Sri Lanka’s tourist arrivals are projected to surpass 2.0Mn by end 2024 and expected to exceed pre-pandemic levels by end 2025, First Capital research points out in a sector report.
It says the year 2024 commenced on a positive note, witnessing over 200,000 arrivals within the first three months. However, as the winter season draws to a close, a temporary slowdown is anticipated, with expectations of a gradual pickup starting from July.
They project the year to culminate with 2.1Mn arrivals, generating a revenue of USD 3.0Bn. By end 2025, tourist arrivals are forecasted to reach 2.5Mn, indicating a gradual resurgence beyond pre-pandemic levels.
Opportunity for Sri Lanka's tourism sector to increase depends on key source markets which are yet to regain pre-pandemic outbound tourism levels.
Sri Lanka's primary source markets, such as India, Russia, the UK, and China, are still striving to attain pre-pandemic outbound tourism levels.
The depreciation of the Sri Lankan Rupee (LKR) has become a significant factor, making holidays in Sri Lanka more financially feasible compared to pre-pandemic times.
MICE tourism takes a hit losing the market to regional peers amidst implementation of Minimum Room Rate (MRR) which has hindered the growth of Colombo hotel occupancy rates.
It also has the potential to discourage many MICE (Meetings, Incentives, Conferences, and Exhibitions) groups from choosing Sri Lanka due to the comparatively higher MRR of Colombo city hotels compared to regional peers.
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