Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» Amibroker database
by Sonny Bill Yesterday at 10:18 am

» KAPI -MTD WALKERS - MALAYASIAN FIRM TO TAKE CONTROL @40 A SHARE
by Miss-Sangeetha Yesterday at 9:42 am

» Financial Reports Q-4 2018
by sikka89 Yesterday at 7:13 am

» Weekly Stock Market Roundup
by Insights Equity Yesterday at 6:07 am

» SFL.P Going to hit 10 Dr.Sentavil Also Bought above 12
by NP Yesterday at 12:51 am

» CROSSINGS TODAY
by sikka89 Fri Feb 15, 2019 10:10 pm

» DIVIDEND ANNOUNCEMENTS- JAN/MARCH 2019
by sikka89 Fri Feb 15, 2019 10:07 pm

» Collect AAIC to win within six months
by wisdom79 Fri Feb 15, 2019 9:27 pm

» ANILANA HOTEL
by wisdom79 Fri Feb 15, 2019 9:21 pm

» Four more banks obtain enjoining orders against KAPI (MTD Walkers)
by Miss-Sangeetha Fri Feb 15, 2019 8:00 pm

» MTD Walkers (KAPI) face liquidation as Hayleys Group firm files winding up petition
by Miss-Sangeetha Fri Feb 15, 2019 7:57 pm

» Daily Stock Market Update
by Insights Equity Fri Feb 15, 2019 5:33 pm

» INSURANCE bubble finally bursting!
by nosf766 Fri Feb 15, 2019 12:46 pm

» CASH RICH REXP
by nishjaya Fri Feb 15, 2019 9:57 am

» Deal Waligama Property to be sell EAST Interesting
by soileconomy Fri Feb 15, 2019 8:13 am

» ACL PERFORMANCE
by Yahapalanaya Fri Feb 15, 2019 7:42 am

» CDB PERFORMANCE
by Yahapalanaya Fri Feb 15, 2019 7:29 am

» LGL LGL LGL LGL
by dmtmadusanka Fri Feb 15, 2019 6:22 am

» MTD WALKERS PLC
by sikka89 Thu Feb 14, 2019 11:15 pm

» Daily Foreign Transactions
by sikka89 Thu Feb 14, 2019 10:31 pm

» CTCE CTCE CTCE CTCE
by roshan1039 Thu Feb 14, 2019 5:31 pm

» Exit KAPI today
by karuna2 Thu Feb 14, 2019 11:17 am

» Sleeping giants-
by anges Wed Feb 13, 2019 11:52 pm

» HEXP hidden gem share
by anges Wed Feb 13, 2019 11:49 pm

» EAST INTERESTING DAYS AHEAD 25+
by NCC Wed Feb 13, 2019 12:30 pm

» why MFL is collecting ?
by suku502 Wed Feb 13, 2019 12:24 pm

» Whats going on with KAPI
by NP Wed Feb 13, 2019 9:43 am

» __________Bank Instrument & Investment Lease And Sales for Global Investments & Financing____
by sakchai Wed Feb 13, 2019 2:27 am

» DIAL is it best to buy
by TuTanKaman Tue Feb 12, 2019 2:34 pm

» Brokers බොරු කියන්නේ
by karuna2 Tue Feb 12, 2019 9:20 am

» BFN 15.60 - 16 - 16.5 මිලට වැටෙන්නේ ඇයි
by karuna2 Tue Feb 12, 2019 9:19 am

» NP HOW ABOUT MBSL CHART
by sanjulanka Tue Feb 12, 2019 7:17 am

» GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AT THE LOWEST RATES AVAILABLE.OTHER FINANCIAL INSTRUMENTS SUCH AS MTN, CD, DLC, PB ARE ALSO AVAILABLE..............
by sakchai Tue Feb 12, 2019 4:21 am

» Financial bank instruments for Lease and sale for trade and project funding
by sakchai Tue Feb 12, 2019 4:20 am

