Accommodation Sector in Sri Lanka

Ensuring Sustainability in
Sri Lankas Growing Hotel Industry
2013
IFC Disclaimer
This publication may contain advice, opinions, and
statements of various information providers and
content providers. IFC does not represent or endorse
the accuracy or reliability of any advice, opinion,
statement or other information provided by any
information provider or content provider, or any
user of this publication or other person or entity.
Prepared on behalf of
IFC - World Bank Group
by PricewaterhouseCoopers (Private) Limited, Sri Lanka and PricewaterhouseCoopers (Private) Limited, India
Table of Contents
01
The Sri Lankan Hotel

Industry - An Overview
05
1.1. Tourism in Sri Lankas Economy

1.2. Classication of Tourist Accommodation
1.3. Tourist Hotels
05
06
07
02
03
Over 100 New Hotels

Under Construction
3.1. Boutique Villas and Hotels Under Construction
3.2. Guesthouses - Under Construction
3.3. Tourist Hotels - Under Construction
3.4. Resorts - Under-construction
2.1. Boutique Villas and Hotels

2.2. Guesthouses
2.3. Tourist Hotels
2.4. Home Stay Units / Bungalows /
Rented Homes and Apartments
15
16
Resource Utilization in Sri

Lankan Hotels
5.1. Energy and Water Consumption
5.2. Waste Generation and Management
5.3. Resource Efciency Potential
5.4. Resource Efciency Measures Taken by a
Few Sri Lankan Hotels
5.5. Energy Consumption Details of the Sri
Lanka National Energy Efciency Award
(SLNEEA) Winning Hotels
27
28
30
31
32
How to Ensure Sustainability

in Sri Lankan Hotels
12
12
13
14
Resource Utilization in Sri

Lanka - An Overview
19
4.1. Power and Energy Sector

4.2. Power Sector
4.3. Water Sector
4.4. Solid Waste Generation
19
21
24
25
35
06
07
10
17
17
18
04
05
Sri Lankas Highly Diverse

Hotel Industry
38
Resource Utilization
Benchmarking World Over
37
List of Figures
Figure 1: Distribution of rooms according to star category
Figure 2: Monthly average occupancy rate of tourist hotels in 2011 and 2012
Figure 3: Monthly average occupancy rate of tourist hotels in 2011 (Three star to ve star)
Figure 4: Monthly average occupancy rate of tourist hotels in 2012 (Three star to ve star)
Figure 5: Location of Boutique Hotels and Villas by district
12
Figure 6: Location of Guesthouses in districts by grade
12
Figure 7: Location of Tourist Hotels (One star to ve star) by district
13
Figure 8: Location of Tourist Hotels by district
13
Figure 9: Home Stay units/Bungalows/Rented Homes and Apartments by district
14
Figure 10: Boutique Hotels under construction by district
16
Figure 11: Guesthouses under construction by district
17
Figure 12: Under construction Tourist Hotels (One star to ve star) by district
17
Figure 13: Different sources of energy supply in 2010 (Thousand tonne oil equivalent)
19
Figure 14: Energy consumption according to sector in 2010 (Thousand tonne oil equivalent)
20
Figure 15: Industry sector (Thousand tonne oil equivalent)
20
Figure 16: Household, commercial and other sector (Thousand tonne oil equivalent)
20
Figure 17: CEBs electricity sales in 2011 according to type of consumer (Giga watt hour)
21
Figure 18: LECOs electricity sales in 2011 according to type of consumer (Giga watt hour)
22
Figure 19: Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour)
22
Figure 20: Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)
23
Figure 21: Quantity of water sold by NWSDB in 2009 according to type of consumer
24
Figure 22: MSW collection according to province (Metric tonnes a day)
25
Figure 23: Typical energy consumption in tourist hotels
28
Figure 24: Typical water usage in tourist hotels
29
Figure 25: A typical hotel's solid waste generation
31
Figure 26: Energy consumption details (2011) of Sri Lanka National Energy Efciency Award award winning hotels
36
Figure 27: Tourist Arrivals and Accommodation Details- 2002 to 2016
38
List of Tables
Table 1: Growth trends in tourism sector over the last 10 years
Table 2: List of tourist accommodations (existing) in each district
11
Table 3: Tourist accommodations under construction in each district
15
Table 4: Expected addition in room capacity under each category
16
Table 5: Expected addition to room capacity in tourist hotels (One star to ve star)
18
Table 6: Sector specic quantity and type of solid waste
26
Table 7: Resource utilization in the Sri Lankan hotel industry.
27
Table 8: Sri Lanka National Energy Efciency Award winner hotels in 2010, 2011 and 2012
35
Table 9: Resource utilization benchmarking details of hotels in various countries
37
List of Abbreviations
AIHE
Australian Institute of Hotel Engineering
BOD
Biological Oxygen Demand
CBSL
Central Bank of Sri Lanka
CEB
Ceylon Electricity Board
COD
Chemical Oxygen Demand
EEPEX
Enhancing Environmental Performance in Key Sri Lankan Export Sector
ESCOs
Energy Service Companies
ETP
Efuent Treatment Plants
EU
European Union
GDP
Gross Domestic Product
GWh
Giga Watt Hour
HACCP
Hazard Analysis Critical Control Point
IFC
International Finance Corporation
kWh
Kilo Watt Hour
LECO
Lanka Electricity Company Private Limited
MSW
Municipal Solid Waste
NWSDB
National Water Supply and Drainage Board
PADGO
Portfolio Approach to distributed Generation Opportunities
SLNEEA
Sri Lanka National Energy Efciency Awards
SLTDA
Sri Lanka Tourism Development Authority
SLSEA
Sri Lanka Sustainable Energy Authority
STP
Sewage Treatment Plant
T.D.
Time of Day
TSS
Total Suspended Solids
WTO
World Tourism Organization
Summary
Sri Lankas hotel industry is a key driver of economic growth
in the island nation. Tourist arrivals have almost doubled
since the end of the conict in 2009. The government of Sri
Lanka is implementing a tourism master plan that envisages
the arrival of 2.5 million tourists by 2016.
This will place a huge strain on resources, especially energy
and water, and will create immense challenges in the efcient
use of these resources as well as disposal of solid and water
waste.
Given this situation, Sri Lankas hotel industry needs to
implement immediate measures that will use resources and
recycle waste with greater efciency.
This paper, commissioned by IFC, lists a number of ways in
which some hotels are already engaged in this. Most hotels
can easily adopt these best practices. At the same time,
authorities have already sanctioned over a hundred hotels that
are currently under construction in various parts of the
country. These new hotels, which plan to open for business in
the next two years, will have to adopt resource efcient
measures from the outset.
As the hotel industry continues to grow rapidly, authorities
need to encourage sustainability practices by recognizing and
promoting hotels that implement energy saving and recycling
measures in their operations. Experience shows that
sustainability translates into protability. Best practices are
often subsequently rewarded.
With this growth, it becomes important that Sri Lanka's
pristine environment does not suffer. Through joint efforts
from the government and industry, this growth can be
planned and systematic to achieve sustainability. This will
result in a reduction in the emissions of millions of tons of
greenhouse gases into the atmosphere, which can have
irreversible effects on Sri Lankas fragile ecology.
01
The Sri Lankan Hotel Industry

