Middle East conflict costing travel sector $600M per day, says WTTC

The escalating conflict involving Iran is already having a significant impact on the travel and tourism industry across the Middle East, with losses estimated at around $600 million per day in international visitor spending, according to the World Travel & Tourism Council (WTTC).

The decline is being driven by disruptions to air travel (such as airspace closures), declining traveller confidence, and interruptions to regional connectivity.

The Middle East plays a critical role in global tourism and aviation.

The region accounts for approximately five per cent of global international arrivals and handles around 14 per cent of worldwide international transit traffic, making it a key hub for long-haul travel between Europe, Asia, and Africa.

As a result, any disruption within the region can ripple across the global travel system, affecting airlines, airports, hotels, car rental companies, and cruise operators, says the WTTC.

Major aviation hubs in the region — including Dubai, Abu Dhabi, Doha, and Bahrain — are central to this network.

Under normal conditions, these airports collectively process about 526,000 passengers per day. However, as tensions have escalated, closures and operational disruptions have significantly affected flight schedules and regional connectivity, creating knock-on effects for international travel routes.

WTTC’s analysis draws on its 2026 pre-conflict forecast, which projected $207 billion in international visitor spending across the Middle East this year.

Because of the scale of travel flows through the region, even short-term disruptions can quickly translate into substantial economic losses across the broader tourism ecosystem.

Despite the current challenges, the WTTC stresses that travel and tourism remains one of the most resilient sectors of the global economy. Historical data from previous crises shows that tourism demand following security-related incidents can recover relatively quickly. With coordinated action from governments and the private sector to restore traveller confidence, the industry has the potential to rebound in as little as two months.

“The impact of international visitor spending across the Middle East is significant and averages around US$600 million per day, but history shows that the sector can recover quickly, especially when governments support travellers through hotel support or repatriation,” said Gloria Guevara, president and CEO of the WTTC, in a statement. 

“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 traveller confidence. WTTC commends governments who have worked tirelessly in recent days to support recovery efforts."

“Clear communication, strong coordination between the public and private sectors, and measures that reinforce safety and stability are critical to rebuilding trust with travellers and supporting the sector’s recovery.”

Some airspace in the Middle East is gradually reopening, but missile and drone attacks in major cities from Riyadh to Dubai on Wednesday (March 11) led to fresh intermittent closures, according to FlightRadar24.

Air Canada recently extended the suspension of its service to Tel Aviv, Israel and Dubai.

According to a March 6 update posted to the airline’s website, flights to Dubai will remain cancelled until at least March 28, 2026 (previously scheduled for March 22), while flights to Tel Aviv will be cancelled until May 2.

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