The Middle East’s travel and tourism sector is projected to contract by 14.5 per cent or $56 billion (Dh205.5 billion) this year but the region will be the fastest growing over the next 10 years, led by Saudi Arabia, UAE and Oman, according to the World Travel & Tourism Council (WTTC).
New forecasts from WTTC’s latest Economic Impact Research (EIR): Global Trends Report, sponsored by Chase Travel, Lead Research Partner, showed that the travel and tourism sector in the Middle East is projected to contract from $386 billion in 2025 to $330 billion this year.
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The global travel and tourism body said the Middle East is expected to be the only region worldwide to record a decline in travel and tourism GDP in 2026. But it is expected to overcome current challenges and remain one of the world’s strongest travel and tourism growth markets.
The downturn reflects the impact of conflict on airspace and travel flows through a region that serves as a critical global aviation hub, handling around 14 per cent of international passengers worldwide, equivalent to one in every seven travellers.
Many airlines suspended flights to the Gulf Cooperation Council (GCC) and wider Middle East region after the war involving the US-Israel-Iran broke out on February 28, 2026. Some of the GCC airports had to scale down or shut operations temporarily due to the Iranian attacks. But most of the airlines and airports have resumed operations. But an unstable ceasefire has resulted in disruption to some airports and airlines in the region.
“The Middle East is facing a challenging period, and travel and tourism is often among the first sectors to feel the impact of geopolitical disruption. But history repeatedly shows that our sector is remarkably resilient, and few regions have demonstrated that resilience more clearly than the Middle East,” said Gloria Guevara, president and CEO of WTTC.
Fastest growing region
While the near-term outlook reflects ongoing geopolitical disruption, longer-term projections point to a strong recovery.
The report projected that the Middle East is forecast to become the fastest-growing travel and tourism region in the world between 2026 and 2036, with sector GDP expected to expand at an annual rate of 6.3 per cent, reaching $605 billion (Dh2.22 trillion) by 2036.
These forecasts are mainly being driven by Saudi Arabia, the UAE, Oman, and Qatar, which WTTC identifies as tourism growth stories of resilience.
Together, these four economies generated $272 billion in travel and tourism GDP in 2025 and are projected to reach $435 billion by 2036, adding more than $163 billion to their combined tourism economies.
UAE most mature market
According to WTTC, the UAE remains one of the region’s most mature tourism economies, with travel and tourism contributing 11.9 per cent of GDP and supporting 13.6 per cent of total employment, underpinned by world-class connectivity and nearly $57 billion in international visitor spending.
In Saudi Arabia, travel and tourism accounted for 14.1 per cent of GDP and international visitor spending forecast to more than double over the next decade.
Oman is expected to see its travel and tourism economy expand from $7.9 billion to $12 billion by 2036.
Source: Khaleej Times