One major development that the world is keeping an eye on is the impending signing of a peace treaty to end the conflict in West Asia.

On 14th June, Pakistani Prime Minister Shehbaz Sharif announced that the parties involved would terminate military operations within the region once the treaty was signed on Friday, 19th June, in Switzerland.

However, as of press time, Iranian officials called for the deferment of the treaty, citing the ongoing attacks on Lebanon by Israeli forces.

The Iranian government, in particular, has been taking all overtures of peace with a grain of salt and is adamant that a halt to the Israeli attacks on Lebanon is among its primary demands.

As Iranian chief negotiator Mohammad Bagher Ghalibaf declared at the postponement: “If the enemy seeks to be excessive, we have proven that our fingers are on the trigger and we have no hesitation in giving a crushing response to the enemy.”

This protracted conflict is certainly not doing the global economy any favours, and international travel and tourism are among the sectors hit hardest.

With that said, we look into the repercussions of the delay on these industries and what could be done moving forward.

The [not so] grim reality

Let’s be blunt about this: delays in signing the peace treaty are the driving factor behind ongoing regional instability on both the security and economic fronts.

Also, delays in reopening the Strait of Hormuz and regional airspace mean that we are still in for expensive air, sea, and even land fares; layovers posing a security and safety issue, and practically negative industrial growth for H1-2026, along with a pessimistic outlook for the rest of the year.

But one area’s loss is another’s gain: diverting travel away from conflict zones has boosted inbound numbers in several safer destinations, particularly in Southeast Asia and Eastern Europe.

Central Asia and Northern Africa have also seen a significant increase in foreign inbound travellers, most of whom were drawn in by the richness of their cultural heritage, as well as the opportunities for adventure.

Challenges remain

But while it is advantageous for both travellers and destinations that a new roster of safe havens are opening their doors, the cost of travel these days remains a major deterrent, especially for those on a tight budget.

Indeed, people are now paying twice or even up to five times the amount they would have paid prior to 28th February for a plane ticket.

The effect of higher fuel prices has also spilled over into the cost of room and board, thus affecting global hospitality and the food and beverage sector.

We have also needed to face the music as a number of tour operators, resorts, and attractions have needed to close, some temporarily and others for good, due to the significant spike in operating expenses.

A hint of optimism

Both in-person travel agents and online travel platforms have also reported that travellers and event planners have balked at booking trips well in advance, citing uncertainty, as well as higher costs.

But this does not mean that all is lost; it may still look grim at the moment, especially as the world chafes over the delay in a final peace settlement, but we find hope in a statement released by the World Travel & Tourism Council (WTTC) in May of this year: 

“The result is clear: no major destination has ever suffered a permanent collapse. Recovery is the norm, and its pace depends almost entirely on the quality of the political response.”