It’s been a lost year for Gulf tourism.
Hotel occupancy in the United Arab Emirates cratered to 36.4% in March, near the peak of the Iran war, and remained down 16% from a year prior in July. Average daily rates absorbed the rest of the damage, with operators like Leva Hotels renting rooms in Dubai for less than half of what they cost a year ago, according to reporting from Skift’s Middle East Reporter, Deepthi Nair.
Nair’s reporting included discussions with hotel operators and hospitality executives across Dubai, Abu Dhabi, Saudi Arabia, and Oman and a review of data spanning all six Gulf states. What emerged was an uneven picture, with the UAE hit hardest and Saudi Arabia proving to be an outlier thanks to Hajj season.
Most operators are hoping the fourth quarter saves the year, but economists are less optimistic. Tourism Economics doesn't expect sentiment to fully recover until the second half of 2027.
TOURISM DEVELOPMENT FUND + SKIFT
Inbound tourism to Saudi Arabia has grown nearly 70% since 2019, and 91% of the 434 global travel executives surveyed are already investing or actively exploring it. A recent report with the Tourism Development Fund maps where the opportunities, and the risks, actually are.
EDITOR’S PICKS
A Lost Year for Gulf Tourism
September 10, 2026
Rooms are filling at half-price, not at pre-war demand — that’s hurting big brands and independents alike, but only one side has the balance sheet to outlast it.
Google’s New Hotel Search in Europe: What it Looks Like Now
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Google’s new user interface is meant to help the company avoid fines from EU regulators.
Hotels Have Focused on Coral Restoration — Palladium Is Betting on Seagrass Too
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Coastal hotels rely on clear water and white beaches to fill rooms, but Palladium’s conservation work protecting them is still funded by its foundation rather than operating budget.
EU Unveils Rules to Help Cities Crack Down on Airbnbs
September 9, 2026
Brussels has laid out a legal roadmap for restricting short-term rentals in stressed housing markets. Critics argue the rules lack oversight.
Google Strips Out EU Travel Search Features to Avoid More Fines
September 8, 2026
Google is scaling back certain search features in Europe as DMA enforcement escalates.
Flagship Group Makes First Three Acquisitions For Experiences Roll-Up
September 8, 2026
Appetite for an experiences roll-up has long existed, but Covid put plans on ice. Now P&Ls have had a chance to rebound, and the timing is perhaps even better today, with experiences positioned as a counter-AI play.
EU Ends Border ‘Safety Valve’ as Airlines Warn of More Delays
September 7, 2026
The training wheels are off – Brussels now finds out whether Europe’s airports can actually stay upright.
Flyadeal CEO Reveals Plans for Premium Economy and Long-Haul Network
September 7, 2026
Flyadeal’s move into connecting flights and premium economy marks a natural next step for a budget carrier scaling into long-haul.
Europe Prepares New Law to Support Cities’ Airbnb Crackdowns
September 4, 2026
Brussels is looking to advance legislation that would clarify local authorities’ power to crack down on short-term rentals amid Europe's housing crisis.
Qatar’s Arrivals Are Down 30% This Year — Its Recovery Now Rests on F1
September 4, 2026
Arrivals are still down a third from last year. Qatar’s answer, as it was for the World Cup, is another mega event on the calendar.
SKIFT PODCAST NETWORK
The EU hands cities a legal framework to justify short-term rental restrictions, Navan buys AI-powered events platform BoomPop to push deeper into corporate meetings, and Klook turns travel creators into full-on storefronts with one link to book the whole trip.
