98 Acre Resort at Ella, off Bandalawela, for Pure Relaxation & Eco Tourism. Located in a Picturesque Plot of Uva Greenland Tea Estate

21st March 2013, www.dailymirror.lk

‘Sun and sand' is not a ‘must' for hot tourist destinations any more in Sri Lanka. Though Hikkaduwa, Arugam Bay, Unwatuna or Negombo is traditionally identified as hot spots of beach tourism, the latest addition is Ella in the midst of the misty hills.

Ella, off Bandarawela has fast developed into the tourism hub of Uva, with Hikka style small buzzing guest houses and number of diverse restaurants have come up in the area. But what stands tall in Ella is ‘98 Acre Resort and Spa', the latest addition to the Uva Tourism.

Ella is a small village nestled in a valley gazing straight through Ella Gap to the plain nearly 1000m below and across to the glimpse of the Great Basses lighthouse off Hambantota.

This modern ‘98 Acre Resort' is located in a picturesque ninety eight acre Uva Greenland Tea Estate creating a small haven that has an almost perfect climate. It is an ideal holiday destination for trekkers in quest for adventure or the weary travellers simply seeking a peaceful hideout or even a family outing. 'The Resort' is a safe haven for the ones seeking a stand on a scenic 98 acre estate and is surrounded by a stunning landscape. The resort site is liberally endowed with beautiful views and is also in full sight of the ‘Little Adam's Peak' (Punchi Siripade), the pride of Ella.

The tea estate which was once owned and managed by a British national during the Colonial era of Ceylon was then more famously known as the ‘Southerland tea' now named the ‘Uva Greenlands' was eventually passed onto the Uva Halpwatte Estate (UHE) makers of medium elevation pure Ceylon Tea.

The resort is built on an exclusive concept that interweaves pure relaxation with eco friendly tourism. The chic yet modest architectural design by Maithree Dissanayake bears witness to a great passion and concern for eco friendly substance used in its construction.

‘We have used mostly locally available materials for construction and interior. The wood, the ‘Illuk'-straw gracing the thatched roofs and the interior of the villas not only maintain the cool temperature but also adds a truly Sri Lankan look and feel to the resort' said Chamara Abeyrathne, the Director General of the UHE Group and whose brain child is ‘98 Acre Resort'.

Staying true to his pledge towards eco tourism basics, he has arranged golf buggies for the guests to wander about within the 98 acres of its compound.

Opened just twelve months ago, the Resort has luxury and comfort guaranteed beautifully crafted six chalets with 12 rooms (six deluxe and six standards). There is ample space left in between the chalets making it ideal for quiet honeymooners or even for families.

Each Chalet opens up to scenic views of the misty mountains and is equipped with all modern amenities. Each of the deluxe rooms has its own private living area and grants mystique views of the Ella Gap and the Small Adam's Peak hill.

The Standard rooms are bright and able ambiance for the guests and are completed with laminated wooden balconies to the total experience. Amidst other facilities is the elegantly designed pool overlook- deck made of cut stones; where the guests could take a peaceful dip while their kids could enjoy the safety of the baby pool. The resort owned helipad offers the convenience of landing just 5 minutes away from the resort and transport would be arranged via golf buggies to transfer the guests from the helipad. ‘Dining at 98Acres Resort is yet another experience' Chamara said.

The Resort has an open air restaurant that can accommodate up to 50 pax. The highly skilled chef Pradeep puts up an amazing play with the main dishes while the desserts follow dining on comfortable bean bags for a change.

‘We serve any kind of cuisine according to guest's choice. From authentic Sri Lankan dishes to Western, Continental and Oriental cuisine are available at the resort' Chef said.

‘Bird lovers and nature enthusiasts can see 63 species of the birds six precious species endemic to the country' said Indika, the Resort's PR and naturalist. The resort facilitates a detailed bird watching programme or the bird lovers to explore the surroundings guided by Indika.

Apart from that we have archery, biking and all indoor games. We provide bikes for its guests to trail along the woods within the area and explore the tranquil hillside with ease.

‘The guests of the 98 Acres Resort are more than welcome to stroll around the plantation and a visit to the resort owned tea factory would also be gladly arranged for the tea lovers who wish to learn more about the legendary tea story' Chamara explained. The centrally location of the 98 Acres resort makes it an ideal spot for travellers to plan their excursions to the many attractions around the area. ‘We arrange excursions with a guide for the guests to explore the waterfalls (Dunhinda, Diyaluma and Ravana) within the area and are even equipped to arrange helicopter tours, tours to Badulla, Udawalawa, Yala. Adisham in Haputale or even to East coast on request' he added.

The room rates for the coming season range from Rs.16,500/- on FBD basis for standard rooms and Rs 18, 500/- FBD for deluxe rooms

Sri Lanka's Renuka City Hotel in a Rs 218mn Expansion

16th March 2012, www.lankabusinessonline.com

Sri Lanka's listed Renuka City Hotels Plc said it is starting a 218 million rupee expansion, amid a tourism boom.

Renuka City Hotels said in a stock exchange filing that it will add 18 new rooms, a swimming pool, gym and staff facilities in the project.

Sri Lanka's tourist arrivals rose 30 percent in 2011 and was up 21 percent in the first tow months on 2012.

Sri Lanka's Hemas to Build a $25mn Hotel at Kalutara

11th March 2012, www.dailynews.lk, By Shirajiv Sirimane

Sri Lankan tourism is on an upward trend with increased arrivals and revenue and the country would soon need additional rooms to meet this demand. There is a renewed interest for the leisure sector in Sri Lanka and this arguers well for the industry said Group director of diversified group, Hemas Holdings, Abbas Eusufally, speaking to ' Daily News Business' at the ITB in Berlin. He said that there are new players entering the hotel sector by building new hotels and this is encouraging.

