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.
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).
Markets are already beginning to trade as if the Iran conflict will de-escalate — even though there is no formal resolution yet, says the CEO of one of the world’s largest independent financial advisory and asset management organisations.
US President Donald Trump on Monday that the war against Iran could end soon, but threatened to escalate if Iran blocked oil shipments from the Middle East.
Global oil prices fell sharply on Tuesday after surging to their highest levels in more than three years in the previous session, as signals of possible diplomatic progress in the Middle East eased fears of prolonged supply disruptions.
The US military is prepared to strike Iran as early as this weekend, though President Donald Trump has yet to make a final decision on whether he’ll authorise such actions, sources familiar with the matter tell CNN. This comes amid the massive US military buildup in the Middle East, including warships and fighter jets.
The US military is preparing for sustained, weeks-long operations against Iran if President Donald Trump orders an attack, reported Reuters, citing two US officials. The Pentagon is sending an additional aircraft carrier to the Middle East adding thousands more troops along with fighter aircraft.
