Sri Lanka ‘would benefit from focus on upmarket high-value tourists’—FT report

Sri Lanka tourism faces a choice—chase high visitor numbers or cultivate lower-volume, higher-value segments that deliver more revenue with less environmental strain. 

Negombo, with its proximity to Bandaranaike International Airport and a long stretch of beach, is well placed to capitalise on this. 

And boutique Ayurveda wellness retreats such as Terrace Green Hotel and Spa could help position the town as not only a one-night transit stay, but as an upmarket destination in its own right. 

Longer stays

Redirecting Sri Lanka’s focus from budget backpackers to affluent retirees, luxury travellers and wellness tourists would increase per-visitor spend and lengthen stays. 

As a recent analysis in the DailyFT makes clear, “it is far more profitable to attract 500 high-spending tourists than 5,000 budget travelers.” 

That’s because premium visitors spend 2–3 times more per day and stay longer, generating revenue across accommodation, dining, wellness, and cultural experiences without the overcrowding associated with mass tourism. 

Investment needed

But the FT also points out that Sri Lanka’s coastal areas need “investment in cleaning, maintaining, and developing these beaches” to compete with rival tropical destinations. 

So with improved environmental standards and strategic planning, Negombo’s hospitality sector could attract premium visitors seeking quality beach stays within easy reach of the airport. 

The town’s hotels, guesthouses and restaurants can also benefit from a proposed 2026–2030 strategic framework for tourism development: upgrading facilities to international standards, training staff to deliver five-star service, and targeting marketing efforts at wealthier segments. 

Core goal

One of the core goals of the framework is to promote sustainable eco-tourism by focusing on nature and emphasizing Sri Lanka’s natural beauty, such as its beaches, rainforests, and wildlife. 

By leveraging the country’s unique environmental assets, the plan aims to draw eco-conscious travellers.

Additionally, it will promote community-driven tourism products. This will ensure that tourism benefits are spread across different regions, particularly in underdeveloped areas. 

Assets 

The FT highlights Sri Lanka’s competitive advantages, such as diverse landscapes, rich cultural heritage and authentic wellness traditions, that the country has yet to fully monetise. 

Meanwhile, Negombo has the physical and geographic assets to benefit from Sri Lanka’s premium tourism push. 

But realising that potential will require investments in the kind of infrastructure, service and strategic positioning that attract visitors who value quality over quantity…