Travel demand across the GCC is continuing to recover, with bookings moving closer to levels recorded before the outbreak of the US-Iran conflict in February, as regional flight networks gradually stabilise.

Although overall travel volumes remain below pre-war levels, the aviation sector has recorded steady week-on-week growth, supported particularly by business travel and passengers visiting family and friends.

According to data cited by Capital Economics, business travel across the GCC has recovered to around 70% of pre-war levels, while travel to visit friends and relatives has climbed to approximately 85%.
Demand grows despite geopolitical tensions

The recovery is continuing despite persistent geopolitical uncertainty, including the ongoing conflict between Washington and Tehran, renewed tensions in Yemen and Houthi attacks on Saudi Arabia.

An interim US-Iran peace agreement provided a significant boost to regional travel at the beginning of the summer. Its collapse on July 8 temporarily affected demand, but industry executives remain optimistic as travel bookings continue to strengthen and expectations grow over the possibility of another ceasefire agreement.

One of the main challenges facing the sector remains weaker international tourism, with several countries, including the UK and Australia, maintaining travel advisories affecting parts of the Middle East.

Several major international airlines, including British Airways and Air France, also remain absent from some regional routes, although industry expectations point to a possible return of more international capacity by the end of the fourth quarter.
UAE tourism outlook strengthens

The UAE continues to play a central role in the GCC tourism market, with Dubai and Abu Dhabi remaining major international destinations and Ras Al Khaimah increasingly establishing itself as a tourism hub.

Hospitality consultancy Cavendish Maxwell expects hotel occupancy to rise significantly over the coming months following a decline of more than 30% during the first quarter.

The improving outlook reflects the resilience of regional travel demand despite continued geopolitical uncertainty.

With regional aviation networks becoming more stable and business and family-related travel recovering strongly, the GCC travel industry is gradually moving towards pre-war activity levels. A further easing of regional tensions and the return of major international carriers could provide additional momentum during the final months of 2026.

Source: Arabian Business