Airspace closures cancel half of flights
Jet fuel prices double amid oil surge
Saudi Arabia and Bahrain cancel F1 Grand Prix
On the 14th, Japan’s Nikkei reported that U.S. research firm Tourism Economics estimates a conflict lasting more than two months would reduce visitors to the Middle East by 27% and cost the tourism industry up to $56 billion (about 74.7 trillion KRW). Even if fighting ends within a few weeks, visitor numbers could still fall about 11%, with losses around $34 billion (about 45.3 trillion KRW).
The Middle East serves as a major air hub between Europe and Asia. The World Travel & Tourism Council says roughly 14% of international transfer passengers pass through Middle Eastern airports like Dubai in the UAE and Doha in Qatar. Since the conflict began, some airlines have rerouted flights through Turkey or Oman, substantially increasing travel times.
Rising oil prices are also cooling travel demand. S&P Global reports jet fuel jumped from $99 to $190 per barrel. Because fuel can make up as much as a quarter of an airline’s operating costs, carriers are under pressure to raise fares. Hong Kong’s Cathay Pacific has already doubled fuel surcharges on certain routes.
In recent years, Middle Eastern countries have pushed hard to grow tourism. Bahrain hosted the region’s first F1 race in 2004, and Saudi Arabia and Qatar added F1 events in 2021. Qatar drew more than 1 million foreign visitors during the 2022 World Cup. According to the UN World Tourism Organization, the Middle East welcomed about 100 million visitors last year—up 3% from the previous year and 39% above pre-COVID levels.
But that boom could vanish almost overnight. F1 officially announced it will cancel next month’s Bahrain and Saudi Grands Prix because of the conflict. The BBC estimates the cancellations will cost roughly £100 million (about $132 million, or 176 billion KRW). Qatar, which is scheduled to host a Grand Prix in November, also faces uncertainty.
The ripple effects are hitting global travel demand, too. Spanish travel-data firm Mabrian says Western travelers are opting for domestic trips or nearby destinations instead of the Middle East. In Europe, visits to neighboring countries are rising, while U.S. travelers are showing increased interest in South America.