» CTCE ලාභාංශ පුරොකතනය.
by dmtmadusanka Tue Feb 12, 2019 12:01 am

» undervalued stock
by worthiness Mon Feb 11, 2019 2:13 pm

» Malwatte Valley Plantations PLC
by Rookantha Mon Feb 11, 2019 12:56 pm

» Malwatte Plantation
by Rookantha Mon Feb 11, 2019 12:09 pm

» MALWATTE PLANTATIONS GOOD RESULTS
by Rookantha Mon Feb 11, 2019 12:09 pm

» Malwatte Valley Plantations PLC
by Rookantha Mon Feb 11, 2019 12:09 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Hotels face tough time --- Drop in tourist arrivals predicted/so many new hotels are opening

Hotels face tough time --- Drop in tourist arrivals predicted/so many new hotels are opening

Go down  Message [Page 1 of 1]

kcrRanz


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Sri Lanka's Hotel Industry will face a number of challenges in the next four years as tourist arrivals to the country slows down, according to a prediction made by the internationally well-known ratings agency, Fitch Ratings.
In a comprehensive report on the industry, Fitch Ratings said, Sri Lanka will lag behind most developed tourism destinations.
"Indian traffic, which accounted for around 17% of tourist inflow during 2016, was the main contributor to growth in arrivals for the purpose of visiting family and friends," the firm said.
"Consequently, we believe Sri Lanka will continue to lag behind most developed tourism markets, which generate over US$ 500 in daily earnings per tourist," the firm said.
Despite the growth of tourist arrivals slowing down to 2.9%, the leading international rating agency expects visitors to Sri Lanka to grow at a compound 15% rate during the next four years.
Further, Fitch Ratings also expects the average yield to record an average compound growth rate of 5% during the next four years, missing the Government's US$ 210 yield target by 2020.
According to the firm, Sri Lanka will fall short of its 2020 target of 4 million arrivals by nearly 400,000 visitors, as the expected compound growth rate will only bring in only 3.6 million travellers.
Fitch Ratings says that the 15% growth will be driven by the rapid increase in arrivals from Indianand Chinese markets.
They expect the delayed US$ 21 million destination-promotion campaign, which will kick off in January next year, to focus on Asian markets to boost arrivals to outpace European traffic over the medium term.
According to Fitch Ratings, "earnings growth is to be limited due to slower growth in tourist spend over the medium term. This is in light of the rising inflow of low-spending Asian tourists, especially from the Indian and Chinese markets."
"The limited array of exclusive niche tourism products which would entice high-spending up market tourists is also a driver. For example, MICE remains significantly under-exploited, accounting for less than 1% of tourist arrivals in 2016," the firm said.
After falling short more than 150,000 tourists for the revised target and 450,000 tourists for the original target for 2016, the Government expects to welcome more than 2.5 million visitors this year.
However, during the first three quarters of this year, tourist arrivals to the country reached 1.55 million, up 2.9% from 1.5 million in 2016. For the country to achieve the ambitious growth target however, even more tourists are needed during the next three months.
Tourism earnings during the first eight months of this year increased 2.5% to US$ 2.41 billion from US$ 2.33 billion a year ago. This year, the Government hopes to earn more than US$ 4 billion from the sector, requiring more than US$ 1.59 billion during the last for months of this year.
The Government has planned a Rs 200 million four-month digital promotional campaign, which will be followed by a US$ 20 million 2-year comprehensive marketing programme, expected to kick start next January.
Arrivals from South Asia increased 2.9% to 335,105 this year, despite arrivals from China declining 2.1% to 208,635, while arrivals from South Asia declining 0.2% to 360,355, despite arrivals from India increasing 6.1% to 267,601.
Fitch also said that the established hotel sector will be challenged by the informal sector such as home-stays and Air b-and-bs.
Another possible challenge will be a shortage of skilled labour, it said.


Read full report on Page 4 of the FT.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum