Dhaka, May 3 -- Thailand's tourism industry is facing renewed pressure as hotel bookings decline sharply, with the ongoing conflict in the Middle East continuing to weigh on international travel demand.

According to reports citing Thai Hotels Association, hotels across the country have reported a noticeable slowdown in reservations beginning in May, with some southern destinations seeing particularly steep drops. Areas heavily reliant on European visitors, such as Phangnga, have experienced booking declines of up to 50 percent.

Reports also cited industry leaders saying, the uncertainty surrounding the conflict, combined with rising airfares linked to higher fuel costs, is discouraging long-haul travel. President of the association Thie...