Dubai faces the challenge of regaining tourist confidence

Drone attacks on the UAE remain sporadic, but the large-scale warning of the early stages of the conflict has ended. In May, shopping malls fill up with families from the area coming to celebrate Eid al-Adha (Feast of the Sacrifice, one of two important Muslim holidays), and beauty salons continuously welcome Russian visitors to enjoy the luxurious holiday. At Abu Dhabi’s Zayed International Airport, the UAE capital, passengers crowded around duty-free shops.

Fatma Ammar lives in Beirut, Lebanon, and came to Dubai to visit her two sons on the occasion of Eid Al Adha. “Dubai is still a safe place, the way the UAE handles conflict is very credible,” she said.

However, beneath that glamor, the emirate is facing a difficult reality: the confidence of international tourists has not been restored. Prolonged geopolitical tensions in the Middle East are forcing Dubai to face the biggest challenge in modern history: regaining the world’s trust to revive the smokeless industry.

Travel warnings from the US, Canadian and Australian governments remain in place. Although flights have largely resumed, experts say rebuilding trust is much more difficult than reopening routes. Dubai still has visitors, but the flow of visitors has changed.

Mr. Naim Maadad, CEO of Gates Hospitality, said that travel warnings have caused international tourists to hesitate. Dubai’s biggest challenge today is the psychological barrier of customers in front of international media.

Sharing the same opinion, Mr. Victor Abou-Ghanem, CEO of Story Hospitality, said the fear of flight disruptions and rising air ticket prices due to oil prices are stopping families. “During times of instability, tourists are more price sensitive. They will prioritize destinations that are cheaper and closer to home,” Mr. Victor said.

This disruption has been widespread. The Arab Travel Expo (ATM), the largest travel trade exhibition in the Middle East, had to be postponed until September. According to data from the Dubai Department of Economic Affairs and Tourism, the number of international visitors here has dropped sharply since the conflict escalated. Financial services company Moody’s predicts that the hotel room occupancy rate here could decrease from 80% to only 10% in the second quarter.

To save the situation, the Dubai government has launched strong stimulus measures. The city decided to temporarily suspend the nightly hotel tax for luxury lodging establishments; abolish the 7% city fee applied to restaurant and hotel bills; Delay sales fees and waive event cancellation fees. Businesses are also allowed to defer service fee payments for three months to ease financial pressure.

Across the UAE, a wave of price cuts “unprecedented since the pandemic” is taking place. Many high-end destinations, which were previously picky about customers, now have to compete with promotions. The Ritz-Carlton Dubai promotes a “buy one, get one free” afternoon tea package, the Mandarin Oriental Jumeirah offers a 20% discount for guests staying two nights, and Marina Byblos offers a month-long vacation package starting at 3,800 AED (about 1,035 USD) – an incredibly cheap price in this expensive city.

Analysts say that Dubai has overcome both the global financial recession and the pandemic thanks to its economic potential and infrastructure. But this crisis hits directly at security awareness – the core foundation of Dubai’s brand.

“Tourists have not necessarily lost confidence in the UAE, but they have changed their behavior. The current trend is to book rooms close to the departure date and be extremely cautious until the regional situation is more stable,” said a LEVA hotel representative.