US-Israel-Iran conflict: Global tourism industry shaken

The World Travel and Tourism Council (WTTC) says the ongoing tensions involving the United States, Israel, and Iran are already disrupting the global travel sector.

According to WTTC estimates, the growing conflict in Iran is affecting tourism across the Middle East, leading to a decline of at least $600 million per day in international visitor spending.

This drop is largely due to interruptions in air travel, reduced traveler confidence, and weakened regional connectivity, all of which are lowering travel demand. WTTC represents the global private sector of the travel and tourism industry.

Despite these challenges, there is some optimism. WTTC notes that the tourism industry has shown strong resilience in past crises and believes that, with effective strategies, the sector could recover within about two months.

The Middle East plays a significant role in global travel, accounting for 5 per cent of international tourist arrivals and 14 per cent of worldwide transit traffic.

As a result, any disruption in the region can have global consequences, affecting airlines, airports, hotels, car rental businesses, and cruise companies.

Key aviation hubs such as Dubai, Abu Dhabi, Doha, and Bahrain usually handle around 526,000 passengers each day.

Therefore, any shutdowns or operational problems at these hubs can seriously disrupt both regional and global travel networks.

WTTC’s findings are based on its 2026 forecast made before the conflict, which expected $207 billion in international visitor spending in the Middle East this year.

Because of this large projected market, even short-term travel disruptions can quickly cause major economic losses across the tourism industry.

Despite the challenges, the council emphasized 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 traveler confidence.

Gloria Guevara, President and CEO of the World Travel and Tourism Council, said, “History shows that the sector can recover quickly, especially when governments support travelers 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 traveler 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 travelers 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 Cirim reporting widespread cancellations.

According to Cirim, 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.