From cheap to cherished: Redefining Sri Lanka as premium experience destination

It’s time to move from being the “affordable island” to becoming the cherished destination the world looks up to

Sri Lanka — an island of rare beauty, culture, and warmth — continues to attract global travellers. Yet, for decades, we have sold ourselves short by marketing the country and its hotels on price rather than experience.

Instead of celebrating our depth of culture, landscapes, and hospitality, we’ve drawn tourists through “value-for-money” offers. This may have driven arrivals, but it also kept our average room rates (ARR) low and our brand undervalued. To truly reposition Sri Lanka as a premium destination, we must stop competing on cost and start competing on creativity, authenticity, and experience.

Beyond the beaten path

Sri Lanka’s magic extends far beyond its well-known tourist triangle of Colombo, Galle, and Kandy. Across the island, boutique hotels, eco-lodges, and villas offer distinct experiences that could easily command premium pricing if properly marketed.

Hotels around Yala, Wilpattu, Udawalawe, and Minneriya deliver authentic wildlife encounters — dawn safaris, nature walks, river cruises, and nights under the stars — that global travellers cherish.

Equally unique are less-travelled destinations like Idalgahinna, a peaceful village best reached by train. Here, guests can enjoy village life, local cooking, and scenic nature trails, with the slow travel experience itself becoming part of the adventure.

The Knuckles Mountain Range offers trekking and agro-tourism, while the east coast — from Passikudah to Arugam Bay — invites surfers, divers, and wellness seekers to discover the island’s calmer, more authentic side. These are stories that can transform Sri Lanka’s image from “affordable” to “extraordinary.”

Culinary experiences worth tasting

Food is one of Sri Lanka’s most undervalued tourism assets. Our hotels already offer authentic, interactive culinary experiences — from regional dishes and cooking lessons to garden-to-table meals.

Guests don’t just dine; they connect. A coastal seafood grill, a village kitchen, or a spice trail lunch can become defining memories. In an era where culinary tourism is booming, Sri Lanka’s food culture should be positioned as a premium experience, not an add-on.

How experiences create value

Hotels that curate experiences consistently achieve higher ARR and stronger guest satisfaction. Travellers repeatedly describe their most memorable stays in Sri Lanka as those offering something more than a room.

Nature retreats where “every morning feels like an adventure.” Safari lodges where “elephants pass right by our deck.” Cultural stays where “cooking with locals felt like being part of a family.” Wellness resorts where “cycling, yoga, and meditation made it rejuvenating.”

Across such properties, tourists pay not for accommodation, but for emotion, authenticity, and story — the core of experience-driven travel.

The price trap Sri Lanka must escape

For too long, Sri Lanka’s hotels have relied on rate competitiveness, branding the island as “affordable” rather than “exclusive.” While that may sustain arrivals, it caps profitability.

Our average room rate (ARR) remains around $ 67 per night, with five-star properties averaging $ 118 and three-stars around $ 57. The introduction of Minimum Room Rates (MRR) in Colombo — $ 100 for five-star, $ 75 for four-star, and $ 50 for three-star — underscores that the market is ready for premium positioning.

To realise this potential, Sri Lanka must move from price-led marketing to experience-led storytelling.

Why experiences earn more

Guests are willing to pay more for properties that offer diverse, meaningful experiences — adventure, culture, wellness, and culinary immersion. Hotels that invest in such offerings outperform those relying only on room sales, often achieving 20–40% higher ARR.

Properties must develop a strong portfolio of experiences, move beyond standard BB rates, and market their stories creatively. This is how we unlock true value and shift from a price war to a value war.

Changing the mindset

Sri Lanka’s tourism future depends on a mindset shift among stakeholders. We must stop taking the easy path of discount-driven sales. Instead, selling must be creative, strategic, and experience-focused.

The State and tourism authorities have a critical role to play — encouraging and enabling hotels through training, incentives, and national marketing that highlight experience-based travel.

If the industry aligns behind this approach, we can build a new Sri Lankan brand: premium, authentic, and proud of its worth.

Charting a new path

Sri Lanka’s tourism can no longer be defined by low prices or mass-market appeal. The time has come to price with purpose, sell with creativity, and compete through experience.

Hotels that tell stories, engage the senses, and connect travellers with culture and nature will naturally command higher rates and repeat guests. This is not about luxury — it’s about value through authenticity.

It’s time to move from being the “affordable island” to becoming the cherished destination the world looks up to.

“Sri Lanka’s next chapter in tourism will not be written by discounts or shortcuts, but by creativity, experiences, and a bold belief in our true value.”

The writer holds a BSc (Business Economics with Computing), MSc (Management), and MA (Financial Economics).