Asian travellers shift to alternative destinations as Middle East travel plans remain grounded

Amid the ongoing conflict involving Iran, the Middle East’s once-thriving tourism sector has been overtaken by repatriation efforts, rising airfares, and growing safety concerns. What was expected to be a booming travel market is now grappling with widespread disruption.

The situation marks yet another major airspace challenge for global aviation since the Russian invasion of Ukraine. Earlier projections by the United Arab Emirates Ministry of Economy and Tourism had estimated the country’s tourism market would reach nearly $950 billion by 2026. But key hubs like Dubai have seen temporary airport shutdowns, denting their status as regional travel hotspots.

According to aviation analytics firm Cirium, more than 46,000 flights to and from the region have been cancelled since late February, following US-Israel strikes. Airlines such as SpiceJet have also flagged significant operational disruptions, particularly on India–Middle East routes.

Travellers rethink plans

The impact is being felt not just by airlines but also by travellers, many of whom are cancelling or postponing trips. Asia-based tourists told CNBC they are increasingly opting for destinations closer to home.

Vietnam-based communications professional Michelle Bui, for instance, scrapped her Middle East travel plans after ticket prices surged to between $1,500 and $2,000. Rising fuel costs linked to the conflict have driven up airfares sharply.

Travel agencies report a 20–30% increase in cancellations for Middle East routes among Asian clients, with high non-refundable change fees further discouraging travel. According to Safe Harbors travel group, many travellers are now shifting to Southeast Asian destinations like Singapore or choosing intra-Asia travel instead.

Meanwhile, companies like Qlik are leveraging user data to help travellers navigate uncertain booking decisions, offering more tailored and flexible travel options.

Business travel disrupted

Corporate travel has also taken a hit. Data from Perk shows voluntary cancellations on Europe–Asia routes more than doubled in early March, as companies reassess employee safety.

Executives like Vincent Siow of Novo Nordisk have faced major disruptions, with rerouted journeys involving multiple stops across cities such as Istanbul, Doha and Riyadh after being stranded in Dubai.

While business travel continues, companies are increasingly avoiding high-risk zones and planning alternative routes.

Shift to regional travel

With long-haul travel becoming costlier and riskier, regional options are gaining traction. Ferry routes, such as those between Singapore and Batam, are seeing steady demand. According to Singapore Cruise Centre, short-distance travel offers affordability and convenience, making it an attractive alternative.

Experts, including David Mann of Mastercard, say many Asian travellers are now favouring nearby destinations due to rising costs and uncertainty.

Ultimately, the future of travel demand will hinge on how long geopolitical tensions persist and whether oil and jet fuel prices continue to climb—factors that remain highly unpredictable.