An Overview
1.1. Tourism in Sri Lankas Economy
Sri Lanka has witnessed unprecedented economic growth since the end of its
three-decade long civil conict in May 2009. The tourism sector has emerged as a
frontrunner in Sri Lankas economic activities. According to Central Bank of Sri
Lanka (CBSL), the hotel industry contributed around two percent to the countrys
gross domestic product (GDP) in 2011. Sri Lanka is on its way to becoming a major
tourism destination in South Asia. Table 1 shows the huge growth of the tourism
industry, which has nearly doubled in the last three years.
Year
Total Tourists Arrived

(No.)
Establishments Providing
Accommodation
(No.)
Annual Room
Occupancy Rate
(Percentage)
Gross Tourist Receipts

(million USD)
2002
393,174
455
43.1
363
2003
500,642
498
53.2
441
2004
566,202
585
59.3
513
2005
549,308
626
45.4
429
2006
559,603
749
47.8
410
2007
494,008
758
46.2
385
2008
438,475
834
43.9
342
2009
447,890
871
48.4
350
2010
654,476
783
70.2
575
2011
855,975
906
77.1
830
Table 1
Growth trends in tourism
sector over the last 10 years
Source
Sri Lanka Tourism Development
Authority and Central Bank of Sri Lanka
Page 05

An Overview
01
1.2. Classication of Tourist Accommodation

Sri Lanka Tourism Development Authority (SLTDA) classies the tourist accommodation sector into four different categories:
Boutique Villas
and Hotels
Guesthouses
Home Stay
Units
Tourist Hotels
Boutique Villas and Hotels

Boutique hotel is a popular term to describe sometimes luxurious or unique and unusual hotel environments. Boutique hotels differentiate
themselves from larger chain/branded hotels and motels by providing personalized accommodation and services/facilities. There are no
standard classication criteria for boutique villas and hotels.
Boutique hotels are standalone and unlikely to be part of large hotel chains. They focus on tranquillity and comfort rather than gadgetry.
A 24-hour hotel staff often attends to guest services. Many boutique hotels have on-site dining facilities and offer bars and lounges, which
may also be open to the public. The concept of boutique or designer hotels is becoming increasingly popular in Sri Lanka.
Guesthouses
A guesthouse is similar to a hotel or bed and breakfast facility. A guesthouse in Sri Lanka is normally an accommodation unit with ve or
more bedrooms.
Home Stay Units/Bungalows/Rented Homes and Apartments

The main aim of these facilities is to provide clean, comfortable and affordable supplementary accommodation to tourists. Tourists in
return will experience local customs and traditions, authentic cuisine, and other attractions of the location while staying with local hosts.
Tourist Hotels
Tourist hotels provide paid lodging, usually on a short-term basis. Facilities provided include attached bathrooms, air conditioning or
climate control, telephones, alarm clocks, television, and internet connectivity. Snacks and drinks may be available in a mini-bar and
facilities for making hot drinks are usually provided. Larger hotels may provide additional guest facilities such as restaurants, swimming
pools, childcare, and have conference and social function services.
Our study focuses on tourist hotels, segmented under standard star category classication.
Page 06
01

An Overview
1.3. Tourist Hotels

According to Sri Lanka Tourism Development Authority (SLTDA) Statistical Report of 2011, 906 lodging establishments with 20,794
rooms were registered with it at that time. These establishments were dominated by tourist hotels, which accounted for 70.5 percent (or
14,653) of total room capacity. SLTDA denes tourist hotels as establishments whose operations are considered to be of international
standards.
The majority of these rooms are concentrated in the Colombo and greater Colombo area. SLTDAs grading is based on criteria set by
World Tourism Organization (WTO). The government of Sri Lanka classies tourist hotels in ve different star categories, ranging from
one to ve stars. Currently, the country has a high concentration of ve-star rated establishments, followed by the budget two-star
category. A large number of hotel rooms in the country continue to be unclassied, with no star rating. These are mostly independently
owned properties with smaller room inventories that offer less expensive but non-standard product options to tourists. Unclassied
properties cater to demand that cannot be met by branded establishments, either due to high room rent or because they are sold out. They
will continue to form an important part of the hotel industry in Sri Lanka.
Distribution of rooms as per star category (percentage)
22.04
35.95
12.17
Five star
Four star
Three star
Two star
One star
Unclassied
3,230
1,784
1,178
2,022
1,171
5,268
8.04
7.99
13.80
Figure 1
Distribution of rooms
according to star category
Source
SLTDA
Statistical Report 2011
Page 07
01

An Overview
Figure 2 shows the occupancy rates of tourist hotels by month during 2011 and 2012. Occupancy rates from October to December 2012
are not yet available.
90.3
80.8
70.6
72.5
44.6
50%
Sep
47.4
53.5
60%
Aug
57.3
62.2
70%
72.6
72.1
78.1
77.1
85.1
87.4
73.5
80%
74.9
81.2
90%
84.4
85.9
100%
95.0
Monthly average occupancy rate of tourist hotels in 2011 and 2012
40%
30%
20%
10%
0%
Jan
Feb
Mar
Figure 2
Monthly average occupancy rate of
tourist hotels in 2011 and 2012
Page 08
Apr
May
Jun
Source
SLTDA
Monthly Statistical Bulletin
Jul
2011
Oct
2012
Nov
Dec
* Data not available

An Overview
01
Figure 3 and Figure 4 show monthly occupancy rates of three star to ve star tourist hotels during 2011 and 2012. In Figure 4,
occupancy rates from November to December 2012 are not yet available.
60%
90.2
91.7
88.8
83.5
86.3
79.5
74.3
71.7
69.6
67.9
76.3
75.6
78.2
79.3
78.2
55.5
54.7
58.6
70%
65.2
61.4
57.6
76.3
74.5
69.6
80%
77.0
75.9
70.8
86.9
85.8
79.9
90%
85.2
84.1
80.8
Monthly average occupancy rate of tourist hotels in 2011 (Three star to ve star)
100%
50%
40%
30%
20%
10%
0%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Source
SLTDA
Figure 3
Monthly average occupancy rate of tourist
hotels in 2011 (Three star to ve star)
Sep
Five star
Oct
Four star
Nov
Three star
Jun
71.5
72.3
74.7
May
74.9
70.3
71.8
77.4
76.2
75.4
50%
73.2
71.9
70.4
60%
49.3
47.6
44.4
51.1
58.4
52.9
70%
46.2
48.3
43.8
80%
88.9
86.2
83.3
90%
84.1
80.1
78.2
100%
88.2
87.3
81.1
Monthly average occupancy rate of tourist hotels in 2012 (Three star to ve star)
Aug
Sep
Oct
40%
30%
20%
10%
0%
Jan
Feb
Mar
Figure 4
Monthly average occupancy rate of tourist
hotels in 2012 (Three star to ve star)
Apr
Source
SLTDA
Jul
Five star
Four star
Three star
Page 09
02

Hotel Industry
The Sri Lankan hotel industry is concentrated around Colombo, the economic and
nancial hub as well as the gateway to the rest of the country. The southern region
comes second as hotel owners take advantage of Sri Lankas beach attractions,
followed by ancient cities. The newly liberated eastern and northern regions have the
potential to grow and contribute more to this industry. The industry primarily
consists of tourist hotels and other establishments that include boutique villas/hotels,
guesthouses, inns and youth hostels approved by SLTDA.
Table 2 has mapped all types of existing tourist accommodation by districts.
Page 10
02

