The UAE government is preparing a targeted support package for its tourism sector as the ongoing Iran conflict continues to weigh on travel, hospitality, and aviation across the Gulf.
Economy and Tourism Minister Abdulla bin Touq confirmed the measures on Dubai Eye radio‘s Business Breakfast show on 6 April 2026, stating that the tourism industry is currently under significant pressure and that a relief package addressing the sector’s specific challenges will be announced very soon.
The announcement follows a broader AED 1 billion ($272 million) economic stimulus approved by Dubai’s Crown Prince Sheikh Hamdan bin Mohammed on 30 March. That package, which took effect on 1 April, included a three-month deferral of government fees, allowing hotels to postpone 100% of sales fees and the Tourism Dirham charge — a mandatory levy on hotel guests — to support sector liquidity.
The scale of disruption is notable. More than 80,000 short-term rental bookings in Dubai were cancelled in the first week of the conflict alone, according to data group AirDNA. The World Travel and Tourism Council has estimated regional daily tourism costs could reach $600 million.
Despite the pressure, Minister bin Touq expressed confidence in a swift recovery, stating that a 40-day conflict will not determine the long-term future of the UAE economy. The country’s S&P credit rating of AA with a stable outlook was reaffirmed this month, reflecting the strength of its institutional buffers.
Tourism businesses have also responded proactively. Major attractions offered free entry to residents, hotels provided complimentary stays for stranded travellers, and community campaigns were launched to sustain local spending.
The UAE’s tourism recovery will ultimately depend on restoring international travel confidence, but the government’s proactive stance sends a clear signal that the sector will not be left to navigate the storm alone.
For more trusted business news, market insights, and investment updates from the UAE and beyond, visit www.moneypetrol.com and stay ahead of the curve.
🎧 Watch & subscribe to MoneyPetrol podcasts on YouTube for in-depth conversations with industry leaders and decision-makers.
Follow us on Instagram for real-time updates, expert perspectives, and exclusive content.
