Sri Lanka must shift from volume to value to unlock full tourism potential: SLTDA Chairman

Highlights value gap and over-tourism pressures

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SRI Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam urged the industry to pivot toward higher-value tourism, warning that the country's current yield per tourist remains far below its potential despite rising arrivals and strong seasonal performance.

Speaking at the Tourist Hotels Association of Sri Lanka (THASL) Annual General Meeting on Monday, Hewawasam said that while the country is on track to surpass key tourism milestones, the average revenue per tourist is still significantly lower compared to competing destinations across Asia.

He noted that most travellers visiting Sri Lanka spend around $ 300 per day, whereas competing destinations such as Malaysia, Indonesia, and island destinations across Southeast Asia report much higher yields.

"Our challenge is not arrivals, its value. Countries around us are earning far more per visitor. We cannot sustain growth if we continue to attract high volume but low value," he said.

He also highlighted that Sri Lanka still struggles with seasonality, experiencing five strong months and seven weaker months.

"We need year-round appeal. Without that, we cannot meet revenue targets even if arrivals rise," he added.

Hewawasam also revealed that Sri Lanka was to lose significant visitor numbers, with airlines cancelling around 45 flights weekly, a trend expected to continue if bottlenecks remain unresolved.