Sri Lanka’s tourism sector continues to show positive momentum as of September 2024, with both visitor arrivals and earnings on the rise, despite a slight dip from the previous month.
Recent data reveals that the country generated US$ 181 million in tourism revenue in September, a significant increase from the US$ 152.2 million earned in the same month last year. This increase aligns with the ongoing recovery of arrivals towards pre-pandemic levels. However, September’s earnings were approximately US$ 100 million lower than August’s figures, attributed to a slowdown in arrivals.
In total, Sri Lanka welcomed 122,140 tourists in September, up from 111,938 visitors in September 2023 but down from the 164,609 who visited in August. This brings the total number of arrivals for the first nine months of the year to nearly 1.5 million, compared to 1,016,256 during the same period in 2023. This figure is approaching the total arrivals recorded for the entire year of 2023.
The Sri Lankan government aims to attract over 2 million visitors in 2024, targeting earnings between US$ 3 billion and US$ 3.5 billion by year-end. A strong performance during the year-end tourist season is expected to help the industry meet these ambitious targets.
Recovery in tourism earnings, alongside resilient remittance inflows and export earnings, has contributed to the country’s economic stabilization following a severe foreign currency crisis in early 2022, which severely impacted the ability to import essential goods, including energy and medicine.
The new government has reinstated the previous visa system, complying with a court order issued two months ago, which aims to simplify travel to Sri Lanka. However, the new visa system implemented in April has created challenges for travelers, increasing costs and raising concerns about its potential impact on the vital tourism sector, which is crucial for generating the foreign currency needed for imports.