Sri Lanka’s tourism industry has raised concerns over delays in launching an interim international destination marketing campaign, warning that the absence of aggressive global promotion is beginning to impact hotel occupancy and long-term revenue growth.
Speaking on behalf of the The Hotels Association of Sri Lanka (THASL), President Asoka Hettigoda said the country risks losing momentum in key tourism markets as regional competitors continue to invest heavily in international promotions.
According to industry representatives, discussions with the Sri Lanka Tourism Promotion Bureau (SLTPB) and the Tourism Ministry have resulted in preliminary approval for a global marketing drive. However, the proposed interim digital campaign valued at $1.3 million targeting India, China, Australia, Russia and East Asian countries is yet to commence, pending procurement clearances.
Tourism stakeholders warned that ongoing geopolitical tensions in the Middle East have already started affecting hotel occupancy levels, increasing the urgency for Sri Lanka to strengthen its international visibility in alternative source markets.
THASL estimates that without immediate intervention, tourist arrivals in 2026 could reach only 2.39 million, significantly below the Government’s target of 3 million visitors. Industry leaders believe a timely marketing push could help recover arrivals to approximately 2.54 million and generate close to $3.3 billion in tourism revenue.
Hettigoda also stressed that Sri Lanka’s tourism earnings are not growing in proportion to visitor arrivals, describing the widening gap between arrivals and actual income as a serious concern for the industry.
Despite this, he noted that travellers are increasingly exploring emerging destinations such as Hiriketiya, Mirissa, Arugam Bay and Jaffna, highlighting the country’s untapped tourism potential beyond traditional attractions.
The association said Sri Lanka must adopt a more ambitious global tourism strategy if it hopes to achieve long-term revenue goals. While the Government has targeted $8 billion in tourism earnings by 2030, THASL believes the country could surpass $10 billion if visitor numbers expand to six million alongside higher spending from premium travel experiences.
Industry representatives argued that Sri Lanka should allocate at least $50 million annually for international destination marketing from next year, focusing not only on beaches and wildlife but also on high-value niches such as wellness tourism, surfing, yoga retreats, trekking, architecture tourism, culinary experiences and community-based travel.
THASL members also warned that increasing operational costs, including recent electricity tariff hikes, fuel expenses and higher excise licence fees, are placing severe pressure on hotels, particularly small and medium-scale operators.
At the same time, the association expressed concern over the rapid expansion of the informal tourism sector, claiming that a large number of accommodation providers continue to operate outside the regulatory framework of the Sri Lanka Tourism Development Authority (SLTDA), creating unfair competition for registered businesses and discouraging foreign investment.
Industry officials further criticised weak policy implementation and called for professional management within State tourism institutions instead of politically influenced appointments.
THASL also announced plans to launch its first-ever tourism and hospitality awards programme later this year to recognise excellence and resilience within the sector.
