Rising tension between Israel and Iran is starting to hit Thailand’s tourism industry. The Tourism Authority of Thailand (TAT) warns that Israeli visitor numbers could drop as much as 29% in Q3 2025—losing up to 92,000 tourists—if the conflict continues into late autumn, despite a strong start to the year (+76%).
The Iranian travel market is also suffering. With direct flights suspended due to closed airspace, around 30% fewer Iranian tourists are expected, translating to a weekly loss of over 1,800 seats.
Beyond these two key markets, travelers from the Gulf and Europe are increasingly canceling or postponing trips, prompting Thai hoteliers to prepare for double-digit drops in bookings.
This downturn is more than financial—it damages the image of Thailand as a vibrant, confident tourist destination. Instead, the country risks being seen as a fallback plan rather than the enthusiastic first choice. Thailand’s tourism sector will need to pivot quickly to reclaim trust and stability.
