Page 20 - Invest in Sri Lanka
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Sri Lanka: The Heart of the Eastern Hemisphere Your Destination for Timeless, Sustainable Investments
The evolution of strong room rates
2000s: 2016-2019:
1 In the early 2000s, Sri Lanka's hotel 6 This period saw further growth, with Colombo's
sector struggled due to the country’s civil
war, with average nightly room rates for luxury hotels averaging USD 150-250 per
night.
3-5 star hotels hovering around USD
50-75. 7 High-end resorts in popular regions like
2 Premium hotels in Colombo and popular Bentota, Koggala, and Tangalle charged rates
between USD 400-600 per night during peak
tourist areas like Bentota and Galle
managed slightly higher rates, ranging on seasons.
average from USD 100-150. 8 Occupancy and strong demand, particularly in
the luxury segment, allowed many hotels to
Post-War Boom (2010-2015): push rates higher, though this was tempered
3 Following the end of the civil war in 2009, by competition from new properties.
there was a significant increase in tourist
arrivals, leading to a rise in room rates. 9 2020s (Impact of COVID-19 and Recovery):
4 By 2015, the average nightly room rates The COVID-19 pandemic caused a sharp
decline in tourism in 2020, leading to a drop in
for 3-5 star hotels increased to USD
the limited number of travelers.
100-200, with luxury resorts charging average room rates as hotels sought to attract
upwards of USD 300-500 per night. 10
5 Coastal resorts, especially in areas like By 2021-2022, rates for many 3-5 star hotels
dropped by 20-40%, with luxury properties
the Southern Province (Galle, Weligama)
often o ering rooms at USD 150-300 per night.
and the East Coast (Trincomalee, The gradual recovery in 2023 saw rates
Pasikudah), saw substantial rate inching back up, with an average of USD
increases, driven by renewed interest 100-200 for 3-5 star hotels and USD 300-450
from tourists and investors. for luxury resorts.
INVEST IN TOURISM SRI LANKA 16
