BRUSSELS / BERLIN / ISTANBUL
The conflict that started with US and Israeli attacks on Iran on Feb. 28 and spread across the Middle East caused a severe contraction in the tourism and aviation sectors, with tourism-related losses alone estimated to exceed $12 billion on the 20th day of the war.
The economies of Gulf countries, mainly Saudi Arabia, Qatar, the UAE and Bahrain, suffered significant damage due to the impact of the conflicts as air traffic and tourism activities in the region experienced major disruptions.
The impact of the conflicts on international visitor spending reached at least $600 million daily, according to World Travel and Tourism Council (WTTC) data.
This calculation showed that the loss in tourism revenues surpassed $12 billion in the first 20 days of the war.
This figure covered only tourist spending while excluding airlines' operational losses, rising fuel costs, canceled flights, and losses in other tourism-related sectors.
Experts evaluated that the total economic impact was therefore much higher.
Biggest crisis in global aviation since pandemic
The closure of airspaces and the increase in security risks with the start of the conflicts caused one of the biggest disruptions in global aviation since the 2020 pandemic.
Airlines canceled more than 3,400 flights across the region in the first 24 hours of the war as cancellations and delays continued in the following period.
Many Europe-based airlines reduced their Middle East flights as some companies completely suspended their operations.
Lufthansa and Air France-KLM decided to halt their Dubai, Abu Dhabi, Tel Aviv and Beirut flights until the end of March while also canceling Tehran flights until the end of April.
Turkish Airlines and Pegasus also temporarily halted their flights to high-risk locations in the region.
Emirates and Etihad airlines attempted to continue their operations with limited capacity through restricted airspace corridors.
Disruptions stemming from the Middle East's critical role in global transit transportation directly affected the flight network between Europe, Asia and Africa while causing chain delays and cost increases in global air traffic.
- Regional hubs take heavy hit
Operations severely stalled at major aviation hubs like Dubai, Abu Dhabi, Doha and Bahrain due to the conflicts, whereas these centers served approximately 526,000 passengers daily under normal conditions.
Dubai International Airport, which broke a world record with 95.2 million passengers in 2025, had to temporarily halt its operations following the attacks.
Operations were disrupted at Hamad International Airport in Qatar as the occasional closure of the airspace brought connecting flights between Europe and Asia to a standstill.
Oman stood out with a limited corridor opened for civil evacuation flights as congestion and security measures made tourist travel largely impossible.
- Tourism reservations face cancellation
The tourism sector experienced a severe contraction in demand due to security concerns and transportation disruptions.
Tourists canceled more than 80,000 hotel reservations in Dubai alone during the first week of the war as hotels across the region had to offer massive discounts to maintain their occupancy rates.
Tourism activities almost completely stopped in Kuwait and Bahrain as foreign citizens awaited evacuation, and military personnel began to use hotels rather than tourists.
The UAE administration announced it would cover the accommodation costs of tourists unable to leave the country, as major hotel chains provided flexibility to their customers.
- Image suffers damage
The conflicts severely shook the safe haven image of Dubai and Abu Dhabi, which became the centers of luxury tourism and global business travel in recent years.
Siren sounds and security warnings became a part of daily life in the region with the attacks starting at the end of February as the expected mobility in March, one of the busiest periods of the tourism season, failed to materialize.
Tourists turned to alternative destinations as reservation cancellations reportedly increased on the Middle East and Eastern Mediterranean routes.
$207 billion target at risk
Pre-conflict estimates projected that the Middle East would generate approximately $207 billion in revenue from international visitor spending in 2026.
Current developments indicated that this target faced serious risk.
Experts stated that billions of dollars in additional losses could occur in regional economies if the daily $600 million loss continued.
The contraction in tourism negatively impacted a broad economic area, primarily hotels, restaurants, transportation, retail and service sectors.
Saudi Arabia's tourism targets face disruption
Saudi Arabia, which aims to diversify its economy by increasing tourism investments, also felt the impact of the conflicts.
Construction and promotion processes of mega projects carried out under Vision 2030 slowed down as airspace restrictions caused the cancellation of international flights.
Officials noted a decrease in the number of visitors even in Mecca and Medina.