He said the Group too has decided to embark on one of the stalled hotel projects at Kalutara. “Our plan is to build a 150 room hotel complex next to Avani Kalutara and the investment for this would be over US $ 25 million. The Avani hotel too would once again be refurbished and would close in May until next winter.

The Group is also looking at investing on two other hotel projects in the deep South and we are currently studying these proposals. “I have been attending 35 ITB events on the trot and there is a very strong interest not only from traditional markets but from other segments as well,” he reiterated.

He said similarly, the Sri Lanka leisure sector too, soon would also see a high demand for qualified staff for the human resources sector. “Without quality and a well trained staff, one cannot give out a quality product and hence well trained staff is a must. A five star hotel cannot give a two star service,” he said.

Eurfally said that hotel schools and educational institutions set up for this purpose in the country are inadequate to meet the projected demand in Sri Lanka.

“The wages paid to hotel staff may not be enough to keep trained experienced staff in Sri Lanka due to brain drain ,” he said.

Commenting on the allegation that Lanka hotel rates had increased, he said that it is only a general statement. “However I think that in a free economy hotel rooms should not have a price control and it should depend on demand and supply forces,” he said. Regulations in this area is not required.

However he said that hotel rates should be decided on quality and service where the customer should not get the feeling that they are ripped off. 'Value for money is the key.'

He also said that time is ripe now for hotels to refurbish as today the industry is getting returns

mainly due to the peace dividend and there is RoI sooner than anticipated. Eurfally said that one of the grey areas in the industry that he identifies is the lack of a proper destination marketing with a good theme for a along period of time. “Sri Lanka is not properly focusing in these investments and this aspect should improve. Today with several themes, tourists are confused.”

The expressions such as Visit Malaysia, Amazing Thailand, were very successful and they still linger in the minds of the globe tourism industry. “I think Sri Lanka should stick to 'Lanka the Wonder of Asia' and only promote this catch line for a long term,” he said.

He said that being a listed company they have an obligation towards their share holders and would do their utmost to give them good returns. “We will invest but with caution,” he added.

Tourism to be Mainstay in Jaffna Economy. Sri Lanka's Northern Capital to Have an Airport in Delft and Islets Developed

08th March 2012, www.island.lk, By Harischandra Gunaratna

Jaffna Hoteliers Association (JHA) Chairman Mariyadas Kisho predicts that tourism will be the mainstay in Jaffna’s economy soon and sees the urgent need is the establish a Satellite Hotel School in the northern capital.

Kisho, a Ceylon Hotel School graduate and a student of the now defunct first government sponsored Satelite Hotel School in Jaffna said that since there was a dearth of trained personnel in the Northern Province, hotel owners were compelled to employ staff from Colombo and other areas.

"This has resulted in overheads being quite high ," he said.

If the government opened a Satelite Hotel School in Jaffna it would lead to providing a lot of employment opportunities to the northern youth as the tourism industry was fast developing whith more and more hotels and guest houses being opened, he said.

"There are a number of boys and girls who have just failed to gain entrance to the universities and are unemployed, in the Northern Province and they can be absorbed into the hospitality industry if there is a recognised hotel school to provide them training," The JHA Chairman said adding that "There is an abundance of talent in the area and what is required is proper training and guidance."

Kisho was critical about the previous Satelite Hotel School established by the government in 2002 and said that "The government should not establish a Satelite Hotel Schools in haphazard manner just for the sake of doing it. The one established by the then government in 2001 became a failure and had to be closed down after one year of operation as the government authorities without doing any feasibility study simply started a hotel school merely as a propaganda tool."

The authorities should have created an awareness about such a venture before starting a hotel school, which was a dire need even at that time as there were many children who wanted to join the hospitality industry but lacked opportunities, he noted.

JHA Chairman pointedout that"They should have also given thought to the cultural sensitivities of the Tamils in this part of Sri Lanka." he pointed out.

The young hotelier was of the opinion that the government should provide more tax concessions to industrialists including hoteliers to encourage more investments.

"The government has now relaxed the restriction on foreigners travelling to the North with the much of the area having been de-mined and there is a great influx of tourists visiting the area," he said.

Although land prices had sky rocketed in the north, specially in the Jaffna town limits,Kisho said there are a large number of investors both foreign and local who had either purchased or leased out land, started construction of hotels and guest houses. The land prices had increased tenfold from what it was in the pre-2009 era, he said.

Asked whether there was enough land available for tourism related projects, he answered in the affirmative and added land was not an issue but prices had increased due to the ever increasing demand.

A number of companies and individuals which included foreign investors had begun construction in the north while a few were already in operation.

"There is a huge demand for rooms from foreigners as well as domestic tourists and the number of units available are well below the requirement and demand is on the increase," Kisho said.

He said,the government was encouraging more investments and some of the islets in the Northern peninsula had been earmarked for tourism development with an airport being constructed in Delft, which was the largest of the islets.

"In these islets one could not construct multi storeyed hotels, but what is best suited are eco-friendly chalets and the government is targetting high-end tourists to the islets," he explained.

There is also a luxury fast boat service from Kurikattuwan near Nainativu (Nagadeepa) to Delft as many tourists with a majority of them domestic travellers have started visiting the islet.

Explaining about the other tourism development projects in the north, Kisho said that one or the most sought after beaches in the Jaffna Peninsula was Casurina beach at Karainagar, a narrow stretch of beach with pure white sand. Local investors numbering four to five have purchased land in the area for tourism development and construction would begin soon, he said.

A US$ 20 million project where a number of high-end beach chalets were being built by a London investor at the popular Chatty beach in Kyts while a three star hotel was also constructed there by another, he said.

There were about 15 hotels and guest houses in and around Jaffna functioning at present and Green Grass and Tilco Jaffna City Hotel were some of the new hotels that are in operation in the town with Gnanams which has been there for a long period, he explained.

