Gulf war desorganises the tourism industry in Southeast Asia

The Gulf war and its severe disruption to oil and gas supplies are creating an unexpected casualty: Southeast Asia’s tourism sector, now grappling with a widespread gasoline shortage affecting countries across the region.

Growing concern is spreading across social media and regional media, as many Southeast Asian nations report tightening fuel supplies. The closure of the Strait of Hormuz is hitting the region particularly hard, more than any other part of the world.

According to the International Energy Agency, the conflict involving Iran has triggered what is being described as the largest supply disruption in the history of the global oil market. Experts estimate that between 60% and 80% of Southeast Asia’s oil imports come from the Gulf, with countries such as the Philippines relying on up to 90% of supplies passing through the Strait. Around a quarter of the region’s gas consumption also depends on this critical route.

Fuel reserves across the region are now at concerning levels. Cambodia, Indonesia and Vietnam reportedly have just 20 to 23 days of reserves, Myanmar around 40 days, and Thailand about 60 days. At the same time, rising oil prices and disrupted trade routes are being compounded by export restrictions from key suppliers such as China, further tightening availability.

Governments impose emergency measures

Authorities are introducing measures to curb consumption. In the Philippines, public sector workers have been urged to limit elevator use. Thailand has relaxed dress codes in government offices while raising air-conditioning temperatures to 26°C to reduce energy use. Myanmar has introduced weekly car-free days, while Laos has seen around 40% of its gas stations shut down. Cambodia is facing similar disruption, with roughly 30% of stations temporarily closed.

The impact is now clearly visible across the tourism sector. In Thailand, fuel shortages are reducing taxi availability, with only about 2,500 vehicles currently operating at Bangkok’s Suvarnabhumi Airport, compared to up to 6,000 under normal conditions. In archipelagic destinations such as Indonesia and the Philippines, ferry and boat services are being cut back, with fewer departures and higher fares.

In Cambodia, business leaders warn that sustained high fuel prices will inevitably push up costs across tourism and services, with visitors ultimately paying more.

Air travel remains a concern

Air travel is also under pressure. Airlines across the region are cutting frequencies as jet fuel costs surge. In Vietnam, carriers start to reduce domestic and regional routes, while Malaysia has warned that capacity cuts could follow if prices remain elevated. Reduced capacity is already translating into higher fares.

In Thailand, the Airlines Association of Thailand has called on the government to introduce short-term relief measures, including a temporary reduction in excise taxes on jet fuel for domestic flights, to help airlines manage costs and maintain affordable fares.

“Having appropriate support measures at a time when the aviation industry is facing volatility from external factors will help strengthen Thailand’s competitiveness and support long-term economic growth,” said Puttipong Prasarttong-Osoth, President of the Association and CEO of Bangkok Airways.

Meanwhile, national tourism organizations across Southeast Asia are adjusting their strategies, placing renewed focus on domestic and regional travelers as long-haul demand becomes more uncertain.