# Middle East conflict deals a “double blow” to global aviation and tourism

- Link: https://www.thailand-business-news.com/dubai/294854-middle-east-conflict-deals-a-double-blow-to-global-aviation-and-tourism
- Published: 2026-03-19T10:08:00+07:00
- Author: Daniel Lorenzzo

Thailand’s ambitious tourism recovery plans for 2026 are facing significant challenges
due to escalating tensions in the Middle East, which have triggered flight cancellations,
route detours, and a sharp rise in travel costs.

As the conflict drives up fuel prices and disrupts transit hubs like Dubai, the 
Thai tourism industry projects a potential 10% to 15% decline in visitor arrivals
and substantial revenue losses, prompting a strategic shift to focus on regional
Asian markets to offset the drop in long-haul travelers.

ADVERTISEMENT

## Key Points

 * **Flight Disruptions and Rising Costs**: Conflict-related detours have increased
   fuel consumption and operational expenses, leading Thai Airways and other carriers
   to raise ticket prices by 10% to 15%.
 * **Declining Visitor Numbers**: Following military strikes in the Middle East,
   weekly foreign arrivals dropped by nearly 9% in early March, with an 18% decrease
   specifically among travelers from Europe and the Middle East.
 * **Economic Forecast**: The Center for Economic and Business Forecasting estimates
   the tourism sector could lose between 9 billion and 29 billion baht ($895 million)
   this year, depending on the duration of the crisis.
 * **Impact on Local Business**: Major players like Central Retail expect a decline
   in earnings and profits due to reduced tourist spending, while popular destinations
   like Phuket are particularly vulnerable to the loss of high-spending international
   visitors.
 * **Strategic Pivot to Asia**: To mitigate risks, the Thai Hotels Association is
   urging the government to intensify promotional efforts in stable regional markets,
   specifically targeting affluent tourists from China, India, and Malaysia.
 * **Broader Economic Stakes**: With tourism accounting for approximately 20% of
   Thailand’s GDP, the current slump threatens the country’s overall economic growth,
   which is already lagging behind regional peers like Malaysia and Vietnam.

The escalating conflict in the Middle East is causing a significant “double shock”
to the global aviation and tourism sectors, driven by two key pressures:

 * **Economic Impact:** Surging oil prices are driving up operational costs, which
   is expected to result in a significant increase in airline ticket prices.
 * **Structural Disruption:** The war is destabilizing the major transit hubs and
   traffic flows between Europe, Asia, India, and Africa.

Thailand’s efforts to revive its tourism sector are encountering major challenges
due to rising tensions in the Middle East, especially the conflict involving Iran.
Experts predict a 10% to 15% drop in international arrivals, jeopardizing the country’s
2026 goal of attracting 36 million visitors.

### Related**Posts**

###  󠀁[Thailand’s new entry fee and departure tax could raise travel costs for foreign tourists by nearly $80](https://www.thailand-business-news.com/tourism/333476-thailands-new-entry-fee-and-departure-tax-could-raise-travel-costs-for-foreign-tourists-by-nearly-80)󠁿

###  󠀁[Phuket named top wellness destination by Canadian travellers](https://www.thailand-business-news.com/press-release/331672-phuket-named-top-wellness-destination-by-canadian-travellers)󠁿

###  󠀁[TAT highlights Thailand’s film production talents and tourism charm at TIFF 2026](https://www.thailand-business-news.com/tourism/329371-tat-highlights-thailands-film-production-talents-and-tourism-charm-at-tiff-2026)󠁿

###  󠀁[Weather and travel updates for Bangkok and its nearby regions](https://www.thailand-business-news.com/tourism/331213-weather-and-travel-updates-for-bangkok-and-its-nearby-regions)󠁿

Key industry players, specifically the major Gulf carriers—Emirates, Etihad, and
Qatar Airways—are particularly vulnerable. Having built their business models on
massive wide-body fleets and powerful connecting hubs, these airlines now face a
severe reduction in activity. Key points regarding this shift include:

 * **Threat to Hub Dominance:** The conflict challenges the long-standing dominance
   of Gulf states in long-haul aviation, a model that Saudi Arabia’s Riyadh Air 
   also intended to follow.
 * **Shift to Regional Tourism:** As long-haul transit becomes more complex and 
   uncertain, European travelers are increasingly opting for regional destinations
   such as France, Spain, Italy, and Portugal.
 * **Irreplaceable Capacity:** Experts warn that if the conflict persists, the resulting
   void in flight offerings will be nearly impossible for other carriers to fill,
   leading to long-term changes in international travel patterns.

The ripple effects of the Middle Eastern conflict are also impacting airline operations
and travel sentiment, with many travelers opting to postpone or cancel trips due
to safety concerns. Additionally, fluctuating oil prices driven by geopolitical 
instability are increasing travel costs, further discouraging international tourists.
To mitigate these challenges, Thailand is ramping up efforts to attract visitors
from less affected regions, such as Southeast Asia and Oceania, while promoting 
domestic tourism to sustain the sector.