Eyes Indian MICE market as ME crisis dents March tourism revenue by US$ 40mn

Sri Lanka’s tourism sector is aggressively pivoting toward the Indian Meetings, Incentives, Conferences, and Exhibitions (MICE) market, positioning the island as a lucrative alternative to Dubai for regional corporate travellers, as escalating tensions in the Middle East cause a temporary dip in European arrivals.

The industry, which was on a strong recovery trajectory, is now recalibrating its strategies to mitigate the fallout from global flight disruptions. Following a robust performance with a 10 percent growth in January compared to 2025 and a 16 percent growth in February, the sector has hit a speed bump this month. Cancelled transit flights through the Middle East have severely impacted the influx of European holidaymakers.

Deputy Minister of Tourism Prof. Ruwan Ranasinghe detailed the sudden contraction. “Well, in January compared to 2025, we observed 10 percent growth. In February it was 16 percent growth. At the moment in March, we are experiencing a 20 to 25 percent drop,” he stated.

The financial impact of this sudden shift is substantial. The Minister noted that by the middle of the month, 447 arrival flights and 451 departure flights had been cancelled due to the ongoing geopolitical situation.

 On the revenue side, the loss we can estimate is somewhere around 40 million US dollars,  Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Buddhika Hewawasam explained, noting a shortfall of about 38,000 to 40,000 tourists during the first 15 days of March compared to initial projections. Despite these challenges, the country has already welcomed nearly 100,000 visitors in the first half of the month and remains on track to close March with approximately 200,000 arrivals.

To offset the European shortfall, tourism authorities are accelerating targeted promotional efforts in the Asian region, with a significant focus on India. With the Middle East currently facing geopolitical uncertainties, Sri Lanka has a unique window to capture the outbound Indian MICE and destination wedding traffic that traditionally favors Dubai.

“In our review, what we need to focus on is the different market segments,” Hewawasam emphasised. “MICE is one lucrative market segment which is a primary focus, and on the other hand, there are certain specialized tourism market segments like wedding and honeymoon markets which are additionally focusing on India.”

To facilitate this pivot, Sri Lanka Tourism is rolling out immediate roadshows in key Indian hubs, including Chennai, Kolkata, and Ahmedabad. Recognising that Gujarat is one of India’s wealthiest states, authorities have secured a new direct SriLankan Airlines flight to Ahmedabad starting next month, optimizing connectivity to capture high-spending corporate groups and massive wedding parties.

The island is also expanding its global footprint in the wedding segment by bidding to host the EWPC international wedding event next year, alongside conducting strategic networking sessions with visiting Chinese professionals to drum up diverse business pillars.

While aggressively chasing new markets, the government has concurrently rolled out safety nets for international visitors already caught in the crossfire of global flight cancellations. To provide immediate relief for those facing access difficulties, the government has granted a blanket two-week visa extension for foreign nationals currently in the country, effective from February 28, 2026. 

Furthermore, for stranded tourists unable to immediately restructure their travel itineraries, tourism authorities have partnered with the national hotel school to provide a daily free brunch facility, cementing the island’s reputation for warm and resilient hospitality. 

(NF)