Looking ahead, the sector’s growth prospects appear very promising, particularly in the short to medium term. According to industry experts, the current capacity of approximately 15,000 rooms (from graded hotels) can only cater to around 800,000 guests per annum; this is insufficient given the Sri Lankan government’s ambitious target of 2.5 million tourist arrivals by 2016. Industry experts estimate that the current capacity will have to be doubled to accommodate this influx; this is perceived to be unattainable over the medium term due to the long lead time for hotel development.
Important : Refer - Chart 7: Revenue trends of selected listed hotels in Sri Lanka
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