Tourism in the Middle East is facing a potential loss of up to £42 billion as escalating violence across the region disrupts travel and undermines visitor confidence. After decades of rapid growth driven by heavy investment in luxury developments and mega projects, inbound arrivals could fall between 11 and 27 per cent in 2026, resulting in tens of millions fewer visitors and a sharp decline in spending.

Flights to major hubs have been cancelled or suspended following recent military strikes and retaliatory attacks, creating uncertainty for both tourists and transit passengers. The region accounts for around 14 per cent of global international transit traffic, meaning disruption is likely to affect travel routes between Europe and Asia Pacific and beyond.

The biggest financial impact is expected in Gulf nations that have built their tourism appeal on safety, stability and large-scale developments. Landmark projects in Qatar, the United Arab Emirates and Saudi Arabia, including futuristic cities, entertainment hubs and luxury waterfront destinations, now face an uncertain outlook as conflict threatens to deter visitors.

While some travellers have expressed concern and are reconsidering trips, industry leaders insist the region has historically proven resilient and believe demand will rebound once stability returns. However, experts warn that lingering negative perceptions could weigh on recovery even after the immediate conflict subsides.