bn, 1,000-room tourist resort in Digana
The Tourist Board is in discussions with the Mahaweli Authority
to approve a 120-acre land bordering the Victoria reservoir in Digana
for a 1,000-room resort hotel project worth Rs.7 billion.
are discussing with the Mahaweli Authority to obtain the land next
to the Victoria Golf Course and bordering the Victoria reservoir
in Digana, to build a resort hotel project,” T. Sooriyagoda,
Director Development and Resort Management, Sri Lanka Tourist Board
said the Urban Development Authority zoning plans in Kandy has identified
this land as suitable for recreational purposes and if the land
is obtained, the basic infrastructure will be developed by the Tourist
plan to develop the infrastructure such as water, roads, pipelines
and waste water and lease the land to prospective developers to
build the resort,” he said, adding that the basic infrastructure
will cost Rs.800 million and the total project after completion
will be worth Rs.7 billion.
is a huge demand for land in Kandy by both local and foreign investors
for hotel ventures, but land in Kandy is very scarce. Sooriyagoda
said there are about 10 project proposals to develop hotels in Kandy,
but there is a land constraint.
extent of the land that investors want is very limited in Kandy,”
he said.Kandy has 20 hotels, and seven are located in the city itself.
Earl's Regency, Hotel Casamara, Queen's Hotel, Hotel Suisse, Hotel
Swiss Residence, Hotel Topaz and Hotel Hill Top are categorised
as city hotels and Mahaweli Reach is categorised as the only five
star hotel by the Kandy Hotelier's Association. Helga’s Folly,
Hotel Thilanka and Queen's Hotel are categorised as Heritage Hotels.
industry analysts said that since the resort hotels account for
broadly 65 percent of the industry’s revenue it is important
to have more of such products.
said that since Sri Lanka has been gradually transforming itself
from largely a ‘sun and sand’ offering to include ‘eco,
culture and adventure’ tourism, Kandy needs some diverse product
offerings to complement this transition.