Middle East tourism and economic instability

Regional instability stemming from tensions with Iran has triggered significant economic and tourism crises across the Middle East.

In Jordan, the tourism industry—representing roughly 15% of the economy—has collapsed following government travel warnings and airline cancellations. Visitor numbers at major sites like Petra have dropped drastically. The country also faces heightened security risks, including attacks on US bases by pro-Iranian militias and efforts to exploit domestic tensions to destabilize the nation. The Jordanian government has implemented subsidies for essential goods to manage the economic fallout.

Similarly, Dubai is experiencing a downturn in its hospitality sector, with hotel occupancy rates falling from 80% to as low as 10%. Aviation disruptions and airspace restrictions have redirected European travelers toward Mediterranean destinations. The crisis has prompted an exodus of high-income expatriates, leading the UAE government to relax fiscal residency rules and offer municipal tax exemptions and hotel discounts to stabilize the economy.