Tuesday Mar 17, 2026
Tuesday Mar 17, 2026
Tuesday, 17 March 2026 06:18 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
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| SLAITO President Nalin Jayasundera |
Sri Lanka’s inbound tour operators yesterday said the tourism industry is experiencing noticeable cancellations due to the Mideast crisis and warned that the country must urgently pivot its strategy towards alternative regional markets.
The Sri Lanka Inbound Tour Operators Association (SLAITO) said authorities should focus on strengthening connectivity with non-conflict regional destinations to sustain tourist arrivals during the ongoing geopolitical uncertainty.
Industry representatives pointed out that nearly 30% of all tourist arrivals to Sri Lanka travel through transit hubs in the Middle East, making the sector particularly vulnerable to disruptions caused by airspace closures, flight cancellations and rising aviation costs linked to the crisis.
Given these risks, the association called for coordinated action involving the Government, SriLankan Airlines and tourism authorities to reassess aviation and marketing strategies aimed at cushioning the industry from potential shocks.
“Sri Lanka should prioritise increasing flight frequencies to regional markets such as India, Australia, China and other East Asian destinations while long-haul traffic remains affected by the instability in the Middle East,” SLAITO President Nalin Jayasundera told the Daily FT.
The association also urged the Government to offer temporary incentives to airlines from non-conflict regions to encourage them to expand operations into Sri Lanka. These measures could include concessions on embarkation charges and refuelling costs in order to attract additional flights and sustain passenger flows.
According to the industry body, such concessions could provide strategic advantages if implemented quickly, especially as competing tourism destinations may move faster to attract travellers through alternative connectivity and promotional strategies.
SLAITO stressed that the speed of response will be crucial in protecting Sri Lanka’s tourism recovery.
“There is a need for immediate action before competing destinations lure visitors through stronger strategies,” the association noted, adding that funding is available within tourism promotion budgets to support such measures.
The industry group also revealed that March has already seen a noticeable number of reservation cancellations, suggesting that the impact of the Middle East crisis is beginning to filter into the tourism sector.
Operators warned that the broader economic consequences of the conflict could extend beyond aviation. Rising airfares, higher fuel costs and wider inflationary pressures may dampen discretionary travel spending globally, potentially slowing tourism growth later in 2026.
The warning comes at a time when Sri Lanka is attempting to rebuild its tourism sector following several years of disruption. Although visitor numbers have recently recovered strongly, industry stakeholders say sustained growth will depend on maintaining reliable air connectivity and adapting quickly to changing global travel patterns.
Mideast arrivals down 25-30%
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| Tourism Deputy Minister Prof. Ruwan Ranasinghe |
Tourism Deputy Minister Prof. Ruwan Ranasinghe yesterday confirmed a sharp decline in visitor arrivals, as the ongoing conflict in the Middle East begins to weigh on travel flows and transit connectivity to Sri Lanka.
Addressing the media, he said tourist arrivals from the Middle East have fallen by between 25% and 30% in recent weeks, reflecting both direct travel disruptions and reduced transit traffic through key regional hubs.
“The Middle East is a transit point for tourists arriving from European countries. We see a drop in tourist arrivals from such transit flights. But we still receive tourists via direct flights. However, there is a notable 25–30% drop in tourists coming via the Middle East at present,” he said.
The Deputy Minister noted that while direct connections to Sri Lanka continue to operate, the disruption to major transit routes is affecting overall passenger flows, particularly from long haul routes like Europe, where many travellers rely on Middle Eastern carriers for onward connectivity.
The development comes at a time when the tourism industry is attempting to sustain momentum following its gradual post-crisis recovery. Industry stakeholders have already raised concerns that prolonged instability in the Gulf region could impact forward bookings, particularly if airfares rise or flight schedules are reduced.
Tourism sector to get special fuel QR system
Tourism Deputy Minister Prof. Ruwan Ranasinghe yesterday said the Government was planning to roll out a special QR code-based fuel access system specifically for the tourism sector.
This is in response to emerging operational challenges confronted by the industry due to the Mideast crisis-related fuel supply shock.
He said discussions were held yesterday (16) to finalise the mechanism and that authorities expect to introduce the new QR system by this evening.
“A similar system was introduced in the past. A discussion took place and we hope to introduce the new system by this evening with the aim of ensuring that those in the tourism sector can carry out their work without any issues,” he said.
According to the Deputy Minister, all necessary planning for the system has been completed, asserting the Government’s intention to avoid operational disruptions for hotels, transport providers and other tourism-related services.
The move is seen as a precautionary measure to ensure uninterrupted fuel access for tourism operators should global supply chains tighten amid escalating geopolitical tensions.
