Airlines across Southeast Asia are rapidly restoring flight schedules following the disruption caused by the Iran conflict, but the region’s tourism industry continues to recover at a much slower pace as higher airfares and weaker traveller confidence discourage long-haul visitors.
Tourism-dependent destinations, including Thailand, Vietnam and Cambodia, are reporting softer-than-expected demand despite improving airline operations. Industry experts say rising ticket prices, elevated fuel costs and ongoing uncertainty have delayed the return of international visitors, particularly from long-haul markets such as Europe and Japan.
The conflict triggered higher jet fuel costs and forced some airlines to reroute or cancel services when airspace across parts of the Middle East became inaccessible. Although many carriers have now restored most of their networks, airlines serving Asia continue to face higher operating costs, many of which have been passed on to travellers through increased fares.
Long-haul travel remains under pressure
Tourism businesses say the recovery gap is most visible in long-haul markets. Flights from Europe and Japan remain more expensive than before the conflict, making travellers more cautious about booking holidays to Southeast Asia.
According to recent tourism data, visitor arrivals to Thailand fell during the early months of 2026, with European arrivals among the markets under pressure. Cambodia‘s tourism sector has also been affected, with Siem Reap, home to Angkor Wat, seeing weaker visitor demand compared with previous expectations.
Meanwhile, airlines are gradually rebuilding capacity. Major Gulf carriers including Emirates, Qatar Airways and Etihad Airways have returned close to their pre-conflict operating levels, helping restore international connectivity between Europe, the Middle East and Asia. However, aviation’s operational recovery has not yet translated into a similar rebound for hotels, attractions and tour operators.
Countries adapt tourism strategies
Thailand has responded by focusing more heavily on regional and budget-conscious travellers while continuing promotional campaigns aimed at maintaining visitor numbers. Tourism contributes around 13% of the country’s gross domestic product, making it one of the sectors most exposed to sudden changes in international travel demand.
Vietnam is seeking to stimulate international arrivals by expanding its visa-free entry programme, strengthening air connectivity and improving access from key overseas markets. Tourism officials view easier entry requirements as an important tool for encouraging travellers who may be reconsidering expensive long-haul holidays.
Cambodia has continued promoting its cultural and heritage attractions, particularly Angkor Wat and other historical sites, in an effort to diversify demand and maintain visitor interest during a period of slower international travel.
Industry analysts note that tourism supports millions of jobs across Southeast Asia and remains a major source of foreign exchange for several economies. Weaker travel demand can quickly affect employment, household incomes and public revenues in destinations heavily dependent on international visitors.
Although airlines continue to restore routes and flight frequencies, tourism officials acknowledge that rebuilding traveller confidence may take considerably longer. With airfares still elevated and economic uncertainty affecting consumer spending, Southeast Asia’s tourism recovery is expected to remain uneven throughout 2026, particularly in long-haul source markets.
