Sri Lanka tourism arrivals are projected to surpass the 2 million mark by the end 2024 and most importantly are expected to exceed pre-pandemic levels by 2025. Tourist arrivals have consistently exceeded expectations since the fourth quarter of 2023, signaling a robust recovery trajectory for the hotels and tourism sector.
As predicted 2024 commenced on a positive trajectory, with Sri Lanka welcoming more than 200,000 arrivals for the first three consecutive months, notes First Capital Research in their TOURISM SECTOR IN SRI LANKA “Travel Boom with Rising Trends” review.
“However, with the winter season drawing to a close, a slowdown in tourist arrivals is anticipated in the upcoming period. Based on the historical trend, potential pickup is forecasted for July 2024.”
Tourist arrivals in Sri Lanka have consistently lagged behind those of the Maldives over the past four years. However, the YTD figures for 2024 indicate a significant shift, with Sri Lanka surpassing the Maldives in tourist arrivals. This surge can be attributed to a notable increase in Indian travelers visiting Sri Lanka.
The spike in Indian arrivals to Sri Lanka follows a diplomatic row between India and the Maldives, leading to a boycott of Maldives by many Indian tourists. Consequently, Sri Lanka’s tourism sector appears to be benefiting greatly as a preferred destination for Indian travelers. Amid declining Indian travelers, the Maldives has successfully attracted Chinese tourists, who now dominate its source market. Chinese travelers are known for their higher spending habits, ranking first globally in tourism expenditure even during the pandemic.
Sri Lanka’s primary source markets, such as India, Russia, the UK, and China, are still striving to attain pre-pandemic outbound tourism levels presents an opportunity for the Sri Lankan tourism sector to focus efforts on regaining its presence in these key markets.
“Additionally, 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.’
Among the 50 countries offering digital nomad visas, Sri Lanka stands out as the best value for money, boasting an average monthly cost of living at USD 624.0. This represents a 14% savings in disposable income compared to the second most affordable country on the list.
“This trend underscores the need for robust further development initiatives to enhance the country’s tourism offerings and prolong visitor stays, thereby maximizing economic benefits.”
While the average duration of stay (nights) in Sri Lanka (8.4 days) remains comparable to regional peers, there has been a marginal contraction compared to 2022.
