Tourism Feels Strain As US-Iran War Triggers 2,800 Cancellations

About 30 travel agencies under MITA bore the brunt of the impact.

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The conflict in the Middle East has sent ripples through Malaysia's tourism sector, resulting in about 2,800 tour cancellations within a week

According to Malay Mail, Malaysian Inbound Tourism Association (MITA) president Mint Leong said 800 of these came from Iran on the first day alone.

Leong noted that the timing was particularly unfortunate as it was usually the peak travel season for Iranians.

Beyond direct cancellations, the war has also disrupted major transit hubs like Dubai and Doha, which connect Malaysia to Europe and the Americas.

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Image via NSTP/AIZUDDIN SAAD

According to Leong, the travel and tourism industry is losing visitors from around the world as Middle Eastern hubs face flight cancellations, with about 30 travel agencies under MITA bearing the brunt of the impact

The situation has been further complicated by rising costs at home. Diesel prices in Peninsular Malaysia surged from RM3.04 per litre to RM5.52 per litre since the conflict started.

Consequently, MITA is considering a 30% increase in transport charges for tourists.

Leong suggested that the government provide diesel subsidies to help operators of tour buses and vans stay afloat.

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Image via NSTP/AHMAD IRHAM MOHD NOOR

Despite these hurdles, Malaysian Association of Tour and Travel Agents (MATTA) president Nigel Wong remained optimistic as regional markets like ASEAN, China, and India are expected to stay resilient

Wong believed the 47 million international visitors target for Visit Malaysia Year 2026 is still achievable.

He highlighted that Malaysia's geographical position and strong regional connectivity provide a necessary safety net.

However, aviation analyst Brendan Sobie pointed out that Kuala Lumpur relies heavily on Gulf hubs for long-haul travel. He explained that Kuala Lumpur has only about eight daily flights to Europe compared to 17 to the Middle East.

While China offers over 400 direct flights to Malaysia, it remains difficult to entirely fill the void left by Western and Middle Eastern tourists.

For now, the industry remains stuck in a cycle of enquiries rather than firm bookings.

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