendship Associations in Australia

He is an avid wild life and nature lover, with a particular perchance for elephants, and strong advocate for conservation.

Srilal is currently visiting Melbourne and will be there until the end of April. He is available for any presentations or talks on Tourism, Sustainability and Wild life of Sri Lanka.

He can be contacted on +61 450 416 880 or e mail srilal.mith@gmail.com