Hotels (Commonwealth Union) _ Sri Lanka is facing a potential shortage of hotel rooms for high-spending tourists by the end of 2025, according to Priyantha Fernando, Chairman of the Sri Lanka Tourism Development Authority. Speaking at the Sancharaka Udawa tourism fair, Fernando highlighted the urgency of matching the country’s hospitality offerings with the growing demand.
“If the trend continues, we will be short of rooms by the end of next year,” Fernando told EconomyNext. He noted that high-end hotels charging over $250-300 per night are experiencing very high occupancy rates. Currently, Sri Lanka offers approximately 10,500 rooms catering to high-end tourists across the island.
To address the rising demand, several hotel chains are expanding their offerings. Cinnamon has introduced new eco-excursion ventures, while ITC recently opened a new high-end hotel in Colombo, with Cinnamon Life set to open later this year.
In an effort to attract more high-spending tourists, the Sri Lanka Tourism Promotion Bureau launched a 1.5 billion rupee promotional campaign in January, targeting 11 key markets including China, Russia, the UK, and Germany. The bureau aims to draw 2.3 million tourists, potentially increasing to 2.5 million under a master plan, according to Chairman Chalaka Gajabahu, who also spoke at Sancharaka Udawa.
Despite these efforts, the tourism industry has raised concerns about achieving these targets. Minimum room rates and high fees, coupled with a complicated booking website managed by VFS Global, have deterred some summer visitors. The previous, simpler website had been more user-friendly.
As Sri Lanka continues to develop its tourism infrastructure to cater to high-spending visitors, the industry faces the challenge of balancing demand with quality service and accessibility. Addressing these concerns will be crucial for maintaining the country’s appeal as a top destination for luxury travel.Top of Form
