Tourism earnings in Sri Lanka dropped to a four-month low in September 2024, despite a 19% year-on-year (YoY) increase, reaching $181 million. However, this figure was 20% lower compared to August, primarily due to a decline in tourist arrivals. The decline was largely attributed to challenges stemming from the outsourcing of the visa processing system, which has hampered the industry’s growth in recent months.

On a positive note, the Government reinstated the Electronic Travel Authorisation (ETA) system on 26 September, much to the relief of tourism stakeholders. Industry experts expressed renewed confidence, seeing the move as a boost to the sector’s potential for growth in the coming months.

Despite the dip in September, the tourism industry saw a remarkable rebound during the first nine months of 2024, with revenues reaching $2.34 billion, a 61.2% YoY increase. This performance has already surpassed the $2.06 billion generated for the entirety of 2023.

When compared to the industry’s peak in 2018, which saw tourism earnings total $3.25 billion in the first three quarters, there is a 28% decline in 2024. Nevertheless, February 2024 remains the highest-earning month since 2020, with tourism generating $375.7 million.

Tourism remains a vital component of Sri Lanka’s economy, contributing approximately 10% of the nation’s GDP and standing as a significant net foreign exchange earner due to its minimal currency outflows for inputs.

Sri Lanka Tourism aims to attract 2.3 million visitors and generate over $4 billion in revenue by the end of 2024. With only three months remaining, the industry will need to bring in an additional 815,192 visitors and raise over $1.65 billion to meet these targets.

Tourism leaders, including The Hotels Association of Sri Lanka (THASL) and the Sri Lanka Association of Inbound Tour Operators (SLAITO), have urged the newly elected President Anura Kumara Dissanayake to intervene. They are calling for the swift implementation of a global promotional campaign to boost awareness of Sri Lanka as a top destination ahead of the crucial winter tourist season.

Author - Usemee.lk