"There aren’t big hotels in Jaffna yet and what is available are small hotels and guest houses where each will have about 50 rooms maximum," he added.

Nagadeepa (Nainativu) another islet that the government should look at developing for religious tourism as there was a famous Buddhist temple and a Hindu Kovil visited by thousands of devotees. The tourism authorities should invite investors to construct a few guest houses and motels on this small islet.

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Sri Lanka to Add 3,000 Star Class Hotel Rooms by End of 2012

08th March 2012, www.dailynews.lk, By Shirajiv Sirimane

Sri Lanka would add 3,000 star class hotel rooms by the year end with over 1,000 rooms being added in Passikudah.Deputy Minister of Economic Development, Lakshman Yapa Abeywardane told ‘Daily News business’ that with peace, Sri Lanka has become a investment paradise for both local and foreign hoteliers and investors. The Citrus group which opened in Hikkaduwa would add around 100 rooms in Waskaduwa. Director of the group Mani Sugathapala said that the response for their new hotel in Hikkaduwa was very good as they maintained 95% occupancy since their opening.

“The average service charge from our guests was nearly Rs. 30,000” he said. Currently a 125 room three star resort is being built in Uda Walawa, which would be ready by the end of the year while several hotel projects that commenced last year would be completed for winter.

The minister said that in Trincomalee too new hotels are coming up and most of the new hotels are owned by new players to the industry who are exploiting the booming local hotel industry. In addition several more hotels have also added rooms.

He said that in addition to Shangri-La and CATIK Corporation both from China, leading global hotel chain Hyatt too has once again expressed interest to get involved with the abandoned Hyatt Residencies a stalled project by entrepreneur, Lalith Kotelawela. In addition an Israeli hotel investor has come forward to build a 150 hotel complex in Koggala with a local tea exporter.

Investors from Qatar are likely to build a 500 room resort in one of the islands in Kalpitiya and with this investment they would also invest to extend the Colombo Katunayake highway up to Kalpitiya.

Tourist arrivals to Sri Lanka has clearly shown an increase with a 30.8% growth last year accounting to 855,975 arrivals. Number of popular world magazines, such as National Geographic, Conde Nast Traveler, New York Times, Lonely Planet has recommended Sri Lanka as a must destination to visit in 2011 and 2012 thereby adding value to the destination.

The National Geographic magazine went to the extent of identifying Grand Hotel Nuwaral Eliya as one of the best hotels to visit in 2012. Meanwhile German Tour operators who brought in highest number of tourists to Sri Lanka in 2011 were also honoured yesterday in recognition to the contribution made to Sri Lanka Tourism.

The best German Tour Operators for 2011 - DERTOUR/MWR Group, Ground handling -Go Vacations (Jetwing Travels), Second place, F T I Group, (Journey Scapes Pvt Ltd.),Third Place, Diethelm Travels.

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Work on 150 Room OZO Colombo Hotel Begins. Singapore-Sri Lanka Joint Investment Mid Market Hotel to be Managed by Thailand's Onyx Group

24th February 2012, www.lankabusinessonline.com

A joint venture between Singaporean and Sri Lankan investors has begun work on a hotel in the island's capital Colombo with plans for up to six hotels with initial investments of 4.5 billion rupees.

The 150-roomed OZO Colombo hotel is located on the corner of Clifford Road and Marine Drive, a road along the coast in the capital Colombo.

The 3.5 star hotel will not have spas or up-market restaurant, catering to a mid-market, adventurous type of traveller, and will under the OZO brand, managed by Thailand's Onyx group, officials said.

Onyx is a Thai hotel brand that is venturing out overseas.

"We see the OZO brand as an ideal platform for bringing style and innovation to the mid-market sector," said Bob Kundanmal, chairman of Sino Lanka Hotels Holdings, the joint venture.

Onyx is privately held by the Charanachitta family and is an Italian-Thai public company.

"Sri Lanka is one of the most vibrant destinations in the Asia-Pacific and one that is experiencing dynamic growth in tourism. We plan to make it a key hub for Onyx going forward," said Peter Henley, chief executive of Onyx Hospitality group.

The Sino-Lanka joint venture is going to invest 4.5 billion rupees in three hotels over the next two years.

This includes the one in Colombo started Friday as well as a hotel in southern Galle and another in Kandy in the central hills with 120 rooms.

Ground breaking work on the 140-roomed Galle hotel is expected to start in next two months.

The group aims to have 410 rooms initially with investments of 4.5 billion rupees.

The first hotel is set to open for the 2013 tourism season.

The group is also looking at building three more hotels later on.

"We will eventually invest 100 million US dollars for all six hotels," said Stefan Furkhan, a director of Sino Lanka Hotels Holdings.

Furkhan said over 50 percent of the joint venture is held by Sri Lankan shareholders.

The other three hotels will be under different brands. Other brands of the Onyx group include Saffron, Amari, Shama

Shama is a serviced apartment brand in China.

Sri Lanka Shangri La Colombo Hotel Construction Begins. 661 Room Hotel to Occupy 10 Acres of Land Facing Galle Face Green Promenade

24th February 2012, www.lankabusinessonline.com

Hong Kong-based leisure group Shangri-La has begun construction work on its first hotel in Sri Lanka which is experiencing a boom in tourism after the end of its 30-year ethnic war.

Basil Rajapaksa, Sri lanka's minister of economic development, broke ground Friday for work on the 661-room Shangri La Colombo hotel.

The hotel is to be built on 10 acres of land facing the Galle Face Green promenade in the capital Colombo.

The land, considered prime commercial property, had previously been occupied by the Sri Lanka army headquarters which was moved to another location in a Colombo suburb.

Shangri Lanka will invest 400 million dollars in the Colombo property.

