Business EconomyPosted at: Apr 7 2026 3:03PM


West Asia crisis dampens Indian summer travel; Europe trips take a major hit

By P Krishna Kumar
New Delhi, April 7 (UNI) The ongoing war in West Asia has had ripple effects across various sectors of the global economy. While the energy crisis and its impact on transport, manufacturing and allied activities are more evident, the adverse impact on people’s discretionary — yet important — need to unwind through annual leisure travel, including visits to friends and relatives, has received less attention.
Summer months, especially school vacations, are the preferred leisure travel period for Indians, which they plan well in advance.
The war scenario in West Asia has, however, poured cold water on the travel plans of Indian tourists. Travel trade players told UNI that there has been a delay in the conversion of enquiries into firm bookings for the summer season.
“We are facing a situation very close to a Covid-19-like scenario this season,” said Sriharan Balan, Managing Director of a Chennai-based travel company.
Several other tour operators echoed similar sentiments. “There is a 70 to 80 per cent dip in enquiries because of the uncertainties created by the Iran war,” said Ankit Bajaj, a travel operator from Ahmedabad.
According to the World Travel & Tourism Council (WTTC), the Iran conflict is causing an estimated loss of USD 600 million per day in international visitor spending in the travel and tourism sector. The war situation has also disrupted key global aviation hubs in the Middle East — Dubai, Abu Dhabi, Doha and Bahrain — which collectively handle over 5.26 lakh passengers per day.
Although Gulf destinations are not the final port of call for most Indian vacationers during summer, they heavily rely on Gulf carriers for travel to Europe and other regions due to their extensive connectivity within India and relatively affordable pricing compared to Air India and European carriers.
Travellers from cities like Ahmedabad depend largely on three Gulf carriers for travel to Europe and other destinations, confirmed Mahendra Vakharia, a specialist in outbound travel based in Ahmedabad.
“The situation in these Gulf hubs is not instilling confidence among travellers. The overall sentiment is ‘wait and watch’,” he said.
A similar trend is visible in southern India, where travellers prefer Gulf carriers for European holidays due to seamless connectivity and competitive fares. “Southern states heavily rely on Middle Eastern carriers for Europe. In the prevailing situation, we have to look for alternatives like Air India and European carriers, but the fares are prohibitive compared to what Middle Eastern carriers offer,” Sriharan said.
While Europe remains a preferred summer destination for Indian travellers, the continuing uncertainty in West Asia has prompted many to explore alternative destinations such as South Africa, South Korea, Japan, Vietnam, Bali and the Philippines.
“The travel bug is strong; people are just waiting for some reassurance,” Vakharia added.
Further compounding the situation is the depreciation of the Indian rupee. The currency has weakened significantly against the US dollar in recent weeks, breaching the Rs 90 mark, thereby impacting travel budgets.
“Currency fluctuation has been severe in the last couple of weeks. Package costs estimated at the beginning of the year are no longer relevant,” said Sriharan. He added that even a one-rupee change can translate into a minimum increase of Rs 2,000 per day/per individual in international travel packages.
Although the traditional notion that tourism thrives only in peaceful times may no longer hold entirely true. However, the current geopolitical scenario remains highly volatile and unpredictable, making leisure and business travel planning increasingly challenging and decision-making more complex.
UNI KK PRS
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