BENCH EVENTS | November 18, 2016
Ahead of the inaugural Asia Hotel & Tourism Investment Conference (AHTIC), taking place in Columbo at the end of this month, a study by STR reveals that Sri Lanka’s hotel market recorded strong overall performance growth through September 2016, driven by a sharp increase in average daily rate (ADR).
In year-over-year comparisons with the first nine months of 2015, Sri Lanka hotels reported a 15.0% increase in ADR to LKR15,806.02. Meanwhile, occupancy was relatively flat at 66.4%. As a result, revenue per available room (RevPAR) jumped 14.9% to LKR10,495.60.
As highlighted in Sri Lanka Tourism’s 2016 Strategic Marketing Plan, the country has a target of 2.2 million visitors for the total year, which would be a 26% increase compared with 2015. Tourism statistics show that the country welcomed 1.5 million visitors as of September, a 14.6% increase compared with the same nine months last year.
Boosted by the government’s efforts to increase international arrivals, Sri Lanka’s hotel demand (rooms sold) increased 4.0% as of September. Supply, however, also increased at a rate of 4.0%, and STR expects that supply will continue rising over the next two years with more than 4,300 rooms currently in Sri Lanka’s pipeline.
STR analysts attribute Sri Lanka’s recent boost in ADR to a changing hotel landscape in the market driven by recent openings of new Luxury properties. Additionally, more than 3,600 of the 4,300 rooms in Sri Lanka’s pipeline fall in the Luxury and Upscale categories, which should further lift the country’s ADR as more of the hotel rooms available will be sold at higher prices.
Jesper Palmqvist, STR’s Area Director Asia Pacific, said: “The market for hotel accommodation in Sri Lanka is decidedly healthy, with double-dight growth in occupancy for the past three years and this year, we have seen an uplift in average daily rates too.” At AHTIC, which takes place, November 27 – 29, 2016, at the Hilton Colombo, Palmqvist will give a detailed presentation on the demand for hotel accommodation across the region.
For the full programme visit: www.asia-conference.com/programme
Organiser: Bench Events, Co-organiser and Founder Sponsor: Sri Lanka Tourism Club, Host Partners: Ministry of Tourism Development and Christian Religious Affairs of Sri Lanka; Presidential Secretariat Sri Lanka; BOI Sri Lanka; Sri Lanka Tourism Development Authority and Urban Development Authority Sri Lanka, Strategic Partner: JLL, Platinum Sponsor: JA Resorts & Hotels, Gold Sponsor: C G Hotels & Resorts; Dusit International and Nippon Paint Lanka Ltd, Official Airline Partner: SriLankan Airlines, Supporters: The Centre of Asia Hotel Forum and Pacific Asia Travel Association, Programme endorsed by: The Hotels Association of Sri Lanka.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England.
As of 1 March 2016, all references to STR data and analysis should cite “STR” as the source. Please refrain from citing “STR, Inc.” “Smith Travel Research” or “STR Global” in sourcing as those names no longer fits within the updated STR brand.
For more information, please visit www.str.com.
About Bench Events
Global event organiser Bench Events has a long track record of delivering multiple premium hotel investment conferences and forums across Europe, the Middle East, Africa, Asia and South America.
Market leading annual conferences include the Arabian Hotel Investment Conference (AHIC) in Dubai, now in its 13th year, the Africa Hotel Investment Forum (AHIF) the new Asia Hotel and Tourism Investment Conference (AHTIC), The Summit in London and the Latin American Hotel & Tourism Investment Conferences (SAHIC).
Bench Events’ mission is enabling prosperity by facilitating growth, networking, and thought leadership in the hospitality industry worldwide.
About Sri Lanka Tourism Club
Sri Lanka Tourism Club’s (SLTC) objective is to brand Sri Lanka as an outstanding tourist destination and aim to promote its unique life style, nature, wonders, attractions, heritage and cultures to develop both domestic and international tourism and enhance Sri Lanka’s share of the market for international meetings, incentives, conventions and exhibitions. Its ultimate objective is to increase the number of foreign tourists to Sri Lanka, extend the average length of their stay and finally to increase the national tourism revenue.
For further information and high resolution images, please contact:
David Tarsh, Tarsh Consulting, Email: David@Tarsh.com, Tel: +44 (0) 20 7602 5262, Cell: +44 (0) 7770 816 070.