The travel and tourism business worldwide has been impacted severely by the recent regional
conflict between the US and Iran, which started with an attack on February 28. The effects
are immediate and severe for companies that work internationally; they have the potential to
reverse the success after how the world regards the Middle East.

The weakness of air travel has been a noticeable effect. Since the start of the strike, thousands
of aircraft have been rescheduled or cancelled from major airports. Major international
gateways have been impacted; Hamad International Airport in Doha has been similarly
astonishing, while Dubai International Airport has lost the majority of its scheduled flights.
Employees are left stranded, and the flow of talent is stopped by this restriction, which cuts
off a vital conduit for international business connectivity.

Instability is immediately evident in operational costs. Airlines will unavoidably pass these
expenses on to business customers due to high insurance premiums. With the increase in oil
costs, the rise of flight fares is even higher, making long-distance travel more costly.

The change in the idea of destination risk may be big. The countries of the Gulf Cooperation
Council have spent billions to establish themselves and secure a reliable location for
important events and business. This carefully built brand is safe. The US State Department
has urged people to think before travelling or departing owing to safety concerns for more
than a dozen countries, which include the UAE, Qatar, and Saudi Arabia. The advisories
allow corporate planners to relocate or cancel joint or large-scale gatherings or events for
meetings, incentives, conferences, or even exhibitions.

Even neighbouring countries have not been actively involved in collateral damage. The
economies of the UAE and Qatar, which are heavily dependent on tourism and aviation, are
experiencing a sharp decline. Local hotels, venues, and service providers are lacking for
business travellers due to the almost complete suspension of flights. Even hotels in the
Middle East faced a loss of $55 billion dollars as a result due to the conflict; it has affected
the whole supply chain.

Additionally, the level of operation of every company with a regional presence has increased.
Companies managing foreign workforces face major challenges. There is a disruption of US
visas caused by embassies postponing appointments due to the Middle East issues; it’s very
difficult for companies managing international workforces. The cancellation or rerouting of
regional itineraries causes portside businesses to miss out on revenue, which affects the cruise
sector as well. The industry has essentially disappeared overnight for businesses in sectors
like religious tourism, which depend on travel to locations in Iran and Iraq.

The global travel system has been severely damaged due to the ongoing conflict. Networks
are fully disrupted, costs are very high, and corporate trust has been damaged. The length of
the struggle will depend on political and human components. But commercial recovery would
be measured in years. Travel agencies in Jordan told The Economic Times that “this is the
start of the high season here”. It’s terrible. Restoring the Middle East’s standing as a secure
commercial hub will need a dedicated effort long after the skies reopen.

The US–Iran conflict has been a big blow for the tourism industry overall, and nearly 100
million tourists were reported to be seen last year in 2025, as said by UN Tourism. Today the
airports in the Middle East are destroyed, temporarily closed, or have seen flight suspensions.
Hotels are empty. Yet the twist is that the Middle East has always been a master of
comebacks. Industries remain in the belief that the demand will return. The road ahead is
chaotic with loss in billions. But history has always taught us that anything that has been lost
will be rebuilt by the same spirit that created shining cities out of arid sands. The Middle East
will be ready when the skies eventually reopen and travellers restore their confidence. And
the globe might witness its greatest chase to date when that day arrives.

By,

Tanish Mahan Gulati