Bright Horizons: Navigating Tourism's Growth Revival
Depreciation of LKR making Sri Lanka holidays more affordable than pre-
pandemic levels
First Capital
A Janashakthi Group Company
Despite an increase in local prices, the accommodation and other travel costs has significantly dipped by over 25.0% from pre pandemic
level rates in terms of USD as a result of LKR devaluation which would be an encouraging factor for tourists to visit Sri Lanka.
The CCPI has consistently slowed down,
surpassing expectations, signifying lower
inflationary pressures and potentially boosting
consumer spending power
80.0%
LKR depreciation of over 80% compared to pre
pandemic times, made the cost of living in SL
more affordable for international travelers
380.00
70.0%
60.0%
50.0%
51.7%
50.6% 50.3%
40.0%
30.0%
20.0%
10.0%
35.3%
25.2%
12.0%
6.3%
4.0%
Despite cost escalations, Average Room Rate
(ARR) remained relatively cheaper compared to
pre pandemic levels amidst steep depreciation
LKR
360.00 360.00
28,000
360.00
340.00
320.00
26,000
Jun-24,
ARR dipped by
over 40.0% in
130.0
terms of USD
USD
140.0
320.00
340.00
24,000
120.0
300.00
320.00 320.00
22,000
+
110.0
280.00
295.52
20,000
T
I
260.00
280.00
100.0
1
90.0
18,000
240.00
220.00
200.00
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
I
80.0
16,000
1
I
70.0
14,000
I
60.0
12,000
T
50.0
I
10,000
40.0
2017
2018 2019
2020
2021
2022 1H2023
Average Room Rate (LKR)
Average Room Rate (USD)
Source: Department of census and statistics, CBSL, SLTDA, First Capital Research
12
4.3% 4.7%
180.00
2.2%
0.9%
0.0%
Jan
Feb
Mar Apr May Jun Jul
Aug Sep Oct Nov Dec
I 2022 Actual YoY Inflation
..
2023E YoY Inflation
2023 Actual YoY InflationView entire presentation