Hotel Industry
Boutique
Hotels/Villas
Guesthouses
Home Stay Units /

Bungalows / Rented
Homes and Apartments
A Grade
B Grade
C Grade
Unclassied
Home Stay Units
Bungalows
Rented Homes
and Apartments
Ampara
Anuradhapura
Badulla
11
17
Batticaloa
Colombo
25
39
15
10
Dambulla
Galle
11
10
23
28
28
Gampaha
27
32
21
Hambantota
10
10
Jaffna
11
Kalutara
22
22
15
12
Kandy
25
14
13
13
Kegalle
14
Kurunegala
21
15
Matale
10
16
Matara
13
12
17
Monaragala
18
Negombo
19
Nuwaraeliya
11
20
Polonnaruwa
21
Puttalam
22
Ratnapura
23
Trincomalee
24
Vanniya
Total Units
27
23
228
259
14
14
15
15
35
35
135
41
24
S.NO.
Boutique Hotels
Tourist Hotels
Boutique Villas
District Name
Table 2
List of tourist accommodation
(existing) in each district
Source
SLTDA
Page 11

Hotel Industry
02
2.1. Boutique Villas and Hotels

Boutique villas and hotels are spread across various districts of Sri Lanka. SLTDA has, to date, approved 27 boutique villas and 23
boutique hotels. Most villas and hotels are concentrated in Kandy and the coastal districts of Galle and Colombo.
Location of Boutique Hotels and Villas by district
10
1
Ratnapura
Nuwaraeliya
Matale
1
Puttalam
Negombo
Matara
Kurunegala
Kandy
Colombo
Anuradhapura
Kalutara
1
Galle
1
Batticaloa
Hambantota
Gampaha
11
Source
SLTDA
Figure 5
Location of Boutique Hotels
and Villas by district
Boutique Villas
Boutique Hotels
2.2. Guesthouses
A guesthouse in Sri Lanka is an accommodation unit with ve or more bedrooms. These guesthouses are located across many districts.
Based on facilities available, SLTDA has graded them into A, B, and C categories1. Of the 501 guesthouses approved by SLTDA, 228 are
A grade, 259 B grade, and 14 C grade.
Location of Guesthouses in districts by grade
39
32
28 27
25
22 22
Figure 6
Location of guesthouses in
districts by grade
13 12
8
11
5 6
Matale
Kurunegala
Kegalle
6 6
7 6
3
5
1 2
Vanniya
10
Trincomalee
Polonnaruwa
Kandy
1 2
Kalutara
Jaffna
Gampaha
Galle
Colombo
Batticaloa
Badulla
Hambantota
5
1
Anuradhapura
Ampara
5 6
Ratnapura
10
Puttalam
14
11
2
21
Nuwaraeliya
17
Monaragala
23
Matara
25
Source
SLTDA
A Grade
B Grade
C Grade
The grading is based on the how much the guesthouses comply with conditions dened by the the Tourism Development Act, No. 14 of 1968, which
says: "To qualify for A, B or C grade, a Tourist Guesthouse shall obtain minimum points allotted to essential items as 90 percent, 70 percent and 60
percent respectively and obtain total marks as 80 percent, 60 percent and 50 percent respectively from the criteria."
Page 12

Hotel Industry
02
2.3. Tourist Hotels

Tourist hotels dominate tourist accommodation in Sri Lanka. The 248 tourist hotels approved by SLTDA have been categorized into two
major types: classied and unclassied. Classied hotels are further categorized from one to ve stars based on criteria specied by World
Tourism Organization (WTO). A large number of tourist hotels continue to be unclassied, as they do not meet these criteria. Unclassied properties cater to demand that cannot be accommodated by branded establishments due to high rentals or non-availability. They
form an important part of the hotel industry in the country.
According to the SLTDA Statistical Report 2011, tourist hotels accounted for 70.46 percent of the industrys total room capacity for that
year. Of the 249 tourist hotels, 114 hotels were classied and 135 unclassied. In the classied category, 14 were ve star hotels mainly
concentrated in Colombo and greater Colombo regions. Of the remaining, 15 were four star, 15 three star, 35 two star, and 35 one star
hotels. These were spread across the country, but concentrated in Galle, Colombo, Kalutara, and Kandy districts.
Location of Tourist Hotels (One star to ve star) by district

9
7
6
5
11
Trincomalee
11 1
Ratnapura
Monoragala
1111 1
Puttalam
Polonnaruwa
22
1
11
Nuwaraeliya
2 2
1 1 1
11
Matara
2 2
1
Matale
1 11
Kandy
Gampaha
Galle
Colombo
22
1
Kurunegala
4
3
Kalutara
11
Anuradhapura
Hambantota
33
Source
SLTDA
Figure 7
Location of Tourist Hotels
(One star to ve star) by district
One star
Three star
Two star
Four star
Location of Tourist Hotels by district
Five star
28
21
Galle
Gampaha
15
Kalutara
Kandy
Colombo
Matara
Hambantota
Badulla
Matale
Trincomalee
Ampara
Puttalam
Monaragala
Figure 8
Location of Tourist
Hotels by district
Polonnaruwa
Nuwaraeliya
Anuradhapura
1
Kegalle
13
Source
SLTDA
Page 13

Hotel Industry
02
2.4. Home Stay Units/Bungalows/Rented Homes and Apartments

These units provide clean, comfortable, and affordable supplementary accommodation to tourists. Sri Lanka has 41 home stay units, 24
bungalows, and two rented apartments approved by SLTDA. Most are located in and around Colombo.
Home Stay units/Bungalows/Rented Homes and Apartments by district

15
10
8
5
4
5
4
3
2
Figure 9
Home Stay units/Bungalows/Rented
Homes and Apartments by district
Page 14
Source
SLTDA
Ratnapura
Nuwaraeliya
Matara
Matale
1 1
Kandy
1 1
Kalutara
Gampaha
Galle
Dambulla
Colombo
Badulla
Home Stay Units

Bungalows
Rented Homes and Apartments
03
Over 100 new hotels

under construction
Tourist accommodation currently under construction are located mainly in Galle,
Colombo, Batticaloa, and Kalutara districts. According to SLTDA, 104 tourist hotels
are under construction in 15 districts. Of these, 68 are tourist hotels, 15 boutique
villas and hotels, 13 guesthouses, and eight resorts.
SLTDA granted approvals to these projects from September 2010 to October 2012.
Table 3 lists tourist accommodation (all types) under construction in each district.
Boutique
Hotels/Villas
Guesthouses
Resorts
Tourist Hotels
District Wise
Total
S.NO.
District
Anuradapura
Badulla
Batticaloa
12
Colombo
15
Galle
17
Gampaha
Hambantota
Jaffna
Kalutara
12
10
Kandy
11
Matale
12
Matara
13
Nuwara Eliya
14
Puttalam
15
Trincomalee
Total Units
15
13
10
17
30
10
104
Table 3
Tourist accommodation under
construction in each district
Source
SLTDA
Page 15
Over 100 new hotels

under construction
03
Table 4 details expected addition in room capacity under each category of under construction tourist accommodation.
Category
Addition in room capacity (Number of rooms)
Boutique Villas and Hotels
441
Guest Houses
175
Tourist Hotels
4421
Resorts
146
Table 4
Expected addition in room capacity
under each category
Source
SLTDA
3.1. Boutique Villas and Hotels - Under Construction

Sri Lanka Tourism Development Authority (SLTDA) has approved 15 new boutique hotels, which are currently under construction.
While these are spread across eight districts, they are concentrated along the coast, especially in Galle, Gampha, and Matara districts.
Boutique Hotels under construction by district

