Sri Lanka expects 10-20% monthly increase in tourist arrivals in 2022 while Omicron threat looms

„SL expects to push economic growth up to 6% next year supported by tourism sector recovery „Global response to Omicron threat by way of border closures and tighter travel rules may complicate progress

Sri Lanka is expecting tourist arrivals to the country to recover by between 10 to 20 percent every month from next year supporting the rebound in the pandemicstruck industry, which will in turn cushion the broader economy.

However, the detection of the Omicron variant in end November, which sparked widespread global travel restrictions, could pose a threat for these plans.

Sri Lanka received its highest monthly arrivals in November with 41,177 tourists visiting the country during the first 28 days, taking the first eleven-month arrivals to 101,872, the data presented by the Tourism Ministry showed.

Buoyed by the accelerations in the arrivals during October and November, the Ministry expects 75,000 new arrivals for December, taking the total arrivals towards 180,000 by the year-end.

But the threat of Omicron since the end of November and the resulting global response by way of border closures and tighter travel rules could complicate realisation of the envisaged numbers.

“We had a very constructive discussion with the tourism industry yesterday. We have been told that there would be at least 50,000 arrivals during this month. We have also been told they expect another 75,000 next month (December), ”Central Bank Governor Ajith Nivard Cabraal said.

“From 2022 onwards they expect to record 10 to 20 percent growth every month. The required provisions have also been made. The weaknesses are being sorted out,” he added.

After suffering its worst foreign currency and economic downturn during 2020 and 2021 caused predominantly by the pandemicinduced business closures and prolonged restrictions on economic activities, Sri Lanka is pinning its hopes on the quick rebound in the tourism industry to turn its economic fortunes, premised on the faster vaccination drive that is taking place both at home and abroad.

Sri Lanka expects to push its economic growth up to 6 percent in 2022, buttressed by the tourism sector recovery envisaged for the next year. Tourism to Sri Lankan economy is over US$ 4.0 billion industry and it lost double this amount during the two years it lost due to the pandemic, plunging the country to the current economic hardships.

“With the rebound in tourism we are hopeful of 6 percent growth in 2022,” Cabraal said.