THASL Warns of Billions in Revenue Loss Without Urgent Reforms 📈

The Hotels Association of Sri Lanka (THASL) has flagged a critical gap between tourist arrivals and actual earnings, citing policy delays and forex leakages as primary threats to the economy. • Economic Targets & Growth Industry experts propose a target of US$ 10 Bn in tourism revenue by 2030, exceeding the Government’s US$ 8 Bn goal. This requires 6 million arrivals, 20% annual growth, and a 30% increase in per-night spending through high-value travel experiences. • Marketing & Sector Outlook THASL advocates for a US$ 50 Mn annual global campaign starting in 2027, with an immediate US$ 1.3 Mn digital campaign to mitigate Middle East conflict impacts. With reforms, 2026 arrivals could reach 2.54 million, generating US$ 3.3 Bn in revenue. • Cost Pressures & SME Challenges The tourism and hospitality sector faces rising operational costs from fuel, gas, and an 18% electricity hike. Hotels also report sharp increases in liquor license fees (80%–100%), hurting competitiveness against regional peers. • Regulatory & Leakage Issues Approximately 60% of tourism entities remain unregistered, leading to significant forex leakages via offshore OTAs and foreign POS systems. THASL rejects new tourism laws, calling instead for the proper implementation of the existing Act and professional, non-political leadership. • Strategic Requests The industry seeks tax relief, renewable energy incentives (BESS), and digitized licensing to streamline operations for SME hotels.