The Israel-Iran conflict, escalated by Israeli airstrikes on Iranian nuclear and military sites starting June 13, 2025, has severely impacted global tourism, particularly in the Middle East. Earlier in 2025, the Middle East and North Africa (MENA) region saw tourism contributing 6.7% to the Middle East’s GDP and 8.1% to North Africa’s, with destinations like Jordan, Egypt, and the UAE showing resilience despite ongoing regional tensions. For instance, Etihad Airways reported a 17% year-on-year increase in passenger numbers from January to May 2025, reaching 8.4 million, while Dubai recorded over 17 million hotel overnights in 2023, a trend continuing into early 2025.
Post-June 13, the conflict triggered a sharp decline, with flight bookings to the Middle East dropping by 25-30% compared to pre-conflict levels. Jordan, not directly involved, saw a 35% year-on-year decrease in flight bookings from September 2024 to early June 2025, worsening to 50% after the attacks. Israel and Lebanon experienced even steeper declines, with bookings down 60-70% due to flight cancellations and safety concerns. Hotel occupancy in Petra, Jordan, plummeted to 10-15% post-June 13, compared to 50-60% earlier in 2025.
Airspace closures over Israel, Iran, Iraq, and Jordan forced carriers like Lufthansa, Emirates, and Air India to cancel or divert thousands of flights, with suspensions extending to July 31, 2025. Rising oil prices, up 7% to $74.23 per barrel, increased airfares by 10-15%, further deterring travel. Travel warnings from the US, UK, Canada, Australia, and India have shifted tourist preferences to Europe, with Greece and Spain seeing a 10% booking surge. The global tourism industry faces a 5-10% revenue drop, threatening recovery.