Galle
Trincomalee
Matara
Gampaha
Batticaloa
Puttalam
Hambantota
Colombo
Figure 10
Boutique Hotels under
construction by district
Page 16
Source
SLTDA
Over 100 new hotels

under construction
03
3.2. Guesthouses - Under Construction

A guesthouse is an accommodation unit with ve or more bedrooms. SLTDA has approved 13 new guesthouses located across several
districts.
Guesthouses under construction by district
Trincomalee
Kalutara
Batticaloa
Puttalam
Matara
Galle
Matale
Hambantota
Badulla
Source
SLTDA
Figure 11
Guesthouses under
construction by district
3.3. Tourist Hotels - Under Construction

Tourist hotels account for most accommodation projects under construction. SLTDA has approved 68 new tourist hotels of which 10 are
ve star hotels, mainly in the Colombo and greater Colombo areas. Of the rest, 30 are four star, 17 three star, 10 two star, and a one star
hotel. These are spread across the country as shown in Figure 12.
Under construction tourist hotels (One star to ve star) by district
7
11
Trincomalee
Puttalam
Nuwaraeliya
Matara
11
Matale
22
Kandy
Galle
Colombo
Figure 12
Under construction tourist hotels
(One star to ve star) by district
Kalutara
11
Batticaloa
Jaffna
22
Gampaha
22
33
Hambantota
Source
SLTDA
Five star
Four star
Three star
Two star
One star
Page 17
Over 100 new hotels

under construction
03
Table 5 displays the estimated percentage increase in number of rooms in the one star to ve star categories following completion of
under-construction projects.
Category
Existing number of
rooms (2011)
Expected addition in
number of room
Percentage increase in
number of rooms
3230
959
30
1784
1664
93
1178
1451
123
2022
325
16
1171
22
Table 5
Expected addition to room capacity in
tourist hotels (One star to ve star )
Source
SLTDA
3.4. Resorts - Under Construction

SLTDA has approved eight new resorts, one each in eight districts of Sri Lanka Trincomalee, Puttalam, Matara, Matale, Kalutara, Galle,
Batticaloa and Anuradapura.
Page 18
04
Resource Utilization in Sri Lanka

An Overview
4.1. Power and Energy Sector
Energy in Sri Lanka is produced from three main sources: biomass (46.08 percent),
hydro (12.36 percent), and petroleum (41.52 percent). A small amount (0.04
percent) comes from non-conventional sources as shown in Figure 13.
Thus, indigenous, renewable sources of energy provide 55 percent of primary energy
needs. Petroleum products are fully imported and used for transport, electricity
generation, and household, commercial, and industrial requirements. While
electricity and petroleum products are the main forms of commercial energy, an
increasing amount of biomass is commercially grown and traded.
As per estimates, 70 percent of national biomass consumption is in the informal
sector: for household cooking, small commercial, and industrial applications. The use
of biomass in industry is growing because of price increases in petroleum fuels. A
signicant number of hotels and agricultural processing units (processing of tea in
particular) are switching over from oil to biomass.
Different sources of energy supply in 2010 (Thousand tonne oil equivalent)
1,352.28
4.91
5,045.05
Biomass
46.08 percent
Petroleum
41.52 percent
Hydro
12.36 percent
Non-conventional
0.04 percent
4,543.87
Figure 13
Different sources of energy supply in
2010 (Thousand tonne oil equivalent)
Source
Sri Lanka Sustainable Energy
Authority (SLSEA) Energy Balance
Page 19

An Overview
04
Figure 14 shows energy consumption in Sri Lanka according to sector. Energy consumption will increase with economic growth and rising
industrialization. Household, commercial and other sectors (including hotels) account for 49 percent, which is a major share in total
energy consumption. The transport and industry sectors follow with 26 and 25 percent respectively. The agriculture sector consumes a
negligible amount of energy. Figure 15 and Figure 16 present the energy consumption in the industrial sector and the household,
commercial and other sectors.
Energy consumption (percentage) according to sector in 2010 (Thousand tonne oil equivalent)
0
25
10.14
Agriculture
49
Industries
2,200.45
Transport
2,336.44
Household, Commercial and Other
4,312.93
26
Figure 14
Energy consumption according to sector
in 2010 (Thousand tonne oil equivalent)
Source
SLSEA Energy Balance
Industry sector (Thousand tonne oil equivalent)
243.74
11 percent
359.72
8 percent
Biomass
Electricity
270.73
13 percent
Household, commercial and other sectors

(Thousand tonne oil equivalent)
Petroleum
521.2
12 percent
Source
www.info.energy.gov.lk
Electricity
Petroleum
3,435.01
80 percent
1,619.39
76 percent
Figure 15
Industry sector (Thousand
tonne oil equivalent)
Biomass
Figure 16
Household, commercial and
other sector (Thousand
tonne oil equivalent)
Source
www.info.energy.gov.lk
Note: In Sri Lanka, the hotel industry is covered under Commercial, Household and Other Sectors. Energy consumption in terms of
different energy sources for the Sri Lankan hotel industry is not available separately.
Page 20
04

An Overview
4.2. Power Sector

Demand for power in Sri Lanka has been growing at seven to eight percent annually, outstripping supply. The domestic power sector is
struggling to meet the growing demand for electricity. The Ceylon Electricity Board (CEB) has a monopoly over power, with the right to
generate, transmit, and distribute power.
Electricity Sales of CEB

According to the Statistical Digest 2011 - CEB, total sales of electricity in 2011 was 10,023 Giga watt hours, an increase of 8.1 percent
over the previous years sale of 9268 Giga watt hours. Figure 17 breaks up power consumed according to type of consumer.
Domestic consumers were supplied with 3379 Giga watt hours (33.71 percent) followed by industrial with 3131 Giga watt hours (31.24
percent), general with 1927 Giga watt hours (19.23 percent), and bulk supply to Lanka Electricity Company Private Limited (LECO),
which was 1267 Giga watt hours (12.64 percent). Hotel consumers accounted for 159 Giga watt hours (1.59 percent), a 7.1 percent
increase compared to 2010 (149 Giga watt hours). Street lighting and religious consumers accounted for one and less than one percent of
total electricity sales.
CEBs electricity sales in 2011 according to type of consumer (Giga watt hour)
1.59 percent
1.09 percent
0.51 percent
12.64 percent
33.71 percent
19.23 percent
Domestic
3,379
Industrial
3,131
General
1,927
Bulk Supply to LECO
1,267
Hotel
159
Street Lighting
109
Religious
51
31.24 percent
Figure 17
CEBs electricity sales in 2011 according
to type of consumer (Giga watt hour)
Source
Statistical Digest 2011
CEB
Page 21
04

