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Bookings for tours in Europe and the Middle East fell sharply in March following the outbreak of conflict involving Iran, Israel and the United States. Industry executives reported drops of 75 to 80 per cent in the first weeks, with many travellers seeking credits rather than refunds.
Australian tour operators reported sharp declines in bookings to Europe and the Middle East after the outbreak of war in the region in March. Falls of 75 to 80 per cent in the first few weeks were described by industry executives as standard given the uncertainty.
Travellers faced the surprise closure of Middle Eastern airspace, thousands of flight cancellations and questions over insurance coverage. The conflict prompted a wave of trip cancellations similar to those seen during COVID-19 border closures. One tour operator executive said the first weeks were tough, with many customers calling to ask whether they should proceed with planned trips.
The vast majority of those who cancelled sought credits for future tours rather than refunds. Two months on, cancellations have eased and customers are returning to book alternative destinations. Industry executives said travellers are changing where they want to go but have not stopped travelling.
Demand has shifted toward locations in South-East Asia, Japan and within Australia.
Last year 2.8 million Australians travelled to the United Arab Emirates and 1.78 million to Qatar, mainly as stopover points en route to Europe. This month 35 per cent of take-off and landing slots across 30 Middle Eastern airports, including those in Dubai, Abu Dhabi and Saudi Arabia, have been cancelled.
Customers who previously booked Europe trips involving Middle East transfers are instead choosing destinations closer to home. One company reported a 20 per cent jump in domestic tour demand, with increased bookings to the Northern Territory, the Kimberley in Western Australia and Cape York.
The Department of Foreign Affairs and Trade maintains a level four "Do not travel" warning for Dubai, Abu Dhabi and Qatar. Travel insurance policies typically limit coverage for stopovers in countries subject to such warnings, even if the main destination is elsewhere in Europe or Singapore.
An insurance provider stated that cover may be limited for any claims connected to a country under a "Do Not Travel" warning from the Australian government. This uncertainty has discouraged some travellers from committing to expensive tours.
Tour package volumes that fell dramatically in March have since recovered at some operators, though revenues for tours to destinations such as Morocco and Egypt remain down as much as 50 per cent. Travellers are now booking trips to Bali, Fiji, Vietnam and the Maldives while deferring larger-scale tours to affected regions.
One operator is launching charter flights from Melbourne to the Maldives beginning May 18. The direct route avoids Middle Eastern hubs and reduces travel time from around 20 hours to 10 hours. Fuel costs for the initial six months have been hedged to maintain competitive pricing, though the longevity of the service will depend on future fuel prices.
Fiji recorded its highest-ever March arrivals with 71,765 visitors, an increase of 12 per cent from March 2025. Australians made up 43 per cent of that total, up 17 per cent from the previous year.
High-level negotiations between the United States and Iran ended Monday at the Bürgenstock resort. The sides established a de-confliction cell involving Lebanon to address military operations there. Technical talks will continue through the week.
nbcnews.comMediators announced an interim understanding that includes sanctions relief and a de-confliction cell. Technical teams will continue work this week on nuclear, sanctions and asset issues.
EuronewsAustralian authorities uncovered the country's largest cocaine shipment on a Londonderry property on June 19. Two men face charges after the 816 million Australian dollar haul was traced to a boat landing in Queensland.