Intra-Asian travel viewed as opportunity amid tensions

Turmoil in the Middle East has reshaped the global travel landscape. Long-haul travel is among the hardest hit, while intra-regional travel could become a bright spot for many tourism-dependent Asian economies, according to industry analysts.

Citing the situation in the Middle East, the Tourism Authority of Thailand slashed its forecast for longhaul arrivals this year from 11 million to 10 million, according to a report by The Nation on June 17.

However, arrivals from nearby markets such as China saw a strong recovery with Chinese tourists arrivals jumping 18.35 percent to 2.3 million. The number of Indian tourist arrivals also increased by 8 percent to about 1 million, the report said.

Paul Edmundus Talo, director of Floressa Bali Tours and Bali Flores Adventure, told China Daily that the conflict in the Middle East had affected international flight services, created a sense of uncertainty among travelers, and contributed to higher airfares.

Airfares for flights between Asia and Europe have hiked after the US-Israeli war on Iran began in late February.

According to an analysis by FlightsFinder.com in March, fares on direct routes between Asia and Europe surged by nearly 300 percent, meaning travelers would need to pay up to $2,330 more for the same flight.

Growth potential

Gary Bowerman, managing director of the weekly industry newsletter Asia Travel Re:Set, said that it is still unclear how consumers will respond to the challenges ahead, but Asian tourism still holds strong growth potential.

Bowerman said intra-regional demand has become a significant force for Asia's tourism recovery, and he expects regional travel in Southeast Asia and the broader Asia-Pacific to remain strong.

But currency volatility, rising interest rates, and higher living costs could weigh on travel at the margins, he said, noting the war in the Middle East will have strong residual effects for some regional economies in the second half of 2026.

"Destinations across the region must continue to diversify their visitor mixes to build more resilience in the future," said Bowerman.

Some Southeast Asian countries have pinned their hopes on the Chinese market with targeted campaigns.

Thai tourism authorities are planning to attract 7.5 million Chinese visitors in 2026. Apart from marketing through social media platforms, it also plans to build on the popularity of the Chinese film Dear You to increase interest in locations where the film was shot.

On June 15, Cambodia launched a four-month visa-free trial for Chinese tourists with multiple entries, its largest source of international visitors. The government said it aims to boost tourism recovery, according to the Khmer Times.

As tourist arrivals drop in Siem Reap Province, Khiev Thy, president of the Siem Reap Angkor Guides Association, said the visa exemption will play an important role in attracting Chinese tourists.

In Bali, the popular Indonesian tourism destination has quickly adjusted its strategy to prioritize the development of the Chinese market in response to the loss of Western tourists, said Ye Lu, head of the China market of the Bali Tourism Board, also founder of the Bali Mandarin Center.

Measures include simplified visas, increased direct flights, training for Chinese-speaking guides, and widespread acceptance of Alipay and WeChat Pay to fill the tourist gap, Ye said.

Leonardus Jegho is a freelance journalist for China Daily.

Contact the writers at kelly@chinadailyapac.com