An Overview
Electricity Sales of LECO

The 1267 Giga watt hours of electricity to LECO was in turn distributed to its customers. LECOs electricity sales in 2011 according to
type of consumer are provided in Figure 18. Of this, domestic consumers were supplied with 538 Giga watt hours (33.71 percent)
followed by general with 367 Giga watt hours (30.21 percent), hotels with 37 Giga watt hours (3.05 percent), and street lighting with 23
Giga watt hours (1.89 percent). Religious consumers and temporary connections accounted for 0.66 and 0.08 percent of total electricity
sales.
LECOs electricity sales in 2011 according to type of consumer (Giga watt hour)
3.05 percent
1.89 percent
0.66 percent
0.08 percent
19.84 percent
44.28 percent
Domestic
538
General
367
Industrial
241
Hotel
37
Street Lighting
23
Religious
Temporary Connections
30.21 percent
Source
CEB
Figure 18
LECOs electricity sales in 2011 according
to type of consumer (Giga watt hour)
Total electricity sales of CEB and LECO in 2011 is presented in Figure 19. Of total consumption, domestic consumers were supplied
with 3917 Giga watt hours (39.3 percent), followed by industrial 3372 Giga watt hours (33.8 percent), and general 2294 Giga watt hours
(23 percent). Hotel consumers accounted for 196 Giga watt hours of electricity (two percent), while street lighting and religious
consumers accounted for 1.3 percent and 0.6 percent of total electricity sales.
Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour)
1.3 percent
2 percent
0.6 percent
23 percent
39.3 percent
Domestic
3,917
Industrial
3,372
General
2,294
Hotel
196
Street Lighting
132
Religious
33.8 percent
Figure 19
Total electricity sales by CEB and LECO in 2011
according to type of consumer (Giga watt hour)
Page 22
Source
CEB
59
04

An Overview
Electricity Sales in the Hotel Industry

The hotel industry consumed 196 Giga watt hours of electricity (from both CEB and LECO) in 2011, or nearly two percent of the
country's total electricity consumption. Greenhouse gas (GHG) emissions due to electricity consumption by the hotel industry was
123,480 tonnes of CO2 equivalent2.
Figure 20 breaks up the electricity sales to the hotel industry as presented in the Statistical Digest 2011 - CEB.
Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)
1% percent
0.5 percent
33 percent
46.7 percent
Small
Small + Time of Day
Medium
92
Medium + Time of Day
37
Large
65
Large + Time of Day
18.8 percent
Figure 20
Electricity sales to the hotel industry according to
consumption in 2011 (in Giga watt hour)
Source
CEB
The Ceylon Electricity Board has classied consumers in the hotel industry in the following categories:
Small - Supply at 400/230 volts and Contract Demand less than or equal to 42 kilo volt amperes
Medium - Supply at 400/230 volts and Contract Demand above 42 kilo volt amperes
Large - Supply at 11 kilo volts and above.
Note: Time of Day tariff is a tariff structure in which different rates are applicable at different times of the day.
Carbon footprint calculator available on website of Greening Sri Lanka Hotels - the EU funded SWITCH ASIA Program
Page 23
04

An Overview
4.3. Water Sector

Sri Lanka is well placed when it comes to water resources. Surface water dominates the water sector, while groundwater use is largely
limited to domestic water supply and small-scale irrigation. However, increase of industrial zones and development of tourist hotels is
leading to unprecedented groundwater extraction in Sri Lanka.
The National Water Supply and Drainage Board (NWSDB), which currently functions under the Ministry of Water Supply and
Drainage, is the principal authority providing safe drinking water and sanitation in Sri Lanka. According to NWSDBs annual report
2009, direct billing consumers (domestic, NWSDB quarters, and government quarters) accounted for 66 percent of total water sold by it.
This was followed by government institutions (10 percent), commercial and industrial (nine percent), tenement gardens (four percent),
bulk buildings (3 percent), board of investments (two percent), and religious premises (two percent). Schools, public stand posts (public
taps), shipping, and others accounted for only one percent each of total water sold.
Sales (percentage)
2
3
Direct Billing (Domestic, National Water

Supply and Drainage Board Quarters,
Government Quarters)
1
1
Government institutions, National Water

Supply and Drainage Board premises
Commercial and Industrial

Tenement Gardens
66
Bulk Billing
Board of Investments
Religious Premises
Schools
10
Public Stand - Post Supply

Others
Tourist Hotels
Shipping
Figure 21
Quantity of water sold by NWSDB in
2009 according to type of consumer
Source
Sri Lanka NWSDB
Annual Report - 2009
Tourist hotels purchased only one percent (1,942,000 cubic meters) of total water sold by NWSDB in 2009. Apart from government
water supply, hotels also sourced water from their own resources like bore wells. In fact, bore wells are major sources of water for most
hotels. Lesser sources are rainwater harvesting and third party vendors. As a major portion of demand is met by unaccounted sources,
accurate information on water consumption by hotels is not available in the public domain.
Page 24
04

An Overview
4.4. Solid Waste Generation

Solid waste, especially municipal solid waste, is a growing problem in urban Sri Lanka due to absence of proper solid waste management
systems.
The rate of generation of solid waste is increasing with the growth of population, technological development, and changing lifestyles.
Currently, total municipal solid waste generation is around 6400 metric tonne per day for all of Sri Lanka, of which only 3770 metric
tonne per day is effectively collected. The municipal solid waste collected according to province is given in Figure 22.
Primary sources of municipal solid waste are households, markets, and commercial establishments. Industries and hospitals constitute
secondary sources.
Municipal solid waste collection according to province (Metric tonnes per day)
1873
Figure 22
Municipal solid waste
collection according to province
(Metric tonnes per day)
Southern
100
130
Northern
Sabaragamuwa
Source
Global Methane initiative especially
municipal solid waste status,
Sri Lanka in 2012
96
Eastern
227
Uva
166
North Central
506
353
North Western
Central
Western
319
Collection (Metric tonnes per day)
Page 25

An Overview
04
Ceramic, rubber, plastics, hotel, leather, and desiccated coconut are major industrial sectors that generate solid waste. Sector specic
quantities and types of solid waste are listed in Table 6.
Quantity
(Metric tonne per month)
Sector
Major solid waste types
Hotel
Food
6000
Ceramic
Ceramic sludge(wet)
600
Glazed broken items

Used plaster molds
Broken biscuit ware
Used staggers
Rubber
Cured rubber
150
Latex sludge (wet)

Plastics
Laminated plastic lms
70
Off-cuts
Adhesives tapes
Leather
Fleshing (wet)
1500
Sludge (wet)
Scrap
Bufng /splitting
Trimming
Hair
Desiccated Coconut
Table 6
Sector specic quantity
and type of solid waste
Sludge (wet)
Source
EEPEx Project- Enhancing Environmental
Performance in Key Sri Lankan Export Sector
The table shows that hotel industry is the main producer of solid waste among the different industrial sectors.
Page 26
05
With increasing awareness of the global energy crisis and growing concerns among
consumers over climate change and global warming, the hotel industry needs to
implement appropriate energy, water, and waste management systems by adopting
better environmental practices.
According to the Statistical Digest 2011 - Ceylon Electricity Board (CEB), the Sri
Lankan hotel industry accounted for two percent of total electricity sales in 2011,
which is equivalent to 196 Giga watt hours. It registered a growth of 3.5 percent over
2010s electricity sales (190 Giga watt hours)
According to the Sri Lanka National Water Supply and Drainage Board Annual
Report 2009, the Sri Lankan Hotel industry accounted for one percent (supplied by
government agencies) of the countrys supplied water consumption in 2009,
equivalent to 1,942,000 cubic meters.
Resource utilization in Sri Lankan hotel industry