The group is also building a 315 room 'city resort' in Hambantota in the South of the island on a 145 acre land.

Sri Lanka is experiencing an upsurge in tourist arrivals after its ethnic war ended in 2009.

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Greening Sri Lanka Hotels Project under SWITCH-Asia Programme Enhances Environmental Performance of Sri Lankan Hotels

22nd February 2012, www.dailynews.lk, By Sanjeevi JAYASURIYA

The European Union funded Greening Sri Lanka Hotels Project under the SWITCH-Asia Programme is targeted at enhancing the environmental performance of Sri Lankan hotels through improvement of energy, water and waste management systems.

This reduces the cost of operations and increases the market acceptance of Sri Lankan hotels through promoting them as low carbon footprint green hotels.

A total of 179 hotels have signed up for ongoing activities, and more than 89 walk through audits have so far been completed. In addition, another 10 hotels have been short listed for in-depth study and interventions at present, Switch Asia Programme Project Director Srilal Miththapala said.

"Economic growth" has been the key term when describing the recent spectacular development in the Asian region. On one hand, this development has successfully contributed to poverty reduction in the region. On the other hand, increased growth and trade have multiplied demands on resources and are leading to severe environmental damages, he said at a press conference held last week to evaluate the progress made by the project during its two years of operation in the country.

With the world's population having passed seven billion, the question of sustainable consumption has never been more significant. Pressures on natural resources are rising and it becomes essential to decouple socio-economic development and human well-being from resource use. Sustainable Consumption and Production (SCP) is a practical implementation strategy that helps ensuring economic gains without compromising future natural resources needs through application of recycle-thinking, eco-design and eco-innovation. By focusing on reduced environmental impact and increased resource efficiency, SCP is serving as an operational vehicle for a transition to green eonomy which is the focus today.

The Switch-Asia programme targeted at increasing the market acceptance of Sri Lankan hotels through promoting them as low carbon footprint green hotels. The programme included provision of free consultancy, advice and technical inputs, help identify areas for improvement, workforce training and improved workforce quality, help prepare project feasibility reports, benchmark and compare environment performance with other hotels, support adherence to regulations and preparation for certification and helps publicize success stories abroad.

Among the policy interventions by the programme were involvement with the Sri Lanka Tourism Development Authority, working in conjunction with SLTDA to formulate a proper green accreditation scheme for all hotels, check-list for environmental/energy conservation measures for construction of new hotels, and input and advice in finalizing in new hotel star classification scheme to introduce environmental and energy conservation aspects.

Image: CCC Solutions (Pvt) Limited Managing Director and CEO Prema Cooray addressing the media while SWITCH Asia Project Director Srilal Miththapala and Senior Energy Manager Chamila Jayasekera look on.

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15 Story Star Class Hotel in Jaffna as Sri Lanka's Northern Province Develops Rapidly. The Hotel Yarl Jetwing is a Joint Venture between Mercantile Merchant Bank Ltd and Jetwing Group

03rd February 2012, www.dailynews.lk

The rapidly developing Northern Province following the defeat of terrorism has become a springboard for local and foreign investors seeking investment opportunities in Sri Lanka. Construction of a 70-room, 15 storeyed star class hotel in the heart of Jaffna will be launched tomorrow.

Mercantile Merchant Bank Ltd, and the Jetwing Group through an equally-owned joint venture will invest Rs. 700 million on this hotel project.

The hotel Yarl Jetwing will be constructed near the Old Clock Tower Road, in Jaffna.Designed by Design Group 5, the hotel will have a roof top swimming pool and a Presidential Suite and the construction work is to be completed within 18 months.

The location of the hotel will be adjacent to the Rs. 500 million new shopping and entertainment complex being built by Cargills (Ceylon) Plc. Courtesy-news.lk

Nimal Perera's N Capital Buys Tangalle Bay Hotel for Rs 220mn. Iconic Resort in South Sri Lanka to be Made a 6 Star with Architect Murad Ismail

25th January 2012, www.ft.lk

High net worth investor Nimal Perera yesterday effected his first major move to become a self-made entrepreneur by buying the famous Tangalle Bay Hotel for Rs. 220 million.

The acquisition of a controlling 70% stake was via Nimal’s newly-floated personal venture N Capital Ltd., on the lines of his recreation firm N Sports Ltd.

Nimal told the Daily FT that his decision to foray into deep south tourism was with a firm belief that Hambantota in particular and the Southern Province in general would become the future centre of tourism, leisure, sports and recreation in Sri Lanka as well as a thriving industrial and service economy in tandem with the Government’s aggressive development plans such as international air and sea ports as well as the extension of the Southern Expressway.

Built to resemble a cruise ship, Tangalle Bay Hotel is a 35-room resort located on a four-acre land area with scenic beauty. It was one of first hotels owned by the late business leader Gilbert Jayasuriya and the 70% stake was acquired from International Enterprises Ltd., owned by his family. The balance 30% stake will be bought by engineer turned entrepreneur Pasan Madanayake.

At present family-owned leisure industry giant Jetwing Group manages Tangalle Bay Hotel after a recent US$ 1 million refurbishment for the 2011/12 winter season. Jetwing will continue managing the resort until required.

Following the acquisition Tangalle Bay Hotel is also set for a major expansion and refurbishment with a further investment of around Rs. 500 million after the conclusion of the winter season. Among plans are building 50 new rooms in a new wing, a presidential suite, a new spa and major refurbishment to make the resort luxurious.

Popular architect Murad Ismail is already on the job, drawing up his latest ideas for what is likely to be a six star resort.

Cash for the acquisition is from the sale of around a 20% stake in George Steuart and Company by Nimal to his co-investor Dilith Jayaweera recently.

