BRUSSELS / BERLIN / ISTANBUL: The ongoing Middle East war has dealt a severe blow to Gulf economies, particularly in the tourism and aviation sectors, with losses mounting rapidly as the conflict disrupts travel and regional stability, according to Anadolu.
The war, which began on February 28 following US and Israeli attacks on Iran, has triggered widespread airspace closures and security concerns, leading to a sharp contraction in tourism and aviation activities across the region.
According to Anadolu, tourism-related losses alone exceeded $12 billion within the first 20 days of the conflict, based on data from the World Travel and Tourism Council (WTTC).
Three weeks into the war, flights to Dubai remain empty. At this rate, all Gulf airlines risk bankruptcy. pic.twitter.com/RIUG0O2GhL
— Ivo Toniut (@IvoTONIUT) March 21, 2026
The report said the impact on international visitor spending reached at least $600 million per day, though this figure excludes additional losses from airline operations, rising fuel costs, cancelled flights, and broader tourism-linked sectors, suggesting the overall economic damage is significantly higher.
Aviation faces major disruption
According to Anadolu, the conflict has triggered one of the most severe disruptions in global aviation since the COVID-19 pandemic in 2020.
More than 3,400 flights were cancelled across the region within the first 24 hours of the war, with disruptions continuing as airlines scaled back or suspended operations.
Major European carriers, including Lufthansa and Air France-KLM, halted flights to key regional destinations such as Dubai, Abu Dhabi, Tel Aviv, and Beirut until the end of March, while suspending Tehran routes until at least April.
According to Anadolu, Turkish Airlines and Pegasus also temporarily stopped flights to high-risk areas, while Gulf carriers such as Emirates and Etihad continued limited operations through restricted airspace corridors.
The disruption has affected global connectivity, particularly routes linking Europe, Asia, and Africa, causing delays and increased operational costs across the aviation network.
Regional hubs under strain
Key aviation hubs in the Gulf have been heavily impacted, according to Anadolu.
Airports in Dubai, Abu Dhabi, Doha, and Bahrain — which typically handle around 526,000 passengers daily — have faced severe operational disruptions.
Dubai International Airport, which recorded 95.2 million passengers in 2025, was forced to temporarily halt operations following the escalation.
Hamad International Airport in Qatar also experienced disruptions, with intermittent airspace closures halting transit flights between Europe and Asia.
Oman emerged as a limited transit point, opening restricted corridors primarily for evacuation flights as security concerns curtailed regular travel.
Tourism sector contracts sharply
The tourism industry has seen a steep decline in demand due to safety concerns and transport disruptions, Anadolu reported.
More than 80,000 hotel reservations were cancelled in Dubai alone during the first week of the war, forcing hotels across the region to offer significant discounts to maintain occupancy.
Tourism activity has nearly halted in Kuwait and Bahrain, where evacuation efforts have taken priority, and hotels are increasingly being used to accommodate military personnel rather than visitors.
The UAE government has stepped in to cover accommodation costs for stranded tourists, while hotel chains have introduced flexible booking policies.
Regional image takes a hit
The conflict has also damaged the perception of Gulf cities such as Dubai and Abu Dhabi as safe and stable global hubs.
Frequent sirens and heightened security alerts have disrupted daily life, particularly during March, traditionally one of the busiest months for tourism.
Tourists have increasingly turned to alternative destinations, with cancellations rising across Middle Eastern and eastern Mediterranean travel routes.
Economic outlook under pressure
Pre-war projections estimated that the Middle East would generate around $207 billion in international tourism revenue in 2026.
However, these targets are now at serious risk as losses continue to mount.
Experts warn that if the current pace of daily losses — estimated at $600 million — persists, the economic impact could deepen significantly, affecting a wide range of sectors including hospitality, transport, retail, and services.
