PHUKET, THAILAND – The conflict in the Middle East slowed Phuket’s tourism sector as key transit flight connections were cut and hotels reported falling occupancy.
Fewer flights, fewer arrivals
Thanes Tantipiriya, president of the Phuket Tourist Association, reported that arrivals on the island had declined significantly since fighting broke out on 28 February.
The drop was felt most strongly among airlines based in the Middle East, which had previously accounted for around 5–6% of flights to Phuket International Airport and had now partially suspended services.
Hotels report occupancy gaps
According to industry figures, hotels on Phuket recorded losses in occupancy estimated at 6–10%.
This affected not only individual resorts but also reduced cash flow along the chain from transfer operators and excursion providers to the restaurant sector.
Europeans as a quiet key group
The Phuket Tourist Association said that long-haul travellers from Europe were the most affected, as they often travelled via hubs in the Middle East.
These guests were considered particularly high-spending and stayed longer, which meant they accounted for around 10% of the island’s tourism income in local calculations.
Billions lost in a single month
In March 2025, Phuket generated tourism income of 55 billion baht, according to industry data, but the conflict was estimated to have cut this figure by about 5.5 billion baht.
The numbers illustrated how quickly geopolitical events elsewhere could hit a holiday island, even when day-to-day operations on the ground continued.
Dependence on international guests remains high
The Ministry of Tourism and Sports put Phuket’s tourism income in January and February at 190 billion baht, underlining the enormous importance of foreign markets.
The more travel relied on international transit connections, the more sensitive the system became to disruptions in routes, capacity and demand.
Industry seeks answers as outlook stays uncertain
The Phuket Tourist Association stated that it was closely monitoring developments and coordinating with airlines, hotels and state agencies on the impact.
Phuket remained one of the country’s most sought-after destinations, but the current uncertainty highlighted the vulnerability of tourism to external shocks.
“How should Phuket respond to such crises – with more direct flights from Europe, a stronger focus on regional markets, or new incentives for longer stays?”
said the Phuket Tourist Association, reflecting questions being discussed in the sector.
“What have recent experiences been with flights, prices and hotel occupancy, and which strategy seems most sensible for the coming months?”
said the association, pointing to the open debate over the island’s next steps.