Tourists flee, Dubai's tourism sector reels from Iran conflict

Dubai is facing an existential crisis as the US-Israeli war on Iran has triggered a severe drop in tourist numbers, leading to widespread hotel closures and job losses in the hospitality sector of this global tourism hub.

On May 4, Dubai Airports reported that passenger numbers in the first quarter fell by at least 2.5 million compared to the same period in 2025. In March alone, traffic slumped 66% as tourists shunned the Gulf region.

The UAE government lifted all air travel restrictions imposed after Iran launched retaliatory missiles at six Gulf Cooperation Council states that host or closely cooperate with US forces. The UAE Civil Aviation Authority wrote on X: "Our decision followed a comprehensive assessment of operating and security conditions, in coordination with relevant agencies." The move was clearly aimed at restoring confidence among international tourists, especially after many European airlines announced they were suspending flights to the Middle East.

Employees and business owners in Dubai, speaking on condition of anonymity due to GCC restrictions on public comment related to Tehran's attacks, said it would take time to see whether this announcement could restore traveler and investor confidence. A Kenyan hotel worker said her hotel was hit hard by the 1.4 million people who left the UAE in the first two weeks of March. During Ramadan, when Iranian missile and drone attacks peaked, the hotel was full of stranded passengers waiting for Emirates Airlines representatives. The pool was closed, and guests on higher floors were moved to lower levels as a precaution. After that, "everything really slowed down for a couple of weeks." She hopes the new announcement will provide reassurance: "Next week we'll see if people actually come back. We need you (foreign tourists) to return."

Samina, a South Asian NGO worker, observed a stark change during recent travels: "When I arrived, the airport was empty. Terminals 1 and 2 were ghost towns." She noted that international airlines stopping flights to the region had hit hard, "Every time you go in, it's the same transit passengers." According to Dubai Airports, only 51 of the 90 airlines have resumed operations, while European and US carriers struggle with insurance issues due to government travel advisories.

To reassure residents, the city is awash with UAE flags on homes, businesses, digital billboards, and highway hoardings. At City Walk mall, a large electronic screen thanks UAE residents in Arabic and English. Portraits of President Mohamed bin Zayed Al Nahyan line main roads with the message "May our country remain under God's protection." Other signs show Emirati families waving flags with the same sentiment.

Tatiana, a Russian entrepreneur running a logistics firm, said the attacks had an immediate impact. "Within the first two weeks, people said living here is no longer worth it. They weren't scared—they just felt it wasn't worth it anymore. Businesses suddenly began liquidating assets." Her family is looking at options in Europe to gradually relocate. Antoine, an editor, recounted that a client working at an advertising agency had to oversee the layoff of 1,000 employees in the UAE. "You'd think advertising would be immune to war, but it isn't." Tatiana said her entire business depended on the UAE being a safe, convenient place to do business.

Arjun, one of the 3.5 to 4.3 million Indian residents in the UAE, said he was pleased to see a Michael Jackson screening almost full, hoping it signaled a return to normalcy. "The whole ethos of Dubai as a conflict-free place has been shaken," he said.