Asian countries grapple with tourism sector amid Middle East conflict

Middle East conflict in the past month has dashed hopes and growth drivers for the global travel industry that were not yet sustainable after the Covid-19 pandemic.

Thailand: Songkran uncertainty and revised 2026 target

In Asia, the conflict has cast a shadow over travel during Thailand’s Songkran festival. Hotel operators, retailers and event organizers in the country broadly expect revenues to be weaker or unchanged from 2025, even as the Tourism Authority of Thailand (TAT) projects domestic spending of 30.35 billion baht, up 6%.

Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said businesses are seeking direct government support to cut costs, including reducing land taxes. The association also urged working capital support for small and medium-sized enterprises, as higher airfares reduce traveler numbers.

According to TAT, the international tourist target for 2026 has been revised downward by 18%, to 30–34 million arrivals. Ms. Thapanee Kiatphaibool, head of TAT, said the industry must adapt to a “quality era,” focusing on value per trip rather than volume.

Strategy shift toward premium, safer experiences

Thailand’s tourism strategy includes pushing marketing for premium, safe, and value-based experiences, leveraging long-haul markets such as the United Kingdom, Germany and the United States—markets that yield higher and more stable revenue. It also emphasizes using digital platforms to promote premium travel products, described as a key step to preserving competitiveness and building a “shield” for tourism amid global market volatility.

Malaysia Airlines expands amid flight disruptions

As airlines in the region shrink or suspend flights due to tight fuel supply, Malaysia’s national carrier Malaysia Airlines is expanding its network. MAG recently announced the launch of services between Kuala Lumpur and Shenzhen, as well as Changsha, from July to September 2026, and restoring direct flights to Fukuoka, Japan.

MAG chairman and CEO Nasaruddin Bakar said the crisis is an opportunity to scale up. The airline has secured about 36% of annual fuel demand and aims to raise this to 50% by the second quarter.

Tour operators redirect demand to Malaysia

The Essence of Asia Tours & Travel said Indian tourist groups originally planning holidays in Dubai in April 2026 have redirected their trips to Malaysia. Six other leisure groups from India have confirmed visits to Malaysia from April to June instead of the UAE.

Arokia Das Anthony, CEO of the company, said promotions with Indian partners are underway. “While margins are lower, we expect total sales to be higher to boost overall profitability.” At policy level, Malaysia’s Ministry of Tourism, Arts and Culture is adjusting Visit Malaysia 2026 to focus more on markets less affected by the conflict, such as Asia and Southeast Asia.

Indonesia: Flight cancellations, higher costs, and market rebalancing

Indonesia’s travel industry has canceled hundreds of flights and faces higher costs due to geopolitical instability. Despite this, the country still targets attracting 16–17.6 million international visitors by shifting markets.

Indonesia’s Tourism Minister Widiyanti Putri Wardhana said the country will focus on Southeast Asia, East Asia and mid-range markets with faster recovery potential to reduce dependence on markets heavily affected by the crisis.

Indonesia is also accelerating domestic tourism stimulus as a growth pillar, including discounted airfares in peak seasons, expanding aviation capacity, boosting digital marketing, and hosting events at key destinations to maintain hotel occupancy.

South Korea: Longer multi-entry visas for Chinese travelers

In Northeast Asia, the South Korean embassy in Beijing announced that Chinese citizens who previously visited Korea can now obtain multiple-entry visas with five-year validity. Those with household registration in 14 major cities such as Beijing, Shanghai and Guangzhou can apply for multi-entry visas up to 10 years, according to SCMP.

The move comes as bilateral ties improve, and Korea aims to entice more Chinese travelers back, especially for short weekend trips centered on K-pop experiences, cuisine and shopping.

What experts say Korea needs to do next

Experts said Korea needs to upgrade smart travel infrastructure, integrate payment platforms such as Alipay, expand premium travel products like beauty and healthcare services, curb price gouging, and intensify digital marketing to capitalize on the new visa policy.

Regional snapshots: Vietnam, Italy, and North Korea

Vietnam: Vietnam remains a safe destination for travelers amid ongoing global travel disruptions, supply chain issues and higher travel costs, with tourism in Vietnam continuing to show notable growth.

Italy: Italy is applying multiple measures to address overtourism and balance visitor flows.

North Korea: North Korea is actively promoting tourism as a source of foreign currency.

Impact and outlook across Asia-Pacific

Global travel constraints continue to influence regional strategies and investment in tourism infrastructure. However, Asia-Pacific markets remain a focus for resilience and growth through targeted product differentiation, safety positioning and digital marketing. Key takeaways and market dynamics are reflected across regional updates on tourism strategies, visa policies and efforts to diversify source markets.