Downturn in European market offset by increased tourism from Asia

Tourists arrivals to the Maldives, where two Sri Lankan conglomerates own or operate resorts, are recovering from recession but construction of more hotels is seen hitting room rates, reports Lanka Business Online.

Sri Lanka’s Aitken Spence and John Keells Holdings had long relied on their Maldivian resorts to compensate for lower earnings or losses in their local hotels during the island’s ethnic war.

But earnings from Maldivian hotels were hit last year owing to global recession which reduced arrivals from the main market in Western Europe.

Although arrivals from Europe are likely to be affected in the short to medium term by the region’s economic woes, CT Smith Stockbrokers said in a report they expect this to be mitigated by increased arrivals from Asia, especially China.

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