ISTANBUL

The Middle East conflict is raising concerns in Thailand’s tourism sector, reviving memories of the COVID-19-era downturn as officials warn higher fuel prices and travel disruptions could reduce visitor arrivals this year.

Thailand, the second-largest economy in Southeast Asia, procures around 43% of its energy supplies — worth about $43 billion in 2024 — from Gulf countries.

However, supplies face risks as tensions around the Strait of Hormuz continue to threaten shipping through the critical route used for a large share of oil deliveries to Asian markets.

Prime Minister Anutin Charnvirakul’s government announcement of oil price increases triggered panic buying, with long lines reported at petrol and diesel stations and criticism from opposition parties.

The Middle East war, initiated by the joint air strikes by the US and Israel on Iran has disrupted global aviation sector with flight cancellations as well as hotel booking cancellations.

Tourism contributes around one-fifth of Thailand’s economy, and the country recorded about 33 million visitors last year.

Tourism as well as aviation industry were biggest hit soon after the COVID-19 spread in early 2020 as national government forced border closures and disallowed entry of foreigners fearing spread of deadly infection.

Anutin’s government had set a target of 37 million tourists this year, but Thai tourism officials have “warned that sustained increases in oil prices could further dent demand.”

The decline could cost the economy 150 billion baht ($4.6 billion) — about 10% of the country’s total foreign tourist receipts last year — Natthriya Thaweevong, permanent secretary of the Ministry of Tourism and Sports, told Bloomberg News.

She warned that if the conflict lasts six months, Thailand could see three million fewer foreign tourist arrivals this year.

As prospective tourists cancel reservations and flights, Thai hotels “are trying to woo local residents with steep discounts as traditionally reliable streams of foreign tourists dry up, partly due to travel disruptions from the Middle East conflict,” the report added.

Amid the ongoing conflict in the Middle East, at least three Thai citizens remain missing after a Thai-flagged cargo ship was hit near the Strait of Hormuz earlier this month.

The entire Middle Eastern region has been on alert since the US and Israel launched a joint offensive on Iran on Feb. 28, so far killing over 1,340 people, including then-Supreme Leader Ali Khamenei.

Tehran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.