Tourism in the age of geopolitical risk

Reviving tourism during crises requires proactive strategies such as flexible booking policies, travel vouchers, and health-related insurance to restore consumer confidence. Enhancing safety measures, marketing resilience, and focusing on domestic travel helps stabilize the industry amid uncertainty.

During times of war and conflict, safety, resilience, and strategic rebranding become critical. Campaigns like Incredible India, which launched during earlier global crises, highlight the importance of pivoting to domestic, local, or niche markets, promoting destinations far from conflict zones, and reassuring travelers with visible safety measures.

The ongoing conflict between Iran and the US-Israel alliance has disrupted airspace across the Middle East, causing flight cancellations, rising fuel costs, and widespread uncertainty. Indian travelers are increasingly avoiding international destinations.

This crisis, however, has boosted India’s domestic tourism industry. Hotels, travel agents, tour operators, and local businesses are experiencing renewed demand as international travel becomes riskier and more expensive. Recent data from travel platforms show that nearly 65% of Indian travelers now prefer domestic trips over foreign travel.

International travel has not ceased but is shifting direction. According to ixigo, Vietnam has become the top international destination, with bookings surging 130%. Other popular destinations include Nepal (88%), Sri Lanka (68%), Indonesia (33%), Singapore (32%), and Thailand (22%).

Even in Hong Kong, regional holiday destinations have seen demand rise by up to 30% ahead of Easter, as travelers avoid long-haul trips amid higher airfares and disrupted routes. Travel agencies report that inquiries for Japan, South Korea, mainland China, and Australia have increased 10–30%, while demand for Middle East destinations and some long-haul routes has dropped to near zero.

The geopolitical crisis in the Middle East is sending shockwaves across Asia, where tourism—one of the most vital sectors—is facing unprecedented challenges. The conflict affects energy supplies, airspace access, and travel patterns, creating a perfect storm for countries like India, Vietnam, Japan, Thailand, South Korea, China, and Sri Lanka, which rely heavily on international travelers and stable fuel prices.

For those traveling to Europe and the US from India/Asia Pacific, the peak travel season is April–October. Return flights range from ₹45,000–₹80,000, with 10-day trips typically costing ₹1.5–2 lakh per person.

Major carriers connecting the region to Europe and the US include Air India, Cathay Pacific, Singapore Airlines, Emirates, Etihad, Qatar Airways, Lufthansa, British Airways, and United Airlines, many offering premium business-class experiences.