Editor's Choice: War and high fuel costs reshape Asia's vacation plans

Hello from Tokyo. It's hard to believe, but we're already in July, and many of our readers should be planning their vacations. However, the instability in the Middle East is making travel planning particularly challenging this year. Although the United States and Iran signed a memorandum aimed at ending hostilities, the two countries clashed again on Tuesday. Energy prices remain high and airfares continue to rise. When I went to London on business early last month, my flight, which is already a long one from Tokyo, took even longer because the plane had to avoid Russian airspace due to the ongoing war in Ukraine and instead flew over the Arctic. July and August are arguably the best months to visit London, with longer daylight hours offering more time to enjoy the sights or even a pint or two by the Thames. Unfortunately, for many travelers a European vacation has become significantly more difficult and expensive. At the same time, the conflicts unfolding in both Europe and the Middle East are making Asia feel more distant for European travelers as well. According to a Nikkei Asia analysis, the number of long-haul visitors from Europe to Bali, one of Asia's premier resort destinations, has been declining. In contrast, arrivals from within ASEAN and East Asia are increasing. As uncertainty surrounding international travel grows, online travel platforms say that vacationers' priorities are flexibility, safety and value for money. For now, many of us may opt for a summer escape closer to home. The real question, however, is how long this situation will persist. As I mentioned in this newsletter previously, it'll probably take considerable time for the situation in the Middle East to stabilize and for energy prices to normalize. The war between Russia and Ukraine also appears likely to drag on even longer. Value for money has always been a priority for personal travel. But I wish we would soon return to a world where all of us can explore the globe without worrying so much about safety and flexibility. My suggested reads 1. As mainland Chinese buyers retreat, wealthy Taiwanese are emerging as a growing force in Japan's property market. Fueled by Taiwan's semiconductor and AI boom, they are channeling wealth into Japanese real estate. Trading Asia spoke with realtors and a buyer to understand what is driving the trend, how they view the backlash against foreign ownership, and whether demand can keep rising. 2. The market for CPUs used in next-generation data centers is projected to surpass $220 billion by 2030 as AI computing demand shifts from training models to deploying them. Chip companies in the U.S., China and beyond are piling into the segment, reshaping one of the industry's most important battlefields. 3. Even before the Iran war, the U.S. was not producing enough of certain missiles to replenish its own stockpiles, let alone to meet orders on the books from Asian allies. So, with the supply crunch worsening, Australia, Japan, South Korea and Taiwan are each moving to rely more on domestic production, whether in cooperation with American defense companies or on their own. Wishing you a wonderful weekend! Akito Tanaka Follow us on Threads and Instagram Nikkei Asia Forum APAC 2026 Nikkei Asia Forum APAC 2026 is a brand new regional, business-focused gathering in Bangkok on July 16. Business leaders and experts from across the Asia-Pacific -- including Thailand, Japan, China and Vietnam -- will share insights for resilient, sustainable growth, as energy supply disruptions linked to the Strait of Hormuz have clouded the outlook and exposed vulnerabilities in developing economies. Register now for free online participation. Thank you for reading this newsletter. We are taking a short break and will be back in your inboxes on July 24. Sign up for the weekly Editor-in-chief's picks newsletter here