Tourism industry faces uncertainty amidst conflict in Middle East

Sri Lanka’s tourism industry witnessed a lavish period during the first two months of the year, driven by the peak winter season and the England Cricket Team’s tour during late January. The Barmy Army—the

 popular, organised group of English cricket supporters who travel worldwide to follow their cricketers, provide substantial economic benefits to host countries and their presence acts as a significant stimulus for tourism, hospitality, and retail sectors. Whenever the England Cricket Team has visited Sri Lanka after Christmas, the industry has earned rich dividends.

Apart from the aforesaid tour, the ICC T20 World Cup too pushed up the arrival figures. Importantly, the showpiece event attracted travellers from European countries like Ireland and the Netherlands who tend to spend more and contribute towards the economy compared to average Russian or Asian holidaymakers. In February 2026, the country achieved its best-ever February arrivals, welcoming 253,293 tourists, and this surpassed the previous records set in 2025 (240,217) and 2018 (235,618). The Government has an ambitious target of attracting 3 million tourists during the calendar year.

Unfortunately, the conflict in the Middle East has dashed all such optimistic hopes, and the industry is facing uncertain times. The US President Donald Trump told the media that war in Iran could last 4 to 5 weeks or could go even longer. Such an unfavourable outlook projects a bleak picture for the global travel and leisure industry at large. Even the neighbouring Maldives, which is heavily dependent on tourism, is grappling with fear and the Maldives Tourism Minister Thoriq Ibrahim had warned that up to 35% of booked tourists may be unable to arrive if regional disruptions persist. Travelling for pleasure is one of the key discretionary expenses people tend to cut during times of fear and price hikes.

It is a huge misfortune for the nation’s economy that this conflict coincided with the peak of the tourism season. The Middle East serves as a critical transit hub for Sri Lanka’s primary tourism markets and over 60% of high-spending Western tourists typically transit through Gulf hubs like Dubai and Doha. Major regional carriers, suspended services to Colombo following airspace closures. Rerouting flights to avoid conflict zones increases flight times and fuel consumption, leading to higher airfares that deter long-haul travellers.

Since the outbreak of hostilities in the Middle East, a total of 115 flights between Sri Lanka and Middle Eastern countries have been cancelled. The Government has rightfully decided to grant a free two-week extension of visa validity for stranded visitors in view of their predicament. The hotel and leisure industry needs to act responsibly at this critical juncture by not trying to exploit the tourists (via overcharging) who are struggling to return to their home countries. In a magnanimous gesture, the UAE authorities have directed hotels to extend stays for stranded guests and confirmed that the state will bear all accommodation, meal and essentialservice costs for more than 20,000 affected travellers. after airspace closures halted flights across the country. The Sri Lankan Government is obviously not as resourceful as the Gulf State, but the administration needs to devise a mechanism to assist the tourists who are stuck in the country with meaningful and tangible measures. 

Early this year, The Sri Lanka Tourism Development Authority (SLTDA) announced a special program targeting key European markets with the objective of attracting visitors during off-peak months coinciding with the forthcoming summer of the northern hemisphere. However, such initiatives need to be reassessed in view of the prevailing volatility.