More than 1,500 Tourists Cancel Their Trips

More than 1,500 Tourists Cancel Their Trips

Travelers planning flights through the Middle East are being urged to stay alert to airline advisories as the US–Israel–Iran conflict intensifies and spills over into regional aviation networks. With major airlines suspending or rerouting flights through critical transit hubs such as Dubai, Abu Dhabi, Doha, and Bahrain, the ripple effect is now being sharply felt in Bhutan—far from the geopolitical epicenter, yet deeply connected through global aviation routes.

According to industry sources, more than 1,500 international tourists who had planned to visit Bhutan via Middle Eastern transit points have cancelled their trips. What initially appeared to be a short-term disruption has now evolved into a significant setback for the country’s tourism sector, which has only recently begun recovering from the pandemic downturn and the economic adjustments linked to the revised Sustainable Development Fee (SDF).

The Hotel and Restaurant Association of Bhutan (HRAB) is currently assessing the full scope of the cancellations. Preliminary reports indicate that the impact is widespread, affecting hotels across all categories—from budget accommodations to luxury properties—with Thimphu, Paro, and Punakha experiencing the most immediate consequences.

This decline strikes at a delicate time. The tourism industry has been gradually rebuilding momentum after a prolonged pandemic-induced slowdown. Many stakeholders had hoped that 2026 would bring stronger arrivals, especially during peak festival periods like the Paro Tshechu. Instead, the unexpected flight disruptions have placed additional strain on businesses still attempting to regain stability.

Hoteliers emphasize that the cancellations are not sporadic but form an emerging pattern tied directly to the volatility in West Asia. Damcho Zam, the owner of Hotel Riverview in Punakha and Paro, said the industry was already fragile. “We get frequent cancellations. We struggled during the pandemic and then with the new SDF policy. Now this regional conflict is affecting us before we can even recover.”

At Metta Resort in Paro, General Manager Tshering Dorji reported that although daily cancellations may appear small in number, their cumulative impact is significant. “Almost every day one or two rooms get cancelled. Guests say their flights are suspended or considered unsafe. This is becoming normal.”

The repeated losses during what should be the busiest season have generated widespread concern about the sector’s resilience. Even during Paro Tshechu—a magnet for tourists—properties are receiving notifications of withdrawals instead of booking confirmations.

Local tour operators report that any guests traveling through Gulf hubs are now considered at high risk of cancelling. This uncertainty has forced many operators, particularly smaller agencies, to temporarily shift their focus from long-haul Western markets to regional markets such as India, Bangladesh, and Nepal, which do not rely on Middle East transit connections.

This pivot reflects a broader strategic question: Should Bhutan diversify its tourism dependency to better withstand global geopolitical and economic shocks? Many in the industry argue that overreliance on specific transit hubs leaves Bhutan vulnerable to conflicts and disruptions beyond its control.

Adding to the complication, Royal Bhutan Airlines (Drukair) has announced that flights to and from Dubai will remain suspended until 28 March 2026. Affected passengers are advised to contact their travel agents or Drukair offices for rebooking or refunds. With no certainty on when normal operations might resume, more cancellations are expected.

While hotels report reduced occupancy, tour guides—many of whom depend almost entirely on international visitors—are experiencing the most severe and immediate financial losses. Bhutan’s tourism model, which requires guided tours for international guests, means that each cancellation affects not just accommodation providers, but also guides, drivers, local tour operators, and ancillary services such as car rentals and community-based tourism programs.

A senior cultural guide in Paro, said weeks of scheduled tours collapsed within days. “We were expecting a good season after months of low arrivals. Many of us had back-to-back bookings. But with these cancellations, guides suddenly have no work. Everything disappeared almost overnight.”

Kuenga, a trekking guide echoed the concern, noting that long-haul travelers from Europe and North America typically transit through Dubai or Doha. “When flights on those routes are risky or suspended, clients cancel the entire trip. Treks that were planned for months are now uncertain or indefinitely postponed.”

For many freelance guides who rely on seasonal earnings to support their families, this disruption is not simply an inconvenience—it is a critical economic blow.

The situation escalated after major Middle Eastern airports—including Dubai International Airport, the world’s busiest hub—were forced to shut down following U.S. and Israeli strikes on Iran and subsequent Iranian missile retaliation. Reuters reports that Dubai’s airport, which handles more than 1,000 flights daily, suffered damage, while airports in Abu Dhabi and Kuwait were also affected. This represents one of the most significant disruptions to global aviation in recent years and explains the cascading effect seen in Bhutan.

A survey conducted by the ASEAN Tourism Association (ASEANTA) and research firm Pear Anderson across eight Southeast Asian countries found that nearly half of 157 surveyed travel companies expect their business prospects to worsen due to the West Asia conflict. The shockwaves extend from airlines to ground handlers, travel agents, hotels, and tour guides—mirroring the pattern now visible in Bhutan.

With no clear timeline for stability in West Asia, Bhutan’s tourism sector faces renewed uncertainty. The cancellations of over 1,500 visitors serve as a reminder that the country’s tourism recovery remains vulnerable to external shocks. For guides, hoteliers, and operators already navigating pandemic aftershocks and policy adjustments, the latest crisis adds yet another layer of challenge.

 

Sangay Rabten
From Thimphu