Resource
Energy3
Electricity
Water supplied by NWSDB
Percent of total
consumption in the
country
49 percent (2010)
two percent (2011)
one percent (2009)
Quantity
4,312.92 Thousand tonne
196 Giga watt hours (2011)
1,942,000 cubic meters (in 2009)
oil equivalent(2010)
Table 7
Resource utilization in the Sri Lankan hotel industry
Note: Energy consumption data is available for Commercial, Household and Other Sector, which includes electricity also. In Sri Lanka,
hotel industry is covered under Commercial, Household and Other Sector. Energy consumption share of different energy sources for the
Sri Lankan hotel industry is not available separately.
Page 27
05
Tourist arrivals in Sri Lanka have been increasing year on year over the last three decades. In 2011, arrivals were around 850,000 and the
government has set a target to increase it to 2.5 million tourists by 2016. To achieve this, the Sri Lankan hotel industry needs to double its
infrastructure in the next three years. This will also result in doubling resource utilization by that time.
As is apparent from energy efciency and resource improvement studies from other countries, the hotel industry possesses a savings
potential of 20 percent in energy and water consumption. Waste generation can be reduced by 20 percent by improving resource
utilization through adoption of best practices.
Energy and water efciency and improvement in resource utilization improves the organizational performance of a hotel. It also helps
greatly to position itself as a more responsible destination in the minds of consumers.
5.1. Energy and Water Consumption

The major sources of energy in Sri Lankan hotels are grid-supplied electricity, diesel for electricity generation, furnace oil for steam boiler
operation, liqueed petroleum gas (LPG) for cooking, biomass from cultivated forestry, and biogas from waste. The energy use4 of a
typical hotel in a warm humid climate, such as the Sri Lankan coast, is provided in Figure 23. The breakup of energy consumption is
air-conditioning 50 percent, followed by lighting (20 percent), kitchen (15 percent), laundry (eight percent), and others (seven percent).
Typical energy consumption in tourist hotels in Sri Lanka (percentage)
15
Air Conditioning
Lighting
50
8
Laundry
Kitchen
Others
20
Figure 23
Typical energy consumption in
tourist hotels
Source
Study on sustainable consumption
practices in Sri Lankan hotels
Research paper A study on sustainable consumption practices in Sri Lanka hotel industry written by Professor N Ratnayake,
University of Moratuwa and Srilal Miththapala, Ceylon Chamber of Commerce
Page 28
05
Hotels consume a signicant amount of water for various activities. The amount of water used directly impacts the amount wastewater
generated and treated in treatment plants.
The typical pattern of how water is used in the different departments of a hotel in a warm humid climate, such as the Sri Lankan coast, is
shown (Australian Institute of Hotel Engineering, 1996) in Figure 24. Efforts to conserve water should be directed at guest rooms,
kitchens, public washrooms, and laundry. In addition, gardening and landscaping consume substantial amounts of water, particularly in
the dry season, depending on the size of garden and type of vegetation. If hotels take initiatives to reduce their water consumption, the
generation of wastewater will automatically reduce, and the performance of wastewater treatment plants will improve.
Typical water usage in tourist hotel (percentage)

2
16
38
Guest rooms
Air conditioning
Kitchen
Cold room
12
Laundry
Steam generation
6
Lockers/Public toilets
Pool
21
Figure 24
Typical water usage
in tourist hotels
Source
Study on sustainable consumption
practices in the Sri Lankan hotel industry
Page 29
05
5.2. Waste Generation and Management

Hotels produce more sewage and wastewater (For example, laundry and bath wastes, kitchen wastes) when compared to domestic
households. Wastewater pollutes water bodies surrounding tourist attractions, damages the environment and poses serious threats to
human health.
When it comes to waste management, the hotel industry is driven almost entirely by regulatory requirements, except for a few
environmentally conscious hotels that take extra measures to reduce, reuse, and recycle solid waste and wastewater. This is because most
establishments do not see nancial benets, as they do with energy conservation measures.
Wastewater Management
With new hotels rapidly increasing, regulatory authorities in Sri Lanka have decided to enforce stringent environmental regulations on the
hotel industry. As a result, under the Sri Lanka National Environment Act, tolerance limits for industrial and domestic efuents
discharged into the sea were dened in 1990. To comply, most coastal hotels were compelled to set up efuent treatment plants to treat
efuents to correct standards before discharging into the sea or the coastal environment. The costs of installing and running these efuent
treatment plants are high.
Efuent treatment plants collect sewage and wastewater in a sewage collection tank. This is passed through a sand separator to a feeder
tank and then on to two sedimentation tanks. From these tanks, the wastewater passes through soil lters and a treated water sump for
reuse. Sludge produced from the sedimentation tanks is pumped to a digester tank. The digester tank produces biogas after which the
sludge passes through a pressure equalisation tank to drying beds.
The main by-products of the efuent treatment plant or sewage treatment plant are:
Water: used for watering the garden
Biogas: used for cooking
Sun-dried sludge: used in the garden
Page 30
05
Solid Waste Management

Solid waste from a typical hotel consists of restaurant food waste, ofce paper, bottles, plastic, aluminium beverage containers, and
cardboard boxes. Although this waste is diverse, hotels typically generate a consistent type of waste. The majority is paper and food waste,
with lesser amounts of metal, plastic, and glass. This prole is similar to the standard municipal solid waste from residential communities.
A typical hotel's solid waste generation (percentage)
5.6
4.5
6.7
Food and Non recyclables
Paper
46.2
11.7
Cardboard
Plastics
Glass
Metal
25.3
Figure 25
A typical hotel's solid
waste generation
Source
UNEP manual for Cleaner
production in Hotels
In a typical hotel, the breakup of solid waste generation by type is food and non-recyclables, 46.2 percent, followed by paper
(25.3 percent), cardboard (11.7 percent), plastic (6.7 percent), glass (5.6 percent), and metal (4.5 percent). Variations in waste
composition from one hotel to another can be attributed to differences in scope of operations and target markets.
Solid waste management needs to ensure that waste is:
minimised
collected effectively (separated into non-degradable and biodegradable waste)
treated properly
disposed of responsibly
5.3. Resource Efciency Potential

Implementation of resource efciency initiatives in the Sri Lankan hotel industry is urgently needed to reduce dependency on fossil fuels
and meet future demand for resources like energy, electricity and water. Various studies and initiatives indicate that there is potential to
save around 20 percent in energy and 20 percent in water consumption and waste generation5.
Greening Sri Lankan Hotels Project - EU funded under the Switch Asia program
Page 31
05
5.4. Resource Efciency Measures Taken by some Sri Lankan Hotels

Resource efciency measures taken by various tourist hotels in Sri Lanka, as collated through secondary research, are as listed below:
Energy Conservation Measures

High and Medium Investment Measures
Variable frequency drives to reduce electricity consumption water pumping
Air curtains to maintain proper cooling and reduce electricity consumption of air-conditioners
Gasiers to generate energy for laundry
Solar water heating systems for hot water
Incandescent lights and halogen lights replaced by energy efcient lamps
Card-key systems to switch off lights in absence of guests in rooms
Dimmer switches to reduce energy consumption in lighting
Sensors for lights in car parking areas
Low and No Investment Measures

AC temperatures set to optimum level (24-25C)
Colour code system to switch lights on and off according to a schedule
Lights in corridors switched on and off on a section-by-section basis
Freezer curtains to reduce energy loss in cold rooms
Preventive maintenance as per planned schedules
Water Conservation Measures

Separate meters to monitor water consumption in different departments
Water saving cisterns with dual ushes
Press-top faucets in staff canteens to reduce water wastage

Daily checks for leaks in water storage tanks and taps
Preventive maintenance as per planned schedules
Page 32
05
Wastewater Management
Sewage treatment plants for wastewater treatment

Technicians to check sewage treatment plants every day
Treated water from sewage treatment plant used to water gardens
Water quality checked every six months by external agency to ensure discharged water meets standards set by the Central
Environmental Authority
Kitchen water sent through grease traps and solid grease treated with effective micro-organism solutions and completely digested
Solid Waste Management

