As Israel-Iran tensions mount, UAE travellers look to Southeast Asia for summer holidays

Dubai: As summer approaches, UAE residents are adjusting their travel plans, with a noticeable shift towards Southeast Asian destinations, according to several travel agents. This trend comes amidst ongoing regional crises, particularly impacting those planning budget-friendly getaways, increasingly putting off their travel plans or adopting a “wait-and-watch” approach.

Muhammed Rishal, Executive Director at Arooha Leisure Arooha Travels, explained that UAE travellers are still waiting to see how the issue evolves over the next two weeks, when schools close for the summer break, to make a final decision. “That said, people who have planned bookings are going irrespective of their plans," he added, indicating a firm commitment from those with confirmed itineraries. However, the market for new bookings tells a different story for some regions.

“There are zero new bookings and many cancellations for certain areas such as CIS nations, including Armenia and Kazakhstan," Rishal said, reflecting widespread hesitancy. While flights operate to places such as Georgia, the travel time has increased to five hours instead of three, leaving residents extremely concerned about the possibility of a safe return.

Now, on the seventh day, Iran and Israel continue to trade strikes as the US weighs its involvement in the war. President Donald Trump said earlier today he would allow two weeks for diplomacy before deciding whether to launch a strike in Iran. European and Iranian officials are having meetings in Geneva today. According to a CNN report, the UK’s Foreign Minister David Lammy said a “window now exists” to end the Middle East crisis.

Destinations like Thailand, Singapore, Vietnam, and Kuala Lumpur are proving resilient, maintaining stable demand. Raheesh Babu, COO of online travel agency Musafir.com, said Malaysia, Thailand, and Singapore as popular choices.

“Even if the flights are longer, customers choose destinations like Sarajevo and Sochi in Eastern Europe and Russia. Bangkok, Krabi, Kuala Lumpur, and Singapore are reigning as top choices," Babu said. He said there is a willingness to travel to the CIS nations, but travellers are concerned about getting stuck there. The overall demand for these Far East nations has gone up significantly.

Middle Eastern arrivals are projected to increase to 1.2 million in 2025, a significant jump from 727,000 in 2019. The UAE and Saudi Arabia continue to be crucial tourism markets for Thailand. Moreover, UAE carriers have robust operations in several South East Asian nations.

Flight cancellations and airspace closures have also increased travel times and airfares. For instance, a typical three-hour flight to Georgia has now extended to five hours. Rishal explained that "airline fares have gone up because the travel time has increased due to airspace closures," contributing to higher fuel costs and increasing ticket prices. “As summer kicks in, ticket prices will also increase considerably,” he added.

The brunt of these changes is largely borne by budget travellers. Unlike those with pre-booked, often higher-end, plans who are proceeding, budget-conscious individuals are holding back. "Budget travellers are holding back – some are choosing not to go at all," Babu stated. Often seeking visa-free or short-term destinations, this group is susceptible to rising airfares and travel uncertainty.

“Some are adopting a wait-and-watch approach. There are another two weeks for the schools to close for the summer. Based on what is going on then, people will probably decide to go ahead with their travel to CIS nations,” he said.

Adding to the complexity, obtaining visas for popular European destinations for July and August continues to remain exceptionally difficult, with appointment slots being very rare and mostly opening up post-September. This visa crunch further pushes travellers to consider alternative regions.

Beyond Southeast Asia, there has also been an uptick in interest in travel to the Baltics (Latvia, Lithuania, Estonia), where visa appointments for August are still available. Africa, particularly South Africa, is also emerging as a hot summer destination. Rishal said his agency is planning a trip for 40 people to travel there on July 26.

Despite the challenges, overall summer travel demand remains high. "Summer travel demand is still high; however, alternative options are still rising," Babu observed. While many actively choose Southeast Asia, those with plans for other destinations are generally proceeding.

Diaspora travel, involving residents visiting their home countries, remains steady. "People will start travelling from the first week of July – home country ticket cancellation is not there," Babu confirmed, noting that Indian schools are closing around July 4, with no cancellations observed for those journeys. Travellers are, however, actively enquiring about current flight statuses, reflecting their underlying concern.

The current landscape indicates UAE residents' cautious yet persistent desire to travel. While Southeast Asia provides a stable and popular alternative, the ongoing regional dynamics are reshaping travel patterns, making flexibility and informed decision-making key for those planning their summer getaways.