MAJOR Sri Lankan Hotel Chains are pumping approximately Dh18 billion ($4.9 billion) into new projects which will lead to a 45 per cent increase in room capacity.
The double-digit growth of inbound tourism to Sri Lanka has sparked a massive hotel expansion drive by several hotel giants, including refurbishment of existing hotels and major development plans in the pipeline announced Sri Lanka Tourism Promotion Bureau’s (SLTPB) Middle East office.
Total hotel expansion and development spending is estimated at Dh18 billion while projected inbound tourism arrival is expected to exceed 2.5 million by 2016.
The boom in tourism is projected in the wake of increased demand for hotel rooms post conflict resolution.
From the Middle East alone, tourist arrivals for the first six months of 2010 reported an enormous surge with SLTPB figures showing an increase of 102 per cent over the same period last year.
Heba Al Mansoori, Middle East director of SLTPB, said: “Regardless of apprehensions of an unsteady global economy, the Middle East’s discerning travellers are spending time and money on travel and Sri Lanka which has been one of the destinations of choice with a meteoric rise in tourists during the first half of 2010.”
John Keells Holdings (JKH) invested Dh13 million ($3.5 million) to upgrade and rebrand Club Oceanic to Chaaya Blu in Trincomalee and the group has undertaken a Dh65.4 million ($17.8 million) investment in a new four-star, 190-room hotel in the Beruwela area. Coral Gardens in Hikkaduwa, Bentota Beach and Habarana Lodge are all being refurbished at a total cost of around Dh49 million ($13.3 million) and the chain also has lands in Ahungalla, Wirawila and Nilaweli on which new properties are planned.
At Amaya Resorts & Spas the development process will be carried out in stages. Firstly the existing properties at an estimated Dh36.7 million ($10 million) moving onto the available land bank with identified areas at – Wadduwa, Dh55 million ($15 million), Kalpitiya, Dh55 million ($15 million), Mirissa, Dh110 million ($30 million), and Negombo at Dh110 million ($30 million). The total investment projected for this second stage of development is approximately Dh330.5 million ($90 million).
Jetwing is set to spend Dh23 million ($6.2 million) on rebranding and refurbishing Blue Oceanic as Jetwing Blue as well as approximately Dh16.3 million ($4.4 million) at Sea Shell which will be converted to Jetwing Sea and Dh13 million ($3.5 million) at Blue Lagoon. Jetwing Blue and Jetwing Sea are expected to open for business in December this year.
Tourist arrivals have increased by almost 48 per cent for the month of July alone compared to last year and the first half of 2010 saw a jump 48.4 per cent on 2009.