The UAE’s hospitality sector is transitioning from absorbing heavy blows from the Iran war to displaying signs of a strong recovery, experts have said.
Hospitality chiefs told The National of their confidence of an upturn in the coming months after tourism revenue fell due to the conflict, with the UAE expected to see the usual winter boost.
Newly released figures suggest that Dubai’s tourism sector was showing signs of recovery over the summer even as the war, which began in February, continued.
“The UAE is moving from resilience to recovery,” said Raymond Khoury, a partner and public sector practice lead at the Arthur D Little management consultancy in Dubai. September is an important turning point for the UAE economy, Mr Khoury added.
“The evidence suggests that the worst of the disruption has passed, with business activity, hiring, connectivity and trade beginning to normalise.”
Victor Abou-Ghanem, chief executive of Story Hospitality, spoke to The National on the sidelines of the Arabian Travel Market conference in Dubai.
He said a shift in consumer behaviour and appealing to new markets have helped the region's hospitality sector bounce back from the impact of the conflict.
“Now, are we in line with previous year's numbers? Not yet,” he said. “But let's also say that 2025 was one of the best years ever. So, to match it, we are comparing to something really high.
“So, is it a bad year? I will not say necessarily. We are definitely optimistic that we'll bounce back and come back stronger.
“We are close to the same level [of guests] as before and, while we have noticed less customers coming from Europe, we are seeing more people coming from Asia,” he said.
Ready for winter boost
The UAE positioning itself as a must-see tourism destination has also helped it to start recovering, added Mr Abou-Ghanem.
“Just like travellers go to France to see the Eiffel Tower, or Cairo to see the pyramids, people are coming to the UAE to see Dubai and Abu Dhabi,” he said. “You're still seeing people coming from all over the world.”
September typically ushers in a boom period for the UAE economy, with the start of the school year, the high-profile conference season and the gradual return of cooler temperatures bringing in millions of visitors into the autumn.
“The energy is coming back to the UAE in general,” said Abdulla Al Abdouli, group chief executive of Ras Al Khaimah developer Marjan. “People feel safe and people feel secure.
“People trust in the vision of the UAE and understand that the UAE can overcome any short-term circumstances. I expect the number of tourists to to continue to grow,” added Mr Al Abdouli, who was also speaking at Arabian Travel Market.
However, flight disruptions and traveller uncertainty still present significant hurdles.
“There certainly was an impact,” said Eti Bhasin, executive director at Majestic Hotels UAE. The Iran war led to “greater hesitation, softer bookings and more price sensitivity” during summer months, Ms Bhasin added.
“But we expect demand to continue strengthening from September onwards, particularly during the final quarter, as Dubai moves into its traditional winter season.
“Better weather, the return of international travellers, and a strong calendar of exhibitions and events are all expected to support increased demand.
“The market has shown that it can recover quickly from short-term disruptions, and demand remains fundamentally strong across leisure, corporate and events business.”
Hospitality leaders warned against predicting a stronger year-on-year performance across the board.
According to data from commercial real estate services and investment management company JLL, hotel performance in the first half of 2026 declined, with revenue per available room (RevPAR) falling 31 per cent year-to-date to June.
There were no hotel launches in Dubai or Abu Dhabi during that period, the report showed, as hospitality groups focused on upgrades in anticipation of demand returning.
The report highlighted moves to offset the drop in international arrivals such as discounted room rates, staycation bundles and other incentives for UAE and GCC residents.
Turning tide
Hotel occupancy in Dubai reached 66 per cent in August, according to the emirate’s government. That was equivalent to 89 per cent of the city’s occupancy levels in August 2025.
By comparison, the city average in March was 36 per cent, Dubai Media Office said. Many hotels fell to single digits at the height of the war.
Although hospitality chiefs agree on a more positive outlook for the months ahead as demand normalises, underlying uncertainty has led to a shift in how travellers are booking.
“Any disruption to airspace or flight schedules naturally has an effect, particularly on international guests who are planning further ahead,” said Rene Egle, general manager of Dubai's JA The Resort.
Most international travellers are waiting longer before making a final decision, leading to shorter booking windows.
However, Ahmed Abdraboh, director of sales and marketing at Abu Dhabi's Al Raha Beach Resort & Spa, said hotel booking patterns are moving closer to normal seasonal levels.
“A combination of improved travel confidence, return of corporate activity, major events and the seasonal increase of leisure travel is expected to support demand for the upcoming season,” Mr Abradboh said.
Mark Whitlock, group general manager at Jannah Hotels and Resorts echoed the positive sentiment. “We are seeing encouraging signs and expect demand to continue building as we move into the final months of the year. The direction is definitely positive.”
