• 33% of booking cancellations from Europe
• Further impacted by surge in airline ticket prices
• Impact largely limited to European market so far 

Hoteliers have reported widespread cancellations of bookings from Europe due to flight disruptions to Sri Lanka as a result of the ongoing Middle East conflict.

Speaking to The Sunday Morning Business, Mount Lavinia Hotel Ltd. Chairman and Ceylon Hotels Ltd. Managing Director Sanath Ukwatte stated that hoteliers in Sri Lanka had observed a significant cancellation of bookings from European tourists amidst the ongoing Middle East conflict.

Ukwatte, who has also served as the President of The Hotels Association of Sri Lanka, said:

“We have around a 33% cancellation rate in bookings from Europe and that number is increasing. The industry as a whole is facing a significant number of cancellations from Europe these days.”

He attributed the situation primarily to the fact that European tourists relied on Middle Eastern destinations such as Dubai, Doha, and Abu Dhabi as transit hubs, while SriLankan Airlines did not have sufficient capacity to fill the gap. 

Ukwatte also pointed out that these cancellations may have been further impacted by a surge in airline ticket prices, which have increased by close to 100%.

“SriLankan Airlines charges around Rs. 960,000 to London and back in economy class. This is because jet fuel prices have increased significantly. It was around $ 76 per gallon and now it is about $ 200 per gallon,” he said.

He pointed out that recent developments, such as the cancellation of all flights to Abu Dhabi until the end of the year by British Airways, had further heightened concerns and created fear among tourists looking to travel to the region.

Commenting further, Ukwatte admitted that the impact so far had largely been limited to the European market, while markets such as India, Australia, and the Far East remained unaffected. 

Therefore, he suggested that Sri Lanka focus on these markets for the time being, while also working on providing more direct flights to Europe that bypass Middle Eastern transit hubs.

He added that it was still too early to quantify the economic impact of the Middle East conflict on the tourism industry, noting that the scale of the fallout would depend on how long the conflict continued. 

However, he assured that recovery was likely to be swift once the conflict ended and flights recommenced.