The price paid (Rs. 220 million) by Nimal for Tangalle Bay Hotel appears a good buy. Last month LOLC Leisure bought the famous Dickwella Resort for Rs. 1 billion. However Dickwella has 76 chalet type luxury rooms built on a six acre land, also in a picturesque location on south coast.

Tangalle Bay Hotel was part of a unique portfolio of resorts originally owned by industry doyen Gilbert Jayasuriya. Others included Ocean View Ltd., Induruwa Beach Hotel and Hikkaduwa Beach Hotel.

Tangalle Bay Hotel at present boasts a large outdoor pool and an Ayurvedic Treatment Centre. It is located on the beach in the fishing port of Tangalle and features rooms with private balconies and free Wi-Fi in public areas.

Rooms are bright and airy, offering great views of the sea. They are spacious and come with air conditioning, cable TV and a mini bar. All rooms have private bathroom facilities.

Guests can enjoy water activities like fishing and waterskiing or arrange for excursions to cave temples and the Bird Sanctuary Park at the tour desk. For a relaxing afternoon, Tangalle Hotel provides massages and Ayurveda treatments.

Tangalle Restaurant, which faces the ocean, serves both Asian and Western dishes.

The Tangalle Bay Hotel is about 190 km from Colombo and 240 km from Bandaranaike International Airport. With the extension of Southern Highway to Hambantota travel to Tangalle Bay will be quicker ensuring greater traffic of local guests as well.

Following the opening of the first phase of the Expressway, all hotels up to Galle and nearby are enjoying greater clientele. The opening of Mattala Airport in October this year and the completion of the expressway up to Beliatte by next year will considerably improve the appeal for tourism and economic activities in the deep south.

Quicker access to the east coast via Hambantota as well as the latter’s rich diversity as a tourist destination including wildlife will see an exponential growth in tourism in to these areas, according to industry analysts.

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Sri Lanka Tourism Chief Confirms Post War Rebound and Industry Targets on Course. Confident $ 2bn Tourism Earnings in 2012

23rd January 2012, www.ft.lk

Confirming post-war rebound is gathering pace the Sri Lanka Tourism Chairman Dr. Nalaka Godahewa on Saturday said several industry targets were on course.

“Construction of 9,400 new rooms have been approved and a further 5,300 being processed, as part of the country’s efforts to add 45,000 new rooms by 2016 from the current base of 22,235 rooms,” Godahewa revealed at the opening of the Citrus Leisure’s first venture Citrus Hikkaduwa.

The capacity expansion and overall target can be accelerated with improved or expedited investor and project facilitation, Godahewa understandably referring to read tape and bureaucracy.

“My Government, my President, my Minister and my Secretary are committed to ensure a rapid growth under the industry’s strategic plan and we will support private sector endeavours,” Tourism Chief Godahewa said at the opening of 93-room Citrus Hikkaduwa by Economic Development Minister Basil Rajapaksa.

He also said that tourist arrivals up to Saturday or first 21 days of January had reached 82,508, a development, Tourism Chief said reinforces hope of the country achieving the milestone of 100,000 arrivals mark for the first time in history. “This is a fantastic start for 2012,” he added.

Despite reservations expressed on account of new visa scheme, tourists are coming and income earned from the visa scheme so far amounts $ 524,000,” Godahewa revealed.

Tourism Chief also expressed confidence that earnings from tourism in 2012 will exceed $ 2 billion, a massive jump from near $ 1 billion (over $ 800 million) last year. He emphasised that encouraging increase in arrivals so far this year was on the back of 30% growth in 2011 and over 40% increase in 2010. “We are confident of achieving the target of 2.5 million tourist arrivals by 2016,” he added.

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Citrus Hikkaduwa Opens Citrus Leisure 600 Room Foray to better Harness the Post War Rebound in Sri Lanka

23rd January 2012, www.ft.lk

Newest but fastest growing in the hospitality industry, Citrus Leisure Plc, on Saturday kicked off its planned 600 room foray to better harness the post-war rebound with the opening of 93-room and Citrus Hikkaduwa.

Citrus Leisure Chairman Prema Cooray, a veteran hotelier, said that the Company plans to build 150 room resort in Waskaduwa by 2013, a 155-room plus a Presidential Suit and 50 exclusive Villas in Kalpitiya, and a further 40 Villas initially in Pasikuda.  He also revealed that a 200 room city hotel in Hambantota is also on the cards.


The resort (previously known as Amaya Reef), was expanded from the original 50 room in addition a sleek refurbishment, all completed within a record five months. The new resort includes 51 standard rooms, 40 delux rooms and two suites.

Furthermore, a brand new 190 pax banquet hall, a 140-capacity restaurant – Lemon Fish, a tranquil Spa as well as an exclusive wine and cigar bar – Summer Salt have been added.

“Following the end of the war, Sri Lanka’s tourism profile has considerably improved. We (Sri Lanka) are on a high. The attractiveness is unparallel in this part of the region whilst Sri Lanka’s biodiversity is also the highest in Asia.

Citrus will lead from the front in harnessing the true potential of Sri Lanka,” Cooray said.
Citrus Chief also said that the business model pursued by the Company was unique and it is energetically driven by its major shareholders – Divasa Equity, owned by the trio – DilithJayaweera, VaruniAmunugama Fernando and Sarva Ameresekere.

In a bid to complet the offering, the Company has launched Citrus Vaccation to handle in-bound and outbound travel whilst to Citrus Aqua has been floated to maximize the potential in water-based recreation.

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SriLankan Airlines Semonduo Restaurant Opens in Colombo's Oldest Building. Former Dutch Hospital Converted to a Restaurant and Shopping Facility

20th January 2012, www.news360.lk

Sri Lanka’s national carrier, Srilankan airlines has opened a restaurant in the capital city of Colombo.

