US-Israel-Iran conflict is costing regional tourism sector $600 million

Dubai: The disruption caused by the US-Israel-Iran conflict is already being felt across the wider travel economy, according to the World Travel and Tourism Council (WTTC).

WTTC estimates that the escalating conflict in Iran is already impacting travel and tourism across the Middle East, reducing international visitor spending by at least $600 million per day as disruptions to air travel, traveller confidence, and regional connectivity affect demand. WTTC is the global, private sector voice of the travel and tourism industry.

Still, there is a silver lining. The industry, as it has displayed in the past, is extremely resilient, and according to WTTC, has the capability of recovering in two months with the right strategy.

The Middle East accounts for 5 per cent of global international arrivals and 14 per cent of global international transit traffic. Any disruption, therefore, affects demand worldwide, impacting airports, airlines, hotels, car hire companies, and cruise lines.

Major regional aviation hubs including Dubai, Abu Dhabi, Doha and Bahrain normally process around 526,000 passengers per day, meaning any closures or operational disruptions significantly affect regional and global connectivity.

WTTC’s analysis is based on its 2026 pre-conflict forecast that projected $207 billion in international visitor spending across the Middle East this year. Any disruption to travel flows therefore quickly translates into substantial economic impact across the tourism ecosystem.

Despite the challenges, the council emphasised that travel and tourism remain one of the world’s most resilient economic sectors.

WTTC research on previous crises shows that, with the right response, tourism demand following security-related incidents can recover in as little as two months when governments and industry act quickly to restore traveller confidence.

Gloria Guevara, President and CEO of the World Travel & Tourism Council, said, “History shows that the sector can recover quickly, especially when governments support travellers through hotel support or repatriation. Our analysis of previous crises demonstrates that security-related incidents often see the fastest tourism recovery times, in some cases as quickly as two months, when governments and industry work together to restore traveller confidence."

She said, “Clear communication, strong coordination between the public and private sectors, and measures that reinforce safety and stability are critical to rebuilding trust with travellers and supporting the sector’s recovery.”

Global flight disruptions in the Middle East are deepening as regional tensions ripple through the aviation network, with data firm aviation consultancy Cirium reporting widespread cancellations.

According to Cirium, from February 28 to March 12 inclusive, more than 92,000 flights were scheduled to depart from and arrive in the Middle East. Of these, more than 49,000 flights have already been cancelled.

The disruption is particularly severe at some Gulf hubs. In Doha, 288 out of 308 departures were cancelled, while Bahrain recorded 92 cancellations out of 93 scheduled flights, suggesting near-total suspension of departures at the time the snapshot was taken.

Despite the regional disruption, the UAE’s two largest aviation gateways — Dubai International Airport and Zayed International Airport — continue to operate a reduced but functioning schedule.  

At Dubai International (DXB), 387 flights were listed, with 87 cancellations. A total of 153 flights had already departed or landed, indicating that the airport remains active despite the disruption.

Abu Dhabi International showed fewer cancellations proportionally, with 23 flights cancelled out of 101 scheduled departures. Roughly three-quarters of flights were either operating or scheduled to operate.

Dubai had set a new tourism record in 2025, welcoming 19.59 million international overnight visitors, a 5 per cent year-on-year increase. December 2025 saw a milestone of over 2 million visitors in a single month. The sector maintained over 80 per cent hotel occupancy, driven by key markets like Western Europe, South Asia, and the GCC.