The escalating conflict between the U.S., Israel and Iran is already hitting the Middle East travel and tourism sector hard, with the World Travel & Tourism Council (WTTC) estimating losses of at least $600 million per day in international visitor spending.
The region, a vital global travel hub, normally accounts for 5% of international arrivals and 14% of global transit traffic.
Major aviation centres in Dubai, Abu Dhabi, Doha and Bahrain, which together handle around 526,000 passengers daily, have seen widespread flight cancellations and airspace closures, severely disrupting regional and global connectivity.
WTTC’s 2026 pre-conflict forecast projected $207 billion in visitor spending across the Middle East. Analysts say any disruption to travel flows quickly translates into substantial losses across airlines, hotels, car hire companies and cruise lines.
Regional carriers have dramatically reduced operations.
On 24 February, Emirates, Etihad Airways and Qatar Airways operated 527, 325 and 563 flights respectively. By 10 March, that had fallen to just 309, 56 and 66.
The conflict has halted a recent tourism boom in the Gulf and wider Middle East. Ibrahim Khaled, head of marketing for the Middle East Travel Alliance, said cancellations have surged for destinations flagged on U.S. and UK no-go lists, with flights disrupted and trips effectively on hold.
A report by Tourism Economics forecasts that inbound arrivals could decline by 11%–27% year on year in 2026, equating to 23–38 million fewer international visitors and $34–$56 billion in lost visitor spending.
GCC countries, including the UAE and Saudi Arabia, are expected to be worst hit due to their reliance on air connectivity and perceptions of safety. Countries such as Qatar and Bahrain, which receive a higher proportion of land arrivals, are comparatively less affected.
“The impact on tourism demand from this conflict is larger than last year’s, due to retaliatory strikes by Iran on GCC countries and wider airspace closures,” the report added.
Analysts warn of knock-on effects for global travel, as disruption to Middle East hubs affects flights between Europe, Asia and Africa.
Despite the immediate disruption, tourism experts stress the region’s resilience. Khaled said demand typically rebounds quickly once stability returns, and WTTC research suggests recovery can occur in as little as two months with strong government and industry support.
According to Gloria Guevara, WTTC President and CEO, travel and tourism is one of the most resilient sectors.
She noted that while international visitor spending across the Middle East averages $600 million per day and has been severely impacted, history shows the sector can recover quickly, particularly with hotel support, repatriation efforts and clear communication to travellers.
“Coordination between the public and private sectors is critical to rebuild trust and restore stability,” Guevara said.
WTTC continues to monitor developments closely, working with governments and industry leaders to support traveller safety and the long-term resilience of the regional and global tourism sector.
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The Iran-U.S.-Israel conflict is intensifying, with fresh strikes near Tehran, European calls for restraint, and Iran threatening to target U.S. firms in the region, raising fears of a broader escalation across the Middle East.
The war in Iran has rapidly upended regional security, triggering spillover across the Middle East and raising fears of wider economic disruption that could threaten globalisation.
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The ongoing conflict involving Iran is set to disrupt global travel on a massive scale, with nearly 28 million outbound trips from the Middle East at risk this year, according to Oxford Economics.
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