Rising fuel prices driven by the ongoing conflict in the Middle East and energy market volatility are weighing on the tourism sector in Thailand by inflating airfares and squeezing operational margins for hotels and tour operators.
The Tourism Authority of Thailand has lowered its forecast for the number of foreign tourists in 2026, expecting a decline of about 5 to 10 percent.
The Southeast Asian country received over 12.9 million foreign tourist arrivals as of May 17 this year, marking a 3.31-percent drop compared to a year earlier, according to the Ministry of Tourism and Sports.
Tourism and Sports Minister Surasak Phancharoenworakul said in late May that the drop in tourist arrivals is due to the Middle East conflict, which has resulted in higher fuel prices.
"Tourist arrivals are trending downward, partly because oil prices have become more volatile and increased, primarily influenced by the conflict in the Middle East. Furthermore, uncertainty surrounding the global economic outlook has further exacerbated the situation," said Thitinan Chankoson, associate professor at the Business Administration for Society under Srinakharinwirot University.
The Thai Travel Agents Association said that rising international oil prices have kept pushing airfares upward. Coupled with fluctuations in the Thai baht exchange rate, this is placing heavy pressure on the country's tourism sector.
Thai Airways International announced last month that it would cancel 46 international flight routes. It said in June that it would further cut 10 international routes.
Thai AirAsia also announced that it would cut approximately 30 percent of its flights between May and June.
The impact of rising fuel prices is gradually spreading beyond aviation and into the broader tourism industry chain. According to statistics released by the Thai Hotels Association last month, hotel occupancy rates in the popular tourist city of Pattaya were only 20 to 30 percent of that in April, compared to 70 to 80 percent in the same period of last year.
"In the transportation sector, whether it's bus and ship fares or airfares, we have seen increases of 40 percent or even more. Tourism services, restaurants, and various transportation-related businesses have all been significantly impacted by this change," said a manager of a Thai travel agency.
Thai tourism under cost pressure
The first shipment of exhibits for the 4th China International Supply Chain Expo (CISCE) successfully cleared customs in Beijing, ready for the upcoming global trade event.
The shipment arrived from France, containing 1:20-scale aircraft models of Airbus A220 and A320 commercial jets, alongside promotional product literature.
The cargo, valued at approximately 150,000 yuan (about 22,170 U.S. dollars), went through customs clearance last Friday via the "integrated customs clearance" and the "ATA carnet" system -- an international customs document that permits temporary, duty-free import.
"Focusing on key logistics stages such as warehousing and temporary storage of exhibits, we have established a dedicated storage zone for CISCE exhibits. This ensures that the goods remain safe and secure, without damages incurred when in storage," said Wei Xiaohe, an officer from Beijing Capital Airport Customs.
The upcoming expo is scheduled to run from June 22 to 26 in Chinese capital Beijing, and 676 domestic and international players in the supply chain, specialized firms, and industry institutions from 85 countries, regions, and international organizations have already confirmed the participation.
Foreign exhibitors account for 36.5 percent of total participants, with Fortune Global 500 companies and industry-leading enterprises making up over 65 percent of the roster.
To facilitate smoother operations for global firms, Beijing Customs recently rolled out 14 supportive measures. Key policies include allowing on-site sampling and trials for eligible pre-packaged food and cosmetics, as well as tax exemptions for certain qualifying consumable exhibits.
"From January to May, Beijing Customs oversaw 46 inbound and outbound exhibitions, a 48 percent increase year on year. The total value of imports and exports overseen by Beijing Customs stood at approximately 24.2 billion yuan (about 3.68 billion U.S. dollars), up 121 percent year on year," said Yang Fan, deputy chief of the first exhibits supervision section at Beijing Convention and Exhibition Center Customs.
As the world's first national-level exhibition focusing on supply chains, the CISCE is an internationally shared public product.
First held in 2023, the expo has contributed to building more secure, stable, open and inclusive global industrial and supply chains, according to the China Council for the Promotion of International Trade.
First exhibits for 4th China International Supply Chain Expo complete customs clearance
