According to a report by Euromonitor, investments in the island’s tourism may boost the number of visitors in the near future. Despite the country’s current problems regarding infrastructure, airport capacity and communications connectivity, Euromonitor International has stated that tourism can offer the country great sustainability after years of conflict.
Investments in this sector might just be the opportunity the island nation was waiting for in order to boost its economy.
As the number of foreign visitors is increasing, especially if considering tourists travelling from Western Europe and North America, Sri Lanka’s luxury accommodation market is set to be developed as a priority. With 1.8 million foreigners visiting in 2015 and more than 2.5 million expected by 2020, transport in the area is also a key aspect that needs to be addressed for the sake of the country’s progress.
Also on the list of priorities, government in Sri Lanka should focus on infrastructure improvements and electronic connectivity. “This is a problem across many south Asian countries. But it’s also a region that is growing economically so people have higher disposable income, and as people become more affluent, there’s a trend towards more affluent hotel properties. More people will demand to book on-line,” the author of the report explains.
According to the report, railways are among first transportation means that need urgent improvement. Moreover, Colombo airport must double its capacity in order to cope with the big number of transiting passengers.
“The world is slowing down economically. People are looking for economical places to travel, so there’s an interest in inexpensive destinations. Sri Lanka is one of them. Growth in the sector was by 17 per cent in 2014-15 in terms of the number of inbound arrivals. Its lower cost is a main driver of visitor growth,” the report concludes.