Will UAE residents turn to staycations as Iran-Israel conflict disrupts summer travel plans?

Dubai: As summer begins, UAE hoteliers are seeing early signs of growing interest in staycations—particularly among residents affected by international travel disruptions. Industry experts say that while it’s too early to call it a “trend”, the Iran-Israel conflict and resulting flight cancellations are prompting many families to rethink their holiday plans.

Nadia Purkayassta, Regional Head of Revenue Management at Premier Inn Middle East, said, “At this stage, it is still too early to observe a rise in staycations, as the situation remains fluid and continues to evolve daily. However, we may see a shift once the school year ends next week.”

While the overall pace of bookings has slowed, residents with existing travel plans are largely maintaining them—for now. However, hoteliers are closely watching for changes.

Ahmed Soliman, CEO of TCA Group, said, “What we’ve seen so far is that while overall pickup has slowed down, those who already had plans are largely maintaining them. The Iran-Israel conflict has certainly created uncertainty, and some residents affected by flight cancellations or rescheduling are exploring staycations as an alternative.”

TCA Group is a GCC hospitality and tourism representation company. Soliman added, “I wouldn’t say there’s been a major surge in staycations just yet, but we are seeing signs of interest, particularly from those seeking flexible, local options as they rethink their travel plans. We’re keeping a close eye on it as the situation evolves.”

Over a week into the conflict, Iran and Israel continued to trade strikes after the US struck multiple Iranian nuclear sites in Natanz, Fordow, and Isfahan early Sunday (UAE time). In a national address Saturday night, after the US entered the Iran – Israel conflict, President Donald Trump warned that Iran “must now make peace” – or face additional attacks on more targets that “will be far greater and a lot easier.”

Hospitality experts and travel agents also said UAE residents have adopted a “wait and watch approach” for holiday planning. Many have adjusted their travel plans, with a noticeable shift towards Southeast Asian destinations, according to several travel agents.

This trend comes amidst ongoing regional crises, particularly impacting those planning budget-friendly getaways, increasingly putting off their travel plans or adopting a “wait-and-watch” approach. Raheesh Babu, the COO of online travel agency Musafir.com, said UAE schools close for the summer in the first week of July. “Business travel has taken a hit since the conflict broke out a little over a week ago. Only those with critical travel needs are going ahead with their holiday plans.” He said, “Travellers who have planned holidays for the summer haven’t made any cancellations yet. Many are waiting to see how matters will look as schools close for the summer break.”  

Despite ongoing geopolitical uncertainties, Dubai’s hospitality sector performed strongly. The city welcomed 7.15 million overnight visitors between January and April 2025, a 7 per cent increase from the same period in 2024. Most recent figures from Dubai Tourism are yet to be made available.

However, year-to-date figures show Dubai’s hotel occupancy rate averaging 83 per cent, with five-star hotels reporting 83 per cent occupancy and four-star properties slightly higher at 85 per cent. The city now boasts over 153,500 hotel rooms across 831 establishments.

In the first quarter of 2025, Dubai’s hospitality sector reported an Average Daily Rate (ADR) of Dh647, marking a 2 per cent year-on-year increase. The number of occupied room nights reached 11.19 million, while the Revenue Per Available Room (RevPAR) stood at Dh528, in line with the corresponding figures from the previous year. The Dubai Department of Economy and Tourism attributes the growth to continued investment and targeted marketing.

In an earlier interview, Helal Saeed Almarri, Director General Director General of Dubai's Department of Economy and Tourism, said, “Dubai continues to register strong growth across tourism metrics. Our evolving strategies and global positioning are key drivers in maintaining this upward trajectory.”

In Abu Dhabi, Eid-Al-Fitr 2025 hotel bookings reached 56 per cent capacity—up from below 40 per cent in 2024, reflecting greater early demand for local holidays. According to officials, Ras Al Khaimah and Fujairah are also seeing increased online searches and rising interest in family-friendly, nature-based getaways.