Sri Lanka hotel bookings declined in December following Cyclone Ditwah, according to industry leaders, even though physical damage to tourist hotels remained limited and most major destinations continued operating during the peak travel season.
Sri Lanka hotel bookings feel December slowdown despite limited damage
Sri Lanka hotel bookings experienced a moderate decline in December after Cyclone Ditwah disrupted travel sentiment at the start of the peak tourist season, despite minimal damage to hotel infrastructure, according to the Chairman of the Ceylon Chamber of Commerce, Krishan Balendra.
Speaking at an economic forum organised by Asia Securities, Balendra said the impact on reservations was noticeable but not severe. He estimated that the tourism sector faced a decline of between 5 percent and 10 percent in hotel bookings during December, primarily due to uncertainty following the cyclone rather than widespread operational disruptions.
Cyclone Ditwah struck Sri Lanka in late 2025, delivering a sharp but geographically limited impact on the country’s tourism industry. The timing of the storm, coinciding with the onset of the peak travel season, heightened concerns among international travellers and tour operators, leading to booking hesitations even in areas unaffected by the weather event.
Balendra explained that the cyclone’s impact on tourism could be assessed across two dimensions: the effect on bookings and the extent of physical damage to infrastructure. While booking sentiment weakened temporarily, the actual damage sustained by tourist hotels was relatively low when measured against the scale of the national disaster.
According to assessments compiled by the Tourist Hotels Association from its member companies, total damage to hotel properties amounted to approximately 500 million rupees. Balendra noted that this figure was not material in the context of the overall tourism industry, particularly when compared with the broader economic cost of the cyclone.
The most significant physical damage occurred in Sri Lanka’s central highlands, where heavy rainfall and landslides affected infrastructure critical to nature-based tourism. Iconic attractions such as Horton Plains National Park, a UNESCO World Heritage site, were temporarily closed due to safety concerns, disrupting travel plans for visitors drawn to the country’s hill country landscapes.
In addition, the cyclone caused substantial damage to sections of the railway infrastructure, leading to the suspension of services on the renowned Kandy–Ella railway line. Authorities estimate that repairs and full restoration could take up to 18 months, affecting one of Sri Lanka’s most popular scenic rail routes and a key attraction for international tourists.
Despite these disruptions, Balendra emphasised that the impact on Sri Lanka’s core tourism zones was limited. Major coastal destinations, which account for a significant share of hotel capacity and tourist nights, remained largely operational throughout the period. Similarly, the Cultural Triangle, encompassing key heritage sites, continued to function with minimal interruption.
The cyclone’s overall economic impact on Sri Lanka was estimated at approximately 4.1 billion dollars, reflecting damage across multiple sectors. However, the tourism industry demonstrated resilience, supported by the limited extent of hotel damage and the swift reopening of affected attractions where possible.
Early indicators for 2026 suggest that the temporary dip in Sri Lanka hotel bookings did not translate into a prolonged downturn. Tourist arrivals in the early part of 2026 recorded growth of 9.7 percent compared to the same period in the previous year, signalling a recovery in demand and renewed traveller confidence.
Industry analysts note that tourism demand is often sensitive to perceptions rather than actual damage, particularly following natural disasters. Even when infrastructure remains intact, uncertainty around safety, accessibility, and service continuity can influence booking decisions in the short term.
Balendra’s remarks highlight the importance of timely communication and accurate information in mitigating the impact of such events on Sri Lanka hotel bookings. Clear messaging around operational status, safety measures, and restoration timelines can play a critical role in restoring confidence among travellers and international tour operators.
As Sri Lanka continues to position tourism as a key driver of economic recovery, the sector’s ability to absorb and rebound from external shocks remains a focal point for policymakers and industry stakeholders alike. The December slowdown underscores both the vulnerability and resilience of the industry, particularly in the face of climate-related disruptions.