GCC tourism sector could face losses of up to US$32 billion in 2026

During a video assembly of the Ministers of Tourism of the Gulf Cooperation Council (GCC) Committee held earlier this month, Secretary-General Jasem Albudaiwi warned of the potential impact of the Israel-Iran war.  

 

Albudaiwi said: “Given the military escalation in the region, a decline in tourist numbers is expected, ranging between 8 million and 19 million, with potential losses in tourism revenues ranging between US$13 billion and US$32 billion."

 

Data from the ​​Gulf Statistical Centre shows that in 2024, GCC countries received more than 72 million visitors, generating revenues of almost US$120 billion.

 

"The GCC countries have successfully established themselves as global tourist destinations, making this sector one of the fastest-growing and most significant contributors to the diversification of their economies,” said Albudaiwi. “The developments we are witnessing today have cast a shadow over the vital tourism sector, impacting travel patterns, the pace of tourism activity and the stability of related markets."

 

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The GCC Secretary-General added that experience has proven that the GCC countries are capable of overcoming all crises and challenges efficiently and effectively. 

 

One key example was the Covid-19 pandemic, when tourist arrivals to GCC countries dropped by more than 70% between 2019 and 2020. However, by 2024, GCC destinations rebounded strongly, as the statistics show.

 

Another example is the collaboration of GCC countries to support each other’s aviation sectors. Currently, amid a two-week ceasefire, air travel in the region is making a gradual recovery. Regional airlines are now operating at approximately 52% of their pre-conflict capacity, according to Flightradar24, with Dubai’s Emirates leading the return.

 

Bahrain has reopened its airspace and its national carrier, Gulf Air, has resumed operations from Bahrain International Airport, while continuing select services from its neighbour Saudi Arabia’s King Fahd International Airport in Dammam. However, Kuwait’s airspace remains closed with all remaining routes running through Saudi. 

 

For more information, visit gcc-sg.org