GCC tourism losses from Iran war could hit $32bn

Tourism revenue losses in the GCC arising from the US-Israel war with Iran are estimated between $13 billion and $32 billion, the GCC secretary-general has said.

The revenue drop will be driven by tourist inflows falling between 8 and 19 million, the state-run Wam news agency reported, quoting Jasem Albudaiwi.

The GCC countries received more than 72 million tourists, generating revenues of nearly $120 billion in 2024, according to data from the Gulf Statistical Centre.

Speaking at the extraordinary meeting of the GCC tourism ministers on Tuesday, Albudaiwi said that the GCC countries are capable of overcoming all crises and challenges, relying on their close ties and integration across all sectors.

He said that the Iranian aggression on GCC countries has cast a shadow over the vital tourism sector, impacting travel patterns, the pace of tourism activity and the stability of related markets.

The official said that the GCC will need to work collectively to develop the best ways to address regional challenges, in the short and long term, to ensure the restoration and sustainability of tourism. 

Last month the London-based World Travel & Tourism Council said that the Middle East’s tourism sector was incurring losses of at least $600 million per day in international visitor spending due to the conflict.

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The Middle East accounts for 5 percent of global international arrivals and 14 percent of global international transit traffic. Any disruption affects global demand, which, in turn, affects airports and flights, hotels, car hire companies and cruise lines.

Inbound arrivals to the Middle East could fall by 11 to 27 percent year on year in 2026, potentially wiping out $34 billion to $56 billion in visitor spending, depending on how quickly the conflict resolves, according to forecasts from the analytics and advisory company Oxford Economics.

Late on Tuesday US President Donald Trump said the US agreed to suspend attacks on Iran for two weeks, subject to Tehran agreeing to the “complete, immediate and safe opening” of the Strait of Hormuz.