http://www.sundayobserver.lk/2012/12/16/new18.asp

Tourist arrivals up by 18.7 percent

by Uditha Kumarasinghe

The hotels and restaurants sub sector which accounts for 0.5 percent of the total Gross Domestic Product (GDP) has recorded a 22.6 percent growth rate during the first half of 2012 reflecting the revival of the tourism sector as the country is being developed as an attractive tourist destination benefiting from the current peaceful atmosphere.

During the first eight months of 2012, tourist arrivals had increased by 18.7 percent to 452,367 and tourist earnings by 24.3 percent to US$ 459.9 million compared to the same period of 2011 according to the Fiscal Management Report 2013 presented by President Mahinda Rajapaksa in his capacity as Finance and Planning Minister in Parliament on last November.

During the first quarter of 2012, room occupancy and guest nights increased by 4.1 percent and 7.0 percent respectively compared to the first quarter of 2011.

The report states that the tourist arrivals from Western Europe and South Asia has increased by 20.3 percent and 4.6 percent respectively.

The target of attracting 2.5 million tourists by 2016 has created many opportunities in a number of areas, including construction industry, domestic agriculture, recreation and food and beverages industry.

Meanwhile, construction services which account for 25 percent of the industrial sector have recorded a remarkable growth rate of 17.9 percent during the first half of 2012 compared to 12.5 percent recorded in the same period of 2011, reflecting the improvements in public investment as well as private sector investment in economic activities.