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Middle East Conflict Risks Rp56tn Loss in Tourism, Says Minister
April 2, 2026 | 04:24 pm Foreign tourists undergo immigration checks at the automatic gate (autogate) at the International Arrivals Terminal of I Gusti Ngurah Rai International Airport, Badung, Bali, December 27, 2024. ANTARA/Fikri Yusuf TEMPO.CO, Jakarta - Tourism Minister Widiyanti Putri Wardhana warned that Indonesia risks losing between Rp48.3 trillion and Rp56.5 trillion in foreign exchange due to escalating geopolitical conflicts in the Middle East. The projections cover a 306-day period from February 28 to December 31, 2026."If this condition continues until the end of the year, the potential impact is estimated to reach 1.44 to 1.68 million foreign tourists," the Minister stated during a working meeting with Commission VII of the Indonesian House of Representatives at the parliament complex on Wednesday, April 1, 2026.Widiyanti noted that between February 28 and March 28, 2026, six major departure points from the Middle East to Indonesia were affected: Abu Dhabi, Doha, Dubai, Jeddah, Madinah, and Muscat. In that single month, 770 flights were canceled, resulting in an estimated loss of 60,752 tourists and Rp2.04 trillion in foreign exchange.Despite the looming geopolitical threats, the Ministry of Tourism remains optimistic about reaching its target of 16 to 17 million foreign arrivals for 2026. This goal surpasses the 15.39 million visitors recorded in 2025.The Indonesian tourism industry currently faces significant challenges tied to the surge in crude oil prices, which have jumped from approximately US$70 to US$100 per barrel. This spike has driven up the cost of aviation turbine fuel (Avtur) and subsequent airfares.Widiyanti pointed out that foreign carriers have already implemented steep fuel surcharges, with Air India raising ticket prices by 50 percent. Meanwhile, Cathay Pacific has seen fares on intercontinental routes soar by as much as 105 percent.Even regional travel has been impacted; ferry ticket prices on the Singapore–Batam route have risen by 15.79 percent. "Fares have increased from SG$ 76 to SG$ 88 for round-trip tickets," she noted.Read: Jet Fuel Prices in Indonesia Exceed Rp22,000 Amid Middle East TurmoilClick here to get the latest news updates from Tempo on Google News Recommended Indonesia Seeks Japan's All Nippon Airways Partnership to Strengthen Air Connectivity 5 hari lalu Indonesia Seeks Japan's All Nippon Airways Partnership to Strengthen Air Connectivity Indonesia discussed opportunities for tourism promotion coll...
How Iran conflict is hitting Bangkok tourism hard | The Straits Times
Follow our live coverage here.BANGKOK – Retail assistants sat idly on stools outside their stores, scrolling on their mobile phones, while hotel receptions fell silent, with barely any guests checking in. This scene in Nana, a downtown Bangkok neighbourhood popular among Middle Eastern tourists, was a telling snapshot of the toll the US-Israel strikes on Iran have taken on Thailand’s vital tourism sector.The conflict, which began on Feb 28, sent booking cancellations soaring and foot traffic plummeting, not only in establishments catering to Middle Eastern visitors but also across the broader industry. Thailand’s Tourism Ministry said Middle Eastern visitor numbers more than halved in February alone, from 32,831 the previous year to 16,080. The region does not rank among Thailand’s top 10 source markets. However, the sudden absence of Middle Eastern visitors – combined with airspace disruptions that pushed European travellers onto costlier alternative routes – has laid bare how vulnerable the kingdom’s tourism sector, which contributes 12 per cent to gross domestic product, is to geopolitical shocks.Nana is an area that is popular with Middle Eastern tourists from places like the United Arab Emirates, Saudi Arabia, Kuwait and Iran.ST PHOTO: MAY WONGMeanwhile, neighbouring Malaysia and Indonesia – also top destinations for Middle Eastern tourists – have similarly been affected. Malaysia’s Tourism Ministry said on March 31 that arrivals from the affected region fell 40.3 per cent in March 2026 compared with the same period in 2025. Its Indonesian counterpart said on April 1 that the country had lost an estimated 60,000 foreign tourists from the conflict.Grace Hotel, which has operated in Nana for at least 60 years, has three properties with more than 700 rooms. Roughly 90 per cent of its guests come from Middle Eastern nations such as the United Arab Emirates, Saudi Arabia and Qatar. Booking cancellations are up 30 per cent to 40 per cent, as guests deemed the situation too unstable for international travel. Many who typically visited Thailand for medical treatment also postponed their appointments, said Mr Sararutl Laocharoen, the hotel group’s sales and marketing director.“Normally, many guests would be queueing up at the front desk to check in. It would be crowded with families, with the elderly. But this is abnormal for us,” he said, referring to the empty hotel lobby.Lost revenue for the hotel group has reached one million baht (S$39,400). Mr Sararutl p...
The turmoil in the Middle East = Sri Lanka in economic trouble
The usual risks for Sri Lanka are inward remittances and tourism and some export of tea. Sri Lanka has nearly 2 million people working in and around the Middle East and sending their hard earned salaries back home.
March Sees 19.7% Decline in Sri Lanka's Tourist Arrivals Due to Middle ...
Sri Lanka aims to attract 3 million tourists this year, following a missed target in the previous year. Travelers, particularly from Western countries, are increasingly hesitant to visit Sri Lanka due to the ongoing instability in the Middle East, even though the conflicts are geographically distant from Colombo.
