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Thai residents and expatriates are being offered discounts of up to 70% at five-star hotels, where nightly rates can typically reach US$1,000, Bloomberg reported.

At Mandarin Oriental, Bangkok, one of the capital’s most iconic riverside properties, rooms are now priced below $300 per night.

In southern Thailand, a luxury resort overlooking the dramatic limestone cliffs of Railay Beach is offering stays from around $430 per night, roughly half its usual rate.

The steep promotions come as flight cancellations and airspace closures tied to the conflict in Iran disrupt key Europe-Asia travel routes, making journeys to Thailand more complex and costly.

Thailand’s Ministry of Tourism fears a loss of 596,000 visitors and 40.9 billion baht ($1.29 billion) in revenues if the conflict drags on for more than eight weeks.

Phangnga Province has already seen a sharp decline in European arrivals and estimates losses at nearly 1.7 billion baht ($52.3 million), according to its hotel association, Bangkok Post reported.

Authorities are also preparing contingency measures to offset any decline in arrivals from long-haul markets including Europe and the U.S.

Thailand experienced a tourism downturn last year amid a combination of kidnapping incidents, flooding and border conflict.

The country is aiming to attract 37 million foreign visitors this year, a projected increase of more than 11% from 2025 but that target is increasingly at risk.

As of mid-March, Thailand had recorded 7.9 million arrivals, with China, Malaysia and Russia remaining its leading source markets.