The Iran war is providing an unexpected boost to secondary city travel in Asia-Pacific

PHU QUOC, VIETNAM - MARCH 20: People walk on Ba Keo Beach on March 20, 2026 in Phu Quoc, Vietnam. The country welcomed nearly 21.2 million international visitors in 2025 — a new record. Allison Joyce | Getty Images News | Getty Images Trips to smaller "secondary cities" across Asia-Pacific are getting a boost this summer as travelers opt for destinations closer to home amid concerns over geopolitical tensions and rising costs. Nearly half of global travelers are scaling back their travel plans, with many choosing domestic trips instead, according to Allianz Partners' Global Travel Confidence Index. The survey of about 11,000 respondents, published in May, found that around 60% of respondents from China and India planned to travel domestically. The trend is expected to fuel visits to Tier 2 and Tier 3 destinations such as Goa and Xiamen, which are popular with local travelers but remain less familiar to many international visitors. Some travelers are keeping their international vacation plans but choosing destinations within Asia, Rajeev Menon, Marriott International's president for APAC ex-China, told "Squawk Box Asia" on May 21. "People have pivoted and shifted their plans to stay within Asia," which is driving interest to up-and-coming places such as Phu Quoc, Vietnam, he said.. …