The restaurant which has come up in the former Dutch hospital which is now converted to a restaurant and a shopping facility is named as “Semondu”.

The Airline says “semondu” was derived from the word “Simoundou”, an ancient name given for Sri Lanka by Ptolomy, the famous Roman mathematician, astronomer, geographer, astrologer, and great poet.

“Semondu’s team of Chefs dish out an array of fusion cuisine, blending flavours, mixing and matching Asian and European cuisine, with an oriental touch” added a statement issued by the Airline.,

The Airlines city restaurant is operated by SriLankan Catering a fully owned subsidiary of SriLankan Airlines.

SriLankan Catering also manages the 24-room “Serenediva” Transit Hotel at the Katunayake International Airport, and also runs a state-of-the-art, mass-scale laundry facility which is capable of laundering up to 15,000 pieces per day.




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Russia's Gazprom to Build a Hotel in Sri Lanka in order to Promote Tourism between the Two Countries

20th January 2012, www.dailynews.lk, By Hemanthi Guguge

A leading company in Russia, Gazprom expresses its willingness to construct a hotel in Sri Lanka, in order to promote tourism between Sri Lanka and Russia.

This hotel would comprise more than 200 rooms, with all the facilities.

Tourist arrivals from Russia has sharply increased since 2011 and plans are under way to increase the number of tourist arrivals to Sri Lanka from 23,000 in 2011 to 50,000 by the end of 2012.

Ambassador of Sri Lanka to Russia Udayanga Weeratunga told Daily News Business that, Sri Lanka has drawn up plans to promote market tourism and Russia is ideal for this. Russia was listed seventh on the listed highest spending market.

There has been a sharp increase of tourist arrivals from Russia to Sri Lanka due to the commencement of direct airlines from Sri Lanka to Russia.

Aerosvit is being operated three times a week from Kyiv to Colombo and Aeroflot being operated twice a week from Moscow to Colombo. SriLankan Airlines has commenced a flight between Colombo and Moscow since last September.

This flight via Dubai is scheduled twice a week.

These three aircraft is capable of accommodating more than 1,000 passengers per week.

Sri Lankan Embassy in Russia has taken measures to introduce a tourist guidebook in Sri Lanka to promote tourism.

There is a shortage of Russian speaking people in Sri Lanka and it is a major disadvantage of promoting tourism between Sri Lanka and Russia.

Tourism is among the main drivers of economic growth, major tourist attractions focused around the island are the famous beaches located in the southern and eastern part of the country.

Sri Lanka’s tourist arrivals increased by 30 percent to 855,975 from January to December 2011, compared to 2010. Tourist arrivals are expected to increase sharply over the next few years due to intensive marketing of Sri Lanka as a world-class tourist destination.


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Anilana Hotels Launches 8 Hotels in East Coast of Sri Lanka with $ 122mn Investment. First Ever Five Star Resort at Nilaveli in April 2012

14th January 2012, www.island.lk

Anilana Hotels and Properties Ltd, a group controlled by entrepreneur and frontline Asset Manager Asanga Seneviratne and his family, will shortly launch eight hotel and property development projects with investments totaling to US$ 122 million.

The group successfully raised capital through a private placement of US $ 70 million early last year, will apply for a listing on the Colombo Stock Exchange end January, Seneviratne said.

The former boutique hotel chain moved out of the "small hotel " category in 2010 and invested heavily in property, mainly in the East coast and now will open the first ever five star resort on the world famous Nilaveli stretch in Trincomalee and another project in Passikudah, both in April, he said yesterday.

"The stunning 70 - suite five star resort at Nilaveli boasts of state of the art technology and design and has two 30-metre swimming pools , an open kitchen, two restaurants , roof top dinning and Spa’s designed by a world renowned specialist. The 60 room five star Resort in Passikudah is similar in style and the chalets are a few metres away from the ocean,’’ he said

Two other properties are under construction in Dambulla and Panichankerni and are set to open early 2013. The developments under design are Blue Lagoon in Trincomalee , Vakarai,  Kalkudah and Colombo, he said.

The Chairman of the Group is Peter Amerasinghe who heads the Aristons Group of Companies and its Board comprises leading hotelier and promotor Prassana Jayawardene and former Bank of Ceylon Chairman Gamini Wikramanayake.

The group COO in charge of the hotels operations  is British National Trevor Burton  who counts over 23 years of experience with the Grand Hyatt Group of Hotels and has launched many Hyatt properties around the world.

The construction operations is headed by Gihan Zoysa  who successfully built over 800 houses in the east coast after the tsunami.

8 Degrees on the Lake - Sri Lanka's First Floating Venue by a 5 Star Hotel. Cinnamon Lakeside Colombo Extends Its unique Experience to a New Degree

14th January 2012, www.thesundayleader.lk

Cinnamon Lakeside Colombo extends its unique lakeside experience to a new degree with its latest venture – 8° (degrees) on the lake, a floating hotel venue for private events.  The 70’ by 30’ vessel which is in its final stages of construction will be the first of its kind to grace the waters of Colombo.  It will consist of an air conditioned lower deck and an open upper deck with a clear ceiling for protection, and will accommodate 100 passengers.


Living every word of the John Keells Leisure sector vision to “always be the hospitality trendsetter,” Cinnamon Lakeside Colombo’s latest venture sets a new benchmark for the industry.  8° on the lake will be Colombo’s first mobile floating venue by a five star hotel.  The vessel offers a unique setting for exclusive, high profile events with its minimalistic chic interiors designed by Nayantara Fonseka of Taru fame.  The layout and choice of décor is intended to capture the essence of its natural surroundings.

