Europe’s travel slowdown leaves Asia’s tourist hubs counting heavy losses

War-linked travel disruptions are emptying hotels, beaches and heritage sites across Southeast Asia.
MC World Desk
July 29, 2026 / 13:09 IST
Europe’s travel slowdown leaves Asia’s tourist hubs counting heavy losses

The crowds that once packed some of Southeast Asia’s most famous tourist destinations have thinned dramatically, leaving businesses struggling to survive during what should have been one of the busiest travel seasons. From Cambodia’s Angkor Wat to Thailand’s island resorts, the absence of European visitors is hitting local economies that depend heavily on international tourism.

The downturn has spread quickly after conflict in the Middle East disrupted global air travel, sending ticket prices soaring and creating repeated interruptions at major atry officials said that, the impact has become the region’s biggest tourism setback since the Covid pandemic

Cambodia families feel the pressure

In Siem Reap, tuk-tuk driver Khon Mony has watched his income disappear. A job that usually brought him several groups of tourists each week has dried up, leaving him without a single customer throughout May.

The loss of earnings has forced painful decisions at home. He says he can no longer afford enough milk for his young daughter and worries about providing for his growing family.

Another local driver, Mr. Lam, faces similar hardships. After paying for fuel and settling loan repayments, he is left with only enough money to buy soy milk for his one-year-old daughter while preparing for the arrival of a second child.

He now worries about how he will meet the expenses surrounding the birth and support both children in the months ahead.

Thailand’s resorts struggle to stay afloat

The picture is equally grim in Thailand’s Phang Nga province, where hotels have seen bookings fall sharply since the conflict began.

At Surakul Pier, the departure point for tours to Koh Khao Phing Kan, famous for its appearance in a James Bond film, the slowdown is impossible to miss. Boats that once carried visitors throughout the day now remain tied to the docks with few passengers to serve.

Workers who relied on daily tourist traffic are earning far less than before. Channipha Laklaem, who collects fees from departing boats, says there have been very few trips since international travel patterns changed.

Boat operator Rungrat Huailek has spent three decades in the tourism business, but says he has never experienced such a sudden collapse in European arrivals. His monthly income has fallen by about two-thirds, forcing him to dip into savings simply to cover everyday expenses.

Residents are also reducing spending on anything beyond basic necessities, creating wider financial strain across the community.

Bali searches for new visitors

Indonesia’s Bali has weathered the downturn better than some neighbouring destinations thanks to continued arrivals from Australia and China. Even so, businesses that mainly catered to European travellers are becoming increasingly concerned.

Officials say fewer Europeans are reaching Bali because many routes depend on connections through Middle Eastern airports affected by the conflict. Tour operators expect bookings to decline significantly over the year and some companies have frozen employee salaries while waiting for demand to recover.

To soften the blow, tourism authorities have stepped up promotions in Australia, China, Singapore and South Korea in an effort to attract replacement visitors. The Indonesian government has also waived taxes on domestic economy airfares to encourage residents to holiday within the country.

For many families whose livelihoods depend on tourism, however, recovery cannot come soon enough. Until international travel returns to normal, they are cutting household expenses, stretching every dollar and hoping visitors will once again fill the streets, beaches and historic landmarks that once supported entire communities.

MC World Desk
first published: Jul 29, 2026 01:09 pm

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