Tourism on Hold Amid Conflict: What This Means for Investors and Business Owners in Oman
Paris – The ongoing war in the Middle East is casting a significant shadow over the region’s tourism sector, leading to cancelled flights, postponed trips, and widespread uncertainty for travelers and operators alike.
Nazih Rawashdeh, a tour guide near Irbid in northern Jordan, reported that his last group of tourists departed three days ago, with all planned tours for March subsequently cancelled. “This is the start of the high season here. It’s catastrophic,” he told AFP, emphasizing that Jordan remains safe despite the turmoil.
Globally, tour operators are urgently working to assist clients stranded in the region or those with upcoming travel plans. Alain Capestan, president of the French tour operator Comptoir des Voyages, said their immediate priority is to bring travelers currently in the Middle East back home. He added that disruption extends beyond the region itself, as major aviation hubs like Dubai, Abu Dhabi, and Doha are affected.
In Germany, tour operators including Alltours, Dertour, and Schauinsland-Reisen have committed to covering extra accommodation costs for stranded clients. They have also suspended trips to the UAE and Oman until at least March 7.
Swiss cruise company MSC Cruises is responding to a stranded ship in Dubai by arranging five charter flights to evacuate nearly 1,000 passengers, aiming to have them out of the region by Saturday. Details of the evacuees’ destinations and nationalities have not been disclosed.
The British travel association ABTA confirmed that travel agencies will halt sending customers to the region as long as the UK Foreign Office maintains its advisory against non-essential travel. Affected customers will be offered rebooking or refunds.
The conflict is disrupting a tourism sector that had been flourishing. According to UN Tourism data, the Middle East welcomed approximately 100 million tourists in 2025 — about seven percent of global international arrivals — marking a 3 percent year-on-year increase and a 39 percent rise compared to pre-pandemic figures. European tourists constitute a significant share, followed by visitors from South Asia, the Americas, and neighboring Middle Eastern countries. For instance, in 2025, nearby markets accounted for 26 percent of visitors to Dubai, according to the Ministry of Tourism and Economy.
Oxford Economics highlighted the economic risks, noting that the tourism decline could significantly impact regional GDP and employment. Helen McDermott, Director of Global Forecasting at Oxford Economics, projected a possible 11 to 27 percent drop in inbound arrivals to the Middle East in 2026 compared to earlier forecasts predicting 13 percent growth. This reduction could mean 23 to 38 million fewer international visitors and a loss of $34 to $56 billion in tourism revenue.
Rawashdeh, reflecting on the situation in Jordan where tourism had begun to recover after Covid-19 and recent conflicts, called the current downturn devastating. “For the past six months, those working in tourism had hope. And now there’s a war. This will be terrible for the economy,” he said.
However, there is cautious optimism. Ibrahim Mohamed, marketing director of Middle East Travel Alliance, which coordinates tours to American and British operators, acknowledged a current slowdown in new bookings but expressed confidence that demand will return once stability is restored. “The Middle East has always been an incredibly resilient market, and demand always bounces back fast once stability returns,” he said.
The tourism outlook for the Middle East remains uncertain as the conflict continues, but industry insiders remain hopeful for a swift recovery once peace is achieved.
Special Analysis by Omanet | Navigate Oman’s Market
The ongoing conflict in the Middle East poses a significant short-term risk to Oman’s tourism sector, with cancellations and reduced tourist flows threatening substantial economic losses. However, the region’s historical resilience and pent-up travel demand present a strategic opportunity for businesses and investors to prepare for a strong post-conflict recovery. Smart entrepreneurs should focus on strengthening domestic and regional tourism offerings and enhancing crisis response strategies to mitigate future disruptions.
