Sri Lanka Hospitality Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 470.76 Million |
| Market Size (2029) | USD 656.88 Million |
| CAGR (2024 - 2029) | 6.89 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sri Lanka Hospitality Market Analysis
The Hospitality Industry In Sri Lanka Market size is estimated at USD 470.76 million in 2024, and is expected to reach USD 656.88 million by 2029, growing at a CAGR of 6.89% during the forecast period (2024-2029).
The Sri Lankan hospitality industry, which includes resort hotels, boutique accommodations, homestays, and traditional Sri Lankan restaurants, is crucial to the nation's tourism industry and economic health, serving as the third-largest source of revenue through foreign exchange earnings.
The industry has consistently been a top earner from tourism, establishing the country as an essential income source and offering attractive opportunities for investors and traders. The government has initiated plans to improve the country's beach and island tourism.
Port City Colombo (PCC) is at the forefront of transforming Sri Lanka into a premier tourist destination, attracting global travelers and investors with its commitment to sustainability, innovation, and exceptional hospitality, signaling a new chapter for the tourism industry.
The country prides itself on a collection of world-class hotels, resorts, boutique accommodations, and a dynamic culinary landscape. While already featuring luxury dining and a variety of cuisine, Sri Lanka is further investing in leisure and recreational activities, including three renowned golf courses in Nuwara Eliya, Kandy, and Colombo.
Despite these offerings, there is considerable room for growth, particularly in regions beyond the Western Province, where entertainment complexes and amusement parks are concentrated. This presents a significant opportunity for the expansion of such facilities throughout the island.
Sri Lanka Hospitality Market Trends
Expansion of the Sri Lankan Aviation Industry is Driving Economic Growth
The increase in air connectivity in Sri Lanka is fueling growth in its airport and aviation industry. This expansion enhances the industry and positively impacts key industries such as tourism, trade, and investment, strengthening the nation's overall economic activities. The Sri Lankan government, recognizing this potential, is actively investing in the Bandaranaike International Airport, its primary international airport, to meet rising demand. To establish itself as a regional hub, the government is prioritizing the development and expansion of its regional airport network.
The impact of aviation on a nation's GDP is well-established, with increased air activity often indicating strong economic growth. A recent global aviation event, attended by over 100 experts from around the world, including key representatives from the European Union and Asia-Pacific, further highlighted Sri Lanka's importance. The event organizers noted that, despite the nation's political and economic challenges, Sri Lanka was a compelling choice as the host. Demonstrating its proactive approach, the government has begun seeking expressions of interest for multiple regional airport projects, underlining its commitment to meeting industry demands. With Sri Lanka's promising growth trajectory and expanding opportunities in its airport and aviation industry, foreign businesses and investors are showing increased interest in the country. Sri Lanka's appeal as a tourist destination remains strong, evidenced by the growing number of airlines resuming flights to the country post-pandemic. Sri Lanka is expected to have over 40 airlines operating, a figure comparable to pre-pandemic levels, indicating sustained interest in the country as a travel destination.
Sri Lanka's Tourism Industry Shows Strong Recovery and Growth
In the current year, Sri Lanka's tourism industry generated USD 342 million in revenue, an increase of 122% from the previous year. The country's external sector performance has improved, driven by increased tourism revenue, inward remittance inflows, and the depreciation of the local currency, the rupee.
India has consistently been the largest source of tourists visiting Sri Lanka, maintaining this position even during the pandemic and the island's subsequent economic downturn. Sri Lanka experienced a significant increase in Indian tourists, with numbers doubling in January 2024. The count rose from 13,759 in January of the previous year to 34,399 this year. This growth is largely attributed to enhanced connectivity between the two countries. Currently, 95 flights operate between Sri Lanka and nine major Indian cities. This improved air connectivity ensures easier travel and facilitates smoother financial transactions, supported by India's Unified Payments Interface.
Sri Lanka Hospitality Industry Segmentation
The Sri Lankan hospitality industry is highly fragmented. The country's hospitality industry is a mosaic of global and domestic players, leading to a highly competitive environment across its diverse segments, spanning city hotels to sprawling resorts. In this milieu, the strategic positioning and architectural distinctiveness of hotels are poised to emerge as pivotal brand differentiators. The major players in the market are Shangri-La Hotels and Resorts, Mariott International Inc., Amaya Resorts & Spa, Cinnamon Hotels & Resorts, and InterContinental Hotels & Resorts.
