The Bhutanese Leading the way.
Drukair has suspended all flights to Dubai until 28th March following an announcement from the UAE Civil Aviation Authority and Dubai Airport, as airlines adjust schedules amid heightened tension after the military conflict involving the United States and Israel against Iran that began on 28th February 2026.
Hotels and tour operators in Bhutan have been experiencing a surge in cancellations this month. According to the Hotel and Restaurant Association of Bhutan (HRAB), bookings are decreasing daily, causing a significant impact on the hotel industry.
Amen Bhutan Tours, a tour operating company based in Thimphu, has received over 100 cancellations for March alone, and bookings for April are currently on hold.
Gangri Tours and Treks have also received numerous cancellations over the past month.
Another major tour operator, who did not want to be named, reported around 32 cancellations in March, with some visitors postponing their trips to the fall season while most have canceled entirely.
Keys to Bhutan, another tour company, confirmed that they have been receiving a high volume of cancellations in March. They have reached out to the Department of Tourism regarding the flight suspension, requested guidance on rerouting, and sought coordination with airlines and hotels on refunds.
Hotels have also been affected. Wangchuk Hotel in Mongar reported around 9–10 cancellations, including small groups of two people and larger groups of up to 17 people. They said that occupancy in the eastern region is already low and it is hard for the hotel to cover even 20–30 percent occupancy in a year. They said that this issue has made it difficult to sustain operations for the hotel. Similarly, a hotel in Lobesa experienced the cancellation of one large group booking.
The cancellations are happening for two main reasons. One is that Dubai Airport is a hub through which a fair number of tourists come to Bhutan both directly and indirectly, but the airport is largely shut due to the Iran War.
The other factor is that the global economic uncertainty and surging fuel prices due to the war are discouraging the more cautious tourists from traveling.
The war could not have come at a worse time for Bhutan’s tourism sector as it is the prime season lined with festivals across Bhutan and with good weather.
The Director of the Department of Tourism, Damcho Rinzin, said, “From the department’s side, we are disseminating the information with the tour operators and our partners. We have to preempt rerouting and we will continue to work with airlines, specifically Drukair and ABTO and tour operators in whatever way we can to facilitate through this issue.”
