The UAE is fighting back. With the Iran war now entering its 40th day, the country’s tourism, hospitality, and aviation sectors are taking a serious hit. In response, the UAE government is preparing a dedicated support package for the tourism industry, and Dubai has already rolled out a broader business relief fund to keep operators afloat.
UAE Minister of Economy and Tourism Abdulla bin Touq confirmed on April 6 that a targeted package for the tourism sector is coming very soon. He described the situation plainly: tourism is currently under “huge pressure.” His team is in daily contact with industry players to understand what relief looks like on the ground.
On top of that, Dubai moved first. On April 1, the emirate activated a Dh1 billion ($272.2 million) business support package covering multiple sectors. As part of that package, Dubai deferred the collection of hotel sales fees and the Tourism Dirham fee for three months. That gives hospitality operators some breathing room on cash flow during one of the most disruptive periods the sector has ever seen.
The Damage the Conflict Has Already Caused
The numbers tell the full story. Iran has fired more than 1,800 missiles and drones at the UAE since attacks began on February 28, targeting airports, oil facilities, hotels, and infrastructure across the country. The iconic Burj Al Arab hotel caught fire after debris from an Iranian drone struck it. Drone hits near Dubai International Airport triggered multiple ground stops. Drone strikes also hit the Fujairah Oil Industry Zone.
Beyond the physical damage, traveler confidence has collapsed. Inbound arrivals to the Middle East could fall between 11% and 27% year on year in 2026, compared with an originally forecast 13% growth. In real terms, that translates to between 23 and 38 million fewer international visitors and a loss of $34 billion to $56 billion in visitor spending across the region.
Furthermore, the conflict has already cost the Middle East’s travel and tourism sector at least $600 million per day in lost international visitor spending since it began.
Over 10,000 Tourists Needed Direct Help
The UAE did not just announce packages. It also delivered hands-on support during the crisis. Bin Touq confirmed the government assisted more than 10,000 stranded tourists during the conflict, covering their accommodation, meals, and in many cases, their travel home.
That kind of direct intervention signals how seriously the government takes its reputation as a safe and reliable destination, even in wartime conditions.
Etihad Cuts Fares by Up to 50% to Rebuild Demand
On the airline side, Etihad Airways is taking an aggressive approach to rebuilding passenger numbers. The Abu Dhabi carrier slashed ticket prices by up to 50% on long-haul routes, particularly from London Heathrow, for travel through June 2026. Economy class tickets from London to Sydney via Abu Dhabi are now available from just £688 return, compared to £1,850 on British Airways for the same route.
The strategy mirrors what US carriers did after September 11, 2001. Deep discounts bring passengers back to a hub, rebuild load factors, and convert budget travelers into future loyal customers.
Prices on Essential Goods Are Also Under Watch
Beyond tourism, the UAE government is monitoring retail prices nationwide to prevent inflation from spiraling. Food and beverage retailers cannot raise prices without approval from the Ministry of Economy. That price-control measure protects both residents and visiting tourists from sudden price increases during a period when global supply chains are already under strain.
The Long View: Resilience Over Retreat
Bin Touq was direct about the bigger picture. A 40-day conflict, however damaging, will not define the UAE’s economic future. The country has strong infrastructure, deep financial reserves, and a track record of bouncing back fast from crises.
Tourism Economics data suggests inbound arrivals could recover quickly once stability returns, since the Middle East historically sees some of the fastest tourism rebound times after security incidents. However, the wider airspace disruptions, route cancellations by dozens of global carriers, and ongoing drone strikes mean the road to recovery is not yet clear.
For now, the UAE is doing what it does best. It is spending to protect its industry, keeping prices in check, and making sure travelers know it intends to stay open for business.