Gulf tourism sector set to lose 137,000 jobs as Iran conflict hits demand

The Gulf's travel and tourism sector is forecast to shed around 137,000 jobs in 2026 as the US-Iran conflict suppresses visitor demand, with Saudi Arabia and the UAE bearing the heaviest losses, according to the World Travel & Tourism Council (WTTC).

The sector employed approximately 3.2 million people across the six GCC states in 2025, a figure the WTTC expects to fall by 4.3% this year. Saudi Arabia is forecast to lose 69,000 roles, while the UAE faces a drop of 46,000 despite Dubai's continued appeal as a leisure destination. Many UAE hotels have opted to close temporarily during the conflict to carry out refurbishment works.

"This was a temporary aviation and confidence-led disruption, not a demand collapse. The Gulf isn't facing a demand problem so much as a confidence and connectivity one, and those recover far faster," said Hala Matar Choufany, president of the Middle East and Africa at hospitality consultancy HVS, adding that the region's mix of domestic, religious and regional tourism had helped cushion the impact.