Rising fuel prices, fears of shortages and the ongoing war in the Middle East are dampening travel sentiment in Thailand ahead of the Songkran festival, with operators warning domestic demand may be weaker or flat compared with last year. Higher costs are discouraging long-distance trips, prompting many people to stay closer to home or remain in Bangkok during the holiday period.
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The conflict in the Middle East, now lasting more than a month, has driven up global fuel prices and sharply increased international airfares. Some European routes have doubled in price as flights requiring Middle East stopovers have fallen by around 50 percent. Despite this, Songkran continues to attract foreign visitors, as missing the annual festival means waiting another year.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, said rising fuel costs were beyond operators control and were already affecting travel decisions. He warned that any actual fuel shortages would have a stronger psychological impact, reducing confidence in long-distance road travel. Under normal conditions, many Thais would drive across provinces during Songkran, but such plans are now being reconsidered.
Booking trends reflect the shift in sentiment. Phuket is expected to see the strongest hotel demand, while Chiang Mai faces a severe downturn due to both the war impact and ongoing PM2.5 pollution, with occupancy forecast at only 50 to 60 percent. In the eastern region, bookings for the second quarter have dropped by 10 to 15 percent, although Pattaya is benefiting from Russian tourists redirected from Phuket and Bangkok bookings remain below last year.
Businesses are under pressure as rising costs limit their ability to increase prices. Operators are focusing on covering fixed costs and offering additional services to stimulate demand. The association has called on the government for tax relief and financial support for small and medium-sized enterprises affected by weaker tourism and higher operating costs.
The Nation reported that retail operators report similar trends, with more people expected to spend time locally, particularly in shopping centres, partly due to both high travel costs and hot weather. Large-scale Songkran events and festivals are still expected to draw crowds, with organisers reporting strong ticket sales, although foreign attendance is likely to decline and Thai visitors will make up a larger share.
Picture courtesy of The Nation
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Adapted by ASEAN Now Nation 7 Apr 2026
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