Bright Horizons: Navigating Tourism's Growth Revival
Increased tourism sector investment signals strong investor confidence
First Capital
A Janashakthi Group Company
SLTDA registered Accommodation capacity
No. of Rooms
No. of
Establishments
60,000
50,000
Registered rooms at a 5Yr CAGR of 6.0%
6000
40,000
30,000
20,000
10,000
0
TTH
5000
4000
3000
2000
1000
0
2017
2018
2019
2020
2021
2022
Graded rooms
Supplementary rooms
No.of Establishments
2,000
1,713
2,513
Mix of Classified Tourist hotel rooms (2019 vs 2022)
2019
2022
722
1,687
845
■ 5 Star
1,903
5,354
■ 4 Star
■ 3 Star
2,449
2 Star
5,931
■1 Star
2,513
Boutique Hotel
3,110
Accommodation Capacity
In 2022, out of 3,829 registered accommodations, only 156 were classified as
tourist hotels, with 37 being 5-star hotels, accounting for just 4.1% of Sri Lanka's
total accommodations.
The Western province had the highest number of star hotels (57), followed by the
Central (37) and Southern (30) provinces.
The concentration of classified tourist hotels in the Western, Central, and Southern
provinces highlights uneven development in tourism-related infrastructure and
tourist destinations.
The ratio of graded to supplementary rooms shifted from 35% graded to 65%
supplementary rooms in 2019 to 31% graded to 69% supplementary rooms in 2022.
Investment Projects
Investment in the sector declined by 48.8% YoY to USD 68.0Mn due to delays and
downscaling of projects by investors, aggravated by construction halts amid
challenging economic conditions in 2022.
Presently, there are 95 hotel projects with 5,424 rooms under construction at
various stages of completion. Additionally, 25 hotel projects with a capacity of
1,623 rooms are expected to be completed by 2023.
Source: CBSL, Annual report
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