High Prices During Iran War Affect Travel to Southeast Asia

The summer tourist season in Southeast Asia is in trouble due to high jet fuel costs and flight cancellations.

Tourism in Asia has not fully recovered from the Covid pandemic. Now, many countries are dealing with the war's impact on global energy supplies and prices.

Some families are not traveling because gas and food are getting more expensive. Fewer people are visiting popular tourist spots.

A tuk-tuk driver in Cambodia asked, 'With rising gas prices and fewer tourists, how can we make money?'

Tourism is very important for many developing countries. It makes up a big part of the economy in Thailand and Vietnam and supports many jobs in Cambodia.

Tourists bring in money that these countries need to buy things from other countries.

The money from tourism is very important now because the war has made oil prices go up, making it harder for some countries to buy fuel.

The war will decide which tourism businesses can survive until tourists return, said an expert from an energy consulting firm.

The pandemic and now the war are very bad for the tourism industry, said the expert.

The Iran war is making travel more expensive.

Some airlines, like Vietnam Airlines and Cathay Pacific, are cutting flights or changing their schedules due to jet fuel shortages and high costs.

Airlines in Europe are also having problems.

The war has closed some airspace and airports, making flights to Asia take longer and cost more.

Airfares have gone up, with some airlines increasing their fuel surcharges.

Cathay Pacific's fuel surcharge for some flights has increased to $80 from $34. For longer flights, it's now $174 from $73.

Cathay Pacific said jet fuel prices are still very high, making it harder for them to make money. People are booking flights closer to their travel dates, showing they are getting worried.

A travel writer wanted to visit Asia this summer but found that flight prices were too high.

She started planning her trip to Thailand in March but stopped when she saw the airfares.

She said, 'I looked at flight options and that's where it ended.'

On the ground, higher fuel costs are affecting taxi and ride-hailing drivers in Southeast Asia.

A tuk-tuk driver in Cambodia said he used to make $20 a day but now makes only $5.

His gas bill takes half of his earnings, and the rest goes to food. Some days, he doesn't make any money.

Southeast Asia might have a slow summer.

Tourism is crucial for many economies in Southeast Asia, making up about 11% of economic activity.

An analysis said the war could reduce economic growth in the Asia-Pacific region by 0.1 to 0.4 percentage points in 2026.

The conflict will affect growth through higher production costs and consumer prices, said an economist.

Higher airfares and less travel confidence can hurt people's livelihoods and government revenues in countries that rely on tourism.

When the economy gets worse, travel is usually the first thing people cut back on, said a bed-and-breakfast owner in Vietnam.

In times of crisis, luxury travelers choose mid-range options, and budget hotels become the most vulnerable.

This will disrupt the whole tourism industry, said the owner.

Tourism in Thailand is a big industry and is being affected, said an expert.

The number of visitors to Thailand fell 7% in April, with European arrivals down 16% and Middle Eastern arrivals down 57%.

In Cambodia, a restaurant owner said the rising cost of cooking gas is straining her budget and making it hard to pay her employees.

She's worried about inflation making her business less profitable and harder to run.

The number of visitors to Siem Reap in Cambodia dropped 37.5% in the first four months of 2026 compared to last year.

The restaurant owner said, 'This has greatly affected all of us.'

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