Southeast Asian Tourism Faces Turbulence as Middle East Conflict Disrupts Air Routes
Popular destinations like Thailand, Cambodia, and Vietnam are becoming more expensive and less accessible due to disruptions to transit air routes through the Middle East – crucial corridors connecting Europe and the United States to Southeast Asia.
Initial Disruptions and Rising Costs
The conflict initially forced the United Arab Emirates (UAE) and Qatar to close their airspace, causing widespread air traffic disruptions. While major airports like Dubai, Abu Dhabi, and Doha have since reopened, sporadic disruptions persist, impacting frequently used routes for Western travelers heading to Southeast Asia.
airlines have been forced to cancel or reschedule thousands of flights, leading to aircraft immobilization, unstable fuel supplies, and a significant increase in ticket prices. Even flights that continued operating had to alter their routes or extend travel times, substantially increasing operational costs.
Impact on Tourism Economies
The tourism sector, a pillar of many countries’ economies in the region, is heavily impacted. In 2024, tourism accounted for approximately 12% of Thailand’s GDP, 9.4% of Cambodia’s, and 8% of Vietnam’s.
Thailand quickly felt the effects. In the first week of March, immediately following aerial strikes in Iran, international visitor numbers decreased by 8.9% compared to the previous week, totaling 616,229. Visitors from Europe and the Middle East – representing around 27% of total international visitors in 2025 – experienced a decline of 18%.
Airlines are also facing cost pressures. Thailand’s national carrier increased fares by 10 to 15% due to rising fuel prices. In Vietnam, airline operating costs are projected to increase by 60 to 70% following a tripling in the price of kerosene.
Fuel Supply Concerns
The risk of fuel shortages is exacerbating the situation. Vietnam currently imports over two-thirds of its kerosene needs, with approximately 60% sourced from China and Thailand. However, due to the conflict’s repercussions, both countries have temporarily suspended their exports, raising concerns about future supply disruptions.
Regional Dependence and Adaptation Strategies
The impact extends beyond Vietnam, as neighboring countries also rely on Middle Eastern transit hubs. In Cambodia, even tourists not originating from the region often transit through points like Doha or Dubai, leading to significant air traffic disruptions.
Some countries are adapting by diversifying their tourism markets. Malaysia is considered capable of partially offsetting the decline in European tourism by enhancing its appeal to tourists from East Asia, India, and Southeast Asia, aiming to reach its goal of 45 million visitors this year.
However, experts believe that market shifts won’t easily or fully compensate for the losses, as tourists from distant markets like Europe generally spend more on accommodation, tours, and shopping – a crucial factor for countries seeking to maximize tourism revenue.
According to Nigel Wong, president of the Malaysian Association of Tour Agencies and Tour Operators, “the considerable question is how long the fighting will last and what the consequences will be, even after the conflict ends.”
FAQ
Q: How is the conflict in the Middle East affecting air travel to Southeast Asia?
A: Disruptions to airspace and flight routes through the Middle East are causing cancellations, rescheduling, and increased ticket prices.
Q: Which countries in Southeast Asia are most affected?
A: Thailand, Cambodia, and Vietnam are experiencing significant impacts due to their reliance on Middle Eastern transit routes and the importance of tourism to their economies.
Q: Are fuel shortages a concern?
A: Yes, Vietnam and other countries in the region are facing potential fuel supply disruptions due to export suspensions from key suppliers like China and Thailand.
Q: What are countries doing to mitigate the impact?
A: Some countries, like Malaysia, are diversifying their tourism markets to attract visitors from other regions.
