We Need People To Come Back': Dubai's Tourism Industry Reels As Foreigners Flee

 

Dubai is facing an existential crisis with the US and Israeli war on Iran forcing tourism numbers to fall sharply, with widespread hotel closures and job losses decimating the global tourism hotspots' hospitality sector.

On Monday, Dubai Airports reported that first-quarter passenger traffic was down by at least 2.5 million from the same period in 2025, with March seeing a 66 percent drop in passenger numbers as travellers chose to steer clear of the Gulf.

The company did not specify forecasts for this year but on Saturday, in a bid to kickstart tourism, the UAE announced that all air travel restrictions that were put in place after Iran launched retaliatory strikes on all six Gulf Cooperation Council (GCC) countries that house or cooperate closely with US forces had been lifted.

In a post on their official X account, the Civil Aviation Authority wrote: "Our decision came following a comprehensive assessment of operational and security conditions, in coordination with the relevant authorities".

The statement was clearly meant to relay confidence to international travellers, especially after several European airlines announced that they would be suspending flights to the Middle East.

Workers and business owners in Dubai, who spoke to the Middle East Eye on condition of anonymity due GCC-wide restrictions on public statements about the effects of Tehran’s attacks, say it will still take some time to see if the announcement will restore confidence among travellers and investors.

Charity, a Kenyan hotel worker said the mid-priced hotel she works at was definitely affected by the 1.4 million people who travelled through the UAE over the first two weeks of March.

During the Muslim holy month of Ramadan, when Iranian missile and drone attacks were at their worst, the hotel, part of a US-based chain, was full of stranded passengers who would meet with Emirates Airlines representatives in the lobby.

During the month, the hotel's pool was closed to guests and by the final days, guests staying in the higher floors of the 20-floor building were moved to the lower floors as a precautionary measure.