Ceasefire lifts UAE tourism mood — travel industry cautiously gears up for recovery

Dubai: A fragile ceasefire between the US, Israel and Iran has brought a sense of relief to the UAE’s travel and hospitality sector. Now, industry leaders are pointing to cautious optimism, steady operations and a steadfast focus on recovery.

While businesses say confidence is slowly returning, most agree that a full rebound will take time, with companies prioritising continuity, guest experience and community engagement in the interim.

Since February 28, escalating geopolitical tensions have cast a shadow over global travel, triggering thousands of flight disruptions and softer bookings.

Airlines were forced to cut routes, travellers delayed plans, and hospitality operators braced for a challenging period, particularly as the summer season approaches.

Against this backdrop, the ceasefire has offered a pause, allowing businesses to recalibrate and stabilise operations.

Still, Dubai stands firm. The government has also extended support to companies across the UAE.

Dubai Executive Council has approved Dh1 billion in short-term economic incentives from April to September 2026, including a three-month 100 per cent postponement of Tourism Dirham and hotel sales fees, along with deferrals on select business and licensing charges for hospitality establishments.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, shared a vote of confidence in a LinkedIn post.

“Dubai is safe and stable. Daily life continues, with public services, infrastructure and tourism facilities fully operational,” said Kazim, as he addressed global concerns amid heightened regional tensions.

Pointing to widespread international media coverage, Kazim said it was important to share the reality on the ground, stressing that the safety of residents and visitors remains the top priority.

"Our city has strong, well-established systems for managing global disruption and close coordination between government and industry partners to ensure residents and visitors are supported," he wrote.

He added that federal and local authorities have taken strong measures to ensure stability, supported by well-established systems and close coordination between government and industry.

He noted that while there have been some flight disruptions, operations are gradually scaling back up, led by Emirates and flydubai, with confidence in a full recovery.

For many, the UAE’s handling of the crisis has been central to maintaining operational continuity.

Zubin Karkaria, Founder and CEO of VFS Global Group, said the country’s “calm, stability and responsible leadership” ensured businesses could continue functioning with confidence. He noted that clear communication and a strong focus on safety helped residents and organisations navigate the uncertainty, adding that the company remains fully operational across its global network.

Karkaria expressed confidence that businesses will “bounce back stronger”, reflecting a broader sentiment across the sector.

Hospitality operators say the ceasefire has sparked renewed optimism, even as challenges remain.

Tim Corden, Chief Operating Officer for the Middle East, Africa and Southeast Asia Pacific at Radisson Hotel Group, described the development as a “sense of relief” for the region. He emphasised that the UAE continues to attract global visitors due to its resilience, adding that the group is focused on making travel experiences seamless and welcoming as demand returns.

Luis Santos, Founder of First Class, a Dubai-based hospitality and real estate services group, echoed this sentiment but warned that the recovery will be gradual.

While a partial rebound in tourism could begin soon if the ceasefire holds, he expects a full recovery to take months, especially with the summer slowdown adding pressure on the sector.

Beyond immediate recovery, industry players are rethinking strategy in a more complex operating environment.

Simon Wright, Founder and Chairman of TGP International, said the hospitality sector is showing “steady resilience” but with a clear shift towards more considered growth. Companies are refining offerings, streamlining operations and aligning more closely with customer expectations.

He added that the market is likely to become more disciplined, with greater focus on long-term value and cultural relevance.

In Dubai, wellness-focused businesses are playing a key role in supporting communities during uncertain times.

Ivana Bruic, Founder of Storm Cycling, said the past few weeks have seen people feeling overwhelmed by global events. In response, the company has focused on community-driven initiatives such as group rides and wellness sessions to help people reconnect and manage stress.

The coming weeks will be critical as travel demand stabilises and businesses adapt to evolving conditions. For now, the focus remains on resilience, operational strength and rebuilding confidence.