Sri Lanka's formal hotel investments grow $2.9 million in March
May 28, 2019 06:11 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Net investments into Sri Lanka's formal hotel sector grew by 2.9 million US dollars in the March quarter of 2019, from December amidst one 26-room project in the Batticaloa District worth 11.8 million US dollars pulling out, official data showed.
New investments in the December quarter totalled 54.7 million US dollars.
Investments into hotels from November 2010 to March 2019 stood at 2.96 billion US dollars.
Sri Lanka experienced a constitutional crisis in the final quarter of 2018, which has contributed to a fall in investor confidence.
The new investments in the March quarter are spread over 17 projects, all with less than 50 rooms each.
For the first time in 9 years, the Kilinochchi District received a formal hotel investment which will add 15 rooms.
The most number of new hotels are in the Galle District, with 7 projects adding 86 rooms.
Another 6 hotels, comprising of 82 rooms are in the Matara District.
Meanwhile, the total registered room supply in the country went up to 38,908 in March, from 38,214 in December and 36,133 from a year earlier
The increase in March from December came mostly through guest houses (376 rooms), while two new four star hotels (136 rooms), and a slew of bungalows and guest houses contributed to most of the remainder.
The March quarter also saw two new hostels (16 rooms) being registered, for the first time in history.
The Sri Lanka Tourism Development Authority has been enforcing regulations more stringently in recent years, forcing all tourism businesses to register. (Colombo/May28/2019)