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In terms of district-wise distribution, Colombo, Galle, Gampaha, Kalutara, and Kandy are the districts with a high concentration of rooms. These districts likely have a significant number of rooms due to their popularity as tourist destinations or commercial hubs. Colombo, as the capital, is a major business and tourism center, while Galle is known for its historical attractions. Gampaha, Kalutara, and Kandy may also attract tourists due to their cultural and natural offerings.
In terms of provincial distribution, the Western Province holds the highest share of accommodations, accounting for 35% of all rooms. The Southern and Central Provinces follow with 26% and 16.6% of all rooms, respectively. Meanwhile, the Northern Province has the lowest number of rooms. This distribution of accommodations hints at a concentration of the accommodation sector in the Western, Southern, and Central Provinces of the country.
In terms of district-wise distribution, Colombo, Galle, Gampaha, Kalutara, and Kandy are the districts with a high concentration of rooms. These districts likely have a significant number of rooms due to their popularity as tourist destinations or commercial hubs. Colombo, as the capital, is a major business and tourism center, while Galle is known for its historical attractions. Gampaha, Kalutara, and Kandy may also attract tourists due to their cultural and natural offerings.
As of end of July 2023, the Investor Relations Unit of Sri Lanka Tourism Development Authority has received a total of 38 investment projects. Out of these, 22 projects have been approved, which collectively include the development of 1,080 rooms. The total value of these 22 approved projects amounts to USD 184.326 million.
This data showcases the significant investment interest and activity within the Sri Lankan tourism sector, even in the face of challenges.
Historical Background
The country faced a horrific terrorist incident in April 2019, when the Easter Sunday Bombings in the national capital of Colombo, resulted in the deaths of 250 people, of which 42 were foreign nationals travelling to Sri Lanka. Many of the establishments across Sri Lanka were forced to pull down their shutters for days in the aftermath of the incident. Other countries were hasty in putting out travel advisories that warned their citizens to not travel to the island nation. Tourists exited the nation in large numbers, and the number of visitors fell by more than 70 percent in May and over 60 percent in June compared to the same months in the previous year (see figure 3).
In 2018, tourism provided US$ 4.4 billion in earnings to the Sri Lankan economy and contributed to 5.6 percent of the nation’s GDP, but this estimate came down to a paltry 0.8 percent in 2020, the year when the COVID-19 pandemic began to wreak havoc across the world with Sri Lanka turning out to be no exception (see figure 1 and 3). The onset of the pandemic also led to a 50 percent revenue drop in 2020, and a consequent fall in the tourist numbers, as per the Sri Lanka Tourism Development Authority (SLTDA). Adding to the woes, the loss of tourists from China and the European countries, some of the biggest markets for Sri Lanka’s already distressed tourism sector, came as a major blow.
https://www.sltda.gov.lk/storage/common_media/Year-in-Review-2023-August-2023.09.22.pdf