Plastic replaced by environmentally friendly materials. For example, laundry bags are made of cloth (for soiled linen) and cane (to
deliver laundered clothes); shampoo dispensed in ceramic bottles and newspaper bags are made of paper
Plastic water bottles provided with packed lunches. Plastic cutlery not used
Use of plastic straws with cocktails or drinks reduced
Plastic shopping bags discontinued and suppliers educated to use reusable plastic crates or cardboards boxes
Garbage bags used only for wet garbage to meet Hazard Analysis Critical Control Point (HACCP) standards
Ofce stationery and paper reused
Complete computerisation and networking to make ofces paper-free
Garbage and trash separated at sources of origin in all departments - such as the kitchen, restaurant and bar, housekeeping, laundry,
and maintenance
Garbage bins colour coded for glass and plastic, paper and cardboard, polythene and plastic, and wet garbage
Guests requested to bring back picnic boxes and plastic water bottles so they can be disposed of properly
Page 33
05
Information Dissemination or Awareness Measures

Monetary value of wasteful use of major equipment demonstrated
Notices to create awareness about energy conservation displayed in rooms
Staff trained routinely on energy conservation
Housekeeping staff made aware of the need to be vigilant against leaking taps
All staff trained and monitored on separation of garbage
Hotels under construction need to implement sustainability measures/technologies from the start. The following steps can be considered:
Energy Management and Electrical Load

Use of card key enabled switches in rooms
Building management systems
Use equipment that matches loads
Use variable frequency drives for motors, chillers, and pumps
Install automatic power factor correction capacitor banks
Use energy efcient lighting systems (LEDs and CFLs)
Use natural lighting as much as possible
Use occupancy sensors and timers to control lighting
Maintain required light levels and use efcient luminaries
Heating, Ventilation, and Air Conditioning Load

Use proper thermal insulation for walls and roofs to reduce AC loads
Consider orientation of building at time of design
Double glass windows and sun control lms for windows to reduce heat penetration into buildings
Minimise leaks by using door closers for air conditioned spaces
Use of natural ventilation/tree cover
Use of efcient room air conditioning units
Inverter ACs
Solar ACs
Hybrid ACs
Central type air conditioners with multi compressors and variable frequency drive
Biomass steam boilers, solar hot water panels, heat pumps, and waste heat recovery for heating water
Water Conservation
Install water sub meters to measure water consumption in each section
Rainwater harvesting
Use low ow taps and showers in toilets
Page 34
05
Environmental Management
Use optimum sized wastewater treatment plants and sewage treatment plants
Reuse sewage treatment plant treated water for gardening/toilet ushing, etc.
Solid waste management
Separating and sorting waste at source by using colour coded bins
Biogas production from waste generated in the hotel
5.5. Energy Consumption Details of the Sri Lanka National Energy

Efciency Award Winning Hotels
The Sri Lanka National Energy Efciency Award (SLNEEA) is prestigious national recognition given to organizations implementing
energy efciency initiatives. The specialty of the SLNEEA program is that it recognizes energy management systems without merely
focusing on specic projects. The awards highlight successful implementation of innovative, cost effective, and transferable energy
efciency measures across large, medium, and small categories in the following sectors.
Manufacturing
Services
Hotel
Commercial buildings
State sector ofce buildings
Health care
The list of award-winning hotels is given in Table 8.
Award Category
Year
2010
2011
2012
Gold
Jetwing Beach
Heritance Kandalam
Seashells Hotel (Pvt) Ltd
Nil
Silver
Nil
The Tea Factory Hotel
Heritance Ayurveda Maha Gedara
Bronze
Jetwing Hunnas Falls
Heritance Ahungalla
Jetwing Blue
Certication of Merit
Jetwing Lighthouse
Nil
Mount Lavinia Hotel

Cinnamon Grand
Bandarawela Hotel
The Royal Heritage Hotel (Pvt) Ltd
St. Andrews Hotel (Pvt) Ltd
Table 8
SLNEEA winner hotels in 2010, 2011 and 2012
Source
SLSEA
Page 35
05
The Annual energy consumption details of some award winning hotels are provided in Figure 26.
Energy Consumption Details for 2011 of Selected SLNEEA Award Wining Hotels in 2010, 2011, 2012
Hotel G
Electricity
Hotel F
LPG (Million kilocalorie)

Hotel E
Diesel
Biomass - Firewood (Million kilocalorie)
Hotel D
Furnace oil (Million kilocalorie)
Hotel C
Hotel B
Hotel A
Million kcal
5000
10000
15000
20000
Category
Hotel A
Hotel B
Hotel C
Hotel D
Hotel E
Hotel F
Hotel F
Electricity (Million kilocalorie)
12,148.3
5,200.9
2,735.7
1,309.1
556.0
368.3
143.5
LPG (Million kilocalorie)
1,501.6
77.5
280.3
359.3
168.5
22.4
88.2
Diesel (Million kilocalorie)
202.0
0.0
0.0
78.4
754.3
0.0
0.0
Biomass -Firewood (Million kilocalorie)
0.0
0.0
0.0
1,384.3
460.7
0.0
0.0
Furnace oil (Million kilocalorie)
5,652.7
3,067.8
1,051.5
0.0
0.0
517.2
0.0
Assumptions
1 kilo watt hour: 860 kilocalorie, 1 kg of LPG: 12500 kilocalorie, 1 kg Diesel: 10500 kilocalorie, 1 kg Furnace Oil: 9800 kilocalorie, 1 kg of
Fire Wood: 2900 kilocalorie
Figure 26
Energy Consumption Details for 2011 of Selected
SLNEEA Award Wining Hotels in 2010, 2011, 2012
Page 36
Source
SLSEA
06
Resource Utilization Benchmarking

World Over
A comparison of resource utilization benchmarking for hotels in various countries is
provided in Table 9. This is based on information published in various reports and
international journals on resource use and waste management in hotels. During this
assignment, the project team will identify parameters for three, four, and ve star
hotel categories.
Hotel Category
Resource
Vietnam Saudi
Asia
Europe Vietnam Saudi
Asia
35
81 127
44 -77
<40.2
30
Electricity Consumption
(kilo watt hour/
Guest Room/Day)
NA
77 - 98 <60.4
40 - 50 30 - 40
Water Consumption
(m3 Water /
Guest Room / Day)
NA
6 - 21.0
NA
0.9 1.4
4.4 39.9
2.4 2.6
NA
0.2 0.3
2.2 11
Wastewater
(m3 Wastewater /
Guest Room/Day)
NA
3 - 5.3
0.5
NA
13.5 32.3
1.8 2.2
0.29
NA
Solid Waste
(kg of Solid waste /
Guest Room/Day)
NA
14 - 33
NA
1.2 - 2
NA
7.3 12.2
NA
0.5 1.5
Asia
27 - 41 15 - 27
Asia
Europe
<21.4
25
<21.4
25
1.8 2.3
NA
0.2 0.3
0.6 10.8
0.9 1.7
NA
0.2 0.3
8.2 17.9
1.4 1.7
0.26
NA
0.7 5.6
0.4 0.8
0.26
NA
2.3 12
2.5 7.2
NA
0.5 1.5
1.4 1.9
0.8 2.1
NA
0.5-1.5
NA: Data is not available

Table 9
Resource utilization
benchmarking details of
hotels in various countries
Source
International Journal of Basic and Applied Sciences IJBAS Vol.: 9 No: 10: Resource Use, Waste,
and Total Productivity Management in Saudi Arabia Hotel Industry, Journal of Cleaner
Production 13 (2005) 109116: Resource use and waste management in Vietnam hotel industry
Page 37
07
How to Ensure Sustainability in

