Dubai is facing an existential crisis with the US and Israeli war on Iran forcing tourism numbers to fall sharply, with widespread hotel closures and job losses decimating the global tourism hotspots' hospitality sector.
On Monday, Dubai Airports reported that first-quarter passenger traffic was down by at least 2.5 million from the same period in 2025, with March seeing a 66 percent drop in passenger numbers as travelers chose to steer clear of the Gulf.
Empty beds are pictured before high-rise buildings along a beach at Jumeirah Beach Residence (JBR) in Dubai on March 11, 2026. via AFPThe company did not specify forecasts for this year but on Saturday, in a bid to kickstart tourism, the UAE announced that all air travel restrictions that were put in place after Iran launched retaliatory strikes on all six Gulf Cooperation Council (GCC) countries that house or cooperate closely with US forces had been lifted.
In a post on their official X account, the Civil Aviation Authority wrote: "Our decision came following a comprehensive assessment of operational and security conditions, in coordination with the relevant authorities". The statement was clearly meant to relay confidence to international travelers, especially after several European airlines announced that they would be suspending flights to the Middle East.
Workers and business owners in Dubai, who spoke to the Middle East Eye on condition of anonymity due GCC-wide restrictions on public statements about the effects of Tehran’s attacks, say it will still take some time to see if the announcement will restore confidence among travelers and investors.
Charity, a Kenyan hotel worker said the mid-priced hotel she works at was definitely affected by the 1.4 million people who travelled through the UAE over the first two weeks of March. During the Muslim month of Ramadan, when Iranian missile and drone attacks were at their worst, the hotel, part of a US-based chain, was full of stranded passengers who would meet with Emirates Airlines representatives in the lobby.
During the month, the hotel's pool was closed to guests and by the final days, guests staying in the higher floors of the 20-floor building were moved to the lower floors as a precautionary measure. After that, though, she said "things really slowed down for a few weeks".
She said she hoped the announcement would provide some assurance to travelers. "We'll see over the next week if people really start to come back," she said while helping a long-time American traveler. "We need your people [foreign tourists] to come back," she added.
So far, even longtime passengers say there has been a noticeable shift in the mood at Dubai International, which has been the world’s busiest airport for international passenger traffic for 12 consecutive years.
Samina, a South Asian NGO worker who travels between South Asia, the Gulf and North America, said the change was particularly noticeable in her most recent trips over the two months.
"Coming in, it's empty," she said of Terminal 3, home of Emirates Airlines. "Terminal 1 and 2 are ghost towns," she said of the buildings that are home to other international carriers and FlyDubai, the UAE's budget airline.
She said international airlines suspending flights to the region have definitely taken a toll on traffic, "Every time you get in, it's all the same transit passengers."
According to Dubai Airports, only 51 out of 90 airlines have resumed their operations at the airport, with European and US airlines facing difficulties securing insurance cover due to government travel advisories
'Ethos of Dubai was shaken'For its part, Dubai is working hard to support and reassure its residents. Travelling around the city, there is an abundance of UAE flags outside homes and businesses and on digital signs and billboards along the highways.
At the City Walk shopping center there are massive electronic signs thanking UAE residents in Arabic and English. Pictures of UAE President Mohamed bin Zayed Al Nahyan are emblazoned along major roads with the statement: May our nation remain in God’s protection". Other signs show Emirati families saluting the flag with the same words.
However, longtime residents and business owners say the impact of the intercepted missiles and drones was felt almost immediate.
Tatiana, a Russian national who runs a logistics company for businesses looking to setup shop in the Gulf, and she said even she was shocked at how quickly the mood shifted for existing and prospective businesses. "Within the first two weeks people [said] it's no longer worth [living here]. They weren't scared per se, they just felt like it's no longer worth it".
"Businesses were suddenly liquidating their assets." She said her family was now looking at options in Europe to gradually shift to.
Antoine, an editor who helps train amateur writers said one of his clients who works at an advertising agency was left with the burden of those liquidations. "She was in charge of finding 1,000 workers in the UAE to let go of," he said. Antoine was particularly struck by the fact that even an advertising firm would be so immediately impacted.
"You'd think advertising would be a war-proof industry," he said. Tatiana said her work has been particularly affected by the attacks. "Our whole business is predicated on assuring people that the UAE is a safe, convenient place to do business," she said.
Her statement is almost identical to what Arjun, one of the 3.5 to 4.3 million Indian residents of the UAE, said outside a late evening screening of the Michael Jackson biopic. Arjun said he was happy to see the screening at near capacity, hoping it was a sign of a gradual return to normal. "The entire ethos of Dubai as this place free from conflict was shaken," he said.
Tyler Durden Wed, 05/06/2026 - 15:00