Tourism

Tourism Sector Employment Grows 11.24% YoY in 2023, Reaching 429,641 Jobs

In 2023, total employment in Sri Lanka’s tourism sector, including indirect jobs, grew by 11.24% year-on-year (YoY), reaching 429,641 employees, according to provisional data from the Sri Lanka Tourism Development Authority (SLTDA).

Direct employment within the sector increased by 7.3% YoY, hitting an all-time high of 204,591 workers. Hotels and restaurants dominated, accounting for 80.9% of direct employment. Travel agents and tour operators contributed 7.4%, the airline industry employed 4.2%, tourist guides represented 3.6%, and the public sector accounted for 1.1%. These figures were derived from a survey covering 6,569 tourism establishments across the country.

The SLTDA highlighted the importance of hotels and restaurants in driving employment in the sector, noting that smaller percentages for travel agents, tour operators, airlines, and guides indicate their essential yet smaller role in overall job creation.

Room Occupancy and Tourist Stay Duration

In 2023, Sri Lanka’s graded annual room occupancy rate rose to 39%, up from 30.4% in 2022, though it remained below pre-pandemic levels when occupancy averaged mid-70%. Graded room stock also increased, reaching 26,422 rooms, compared to 25,597 in 2022.

However, the average length of tourist stays decreased slightly to 8.4 nights from nine nights in the previous year. The daily receipt per tourist stood at USD $164.4, unchanged from 2022 but still below the 2019 pre-pandemic figure of USD $181.2 per day.

Indirect Employment and Ancillary Industries

Indirect employment generated by tourist spending in sectors like handicrafts, gems, and jewellery rose by 14.98% YoY to 225,050 jobs in 2023. This marks a near-full recovery to pre-pandemic levels, just shy of the 229,015 jobs recorded in 2019.

These statistics reflect a strong rebound in Sri Lanka’s tourism sector, signaling recovery from the economic and pandemic-induced downturns.