Hospitality Industry In Sri Lanka Market Size

Hospitality Industry In Sri Lanka Market Analysis

The Sri Lankan Hospitality Market size is valued at USD 470.76 million currently, and it is expected to witness a CAGR of 7.5% during the forecast period.

Hospitality is a key component of Sri Lanka's culture and plays a significant role in the country's tourism sector and economy. From resort hotels, city hotels, boutique hotels, and homestays to camping sites and restaurants serving authentic Sri Lankan cuisine, there is a wide variety of hospitality options available. Tourism is the third largest source of revenue for the country, and hospitality is the major component of the tourism sector that generates foreign exchange. Tourism accounts for 4.3% of GDP and 13.3% of total foreign exchange earnings and employs 450,000 people directly and indirectly. Tourism has always been Sri Lanka's biggest earner in terms of foreign exchange, and it is still a major source of income. It is a great way to invest and trade, and the government is now offering beach land and islands for tourism development. Eastern Sri Lanka is a great area to explore, with great beaches like Pasekudaha and Arugam Bay. Surfing is a must-do for anyone who loves the ocean. Plus, the country has lots of parks and forests, with lots of wildlife and unique species, and it is even considered a biodiversity hub by some international environmental groups. The hospitality industry in Sri Lanka is heavily influenced by a variety of external and internal factors, including political instability, economic conditions, social issues, technological developments, environmental considerations, and the legal framework. Major international hotel chains, such as Hilton, Starbucks, and Best Western, are present in the country, and a number of major international companies are expected to establish their operations in the country in the foreseeable future.

Sri Lanka, a popular destination for holidaymakers, had an unprecedented economic crisis, and political turmoil has all but wreaked its tourism, with about 40% of the pre-bookings being canceled in 2022. A series of back-to-back crises over the last few years, including the coronavirus pandemic and the 2019 Easter Sunday terror attacks, had brought Sri Lanka's tourist-dependent economy to a halt as the country shut its borders and imposed lockdowns and curfews. The government has done recently to help the hospitality sector, which has a big impact on the economy. The government is really trying to work with the hospitality industry and is in constant communication with their representatives. An increase in tourism is driving the hospitality market in the country. 'Tourism Bio Bubble' operation put in place by Sri Lanka Tourism, which has been recognized and acknowledged globally as an innovative concept to resume tourism in the new normal operations. The Srilankan government, in December 2022, introduced a mobile app aimed at improving the safety of international tourists. Furthermore, the consistently growing middle class, rising levels of disposable income, and increasing interest among millennials to travel are a few major reasons that are making the travel industry a profitable one, which is indirectly helping in the growth of hospitality. Srilanka is hosting a few of the Asia Cup 2023 matches in the country. The Sri Lankan hotel sector stands to gain significantly from this development, as there will be substantial incremental demand for hotels in the cities where the meetings and tournaments will be held.