The ongoing Iran-US war has put at stake billions of dollars of annual tourism in the Gulf countries. The Gulf tourism and investment are at risk, with regional losses hitting $56 billion.
The warning casts uncertainty over a sector valued at approximately $367 billion annually across the Middle East.
The report states that more than 300,000 British citizens are currently in the UAE, with over 100,000 having registered plans to return to the United Kingdom. Consequently, aviation and travel experts warn that the unfolding situation could trigger the most significant air travel disruption since the coronavirus pandemic.
Moreover, vacation rental cancellations in the UAE have doubled in recent weeks. Most affected bookings were scheduled for March, reflecting growing traveller anxiety amid rising regional tensions.
Travel Patterns Shift as Cancellations Mount
Industry analysts estimate that more than 8,450 reservations have already been cancelled. As uncertainty deepens, tourists are increasingly redirecting their travel plans to alternative destinations.
Regional travellers are turning to Turkiye and Azerbaijan as substitute routes and holiday options. Meanwhile, European destinations such as Portugal, Italy and Greece are witnessing higher demand from Gulf-based tourists seeking stability.
In Asia, travellers are opting for Thailand and Malaysia, drawn by comparatively lower accommodation costs and perceived safety.
Airlines and travel operators report a surge in itinerary changes, refunds, and rebookings. As a result, the hospitality and aviation sectors across the Gulf face mounting financial pressure.
If tensions persist, analysts caution that investor confidence in large-scale tourism projects could weaken.
According to experts, the Arab countries will brace for massive losses in case the US-Iran war is prolonged.
