Tourism-dependent communities across Southeast Asia are facing significant economic hardships as conflicts in the Middle East disrupt travel patterns and lead to a sharp decline in European visitors. Since the outbreak of hostilities involving the United States and Israel against Iran in late February, international air travel has been heavily impacted by soaring airfare costs and flight disruptions at key Middle Eastern aviation hubs, particularly Dubai and Doha.

In Cambodia, the downturn has been pronounced. International arrivals to the country declined by 45 percent in the first quarter of this year compared to the same period last year, according to tourism officials. The drop in visitors has directly affected livelihoods in tourism hotspots such as Siem Reap, home to the Angkor Wat temple complex. Local tour operators and service workers are struggling to adapt amid reduced demand. Khon Mony, a 30-year-old tuk tuk driver who typically transports multiple groups to the ancient ruins each week, reported going an entire month in May without a single customer. His daily earnings have fallen from about $20 to less than $5, forcing him to ration his infant daughter’s formula to make it last longer.

At Siem Reap Angkor International Airport, businesses have cut working hours in response to the decreased foot traffic. Among them is Lam Lan, a 25-year-old airport restaurant cook who said his shifts have dropped from 30 days a month to around 20, reducing his monthly income from $250 to under $150. After paying debts and fuel costs, his earnings barely cover basic necessities. Tour guide Chrun Kimseng, 59, has seen his income shrink by 35 percent and has taken up small-scale farming to cut food expenses.

Nearby in Thailand’s Phang Nga province, a similar decline in European tourism has caused widespread financial strain. Hotel bookings have fallen roughly 50 percent since the conflict began, local officials said. Surakul Pier, a gateway for boat tours to the James Bond filming location of Koh Khao Phing Kan, now sees many vessels idle due to a lack of customers. Channipha Laklaem, who collects boat fees, reported that her husband, a longtime boat operator, has had no passengers since April. The family depends solely on her modest income and has resorted to foraging for wild plants to prepare meals. Other operators have seen monthly earnings plunge from $900 to about $300, forcing many to dip into savings and cut discretionary spending.

In Indonesia, Bali’s tourism sector has shown greater resilience due to steady arrivals from Australia and China, but operators focused on European clientele remain concerned. Officials acknowledge that the conflict has diminished European visitors who typically transit through Middle Eastern hubs. Bali’s government has launched efforts to diversify its tourist base by promoting travel from nearby countries, while the Indonesian government has also reduced domestic airfare taxes to encourage local tourism.

As uncertainty over the conflict’s duration persists, many tourism workers across the region are shifting to alternative livelihoods such as fishing, farming, or retraining for other service roles. Despite the challenges, some, like Khon Mony, persist daily in hopes of returning to a more stable income, though with growing concern for their families’ well-being.