Sri Lanka’s tourism sector has generated over $2 billion in revenue during the first eight months of 2024, despite a shortfall in tourist arrivals, according to the latest data from the Central Bank. Tourism earnings between January and August reached $2.16 billion, representing a 66.1% year-on-year (YoY) increase.
The earnings for the first eight months have already matched the total revenue from the entire year of 2023, signaling an improvement in yield. However, the sector is still dealing with a 25% revenue shortfall compared to its peak performance in 2018.
In August 2024 alone, the tourism industry brought in $282.1 million, a 25% YoY rise. February saw the highest monthly earnings for 2024 so far, with a total of $345.7 million.
Data from the Sri Lanka Tourism Development Authority (SLTDA) showed that the average tourist expenditure per day from January to August was $181.15. Despite this, the SLTDA consistently missed its projected monthly arrival figures throughout the first eight months of the year.
The average tourist stay in August was 9.46 days, with the overall average for 2024 standing at 8.64 nights. The longest recorded stay was in July, with an average duration of 9.65 days. The total number of tourist nights recorded from January to August reached 11,773,452.
Industry leaders have expressed concern over a decline in earnings since mid-April, attributing the drop to changes in the visa system. The delayed implementation of the Electronic Travel Authorisation (ETA) system, despite a Supreme Court order, has reportedly caused a reduction in both tourist arrivals and revenue.
In August alone, the industry estimates that 45,000 potential arrivals were lost, translating to an estimated $75-80 million in missed earnings.
The tourism sector is now warning that if these issues persist, Sri Lanka may struggle to achieve its target of 2.3 million tourist arrivals and $2.4 billion in revenue for 2024.