Tuesday, October 15, 2019

Investment Opportunities in the Tourism sector


Tourism is the country's third-biggest foreign currency earner. With over 2.3 million visitors coming into the nation, Sri Lanka reported its largest-ever amount of arrivals in 2018. In 2018, the industry is projected to have earned around $4.3 billion, 11 percent higher than last year. Sri Lanka provides a combination of beaches, wildlife parks, rain forests, tea plantations, ancient ruins, Buddhist cultural sites, and festivals.
Sri Lanka ranks 64th out of 141 nations in the World Economic Forum's 2017 Travel & Tourism Competitiveness Report. The government is aiming to boost tourist arrivals in 2019 to 3 million, although the terrorist attacks of April 21 have dampened opportunities for 2019 and 2010. India and China, followed by the UK, Germany, and France, contributed the most significant amount of tourist arrivals. Tourism sector investment remains with projects valued at around $223 million authorized in 2018. Sri Lanka is aimed at attracting worldwide names.
Several global and regional hotel chains, including the Marriott, Shangri-La, Six Senses, and Movenpick, have recently started building or running hotels in Sri Lanka. Shangri-La and Movenpick began activities in 2017, while others like Sheraton and ITC are anticipated to complete activities in 2019/20. Some local conglomerates control most of Sri Lanka's luxury resort hotels. Moreover, the idea of the boutique hotel is catching on quickly. International hotel businesses were absent from Sri Lanka during the conflict (which finished in 2009). Hilton was Sri Lanka's only global player to manage a luxury hotel (owned by the state) and an apartment complex for many years in Colombo.
Eastern Sri Lanka is an area with remarkable potential as it is famous for world-class beaches in this region. Locations like Pasekudah and Arugam Bay, particularly for surf lovers, are top destinations. The nation has several parks and forests home to a variety of wildlife and distinctive species of fauna and flora, and several global environmental organizations consider it a biodiversity hotspot. The latest ban on land sales to foreigners can make the construction of new properties more complicated. Eco-friendly resorts are also becoming popular with many developers opting to set up "green" hotels to attract an increasing section of the market.
Increasing tourism is driving the restaurant industry's significant development. An evolving tourism trend has brought a big influx of visitors looking for a more genuine experience, according to industry specialists. These visitors, mostly younger, are looking for cheaper lodging units and homestays, and are using navigation internet apps. The tourism industry should constitute significant possibilities for U.S. providers in a range of fields such as facilities, technology and consultancy services, hotel equipment, furniture, water purification systems, electrical systems, energy-efficient equipment, food, and beverage equipment, bathroom accessories, spa and fitness equipment, and water sports equipment.
Sri Lanka also plans to implement aviation services to promote its tourism drive, including air taxis and helicopter facilities. The enhanced development of the hotel industry, the upgrading of existing properties and the development of global hotel chains requiring high-end inputs and technology offer essential opportunities for U.S. businesses.

OSL Take: Tourism provides possibilities for both investment and trade. The state offers beach land and islets for the growth of tourism. Several policy initiatives and actions to harness the sector's potential were introduced in 2017. The new strategic tourism plan implemented in 2017 is aimed at raising income by 2020 to $7 billion and creating 600,000 employees in support sectors.
VBS/AT/15102019/TB3

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