Indian Tourists Head To Southeast Asia

'Countries like Cambodia, Vietnam, Laos, and the Philippines have a 50 per cent increase in bookings.'

Indian leisure and business travellers are deferring or cancelling trips to West Asia, Europe, and the United States amid heightened regional tensions following the Israel-Iran war and prompted airspace closures across several Gulf nations, disrupting one of the world's busiest travel corridors.

Online travel portals, tour operators, and agents have reported a sharp rise in rescheduling over the past few days, with 25 to 30 per cent of Indian travellers postponing or altering plans to Western destinations.

They are increasingly choosing Southeast Asian countries -- Thailand, Vietnam, Singapore, Indonesia and Malaysia -- over West-bound destinations, with a spike in last-minute bookings and inquiries over the past week.

"There's a clear uptick in postponements and rescheduling, especially for routes involving Europe, the US East Coast, and West Asia," said Ravi Gosain, president, Indian Association of Tour Operators.

"Based on inputs from our members, we estimate 25 to 30 per cent of travellers are either deferring or altering their plans to Western destinations. Corporate travel and incentive groups are being particularly careful, as travel policies tend to be more risk-sensitive," Gosain added.

Bharatt Malik, senior vice-president, flights and hotel business, Yatra Online, concurred.

"We've seen some leisure and business/MICE (meeting, incentive, conference and exhibition) travellers defer or cancel trips -- particularly to impacted regions such as the United Arab Emirates, Jordan, and Israel," said Malik.

"While exact numbers vary by destination, there has been a noticeable dip in enquiries and confirmations for these geographies over the past few weeks," Malik added.

As of February 2025, the UAE and Saudi Arabia were the top outbound destinations for Indian travellers, accounting for 27.1 per cent and 11.3 per cent, respectively, of the 2.4 million total travellers during the month, according to data from the ministry of tourism.

Southeast Asian destinations, seen as more stable geopolitically and often cheaper, are benefitting from this shift.

Industry executives noted increased traction for short-haul getaways and last-minute vacations, with a clear pivot toward countries such as Thailand, Vietnam, Singapore, Indonesia, and Malaysia.

"Countries like Cambodia, Vietnam, Laos, and the Philippines have a 50 per cent increase in bookings compared to last year," said Manjari Singhal, chief business and growth officer at Cleartrip, adding that fares to Vietnam and Indonesia had also dropped, improving affordability.

IATO's Gosain added: "These countries offer good connectivity, fewer geopolitical risks, and cost-effective options, which makes them attractive alternatives.

"As a result of this surge in demand, airfares to some of these destinations have increased by 15 to 20 per cent over the last few weeks.

"However, they still remain more affordable compared to long-haul destinations in the West, which keeps them in demand despite the price hike."

Yatra's Malik said Thailand (Bangkok and Phuket), Vietnam (Hanoi and Da Nang), and Indonesia (Bali) had witnessed a 30 to 35 per cent rise in enquiries over the same period last summer, driven by value-oriented short-haul travel.

"Additionally, Malaysia and Singapore are seeing growing traction among business and MICE travellers as stable, well-connected hubs," he said.

Easier visa norms and lower costs are also aiding the shift.

Thailand has already crossed 1 million Indian arrivals this financial year, said Anil Kalsi, board member of the Federation of Associations of Indian Tourism & Hospitality (FAITH).

West Asia -- including the UAE, Saudi Arabia, Qatar, Oman, and Kuwait -- accounted for 49 per cent of India's 27.8 million national departures in 2023, according to tourism ministry data.

The UAE led with 25.9 per cent, followed by Saudi Arabia (11.1 per cent), the US (7.4 per cent), Thailand (5.3 per cent), Singapore (5.0 per cent), and the UK (4.6 per cent). Qatar, Canada, Kuwait, and Oman collectively accounted for 72.7 per cent of total Indian national departures.

Feature Presentation: Ashish Narsale/Rediff