Sri Lankan Hotels
Sri Lanka has witnessed unprecedented economic growth since the end of its three
decade-long civil war in 2009. The tourism sector has emerged as a frontrunner in Sri
Lankas economic activities. According to the Central Bank of Sri Lanka (CBSL), the
hotel industry contributed around two percent to the countrys gross domestic
product (GDP) in 2011. Details of tourist arrivals and accommodation capacity for
the last 15 years are provided in the Figure 27.
Tourist Arrivals and Accomodation Details - 2002 to 2016

3000000
45000
40000
35000
2000000
30000
25000
1500000
20000
1000000
15000
10000
500000
5000
0
2016*
2015*
2014*
2013*
2012*
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Tourist Arrivals
2500000
* Note: Tourist arrivals and accommodation capacity from 2012 to 2016 estimated to increase by 25 percent every year.
Figure 27
Tourist Arrivals and Accommodation
Details - 2002 to 2016
Source
SLTDA
Annual Report 2011
Tourist Arrivals
Accomodation Capacity (Rooms)
As per the Tourism Master Plan 2011-2016 by Sri Lanka Tourism Development Authority, the government has set a target to attract 2.5
million tourists by 2016. An estimated 45,000 hotel rooms will be required to cater to that gure, which is approximately three times
existing gures. SLTDA has approved 68 new tourist hotels in the last three years, which are currently under construction. These will add
over 4000 rooms over the next two to three years.
As discussed in earlier sections of this report, the Sri Lankan hotel industry accounted for two percent of total electricity sales in 2011,
which is equivalent to 196 Giga watt hours, a growth of 3.5 percent over 2010 electricity sales (that is 190 Giga watt hours). Apart from
electricity, the hotel industry consumes signicant amounts of primary energy and water.
Page 38
Accomodation Capacity (Rooms)
50000
07
How to Ensure Sustainability in

Sri Lankan Hotels
If the Sri Lankan Tourism Master Plan 2011-2016 is implemented successfully, energy requirements in the hotel industry will increase by
about three times the 2011 gures by 2016. This will throw out millions of tonnes more anthropogenic6 carbon into the atmosphere.
Multilateral and bilateral cooperation agencies and development nance institutions should engage directly to inform, educate, and work
collaboratively with the tourism industry to integrate sustainability into policies and management practices and secure its active
participation in developing sustainable tourism. At the national level, government and civil society engagement should be a critical part of
efforts to coordinate action towards successful implementation of resource efciency measures in the hotel industry.
Some programs, which can make Sri Lankan hotels sustainable and greener, can be:
Star Rating Program for Hotels: The star rating program for hotels can lead to more efforts by hotels to get higher star ratings and
ultimately use that to market their hotels. This can also increase demand for these hotels in the market, based on their resource
efciency. That is, actual performance of the hotels in terms of specic resource usage (specic energy consumption, specic water
consumption, and specic waste generation). Ratings can be based on a one to ve star scale in each category of graded tourist
accommodations with ve star labelled hotels being the most efcient.
National Hotel Industry Resource Consumption Benchmarking Program: The main goal of the program can be to establish a
framework to standardize data collection on resource usage, baseline setting for different graded tourist accommodations, resource
utilization target setting and monitoring. This information can help users and other stakeholders evaluate hotel resource efciency,
track improvements compared to other hotels, and recognize top performers.
Financing Program for Resource Efcient Measures in Hotel Industry: Resource efciency and environmental investments are
relatively new, so remain outside the mainstream of nancial markets (particularly in developing countries). In many cases, barriers are
based on misperceptions or lack of knowledge. For example, payback periods and amounts are not clearly established for many green
investments due to limited experience with them. This creates uncertainty for banks and other investors, jeopardizing nancing.
Financial support (through lower interest loans) can be provided to hotel owners and energy service companies (ESCOs) to invest in
resource efcient measures in hotels. This will act as a motivator for bankers, hotel owners, and energy service companies to invest in
resource efcient measures in the hotel industry.
From the data presented above, it is clear the rapid increase in Sri Lankan tourist hotels in the current scenario will lead to higher energy
consumption and environmental degradation. Drastic measures must be taken for efcient use of resources in the Sri Lankan hotel
industry through implementation of innovative programs that do not affect the economic growth of the sector.
An effect resulting from human activity
Page 39
International Finance Corporation

Sri Lanka
15th Floor, DHPL Building
42 Nawam Mawatha
Colombo 02
Sri Lanka
Tel: +94 11 5400 100
Fax: +94 11 4795 017
www.ifc.org

Accommodation Sector in Sri Lanka

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Ensuring Sustainability in

Sri Lankas Growing Hotel Industry

The Sri Lankan Hotel

1.1. Tourism in Sri Lankas Economy

Over 100 New Hotels

2.1. Boutique Villas and Hotels

Resource Utilization in Sri

How to Ensure Sustainability

Resource Utilization in Sri

4.1. Power and Energy Sector

Sri Lankas Highly Diverse

Figure 5: Location of Boutique Hotels and Villas by district

Figure 6: Location of Guesthouses in districts by grade

Figure 7: Location of Tourist Hotels (One star to ve star) by district

Figure 8: Location of Tourist Hotels by district

Figure 9: Home Stay units/Bungalows/Rented Homes and Apartments by district

Figure 10: Boutique Hotels under construction by district

Figure 11: Guesthouses under construction by district

Figure 15: Industry sector (Thousand tonne oil equivalent)

Figure 22: MSW collection according to province (Metric tonnes a day)

Figure 23: Typical energy consumption in tourist hotels

Figure 24: Typical water usage in tourist hotels

Figure 25: A typical hotel's solid waste generation

Figure 27: Tourist Arrivals and Accommodation Details- 2002 to 2016

Table 2: List of tourist accommodations (existing) in each district

Table 3: Tourist accommodations under construction in each district

Table 4: Expected addition in room capacity under each category

Table 6: Sector specic quantity and type of solid waste

Table 7: Resource utilization in the Sri Lankan hotel industry.

Table 9: Resource utilization benchmarking details of hotels in various countries

Australian Institute of Hotel Engineering

Biological Oxygen Demand

Central Bank of Sri Lanka

Ceylon Electricity Board

Chemical Oxygen Demand

Enhancing Environmental Performance in Key Sri Lankan Export Sector

Energy Service Companies

Efuent Treatment Plants

Gross Domestic Product

Giga Watt Hour

Hazard Analysis Critical Control Point

International Finance Corporation

Kilo Watt Hour

Lanka Electricity Company Private Limited

Municipal Solid Waste

National Water Supply and Drainage Board

Portfolio Approach to distributed Generation Opportunities

Sri Lanka National Energy Efciency Awards

Sri Lanka Tourism Development Authority

Sri Lanka Sustainable Energy Authority

Sewage Treatment Plant

Total Suspended Solids

World Tourism Organization

The Sri Lankan Hotel Industry

Total Tourists Arrived

Gross Tourist Receipts

The Sri Lankan Hotel Industry

1.2. Classication of Tourist Accommodation

Boutique Villas and Hotels

Home Stay Units/Bungalows/Rented Homes and Apartments

The Sri Lankan Hotel Industry

1.3. Tourist Hotels

Distribution of rooms as per star category (percentage)

The Sri Lankan Hotel Industry