The Gulf’s tourism sector is expected to take a significant short-term hit as regional conflict disrupts air travel, weakens traveller confidence and forces widespread flight cancellations, but analysts say regional markets retain the financial strength and infrastructure needed for recovery once hostilities ease.
Oman's ancient quarters are experiencing a renaissance, with intensifying restoration and development efforts transforming these heritage sites into vibrant tourism destinations that seamlessly blend authenticity with contemporary renewal.
The escalating conflict in the Middle East is costing the region’s Travel & Tourism sector about $600 million a day in lost international visitor spending, as disruptions to air travel, declining traveller confidence and weakened regional connectivity begin to hit demand, according to the World Travel & Tourism Council (WTTC).
The World Travel & Tourism Council (WTTC) says $12.5 trillion in travel and tourism investment across major economies will shape competitiveness and growth through 2035, with capital investment expected to grow 4.6% annually, stressing the need to align spending with demand.
Omran Group, the Oman Tourism Development Company responsible for major national tourism infrastructure, has issued an invitation to experienced contractors to participate in the re-tender for detailed design and construction of the Ras Al Shajar Main Construction Package.
Saudi Tourism Minister Ahmed Al-Khateeb said the sector aims to double its contribution to the kingdom's GDP from SAR300 billion ($80 billion) to SAR600 billion ($160 billion), while continuing to create jobs as the private sector recruits national talent.
The UAE Ministry of Economy and Tourism honoured 11 federal entities and national companies at the second National Forum for SMEs – Government Procurement for supporting Emirati SMEs and facilitating their access to government contracts and tenders in 2025.
Aroya Cruises, a subsidiary of PIF-owned Cruise Saudi, has officially launched its inaugural season in the Arabian Gulf. Running from February 21 to May 8, the season marks a milestone in regional tourism by blending authentic Saudi hospitality with global maritime standards.
K Hovnanian ME Investments (KHME), a subsidiary of Hovnanian Enterprises, and the majority shareholder of Al Tahaluf Real Estate Company, CJSC, has signed an MoU with Saudi Arabia’s Tourism Development Fund (TDF) and Emaar, The Economic City (EEC) to enable high-quality tourism investment and lifestyle-focused residential opportunities in King Abdullah Economic City (KAEC).
Bahrain’s Tourism Minister, Fatima Al Sairafi, highlighted efforts to boost Arab tourism, using it to promote cultural exchange, support creative industries, showcase cultural identity, and contribute to sustainable development on Arab Tourism Day.
