Sri Lanka approves $5mn hotel investments in 3Q18

ECONOMYNEXT – Sri Lanka has given final approval for 11 new hotels worth 5 million dollars in September compared to 10 projects worth 25.6 million dollars in the June quarter, the Sri Lanka Tourism Development Authority said.

All 11 new projects approved are small hotels with less than 49 rooms each.

The total number of projects approved since November 2010 went up to 337 in September, up from 326 projects in June.

In total, 2.9 billion dollars in investments s had been approved over nearly eight years.

Of these, 182 businesses with investments of 1.7 billion dollars were serving tourists in September, up from 171 projects worth 1.6 billion dollars in June.

The number of hotels under construction in September were 113, with 7,053 rooms involving investments of 977.5 million dollars.

In June 115 projects with 7,460 rooms with investments of 1 billion dollars were under construction.

Total number of registered star class hotels in the country were 138 in September, up from 136 three months earlier.
Star class hotels made up 36 percent of the 36,693 total formal sector room supply in Sri Lanka in September, growing from 35 percent of 36,381 rooms in June.

Other tourist hotels formed 27 percent of room supply in September, down from 28 percent.

The share of guest houses in accommodation supply was flat at 27 percent, while boutique villa share remained unchanged at 2 percent.

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Meanwhile, an airport survey on departing tourists which has been collecting data since mid-February showed a slight improvement in quality of food, service and rooms in Sri Lanka for the first seven and a half months, compared to the first four and a half months.

However, the responses were mainly from Indian and European male tourists staying in formal hotels. (Colombo/Dec31/2018)