Middle East tourism nearly stalled: Dubai offers incentive packages worth more than $800 to international tourists
The continuous war in the Middle East has severely hit the local tourism industry. Earlier this year, Dubai, the economic, financial and tourism center of the Middle East, was still celebrating another good year for its tourism industry, but now its hotel occupancy rate has plummeted from 80% to 10%.
The continuous war in the Middle East has severely hit the local tourism industry. Earlier this year, Dubai, the economic, financial and tourism center of the Middle East, was still celebrating another good year for its tourism industry, but now its hotel occupancy rate has plummeted from 80% to 10%. In response to the plight of the tourism industry, Dubai Tourism has launched the "Dubai Invitation" program, which allows people over 18 years old and holding a valid Emirates ID to recommend up to three guests from now until the end of October. The recommender can receive a reward package worth up to AED 3,000, or approximately US$816, including hotel accommodation and dining discounts. Noor Al Geziry, Assistant Vice President of Special Projects and Middle East and North Africa at the Dubai Department of Economy and Tourism, said that in today’s travel decisions, relationships and credibility are more important than ever before, and the “Dubai Invitation” reflects the charm of Dubai, which allows residents to send invitations to their relatives and friends. The new scheme is the latest in a series of initiatives launched by the Dubai government to attract tourists back to the tourism market. Other measures include suspending hotel tax on upscale hotels and removing the 7% municipal fee from hotel and restaurant bills. The U.S.-Iran conflict that began in March this year caused damage to some of Dubai's most famous landmarks, including the five-star Fairmont The Palm Resort and Burj Al Arab Jumeirah, the latter of which is currently undergoing restoration that is expected to take 18 months. But damage to facilities is not Dubai's biggest loss. Cinzia Bianco, an expert on the Arabian Peninsula and the Gulf region at the European Council on Foreign Relations, earlier noted that conflict is Dubai's ultimate nightmare as it strives to be an oasis of security in a volatile region. So far, governments are still warning their residents about the risks of traveling to the UAE. Naim Maadad, founder and CEO of Gates Hospitality Group, said international travelers often view the Middle East as one region rather than distinguishing individual countries, and this perception affects their travel decisions. While the UAE has demonstrated stability, infrastructure strength and operational continuity, psychological factors are now the biggest challenge. A Dubai catering group revealed to the media that its revenue has dropped by more than 50%, and the revenue of some restaurants that rely heavily on tourists has dropped by 70% to 80%. An executive of a Dubai restaurant chain said that its customer traffic has dropped to 15% to 20% of normal levels, and more than half of its employees have been furloughed. Outside of Dubai, international tourist arrivals in Jordan are down about 30%, Lebanon's tourism industry has effectively collapsed, with industry groups reporting an 80% drop in visitor numbers, and the Middle East as a whole has seen a 14% drop in international tourist arrivals in the first quarter of 2026.