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Tourism

Thailand's Tourism Industry Braces for Impact of Israel-Iran War

Strategic Insights

— 1 min read

Thailand's tourism market is set to experience a significant decline, with five of its key markets potentially dropping by 50% in June, as air travel restrictions and airspace closures take effect. The crisis in the Middle East has already led to several airlines adjusting their routes to avoid conflict zones, while the Tourism Authority of Thailand (TAT) is monitoring the situation closely to assess the long-term impact on its market share.

Key Takeaways:

  • The conflict in the Middle East is expected to affect five of Thailand's tourism markets, with visits from Iran, Iraq, Jordan, Lebanon, and Syria potentially dropping by 30-50% in June, from 7% of Middle Eastern visitors in June 2024 (100,781 travellers).
  • The Iranian market has already evaporated, with Tehran-based Mahan Air temporarily cancelling flights to Bangkok and Phuket due to airspace closures in Iran.
  • The TAT is monitoring the situation to assess the long-term impact, particularly on Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Qatar, and Bahrain, which account for 80% of the overall Middle East market.
  • Hotels in Bangkok, Pattaya, Phuket, and Chiang Mai will experience the most severe short-term impact, with the tourism industry bracing for a possible loss of 3,500-5,000 visitors in June.
  • The TAT aims to attract 1.06 million visitors from the Middle East this year, an increase of 11% over 2024, and generate approximately 86 billion baht in revenue.
  • Royal Jordanian Airlines has confirmed plans to operate the Amman-Bangkok route with two flights a week, starting in August, as some airlines plan to operate new routes to Thailand.

Statistics:

  • 100,781: Total number of travellers from the Middle East recording in June 2024.
  • 7,165: Number of tourists attracted to Thailand during the Eid al-Adha festival last year.
  • 3,500-5,000: Estimated number of visitors from the five affected markets (Iran, Iraq, Jordan, Lebanon, and Syria) in June.
  • 80%: Percentage of the overall Middle East market accounted for by Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Qatar, and Bahrain.
  • 86 billion baht: The projected revenue from the Middle East market.
  • 1.06 million: Targeted number of visitors from the Middle East for 2024, an increase of 11% over 2024.

Sources:

  • [Thapanee Kiatphaibool, governor of the Tourism Authority of Thailand (TAT)]
  • [Tourism Authority of Thailand (TAT)]

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