### Tourism Faces Mid-East Conflict Headwinds 📈

Sri Lanka's tourism sector is reporting "noticeable" cancellations as the Middle East crisis disrupts flight connectivity and transit hubs. Industry stakeholders and the government are now moving to pivot strategies to mitigate the impact on the 2026 recovery. • Impact on Arrivals Direct Hit: Arrivals specifically from the Middle East have dropped by 25-30% in recent weeks. Transit Vulnerability: Approximately 30% of all tourists to Sri Lanka transit through Middle Eastern hubs; disruptions in these regions are affecting long-haul traffic from Europe. Current Status: March has already seen a significant rise in reservation cancellations according to SLAITO. • Strategic Pivot & Proposals Market Shift: Urging an immediate focus on regional markets including India, China, Australia, and East Asia. Aviation Incentives: Proposals for temporary concessions on embarkation charges and refueling costs to attract airlines from non-conflict regions. Coordinated Action: Calls for a unified strategy between the Govt, SriLankan Airlines, and tourism authorities to reassess marketing. • Operational Safeguards Fuel Security: The Government is re-introducing a special QR code-based fuel system for the tourism sector to ensure uninterrupted operations for hotels and transport providers amidst global supply shocks. Economic Risks: Warnings issued regarding rising airfares and fuel-driven inflationary pressures which may dampen discretionary travel spending globally. _Note: Summary based on provisional industry reports and Ministry statements as of March 17, 2026._