Matara

As of June 2026, Matara, Mirissa, Weligama have 1,885 active Airbnb and VRBO listings. This represents a 12% increase from the previous year.

The average Airbnb or VRBO in Matara generates Rs3M per year. High-performing properties earn Rs19M/year, while low-performing properties earn Rs742K/year. The massive earnings gap suggests that a select segment of listings is capturing the majority of market demand, likely benefiting from brand positioning that standard listings currently lack.

Airbnb and VRBO can be profitable in Matara. Average annual revenue is Rs3M with 20% occupancy. High-performing properties earn up to Rs19M/year. The 20% occupancy rate highlights a challenging utilization environment, where revenue potential is heavily skewed toward top-tier assets rather than the market average.

The average occupancy rate for Airbnbs and VRBOs in Matara is 20%. This occupancy level, combined with an average nightly rate of Rs42K, results in a RevPAR (revenue per available room) of Rs6,237 per day.

4+ bedroom properties demonstrate the strongest performance in Matara, with annual revenue of Rs8M. These properties balance operating costs and rental demand most effectively in the Matara market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Matara area. I don't have reliable data on short-term rental regulations or enforcement realities for Matara, Mirissa, and Weligama in Sri Lanka. These coastal areas are popular tourist destinations, but specific STR licensing requirements, caps, and enforcement practices at the municipal level aren't documented in available sources. Sri Lanka has national tourism registration requirements through the Sri Lanka Tourism Development Authority, but local enforcement varies significantly and isn't well-documented for these specific cities. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Matara Airbnb and VRBO market is currently showing increasingly competitive conditions. Supply has grown 12% year-over-year, while RevPAR has decreased 17%. This indicates growing competition requiring strong operations. The negative trend in revenue per listing amid rising inventory signals an oversupply relative to current traveler volume.

Launch around November, 2-3 months before peak winter season (February peaks). This pre-peak timing lets you build reviews when competition is 55% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-June) when gaining traction is harder.

The most common amenities in Matara listings include: Kitchen (90%), Air Conditioning (89%), Private Yard (65%), Washing Machine (56%), Balcony (55%). Amenities that boost revenue the most include Pool, Gym, Air Conditioning, with Pool properties earning approximately 296% more (Rs18M/year vs Rs5M/year).

Monthly estimated revenue per listing in Matara over the last 12 months: May: Rs103K, June: Rs78K, July: Rs110K, August: Rs137K, September: Rs98K, October: Rs127K, November: Rs212K, December: Rs292K, January: Rs316K, February: Rs299K, March: Rs296K, April: Rs200K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Matara is Rs42K, up 3% year-over-year. By property size: 1-bedroom properties average Rs24K/night, 2-bedroom properties average Rs35K/night, 3-bedroom properties average Rs65K/night, 4+ bedroom properties average Rs153K/night. Rates peak in March and are lowest in September.

Guests in Matara book an average of 26 days in advance, down 21% from last year. By property size: 1-bedroom: 25 days, 2-bedroom: 26 days, 3-bedroom: 29 days, 4+ bedroom: 34 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Matara Airbnb and VRBO market has seen the following changes: supply grew 12%, revenue per listing decreased 17%, occupancy fell 21%, average nightly rates increased 3%, and lead time decreased 21%. These metrics reflect a softening market where increased supply is outstripping demand, forcing shorter booking windows.

In Matara, Wednesday sees the highest booking demand while Sunday has the lowest. Nightly rates peak on Friday and are lowest on Monday.