Middle East tourism losing $600m a day in Iran war

• Inbound arrivals could fall 25%
• Aviation hubs disrupted
• But tourism sector is ‘most resilient’

The Middle East’s tourism sector is incurring losses of at least $600 million per day in international visitor spending due to the ongoing US-Israel and Iran war, according to estimates by a London-based global tourism body.

The conflict, which began on February 28, is disrupting air travel, traveller confidence and regional connectivity, the World Travel & Tourism Council (WTTC) said.

The estimate is based on the council’s 2026 pre-conflict forecast for the Middle East, which projected $207 billion in international visitor spending across the region.

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, impacts airports and flights, hotels, car hire companies and cruise lines.

Regional aviation hubs, including Dubai, Abu Dhabi, Doha and Bahrain, which together normally handle 526,000 passengers per day, are experiencing temporary closures and operational disruptions.

WTTC said its research on previous crises shows that tourism demand following security-related incidents can recover in as little as two months if governments and industry act quickly to restore traveller confidence.

“Travel and tourism are the most resilient of sectors. History shows that the sector can recover quickly, especially when governments support travellers through hotel support or repatriation,” Gloria Guevara, president & CEO of WTTC, said in a statement.

WTTC members include chairpersons and CEOs of the travel and tourism companies, spanning airlines, hotels, cruise lines, tour operators, technology firms and more. 

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.

“GCC countries will see the largest losses in volume terms, as they are the largest destinations in the region, which have previously relied on perceptions of safety and stability,” said director of global forecasting Helen McDermott and senior economist Jessie Smith.