Key Sectors For Investment - Tourism and Leisure

Sector Overview


Tourism sector has been experiencing an impressive growth both in terms of arrivals and the revenue to the country in foreign exchange in the wake of the return of peace and normalcy in the country in 2009.

Tourist arrivals in 2010 (654,000) recorded a growth of 46% over the previous year and the earnings for 2010 (US$ 501 mn) have increased by 42%. Projected arrivals for the current year (2011) is 800,000 and the sector targets an inflow of 2.5 million foreign visitors in 2016 with earnings to reach US$ 2.75 billion. The sector directly employs 52,000 persons and indirectly provides livelihood for over 100,000. As most of the tourism activities and establishments are dispersed evenly throughout the country, the sector has the unique potential to share the economic benefits with the community at large.

The leading sub-sector is accommodation – hotels / boutique hotels / guest houses / villas - which comprises 1215 establishments of which only 256 are classified as graded hotels. The total room capacity of 22,735 of which 15,529 rooms are available in the graded hotels & villas which is 68% of the total. It is estimated that an additional accommodation capacity of 35,000 is needed for the next 05 years to accommodate increasing arrivals. To achieve the required level of accommodation capacity and other services, the sector requires an investment of US$ 3 billion over next 05 years into the following segments / sub-sectors which provides diversified Key Sectors for Investment for investors.

Emerging Key Sectors For Investment have already attracted the attention of the international investors including-Shangri-La Group, CATIC (China) The Minor group (Thailand) and M-Far Hotels (Oman) who have committed substantial investments. Additionally Sixth Sense Hotels, Banyan Group, Accor Hotels, Dushit (Thailand), and ITC (India) are currently exploring the opportunities.

Investment laws permit 100% foreign ownership in this Sector. Foreign Investments over US$ 10 million are allowed to outright purchase land and properties pertaining to the project.