Middle East conflict disrupts global travel, threatening US$11.7tn tourism industry

Escalating conflict involving Iran has thrown global travel into turmoil, grounding tens of thousands of flights and stranding more than a million passengers in disruptions that threaten the US$11.7 trillion tourism industry.

Airlines have cancelled at least 20,000 flights to and from the Middle East since the United States and Israel launched strikes on Iran, according to aviation analytics firm Cirium, triggering what travel analysts describe as one of the most serious shocks to aviation since the COVID-19 pandemic.

Airspace closures and security concerns have forced airlines to suspend routes across a region that serves as a critical hub connecting Europe, Asia and Africa.

Industry experts say the crisis illustrates how geopolitical conflicts can ripple far beyond the battlefield, affecting travellers thousands of kilometres away.

“This has spiraled into an aviation quagmire,” said aviation analyst Henry Harteveldt, founder of travel consultancy Atmosphere Research Group.

More than one million passengers worldwide have been affected, with many left stranded after flights were cancelled or diverted following retaliatory strikes launched by Iran against targets in the United Arab Emirates, Qatar, Jordan, Israel and Cyprus.

The United Arab Emirates hosts Dubai International Airport, the world’s busiest hub for international passenger traffic, making the disruptions particularly severe for global aviation networks.

Travellers have been forced to scramble for alternative routes as airlines avoid large sections of Middle Eastern airspace.

Zoey Gong, a traveller from China who was due to fly from Paris to Shanghai via Dubai, said she had to pay $1,600 for a replacement ticket after her original flight was cancelled.

“That’s more than double what I originally paid,” she told CNBC.

The crisis has also triggered a surge in demand for flexible travel insurance policies.

Online travel insurance marketplace Squaremouth said searches for “cancel for any reason” coverage jumped 18-fold this week as travellers sought protection against sudden disruptions.

Governments have begun organizing emergency repatriation efforts for stranded citizens.

The United States has advised its citizens in several Middle Eastern countries to leave immediately, while working to arrange charter flights from Saudi Arabia, Israel, the United Arab Emirates and Qatar.

The conflict has also affected the cruise industry.

Several cruise ships carrying more than 15,000 passengers and 6,000 crew members remain stuck in ports in Dubai and Qatar after the escalation forced shipping companies to halt itineraries in the region.

MSC Cruises said its MSC Euribia, a vessel capable of carrying more than 6,000 passengers, is currently stranded in Dubai while the company attempts to arrange flights for guests.

The cruise operator said it was considering charter flights from Dubai, Abu Dhabi and Oman to help return travellers home.

The company has also cancelled its remaining winter sailings from Dubai due to security concerns.

Hotels and tourism infrastructure have not been spared.

Debris from aerial attacks reportedly fell near luxury properties in Dubai over the weekend, while the iconic Burj Al Arab hotel caught fire earlier this week after being struck by debris from an Iranian drone.

Four people were injured near the Fairmont The Palm hotel in Dubai, although none were guests or staff, hotel operator Accor said.

The disruptions have spread far beyond the Middle East, affecting international routes that rely on Gulf airports as major transit hubs.

Aviation data from flight-tracking service Flightradar24 shows airlines rerouting flights across longer corridors to avoid conflict zones, increasing travel times and operational costs.

Analysts say the scale of the disruption is comparable to some of the most dramatic shocks in aviation history.

“Putting aside the COVID pandemic, this is the most chaotic aviation event since the September 11 attacks,” Harteveldt said, referring to the 2001 attacks in the United States that led to the temporary closure of American airspace.

The Middle East conflict is also part of a broader pattern of geopolitical tensions already weighing on global tourism this year.

Earlier in 2026, a U.S. military strike in Venezuela led to temporary airspace closures across parts of the Caribbean, leaving travellers stranded during the peak holiday season.

Tourism leaders warn that continued instability could weaken travel demand and hit economies that depend heavily on international visitors.

According to the World Travel and Tourism Council, the global tourism sector contributes US$11.7 trillion annually to the world economy, supporting millions of jobs across airlines, hotels, cruise lines and hospitality businesses.

Industry observers say prolonged disruptions could force airlines to cut capacity, push up ticket prices and reshape travel patterns worldwide as carriers seek safer routes.

For now, aviation authorities and travel companies are racing to manage the fallout while hoping that diplomatic efforts will quickly restore stability to one of the world’s most important air travel corridors.

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