📈 Mideast Crisis Slows March Tourism; YTD Nears 650k

The escalating Middle East conflict has impacted Sri Lanka’s tourism sector, with arrivals for the first 15 days of March falling 5.15% YoY to 92,573. Despite the slowdown, year-to-date (YTD) figures remain resilient, up 7.01% YoY to 649,228 visitors. • Crisis Impact: Airspace closures and flight cancellations (447 arrivals/451 departures) have caused a projected financial fallout of US$ 40 Mn. Arrivals via Middle Eastern transit hubs—which account for 30% of total traffic—dropped by 25-30%. • Sector Performance: Officials report a shortfall of 30,000–40,000 tourists against projections for early March. However, authorities remain optimistic that March could still reach 200,000 arrivals due to strong weekly momentum. • Top Source Markets: • India: Continues to lead with 23,224 visitors in March (25% share) and 122,984 YTD. • UK: 8,565 arrivals in March; 68,893 YTD. • Russia: 8,126 arrivals in March; 58,359 YTD. • Other Key Markets: Germany, China, and France remain significant contributors. • Strategic Shift: To counter the softening of European markets due to rerouted flights and higher costs, the SLTPB is accelerating promotional campaigns in Asia, focusing on India to leverage regional connectivity. Based on provisional data from SLTDA and ministry officials.