Iran War Hammers Dubai Tourism, Hotels Empty with Layoffs Looming
The tourism industry in Dubai has been severely hit by the escalation of conflict between the United States, Israel, and Iran. The city, previously one of the world’s busiest destinations, is now facing a sharp drop in tourist numbers, impacting businesses and the workforce.
Data shows that Dubai recorded 19.59 million international tourists last year. However, since the conflict erupted on 28 February, the tourism sector has been shaken to its core.
Restaurants, usually full every night, are now largely empty. Natasha Sideris, owner of the Tashas restaurant chain, revealed that her business revenue has plummeted by more than 50%.
Even restaurants reliant on tourists have seen declines of 70-80%. To survive, she has been forced to cut all employees’ salaries by 30% to avoid layoffs.
“The situation is brutal. I had to choose between firing 30% of staff or cutting salaries. I chose to save jobs,” she said, quoted from BBC, Friday (10/4/2026).
Pressure is also felt in other sectors. Restaurant visitation rates are reported to be only 15-20% of normal conditions. Many business owners have temporarily closed outlets and furloughed employees without pay.
The impact extends across the entire tourism ecosystem, from hotels and airlines to travel agencies. Hotel occupancy in Dubai is said to have dropped drastically to just 15-20% of normal levels, with some hotels recording single-digit occupancy.
This situation is exacerbated by flight disruptions. Thousands of flight schedules have been cancelled since the conflict began, including at Dubai International Airport, the world’s busiest for international routes.
Military strikes have also heightened tourist fears. Authorities report that more than 2,400 missiles and drones have been launched at United Arab Emirates territory, with some debris falling in residential areas and hotels. Overall, 11 people have been reported dead and more than 185 injured due to the attacks.
Not only tourists are affected; migrant workers, the backbone of the hospitality industry, are also starting to feel the blow. Many are experiencing reduced hours or furloughs without certainty. The situation is even said to resemble the Covid-19 pandemic era.
“We’re afraid of losing our jobs again and having to return to our home countries,” said a restaurant worker.
The research firm Tourism Economics estimates that the Middle East region could lose 23 to 38 million tourists this year, with potential losses reaching US$34 billion to US$56 billion.
The Dubai government has prepared a US$272 million support package to bolster businesses, including the tourism sector. Incentives such as hotel fee deferrals are also being implemented.
Nevertheless, recovery still depends on the geopolitical situation. If the conflict ends soon, the sector is expected to recover from October. However, if it prolongs, the risk of mass layoffs and business closures will grow significantly.