The conflict in the Middle East is beginning to weigh on Thailand’s tourism sector, with Phangnga province reporting a sharp drop in European arrivals and estimated losses of nearly 1.7 billion baht, according to the Phangnga Hotel Association.
The issue was discussed during the association’s annual general meeting on Friday. The meeting was chaired by Deputy Governor Bancha Thanuin and attended by representatives from both the public and private sectors.
Participants examined the potential impact of the conflict on tourism while also addressing broader challenges facing the industry, including marketing strategies and stronger cooperation among member hotels.
According to the meeting, the ongoing fighting has disrupted air travel across Middle Eastern airspace, affecting routes frequently used by long-haul flights from Europe to southern Thailand.
Airlines have been forced to reroute flights to avoid the conflict zone, increasing operating costs and pushing airfares up by more than 20%.
Hotel operators in Phangnga reported growing difficulties in retaining European guests, with postponements and cancellations exceeding 20% compared with the same period last year.
The resulting economic loss to the province is estimated at nearly 1.7 billion baht.
Sompong Daopiset, president of the Phangnga Hotel Association, said the province is among the hardest-hit destinations along the Andaman coast because its tourism market relies heavily on European visitors.
Unlike other provinces that attract a more diverse range of tourists, including travellers from Asia, Phangnga’s visitor base is dominated by the European market, making it particularly vulnerable to disruptions in long-haul travel.
He added that most flights from Europe to southern Thailand traditionally pass through the Middle East to reduce fuel costs.
“More than 90% of our visitors are Europeans. When airlines suddenly cancelled flights, many travellers who had already purchased tickets were unable to continue their journeys,” he said.
Sompong warned that the number of affected travellers could increase if the conflict continues.
The association has called on the Tourism Authority of Thailand to intensify social media campaigns aimed at attracting new visitor segments and domestic travellers.
Khao Lak has been identified as a priority destination for promotion in order to support the local economy and help tourism businesses recover.
Additional proposals include co-payment tourism schemes and temporary adjustments to unused airport slots to allow more short-haul flights during the green season.
