Foreign tourist spending in Sri Lanka declines, survey finds

The average expenditure of foreign tourists visiting Sri Lanka has declined significantly in recent years, according to a survey conducted by the Department of Economics and Statistics at the University of Peradeniya.

Prof. Wasantha Athukorala, attached to the department, said the findings point to a notable shift in tourist spending patterns over the past seven years, raising concerns about the country’s tourism revenue despite a recovery in visitor arrivals.

The study revealed that, on average, a foreign tourist spent around $1,800 during their visit to Sri Lanka last year. However, current figures indicate that this has dropped sharply to approximately $1,300 per visitor, reflecting a substantial reduction in per capita spending.

Prof. Athukorala noted that the decline cannot be attributed to a single factor, but rather a combination of global and domestic economic challenges. “Various economic and global factors have influenced tourist behaviour, leading to more cautious spending patterns,” he said.

Industry analysts suggest that inflationary pressures in key source markets, currency fluctuations, and uncertainty in the global economy may have led tourists to tighten their budgets. In addition, evolving travel trends, including shorter stays and increased preference for budget accommodation, may also be contributing to lower overall spending.

The findings highlight a growing need for Sri Lanka to reposition its tourism strategy, with greater emphasis on attracting higher-spending visitors and enhancing value-added services.

Experts say that while increasing tourist arrivals remains important, boosting per-tourist expenditure will be critical to maximising foreign exchange earnings and supporting the country’s broader economic recovery.

Source: Daily News