The UAE's tourism industry is rallying together to boost hotel occupancy and business activity as the sector counts the cost of Iran's unprovoked attacks.
Hotels, attractions, restaurants and retailers would usually be making the most of this peak period, with tourists pouring into the Emirates to enjoy the fine weather, the Eid holidays and school spring break.
That has been severely disrupted since February 28, when the US and Israel launched strikes on Iran and the resulting attacks on the UAE and Gulf.
Many businesses have suffered a sharp drop as tourists depart the Emirates, while some attractions have temporarily closed their doors as a precaution.
More than 80,000 short-term rental bookings in Dubai were cancelled in the first week of Iranian airstrikes on the UAE, data group AirDNA said. The World Travel & Tourism Council previously estimated tourists would spend about $207 billion in the Middle East in 2026, but this figure is likely to be significantly revised down.
Show of resilience
Gloria Guevara, the council's chief executive, said the industry was resilient but faced significant challenges, with daily costs likely to rise towards $600 million.
“Security-related incidents often see the fastest tourism recovery times, in some cases as quickly as two months, when governments and industry work together to restore traveller confidence,” she said.
“Clear communication, strong coordination between the public and private sectors, and measures that reinforce safety and stability are critical to rebuilding trust with travellers and supporting the sector’s recovery.”
Donna Benton, founder and chief executive of The Entertainer discount app and The Benton Group, employs more than 7,000 people in hospitality and leisure across the region.
Ms Benton called on businesses to come together and for the public to support retailers during regional disruption. “From a hospitality point of view, I would say that premium beach clubs and other venues are down by a good 70 per cent,” she said. “People are scared. They are also worried about their jobs and whether there is going to be a snowball effect.
"It's still early, but businesses need to plan. People have budgeted for now, but certainly all the retail and the malls during Eid are not going to get the cash flow they had hoped for.”
Staycation boost
Ms Benton has launched a campaign called Our Home, Our Heart – which went live at 10am on Thursday – to encourage more people to use hospitality and support businesses.
Linked to The Entertainer app, which offers discounts in hotels, restaurants and attractions in Abu Dhabi and Dubai, the Entertainer One Heart app will offer free discounts to the first 50,000 people to download the app.
The product will be available for six months and is to offer discounts from the same merchants already signed up to the Entertainer app, which usually costs about Dh795 ($216).
“People are still out there and are still spending, just not as much,” said Ms Benton, who is part of the Sunset Hospitality Group, which includes the Black Tap, Luigia and SushiSamba brands. “Cafes, informal dining and takeaways are still doing well, but the beach clubs and more premium modern contemporary dining have really been hit hard.
“A lot of people hopefully will do staycations, as I think people will stay within their own countries. It will take a lot to rebound, but if any country or region will bounce back, it's the UAE.”
Jan Hanak, managing director of Radisson Hotels in Oman, Bahrain, Qatar, Egypt and Iraq, said the industry was looking to Middle East guests to fill the void left by tourists from further afield.
“Looking ahead, we expect the first phase of recovery to come from within the region, led by domestic and wider GCC travel," he said. “This market has historically demonstrated strong loyalty and resilience, and we are preparing tailored offers and experiences to meet their preferences and travel behaviours."
Venues bid to attract visitors
Many parks and attractions have shut their doors following government safety advice, including Dubai Parks and Resorts, Global Village, Skydive Dubai and Wild Wadi.
Other venues and attractions across the country, however have taken steps to reopen to offer respite and bolster consumer confidence.
Dubai Miracle Garden, one of the emirate's most popular attractions, is to offer free entry to UAE residents from March 15 to 31.
Visitors must present their Emirates ID to take advantage of the offer. The colourful venue will be open from 9am until 9pm during this period.
Complimentary access has been given to the world’s largest water park, Aquaventure World on The Palm Jumeirah, as well as the Lost World Aquarium inside the Atlantis Dubai hotel. Tourists and visitors can visit both attractions, free of charge until March 22.
“We are proud to be part of Dubai and its community,” said Sascha Triemer, general manager and Vice President of Aquaventure World at Atlantis Dubai. “If we can offer even a small moment of relief and a few smiles, then we’ve done something meaningful.”
Elsewhere, hotels are offering free accommodation for tourists stranded in the UAE resulting from airline disruptions.
The Arada Foundation, which operates Nest Hotel in Sharjah, is offering a free stay of up to seven days. After initially allocating 100 rooms at Nest in Aljada, a further 50 rooms have been provided to keep pace with demand.
All guests receive full-board accommodation, including three daily meals. During Ramadan, Muslim guests are provided with iftar and suhoor at Alsimrah Ramadan tent at East Boulevard in Aljada.
“Supporting communities in times of need both at home and abroad is at the heart of the Arada Foundation’s mission,” said Rosa Piro, director of the foundation. “When we saw how many travellers were affected by flight cancellations, we wanted to ensure that families had a safe and welcoming place to stay while they make their onward plans."