Sri Lanka Hospitality Market Leaders
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Shangri-La Hotels and Resorts
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Mariott International, Inc
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Amaya Resorts & Spa
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Cinnamon Hotels & Resorts
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InterContinental Hotels & Resorts
*Disclaimer: Major Players sorted in no particular order
Sri Lanka Hospitality Market News
- February 2024: Marriott International reinforced its commitment to South Asia. The company expanded its development pipeline by over 4,600 rooms through 28 hotel deals signed in 2023, building on agreements made since 2020. Marriott's South Asian market includes India, Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives.
- January 2023: Courtyard by Marriott Colombo debuted in Sri Lanka. Located 1.7 km from Galle Face Beach, the hotel offers amenities, including an outdoor swimming pool, free private parking, a fitness center, and a terrace. The property also features a bar and a restaurant serving Chinese cuisine.
Sri Lanka Hospitality Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in the Tourism Industry
4.2.2 Increase in the Number of Hotel Projects and Investments
4.3 Market Restraints
4.3.1 Sustainability and Competition Threaten Industry Success
4.4 Market Opportunities
4.4.1 Government Initiatives Can Be Used to Expand the Horizons of the Industry
4.4.2 Online Marketing Can Be Leveraged to Expand the Customer Base
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness: Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Hospitality Industry
4.8 Insights into Revenue Flows from the Accommodation and Food and Beverage Sectors
4.9 Leading Cities in Sri Lanka with Respect to Number of Visitors
4.10 Investments (Real Estate, FDI, and Others) in the Hospitality Industry
4.11 Technological Innovations in the Hospitality Industry
4.12 Insights into Shared Living Spaces' Impact on the Hospitality Industry
4.13 Insights into Other Economic Contributors to the Hospitality Industry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Service Apartments
5.2.2 Budget and Economy Hotels
5.2.3 Mid and Upper-mid-scale Hotels
5.2.4 Luxury Hotels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Shangri-La Hotels and Resorts
6.2.2 Mariott International Inc.
6.2.3 Amaya Resorts & Spa
6.2.4 Cinnamon Hotels & Resorts
6.2.5 InterContinental Hotels & Resorts
6.2.6 Amari Galle
6.2.7 Yoho Lanka (Pvt.) Ltd
6.2.8 Tangerine Group of Hotel
6.2.9 Jetwing Hotels
6.2.10 Anantara Hotels, Resorts & Spa
6.2.11 Ramada (by Wyndham Hotels & Resorts) *
- *List Not Exhaustive
7. FUTURE MARKET TRENDS
8. DISCLAIMER AND ABOUT US
Sri Lanka Hospitality Industry Segmentation
Hospitality means receiving and entertaining guests in a way that makes them feel well taken care of. It leverages ambiance, service, and products or amenities to provide guests with the best experience possible.
The Sri Lankan hospitality industry is segmented by type and segment. By type, the market is segmented into chain hotels and independent hotels. By segment, the market is divided into service apartments, budget and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The report offers market sizes and forecasts in terms of value (USD) for all the above-mentioned segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper-mid-scale Hotels | |
| Luxury Hotels |
Sri Lanka Hospitality Market Research FAQs
How big is the Hospitality Industry In Sri Lanka Market?
The Hospitality Industry In Sri Lanka Market size is expected to reach USD 470.76 million in 2024 and grow at a CAGR of 6.89% to reach USD 656.88 million by 2029.
What is the current Hospitality Industry In Sri Lanka Market size?
In 2024, the Hospitality Industry In Sri Lanka Market size is expected to reach USD 470.76 million.
Who are the key players in Hospitality Industry In Sri Lanka Market?
Shangri-La Hotels and Resorts, Mariott International, Inc, Amaya Resorts & Spa, Cinnamon Hotels & Resorts and InterContinental Hotels & Resorts are the major companies operating in the Hospitality Industry In Sri Lanka Market.
What years does this Hospitality Industry In Sri Lanka Market cover, and what was the market size in 2023?
In 2023, the Hospitality Industry In Sri Lanka Market size was estimated at USD 438.32 million. The report covers the Hospitality Industry In Sri Lanka Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Hospitality Industry In Sri Lanka Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sri Lanka Hospitality Industry Report
Statistics for the 2024 Hospitality Industry In Sri Lanka market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Hospitality Industry In Sri Lanka analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Hospitality Industry In Sri Lanka Report Snapshots
