"Dubai's tourism industry reels from 'brutal' impact of war" 2 April 2026

Last year Dubai welcomed 19.59 million international visitors, making it one of the most-visited cities globally, but the US-Israel war with Iran has had a devastating impact on visitor numbers, and local businesses are struggling...Over the past decade, her Tashas hospitality group has grown to 14 outlets across the country, employing more than 1,000 people. But the US-Israel war with Iran is now taking a heavy toll on her business...

Sideris says many of her restaurants, which are popular with both residents and expats, have seen revenues fall by more than 50%. But outlets that depend heavily on tourists have been hit much harder, with declines of 70% to 80%. The crisis has forced her to cut salaries by 30% for all staff including herself...The impact is not limited to restaurants. The entire tourism ecosystem – from hotels and travel agencies, to transport companies and airlines – is feeling the strain...

As demand weakens, many have seen their hours reduced, or they have been placed on unpaid leave. While the UAE's labour system allows companies to adjust quickly to changing conditions, that flexibility can leave workers exposed to sudden income losses...He and several colleagues have been placed on unpaid leave, with no clarity on when – or if – they will return to work. Some hotels, including five-star properties, have started laying off employees. Rights groups say many migrant workers in the UAE are already financially vulnerable, with some carrying debt linked to recruitment fees...