“The Beira Lake creates a beautiful setting to our hotel but it is time that it became more than just a view,” explains Denis Gruhier, General Manager of Cinnamon Lakeside Colombo.  “8° on the lake was conceptualized as a means of extending the guest experience beyond the expected. Although Cinnamon Lakeside Colombo is situated in the heart of Colombo with every convenience a business traveler would enjoy, when a guest steps into the hotel they could easily forget they are in the city.  Aboard 8° on the lake, the bustling city of Colombo will be a distant memory.”

The venue adapts itself to suit a variety of occasions.  For an intimate gathering, the host may wish to invite guests to cocktails at the upper deck followed by dinner at the air conditioned lower deck as the party travels across the Beira Lake.  The twin level arrangement allows for an event to be segmented to offer varying culinary and entertainment experiences at each level, ensuring that a guest is never bored.  If a large party is on the cards, 8 Degrees on the Lake maybe used as an extension to the Waterside, the hotel’s garden venue which now hosts a pier where the vessel will dock.

The hotel has already received several requests for bookings.  Malcolm Thomas, Banquet Sales Manager at Cinnamon Lakeside Colombo foresees the venue lending itself to Cocktail parties, Gourmet meals, Candlelit dinners, Champagne brunches, High teas, Weddings, Engagements parties, Bachelor and Bachelorette parties, Birthdays and Anniversary parties.

Colombo has a clear need for exciting event venues and Cinnamon Lakeside Colombo rises to the occasion with 8 Degrees on the Lake.  This innovation is set to spark a revolution in banquet offerings in the industry.

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LOLC Seeks Rs 4bn to Refurbish Sri Lanka’s Biggest Coastal Resort Complex

10th January 2012, www.bloomberg.com

Lanka Orix Leasing Co. (LOLC), backed by Japan’s Orix (8591) Corp., is seeking 4 billion rupees ($35 million) to refurbish a coastal resort complex that will become Sri Lanka’s biggest, said Chief Executive Officer Kapila Jayawardena.

The 350-room resort that comprises three of Lanka Orix’s hotels on the island’s southern coast will open by mid-2013, said Jayawardena. The Colombo-based company is seeking “long- term project” funding from both domestic and foreign banks, and is in the process of finalizing a 10-year agreement with “one of the largest hotel operators in the world” to run the complex, he said, declining to elaborate.

Sri Lanka’s $50 billion economy has rebounded, as peace prompts companies including Shangri-La Asia Ltd. and Sheraton Group to build resorts. Arrivals in the South Asian island, one of Conde Nast Traveler’s top five destinations to watch in year 2012, rose 31 percent to a record 855,975 last year. Thailand estimates tourist arrivals to have reached as many as 19 million in 2011.

“We see huge potential in leisure, similar to Thailand,” Jayawardena said in an interview yesterday. “There is now a different economic landscape in Sri Lanka after peace.”

The end of the island’s 26-year civil war in May 2009 has also boosted infrastructure development, consumer demand and agriculture businesses, leading to an economic growth of 8.3 percent estimated for 2011 and 8 percent forecast for 2012, according to the Central Bank of Sri Lanka.

Record Profit

The LOLC group, as the company is locally known, is poised to report record profit in the year ending March 2012, as its core financial services units grow with the economy’s resurgence, Jayawardena said. LOLC, whose businesses include leasing, insurance, micro-credit, agriculture, trading and construction, posted an unprecedented net income of 7.02 billion rupees in the previous financial year.

Orix, a Japanese financial services provider based in Tokyo, is the Sri Lankan firm’s single-largest investor with a 30 percent stake, according to Jayawardena.

Jayawardena said the island’s north and east, which were once the main battle grounds in the war, would contribute to 20 percent of business volumes in the next 24 months, up from 4 percent before peace. LOLC also plans to increase its island- wide network of offices to 200 from 160 in the next 18 months, he added.

“At the moment we feel we have a very comprehensive set of investments in line with economic growth,” he said.

LOLC fell 1 percent to 77 rupees at 10:07 a.m. in Colombo. The shares are down 6.3 percent so far this year, compared with a 3.3 percent drop in the benchmark Colombo All-Share Index.

Hong Kong-based Shangri-La plans to invest $500 million to build a hotel in the island’s capital and $130 million in a second resort in Sri Lanka, Chief Financial Officer Madhu Rao said July 4. The Sheraton Group will invest $300 million in a leisure project in Sri Lanka, the nation’s information department said Dec. 1.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net

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Gallivanter's Guide 2011 Awards for Excellence Recognizes a Sri Lankan in Hoteliering

07th January 2012, www.island.lk

The Gallivanter’s Guide sets the benchmarks for the high end travelers.  It was established in 1991.  It is the most respected publication for the world’s top travelers, hoteliers and travel advisors.  The publication takes no advertising and employs no journalists.  The Editors, Middlehurst and Maslin personally do all the  reviews and this is restricted to only the best hotels and resorts in the world.

Gallivanter’s Guide 2011 Awards for Excellence is the 21st annual readers’ poll and is a guide to the world’s greatest hotels divided up by category. The list features annually in the January issue of Gallivanter’s Guide and is selected by readers who vote on the various categories.

Among the 18 categories adjudged are the Best City Hotel Worldwide, Best Leisure Resort Worldwide, Best Hotel Group Worldwide, Best European City Hotel, Best European Resort, Best Resort in India & The Indian Ocean, Best Hotel/Resort in Asia, Best City Hotel in North America, Best Resort in North America, Best Small Hotel/Resort Under 100 Rooms, Best Hotel/Resort Cuisine Worldwide. There are also awards for the Best General Manager Worldwide, Editor’s choice award and the best Airlines.

Four Seasons Hotels have received awards in 15 of the 18 categories and emerged as the leading Hotel chain in the world. In the category of the Best City Worldwide, the Best European City Hotel, the Best Hotel/Resort in Central and South America and the Best Hotel Hotel/Resort Cuisine Worldwide, Four Seasons emerged as number one. The Four Seasons Hotel in London at Park Lane received the Editor’s Choice Award Worldwide.

