The escalating conflict between Iran and the US-Israel alliance, which intensified in late February 2026, has severely impacted Thailand’s tourism industry, a sector that contributes 12% to the nation’s GDP. The once-bustling hotel lobbies in Bangkok’s Nana district are now eerily quiet, with the Grace Hotel reporting a 30% to 40% spike in booking cancellations. Typically filled with guests from the UAE, Saudi Arabia, and Qatar, the hotel now struggles with nearly empty lobbies. Reports indicate that Middle Eastern visitor numbers have plummeted from 32,831 last year to just 16,080 in February 2026. The Thai Boat Association has noted that the current situation feels “worse than COVID” as the tourism sector grapples with depleted financial reserves. Additionally, viral social media videos have highlighted petrol shortages, with long queues forming at gas stations due to surging global crude prices and disrupted shipping routes. This has left many tourists and locals stranded, further discouraging travel to Thailand. As the conflict continues, the country faces one of its toughest challenges yet in maintaining its appeal as a tourist destination.