Travel & Tourism - Sri Lanka | Statista Market Forecast

In Sri Lanka, the Travel & Tourism market is projected to earn a revenue of US$373.50m in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.76%, thereby raising the expected market volume to US$622.70m by 2029.
Among the markets, Hotels are anticipated to be the largest with a projected market volume of US$180.40m in 2024.
By 2029, the number of users in Hotels is expected to reach 1.77m users.
In 2024, the user penetration is expected to be 10.3%, which is likely to increase to 11.1% by 2029.
The average revenue per user (ARPU) is estimated to be US$165.30.
By 2029, online sales are anticipated to account for 67% of total revenue generated in the Travel & Tourism market.
When compared globally, United States is expected to generate the highest revenue at US$214bn in 2024.
Sri Lanka's Travel & Tourism market is experiencing a rise in eco-tourism, with a focus on sustainable practices and conservation efforts.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Sri Lanka is experiencing a significant growth trajectory, attracting a diverse range of travelers from around the globe.

Customer preferences: Travelers visiting Sri Lanka are increasingly seeking authentic cultural experiences, adventure tourism, and eco-friendly accommodations. The demand for personalized travel itineraries and off-the-beaten-path destinations is on the rise, catering to a more experiential and conscious consumer base.

Trends in the market: One of the notable trends in the Sri Lankan travel market is the surge in wellness tourism, with an emphasis on yoga retreats, Ayurvedic treatments, and spa resorts. Additionally, the country is witnessing a rise in luxury travel, with high-end boutique hotels and luxury villas gaining popularity among affluent travelers. The growing trend of sustainable tourism practices and community-based tourism initiatives is also shaping the industry landscape in Sri Lanka.

Local special circumstances: Sri Lanka's unique geographical features, including pristine beaches, lush tea plantations, ancient cultural sites, and diverse wildlife, offer a rich tapestry of experiences for travelers. The country's warm hospitality, rich heritage, and flavorful cuisine further contribute to its appeal as a top tourist destination in South Asia. The recent infrastructure developments and improved connectivity have also made it easier for tourists to explore the island nation.

Underlying macroeconomic factors: The steady economic growth, political stability, and government initiatives to promote tourism have played a crucial role in driving the growth of the travel industry in Sri Lanka. The country's strategic location along major international sea routes and its increasing popularity as a cruise ship destination have further boosted tourist arrivals. Moreover, the investments in tourism infrastructure, such as new hotels, resorts, and transportation facilities, are enhancing the overall travel experience for visitors to Sri Lanka.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.