
The Middle East is experiencing widespread tension due to the ongoing conflict between Israel and Hamas, which has been escalating for nearly a year. From the outside, it may seem that the entire region is descending into chaos, and many may assume that travel has come to a complete standstill. However, the reality of tourism in the Middle East is much more complex. While some areas are suffering significantly due to the conflict, other regions are still seeing stable or even strong tourism performance.
For instance, Dubai continues to thrive as a major travel destination despite the regional unrest. In contrast, other areas directly impacted by war, such as Israel and Lebanon, have witnessed a sharp decline in visitors. Here’s a detailed look at how the current Middle Eastern crisis has affected the travel industry across different countries.
Israel tourism sector has been severely affected. Between January and June, the country saw only 500,000 tourists, a significant drop from the 2 million visitors during the same period last year. The Israel Hotel Association (IHA) reported that around 10% of hotels in the country are at risk of financial collapse due to plummeting occupancy rates. Prior to the October 7 attack, Israel was anticipating a record-breaking year in tourism. In 2022, Israel welcomed 2.7 million tourists, generating $4 billion in revenue, and expectations for 2023 were even higher.
Egypt Despite geopolitical concerns, Egypt’s tourism industry remains resilient. The U.S. Department of State has issued a “Level 3” Travel Advisory for Egypt, urging travelers to reconsider their plans due to the potential threat of terrorism. However, demand for travel to Egypt persists. Tourism officials have noted that travelers and industry professionals are well-informed about Egypt's relatively stable position in the region. Egypt welcomed nearly 7.1 million tourists in the first half of 2024, which is comparable to the same period in 2023. Although the initial forecast of 18 million visitors for 2024 was revised down to 15.5-16.5 million, the country is still on track to reach significant tourism numbers, following a record of 14.9 million tourists in 2023.
Jordan has seen a decline in tourism as well. The number of tourists visiting the country in the first eight months of 2024 dropped by 7% compared to the same period in 2023. Hotel occupancy rates have been alarmingly low, with some areas reporting rates as low as 3%, far below the 50% occupancy level needed for hotels to break even. Between November 2023 and March, the country lost an estimated $287 million in potential tourism revenue, primarily due to the absence of international visitors.
Lebanon's tourism sector has also been struggling. In the first four months of 2024, the country saw 340,290 tourists, down from 398,186 during the same period in 2023. Although detailed tourism data from Lebanon is limited, the downward trend is clear, indicating that the region's instability has dampened international interest.
Dubai Despite the regional tensions, Dubai has continued to see strong performance in its tourism sector. The Future Hospitality Summit, one of the city’s largest tourism conferences, recently took place with little discussion of the nearby conflicts. The UAE’s Minister of Economy, Abdullah bin Touq Al Marri, expressed confidence in Dubai’s continued safety and security, attributing the success to the country’s stringent safety protocols. He emphasized that, despite the conflicts surrounding the UAE, tourism numbers are increasing annually. However, airlines have adjusted some flight routes due to safety concerns. For example, Emirates has suspended flights to Iraq, Iran, Jordan, and Lebanon.
Saudi Arabia Tourism in Saudi Arabia has remained robust despite the broader regional unrest. In the first half of 2024, the country saw a combined total of 60 million international and domestic tourists, contributing approximately $38.1 billion in expenditure. Saudi Arabia remains a key player in the region’s tourism market, and its numbers reflect continued demand.
Hotels and Airlines Many hotel groups in the region, including Accor and IHG, have opted to keep their properties open despite the ongoing conflicts. Accor’s CEO, Sebastien Bazin, explained that the group has a long history of operating in regions affected by crises, whether due to war, climate disasters, or other issues. He emphasized that the company never leaves a country during a crisis and instead ensures the safety of staff and guests while maintaining operations. Similarly, IHG has kept its hotels in Israel and Lebanon open and increased security measures to safeguard guests and employees.
However, airlines have responded to the growing tensions by adjusting flight schedules and suspending services to certain destinations. For example, British Airways canceled flights to and from Tel Aviv, and Lufthansa suspended flights to Beirut, Tel Aviv, and Tehran. Other airlines, such as Emirates, Qatar Airways, and Etihad, have taken similar measures to protect passengers and crew by rerouting flights and suspending services to affected regions.
In summary, while the Middle East is facing significant challenges due to ongoing conflict, the impact on tourism varies widely from country to country. Regions directly involved in the conflict, such as Israel and Lebanon, are seeing severe declines in visitor numbers and hotel occupancy, whereas areas like Dubai and Saudi Arabia are maintaining relatively strong tourism performance. Airlines and hotels continue to adapt to the evolving situation by ensuring safety and adjusting services as necessary. The broader travel industry in the Middle East is experiencing uneven results, with some parts of the region thriving while others struggle to cope with the crisis.
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