Asian – Dispatch

• Sri Lanka’s tourist arrivals grew by 31.6% in the first ten days of June 2025 
• Brewing conflict in the Middle East forcing airlines to reroute flights, leading to longer travel times and higher costs, directly threatening travel affordability and convenience for tourists heading to Sri Lanka
• Disruptions pose a significant threat to arrivals from key European markets such as the UK and Germany

Sri Lanka’s tourism sector registered robust growth in the first ten days of June, welcoming 43,962 visitors. However, the industry is now anxiously awaiting the impact of a ‘gathering storm’ as the escalating conflict in the Middle East begins to disrupt global aviation.

The series of “blistering attacks” by Israel deep into Iran on the 13th of June, targeting core nuclear and military infrastructure, and Iran’s continued missile and drone assaults on Israel have made the skies over the region an active conflict zone. The reports of explosions in major cities such as Tehran have led to immediate and indefinite airspace closures by Iran and surrounding nations, severing some of the world’s most critical air corridors between Europe and Asia.

The immediate impacts of rerouted flights and soaring fuel costs, combined with a climate of global uncertainty, pose a considerable risk to the nation’s vital tourism recovery.

Tourist arrivals from June 1st to 10th marked a 31.6 percent increase compared to the 33,407 visitors recorded during the same period in 2024. The total number of tourists for the year has now reached 1,073,765 as of June 10th. Based on the current daily average, arrivals for the full month of June are projected to reach approximately 131,866.

The conflict’s most tangible impact has been on international aviation. The temporary closure of airspace by several Middle Eastern nations has forced commercial airlines, including SriLankan Airlines, to undertake significant and costly rerouting of flights, particularly on the crucial Europe-Asia corridor. This has resulted in extended flight durations and the need for additional refueling stops, increasing operational expenses that are likely to be passed on to travellers. The conflict’s proximity to key transit hubs like Dubai and Doha, used by many tourists travelling to Sri Lanka, adds another layer of apprehension.

This disruption poses a direct threat to arrivals from key European markets. For the first ten days of June, the United Kingdom was the second-largest source market (3,740 tourists), and Germany was fourth (2,439 tourists).

Year-to-date, the UK and Germany are the third and fourth largest markets, respectively, highlighting their immense importance to the local economy. Longer, more expensive flights and general travel hesitancy could significantly suppress visitor numbers from this critical region.

Beyond aviation, the broader risks to Sri Lanka’s tourism sector are multifaceted. They include increased local operational costs for hotels and transport due to rising fuel prices, which could erode the country’s competitiveness, and a general dampening of traveller confidence amid heightened global security concerns. Furthermore, there is a direct risk to arrivals from Israel, which has been a consistent source market, ranking 18th year-to-date with 10,736 visitors.

For the first ten days of June, the top five source markets were India (12,362), the United Kingdom (3,740), Bangladesh (2,717), Germany (2,439), and China (2,403). Year-to-date, the top sources are India (216,422), the Russian Federation (111,285), the United Kingdom (100,014), Germany (71,517), and China (59,386).

Source: Daily Mirror