PHANGNGA, THAILAND – The war in the Middle East hit tourism on Thailand’s Andaman coast via air routes, with Phangnga reporting sharply fewer European arrivals and losses estimated at almost 1.7 billion baht.
Alarm from the hotel sector
The annual meeting of the Phangnga Hotel Association placed the downturn at the top of its agenda. The session was chaired by Vice Governor Bancha Thanuin and included representatives from government and the private sector.
Alongside the crisis, participants discussed marketing strategies to shore up demand. They also called for closer cooperation among member hotels to help stabilise the current season.
Detours in the sky, soaring ticket prices
The fighting affected air traffic over Middle Eastern airspace, which served as a key corridor for long-haul flights from Europe to southern Thailand. Airlines rerouted services, operating costs rose and ticket prices increased by more than 20%, according to the association.
These higher fares visibly dampened holiday decisions, particularly for trips to Khao Lak and surrounding areas. The impact was felt across advance bookings as well as last-minute travel.
Cancellations and changes above 20%
Hotel operators in Phangnga reported that postponements and cancellations climbed by more than 20% compared with the same period a year earlier. At the meeting, attendees said the resulting economic damage for the province was estimated at nearly 1.7 billion baht.
They warned that the losses could deepen if air travel disruptions and elevated prices persisted into the next season. Smaller properties were seen as particularly vulnerable to cash-flow pressures.
Why Phangnga suffered more than others
Sompong Daopiset, president of the Phangnga Hotel Association, said the province had been hit harder than other Andaman destinations because it relied heavily on guests from Europe.
“The province is being hit particularly hard along the Andaman coast because the market depends strongly on visitors from Europe.”
said Sompong Daopiset, president of the Phangnga Hotel Association.
He noted that other provinces could cushion the blow more easily.
“Other provinces can absorb losses more readily because they have a broader mix of source markets, including more travellers from Asia.”
said Sompong Daopiset, president of the Phangnga Hotel Association.
More than 90% Europeans – and then travel stops
According to Sompong Daopiset, more than 90% of visitors to Phangnga came from Europe. Many long-haul connections traditionally routed through the Middle East to reduce fuel costs.
When flights were cancelled at short notice, numerous travellers were unable to continue their journeys despite already purchased tickets.
“Many travellers could not make their onward journeys despite having already bought tickets, and the number of people affected could rise if the conflict continues.”
said Sompong Daopiset, president of the Phangnga Hotel Association.
Demands on the tourism authority
The association urged the Tourism Authority of Thailand (TAT) to step up social media campaigns to reach new target groups and draw more domestic visitors. Khao Lak was identified as the priority focus for these efforts.
In addition, participants proposed co-payment models to stimulate travel. They also called for temporary adjustments to unused airport slots so that more short-haul services could be offered during the green season.