Key western countries have issued travel warnings against traveling to Sri Lanka following recent attacks in Colombo city.
Government troops and Tamil Tiger rebels locked in combat are spooking visitors, with hotel occupancies down to around 45-50 percent, the Tourist Hotels Association of Sri Lanka said recently.
"The adverse publicity the country received in the last few months was very badly timed as October and November was the peak booking period for the winter 2006/2007 season. Bulk of the prospective bookings have gone to other destinations," the association's vice president, Srilal Miththapala said
The association says negative publicity is also hitting summer bookings for 2007, and hotels and resorts are unable