Sri Lankan Travel and Tourism Industry: Recent Trends and Future Outlook towards Real Estate Development

Abstract

Tourism is considered as an important economic activity around the world due to its direct economic impact as well as it is significant indirect and induced impacts. Granting to the World Travel and Tourism Council, Travel and Tourism Industry is one of the world’s most significant economic sectors accounting for 10.4% of global GDP and 313 million jobs, or 9.9% of total employment, in 2017. The direct and indirect impact of the industry on real estate development in the world is tremendous in terms of accommodation, catering to food and beverages, leisure, pleasure and relaxation. In Sri Lanka, tourism is the third-largest export earner in the economy, and during the past five years, there has been an unprecedented growth in the industry. However, tourism in Sri Lanka has much more untapped potential; thereby, the sector is poised to generate a range of growth and investment opportunities. However, it is only through the right policies and investment decisions; Sri Lanka can leverage the economic prospects of the Travel and Tourism Industry. This study analyses the importance of the Travel and Tourism Industry in terms of real estate development. It reviews significant trends that are shaping the growth and development of the Travel and Tourism Industry in Sri Lanka and aim to produce useful inputs for policy implications. The analysis is based on modified Tourism Satellite Account: Recommended Methodological Framework 2008 published by World Travel and Tourism Council, and carried out analyzing both academic and non-academic publications, including published journal articles, annual and quarterly reports published by United Nations’ World Tourism Organization, World Travel and Tourism Council, World Economic Forum and Sri Lanka Tourism Development Authority and through the raw data obtained by World Travel and Tourism Council for Sri Lanka. As per the analysis, the future outlook is bright for the tourism sector in Sri Lanka, and the country is expected to maintain a high rate of growth well into the next decade.