Sri Lanka fears tourism slump

Images of the airport attack could scare away visitors

Sri Lanka is bracing itself for a sharp drop in tourist arrivals following last week's deadly rebel attack on its only international airport.

Officials fear the images of foreign tourists scurrying for cover amid burning aircraft on the airport tarmac could scare away western visitors.

No tourist was killed in the attack but half of the total fleet of the country's flag carrier, Sri Lankan Airlines, was damaged or destroyed.

The next six months will see almost 50-60% in reduction in arrivals

Renton de Alwis, Ceylon Tourist Board

Already several countries, including Australia, Germany, the United Kingdom and the United States, have issued travel advisories warning their citizens to avoid travel to Sri Lanka.

The country's tourist board is now offering discounts to travellers in an effort to bring tourists back.

"We think... the next six months will see almost 50-60% in reduction in arrivals and we are working with that as the worst-case scenario," Renton de Alwis, chairman of the Ceylon Tourist Board, said.

Hotels fear that the crisis could hit their occupancy and affect profit margins.

"I expect profits to be hit by 60-70%," Hiran Cooray of Jetwing Hotels Ltd, which owns a chain of resorts, said.

"There is no company in this country that can emerge unscathed from that kind of slump. There will be carnage," Dushyanth Wijesinghe, an analyst at WI Carr/Asia Securities said.

Peak season

The attack came at a particularly bad time for Sri Lanka, as it prepares for the peak winter tourist season at the end of the year.

The attacked sparked an exodus of tourists

Last month a record 28,000 tourists visited Sri Lanka, up by nearly 30% over the corresponding period last year.

And Sri Lankan Airlines carried a record 50,000 passengers the week before the rebel attack.

The assault by Tamil Tiger guerrillas on Colombo airport forced it to be shut down for 36 hours, as the armed forces battled to clear the area of rebels.

Mr Alwis said the authorities were already working towards taking measures to ensure the safety of tourists.

"From the tourism point of view, we have to do everything possible to ensure the safety of the visitors," he said.

But, he added, the only way to improve tourists arrival was to find a way out of the ethnic conflict that has claimed the lives of nearly 65,000 people in two decades.