Travel agencies and resorts report rising airfares and uncertain booking trends as global travel affected
KINLEY KHANDU CHODEN | Thimphu
The ongoing conflict in the Middle East is continuing to create ripple effects across the global economy, and the tourism industry is among the sectors feeling the pressure.
Even countries far from the region are experiencing indirect consequences through rising travel costs, disrupted airline routes, and growing uncertainty among international travellers.
In Bhutan, tourism businesses are beginning to observe subtle changes in visitor behaviour, booking patterns, and overall travel confidence.
Some travel agents and hotels reveal that while the impact is not uniform across the sector, many tourism operators are starting to feel the effects of global instability.
While smaller hotels and three-star accommodations have not reported significant disruptions so far, larger resorts are facing noticeable challenges due to declining visitor numbers and increasing travel uncertainties.
Tourism is one of Bhutan’s most important economic sectors, contributing significantly to employment, local businesses, and the country’s international image.
As Bhutan relies heavily on international visitors, global events especially geopolitical conflicts can quickly influence the industry. Travel confidence is often one of the first things affected when conflicts occur, even if the destination itself is far removed from the crisis.
According to One World Tours and Travel, the conflict has not yet caused a dramatic decline in bookings, but travellers are becoming increasingly cautious.
Potential tourists are asking more questions about flight routes, safety, and the overall stability of international travel before confirming their trips.
“Situations like this usually affect global tourism because people become more careful about traveling. Flights and routes can also be affected, which makes travellers reconsider their plans,” said an official from One World Tours and Travel.
The official noted that there have been a few cases where customers have chosen to delay or reconsider their travel plans. Instead of cancelling outright, some travellers are waiting for more clarity on the global situation before making final decisions about their holidays.
One of the most noticeable changes has been the increase in flight prices. Because international flights are closely interconnected through global aviation networks, disruptions in one region can affect airline operations worldwide.
Rising fuel costs, altered flight routes, and changes in airline schedules have all contributed to higher ticket prices.
According to the agency, these higher travel costs are influencing traveller decisions. Some customers who were previously planning to visit Bhutan are now reconsidering their budgets or postponing their trips.
In certain cases, the agency has also observed fewer inquiries from specific regions where travellers may be more directly affected by the broader consequences of the conflict.
While travel agencies are experiencing moderate challenges, the impact appears to be more significant for some resorts and hospitality businesses.
At Hotel Lobesa, Punakha, the management reports a noticeable decline in visitor numbers compared to previous years.
The resort reported that tourist arrivals have decreased by around 70 percent compared to previous seasons.
The management attributes part of this decline to disruptions in airline connectivity and rising travel costs. Many international travellers reach Bhutan through connecting flights from major global hubs.
Hotel Lobesa explained that these changes in travel patterns have had a direct impact on their business. With fewer tourists arriving at the resort, the company is experiencing a reduction in revenue and overall business activity.
The decline in tourism also creates indirect economic effects that extend beyond the hospitality sector.
Resorts and hotels rely heavily on local suppliers, including farmers who provide fresh produce such as vegetables and fruits. When tourist numbers fall, the demand for these products also decreases.
The resort also reported that local farmers who supply vegetables to the hospitality industry are among those affected by the reduced tourist flow.
The tourism sector supports a network of local businesses, and when visitor numbers drop, the impact can spread across multiple parts of the local economy.
Despite these challenges, not all parts of Bhutan’s tourism industry are experiencing the same level of disruption. Smaller hotels and three-star accommodations appear to be less affected at the moment due to domestic travellers.
Observers note that these establishments often serve a different segment of the market, including domestic travellers and budget-conscious visitors.
Because of this diverse customer base, three-star hotels and smaller resorts are currently managing to maintain relatively stable operations compared to larger luxury resorts that rely more heavily on high-spending international tourists.
Tourism businesses are also taking steps to adapt to the uncertain global situation. One World Tours and Travel, for example, is focusing on providing customers with updated information and flexible travel arrangements.
By keeping travelers informed about flight changes and travel conditions, the agency hopes to build confidence among potential visitors. The agency is also promoting destinations that are considered safe and peaceful for travel.
“Bhutan is known as a peaceful country, so it may still attract tourists looking for safe destinations,” said the official from One World Tours and Travel.
Hoteliers say support measures for tourism businesses could also help smaller companies manage the financial uncertainty caused by fluctuating travel demand.
In addition, they say, marketing campaigns, tourism incentives, and collaboration between government agencies and private businesses could also strengthen the sector’s resilience.
Looking ahead, the long-term impact of the conflict on Bhutan’s tourism industry remains uncertain. However, many say, Bhutan’s reputation for safety may help the country remain an attractive destination for travelers seeking peaceful environments.
For now, tourism operators in Bhutan are closely monitoring global developments while continuing to adapt their strategies.
While three-star hotels and smaller resorts appear to be holding steady for the time being, larger resorts are already feeling the strain of reduced visitor numbers.
As the world continues to watch developments in the Middle East, Bhutan’s tourism sector remains hopeful that stability will return soon and allow international travel to regain momentum.
