Iran war costing Middle East travel & tourism industry $600 million a day: Report

The escalating conflict involving Iran, Israel and the United States is already costing the travel and tourism sector at least $600 million a day in lost international visitor spending, as flight disruptions and declining traveler confidence hit demand across the Middle East, according to the World Travel & Tourism Council.

The conflict has disrupted regional air connectivity and tourism flows, affecting airlines, airports, hotels, cruise operators and car rental companies throughout the region.

Of 72,000 flights scheduled in and out of the Middle East between February 28 and March 9, more than 40,000 trips have already been cancelled, reported Khaleej Times, citing data shared by aviation analytics company Cirium.

The Middle East accounts for about 5% of global international tourist arrivals and roughly 14% of international transit traffic.

Disruptions in the region therefore have ripple effects on worldwide travel demand.

Major aviation hubs, including airports in Dubai, Abu Dhabi, Doha and Bahrain, have faced closures and operational disruptions in the past two weeks

These hubs normally handle around 5,26,000 passengers a day.

Based on its 2026 pre-conflict forecast, the WTTC had projected $207 billion in international visitor spending across the Middle East this year.

With such large volumes of travel spending at stake, even short-term disruptions quickly translate into substantial economic losses for the tourism ecosystem.

“Travel and tourism is the most resilient of sectors,” said Gloria Guevara, president and chief executive of the WTTC.

“The impact of international visitor spending across the Middle East is significant and averages around $600 million per day, but history shows the sector can recover quickly, especially when governments support travelers through measures such as hotel support or repatriation,” Guevara said.

She said that past crises suggest tourism demand after security-related incidents can rebound in as little as two months when governments and the travel industry coordinate to restore traveler confidence.

The WTTC said clear communication, coordination between governments and private industry, and measures that reinforce safety and stability will be key to rebuilding trust among travelers and accelerating the sector’s recovery.