SriLankan Airlines faces flood of cancellations

While Sri Lanka’s national carrier has seen a flood of cancellations and expects to lose at least US$100 million in revenue, MICE experts say confirmed bookings of events including weddings have been cancelled after the Easter Sunday carnage.

With tourists arrivals likely to see a 30-50 per cent drop this year, SriLankan Airlines CEO Vipula Gunatilleka told the Business Times that as at Tuesday, cancellations in May was 17 per cent compared to May last year, 12 per cent in June and about 18 per cent in July. “We expect the figures to go up,” he said, adding that a new 5-year business plan for 2019-2024, which was announced to the media earlier this month, would be re-visited.

Noting that the worst affected routes are London and Tokyo, he said that they were awaiting a message from the authorities as to when the situation would return to normal.

“The moment we have some clarity from the Government we can work (with the authorities) on relaxing the travel advisories. Without this clarity and assurances there is no use in targetted marketing and special promotions,” he said, adding that they would then examine how traffic could be increased ( or restored) from India and China ( Sri Lanka’s main tourist source markets).

According to officials at the Sri Lanka Convention Bureau, at least 90 per cent of the MICE ( Meetings, Incentives, Conferences and Exhibitions) bookings in Sri Lanka have been postponed, cancelled or put on hold in the next two months (May/June).

“We have been informed of several postponements, cancellations or events placed on hold,” said a worried senior official, who added that three Indian weddings, each bringing around 500 guests from India and the rest of the world, had been cancelled for this month. A 1000-pax event by a local operator due to be held in July has been put on hold.

Meanwhile tourism industry companies are seeking a moratorium on loans, a specialised PR to handle promotions and for the government to speak with one voice to the international community on the measures taken to strengthen security.

Amidst the gloom at least two under- construction hotels were going ahead with plans to open in late 2019 and early 2020.

“The 164-room Next Hotel Colombo is slated to open in November 2019 within the Colombo City Centre,” the Singapore-based Next Hotels & Resorts said, responding to a query by the Business Times. “We are still working towards the scheduled opening date and will continue to monitor the situation,” it added in an email comment.

The world renowned InterContinental brand, which in returning to country in partnership with Pearl Grand Tower Hotel Ltd, is set to fast-track its opening. David Todd Senior Dire c t o r, Intercontinental Hotel Group ( IHG), New Hotels, India, Middle East and Africa, has said that they remain committed to opening the hotel as early as possible.