Despite a shortfall in tourist arrivals, Sri Lanka’s tourism industry has generated over $2 billion in revenue during the first eight months of 2024. According to the latest Central Bank data, tourism earnings from January to August totaled $2.16 billion, marking an impressive 66.1% year-on-year (YoY) increase.
This revenue figure matches the total earnings for the entire year of 2023, demonstrating a significant improvement in yield. However, the sector is still facing a 25% revenue shortfall compared to its peak performance in 2018.
In August alone, the industry recorded earnings of $282.1 million, reflecting a strong 25% YoY growth. The highest monthly earnings of 2024 so far were recorded in February, at $345.7 million.
Data from the Sri Lanka Tourism Development Authority (SLTDA) shows that the average expenditure per tourist, per day, from January to August 2024 was $181.15. However, despite the growth in revenue, the SLTDA fell short of its projected arrival figures and missed its monthly targets throughout the first eight months of the year.
In terms of tourist stay, the average duration in August was 9.46 days, while the overall average stay for the year stood at 8.64 nights. July saw the longest average stay so far in 2024, with tourists staying an average of 9.65 days. Cumulatively, tourist nights from January to August totaled 11,773,452.
Industry leaders have raised concerns about a decline in earnings since mid-April, attributing it to changes in the visa system. Delays in enforcing the Electronic Travel Authorization (ETA) system, despite a Supreme Court order for its immediate reinstatement, have contributed to the decrease in both revenue and tourist arrivals. It is estimated that in August alone, the industry lost around 45,000 potential arrivals and $75-80 million in earnings.
As these challenges persist, industry stakeholders warn that Sri Lanka may struggle to reach its target of 2.3 million tourist arrivals and $2.4 billion in revenue for 2024, making it an increasingly difficult goal to achieve.
Usemee.lk - Author