36-year old Sanjiv Hulugalle,General Manager of the Four Seasons Hotel Kuda Huraa in the Maldives has been adjudged third under the category the Best General Manager Worldwide. In the citation accompanying the award, the Editors state "Sanjiv Hulugalle enters the list for the first time; another exceptional GM who has looked after many of you personally."

Hulugalle worked as a ride attendant of the Big Dipper in an amusement park in Sydney to help fund his degree in Physical Education in the 1990s. From there he joined Four Seasons as a health club attendant. "Up to that point, I dreamed of running my own gym," Hulugalle recalls, "but I was soon fired up by the unique Four Seasons service culture: little things like how to bring a smile to a face with simple interactions and awareness."

Hulugalle maintains that team work is vital in building the correct ambience in a Hotel "For any hotel team to make its guests feel special, that team has to feel special first; Four Seasons does that. Now it’s my job to make sure that every single member of the team feels happy and appreciated, too."

Hulugalle’s formal education ran from Sri Lanka to India to Australia, and then a long journey to Kuda Huraa in the Maldives as General Manager.  He is inspired by the realization that learning never ends and that there is no substitute for hard work and attention to detail. "As long as there is a single guest on the island, my mind will be on the job," he admits. And if his team is anything to go by, they’ll be the happiest guests in the Maldives. Hulugalle leaves the Maldives to take up an appointment in Beijing at the end of January 2012.

From the time he joined Four Seasons in 1996, he has worked in the Hotel chain in Goa, Las Vegas, Toronto, Vancouver, Langkawi in Malaysia, and Damascus. He had also short spells in Sharm El Sheik, Amman, Prague and Great Exuma.

Hulugalle maintains that to sustain a high momentum in one’s work, a strong family life is essential. Hulugalle looks to his wife, Alice, and his two daughters, Catherine and Savannah, for his own extracurricular happiness, from cooking up a gourmet feast after a day spent fishing to playing golf with Alice in Colombo. "She has a handicap of six," he says proudly. "I’m not as good, but what I lack in skill I more than make up for in competitiveness!"

197 Hotel Projects Underway in Sri Lanka to Add 12,579 Hotel Rooms to the Tourism Idustry

04th January 2012, www.news360.lk

Sri Lanka says, currently 197 hotel projects are underway in the country which once completed will add 12,579 hotel rooms to the local tourism industry.

According to the Central Bank of Sri Lanka, Shangri-La, Sheraton, Hyatt and Sun City are among the international hotel chains that have entered the local tourism industry to start tourism ventures.

The country, which up to November 2011 has got 758,458 tourists, has also seen the average spending per tourist per night increasing to US$ 97 in 2011 from US$ 88 in 2010.

The country’s tourism earnings up to November this year has exceeded US$ 736 million while the Authorities estimate it to reach the figure of US$ 1.2 billion during the year 2012.

Up to November 2011, Western Europeans to the country has seen a year on year increase of 37%, while Indian tourists have increased by 20%, East Asian tourists by 11% and Middle Eastern tourists by 7%.

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LOLC Buys Dickwella Resort for Rs 1bn Making it One of the Largest Resort Owning Companies in Sri Lanka

04th January 2012, www.dailynews.lk

Expanding its presence in the booming tourism sector, the LOLC group through its leisure arm, LOLC Leisure Limited has acquired a 99.9% stake of Dickwella Resort for a consideration of Rs 1,014 million.

This unique resort hotel with 76 chalet type luxury rooms is built on around 6 acres of land which is one of the most picturesque localities in the southern coastal belt of the country.

The hotel which is much sought after by an exclusive clientele of European tourists has potential for even further expansion and offers a unique and unparalleled beach holiday experience to its guests who can enjoy the serene beauty with its surrounding view of the Indian ocean.

With this acquisition, LOLC Leisure will hold 600 plus room keys in five beach resorts making it one of the largest resort owning companies in the country.

LOLC Leisure is a 70% owned subsidiary of LOLC with the balance 30% being held by Browns Investments PLC.

LOLC Group Deputy Chairman Ishara Nanayakkara,, the holding company of LOLC Leisure, commented: “We are proud to have acquired this beachside property situated at such a prized location. This acquisition marks another milestone in our

leisure holdings and propels us into the forefront of the hospitality industry.

Dickwella Resort will be another key offering in our bouquet of hotel properties along the western coast of Sri Lanka.

The resort has already carved out a distinctive niche for itself on the global tourist map and we intend to upgrade luxury facilities and enhance the room capacity in the months ahead to catapult it further into a multi-star category

hotel that offers a holiday experience of a lifetime.

The Southern Expressway, now operational, has succeeded in drastically reducing travel time to the resort.

In time to come, the completion of the Colombo-Katunayake Highway will reduce travel time to Dickwella Resort even more.

LOLC Leisure remains committed to consolidating its leisure business in the years ahead and we remain in pursuit of acquiring resorts in unique stunning locations, such as Dickwella Resort.

The resort boasts of a world class luxury spa managed by French wellness expert, Yves.

Located close to Dondra, the resort offers easy access to world famous tourist sites such as Yala, Kirinda, Mirissa beach, dolphin and whale-watching excursions.

LOLC Group, forayed into the leisure sector with LOLC Leisure acquiring Confifi Group hotels in 2010, namely, Hotel Riverina, Club Palm Bay and Eden Resort and Spa.

The two former hotels are closed for extensive renovation and will be reopened in 2013. Operating under LOLC Leisure management, Eden Resort & Spa has just completed the most successful year of operations since its inception in 2010/11.

LOLC Leisure has also acquired Tropical Villas, previously owned by Jetwings and Hayleys, located alongside the other three properties, and which is also under extensive refurbishment.

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