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Sri Lanka’s hotels dress up for post-war rush

COLOMBO – Sri Lanka’s hotel owners are racing to refurbish and add thousands more rooms as foreign holidaymakers pour into the country after the end of nearly four decades of ethnic bloodshed.

Leading hotel groups plan to spend millions of dollars on new decor and facilities for the influx of tourists drawn to the plentiful sunshine, beaches and tropical wildlife on the Indian Ocean island nation.

The ambitious expansion comes amid a post-war revival that has pushed up hotel room rates and given the hospitality industry something to cheer for the first time in years.

For once, after seeing tourists put off by violence and travel warnings from foreign governments, the industry says it is strugg-ling to find places for the visitors, most of whom come from Britain, Germany, France, India and Japan.

“Hotels are overbooked, a ‘problem’ which our hotels have not experienced for a very long time,” said Srilal Miththapala, who heads the Tourist Hotels Association of Sri Lanka.

Counting on this solid demand, many are now investing in new furniture, bars, restaurants, swim-ming pools and extensions.

Sri Lanka’s tourist board expects the total number of hotel rooms to grow from about 15,000 now to 22,000 in the next two years.

In a sign of the changes underway, Sri Lanka’s biggest leisure operator John Keells Holdings is partially refurbishing one of its flagship Colombo hotels, while two of its beach-front resorts are set for a complete facelift.

“With the war behind us, there is pent-up demand for a bit of luxury targeting well-heeled guests. We’re very bullish,” said its deputy chairman, Ajit Gunewardene.

John Keells, which owns seven resorts and two city hotels with 1600 rooms, will spend in excess of US$900 million over three years to renovate and build three hotels, Gunewardene said.

Rival operator Aitken Spence Group says it is spending nearly $30 million in the next year to spruce up properties and build three hotels in the island’s war-torn north and east.

Shiromal Cooray, a director at the Jetwing Group which manages a chain of 10 hotels, admitted that significant improve-ment was needed because nearly half of the country’s current hotel rooms are below so-called “star class”.

Jetwing plans to spend more than $7 million on its properties.

Dileep Mudadeniya, who heads the Sri Lanka Tourism Promotion Bureau, says most hotels have been fully occupied in the past three or four months.

A key foreign exchange earner, the number of holidaymakers in February soared 68 percent to 57,300 over the same month a year earlier, according to tourist board figures.

“Forward bookings are encouraging,” said Muda-deniya. “I was told that 20 to 30 hotels are closed for any new reservations till the end of March because they are fully booked.”

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