First cancellations: Iran war hits domestic tourism

“Of course they notice it more than average and there again the 4 and 5 star hotel industry – they have been hit really hard, they are feeling it massively,” emphasized the ÖHV spokesman Martin Stanits in conversation with the APA. Individual houses are concentrated on these markets of origin.

In total, Arab and Israeli guests booked around 2.6 million overnight stays in Austria in 2025. That’s less than 2 percent of all 153.7 million overnight stays in accommodation establishments in this country. However, the concentration on hotspots – local and regional or sectoral (top hotel categories) – results in a significantly greater burden there, especially since these are also wealthy guests who usually have particularly high expenses.

Travelers from the United Arab Emirates and Saudi Arabia are among the most spenders, with average daily expenses (excluding arrival and departure) of 531 euros and 491 euros per person, respectively, according to the tourism marketing organization Austria Advertising (ÖW). This also applies to guests from China with an average of 492 euros. For comparison: holidaymakers from Austria spend 179 euros every day.

Subdued demand from the Far East

Business with travelers from Asia is also affected by the war between Israel and the USA against Iran. “What we are still noticing is the guests from the Far East – we have declining numbers,” reported Stanits. Anyone who would normally fly via the Dubai or Doha hubs would now have to book longer alternative routes at higher prices for their city trips and trips in Europe.

“We expect declines here in the summer – we are already noticing some of it now,” confirmed the industry spokesman. “It has been canceled for currently and for the coming weeks.”

Some have already canceled their summer stay. “For some it’s too unsafe, they’re afraid they won’t be able to get home,” explained Stanits. How many cancellations there are also depends on the duration of the Middle East conflict.

Austrians are rethinking long-distance travel

Some local holidaymakers also changed their travel plans. “Austrians are sometimes canceling their long-distance trips and switching to Austria – this doesn’t have to be Austria, but it is partly Austria – instead of Dubai at Easter, for example,” said the ÖHV spokesman.

When traveling by air, instead of a long-haul route via Dubai or Doha to Japan, Australia or New Zealand, the medium-haul route, for example to Spain or Italy, is chosen. In total, it involves “tens of thousands of people”.

But rising energy prices and the expected higher inflation are also causing concern for some accommodation providers. “This will be the next wave of inflation,” fears Stanits. Guests’ thriftiness is likely to continue to increase.