The regional war has severely impacted Kuwait’s travel and tourism sector bringing it to a temporary standstill with losses in the tens of billions of dollars in the first 10 days, experts told Arab Times on March 11, 2026. Mohammad Al-Mutairi said 650 local companies are incurring daily losses from flight suspensions while Sultan Al-Jazzaf pointed to more than $10 billion in predicted GCC tourism losses and pre-war annual Gulf revenues of $195 billion per World Travel and Tourism Council data.
Al-Mutairi told Arab Times that 650 local travel and tourism companies are incurring daily losses as a result of the precautionary measures taken by the State of Kuwait, the first of which has been the suspension of flights to protect the public. He said the tourism sector is also suffering from stagnation, a situation that mirrors conditions in other Gulf countries where airlines and related activities have likewise been paralysed by fears of further strikes. The chairman stated that it is difficult to estimate the losses at present but described them as certainly enormous due to the suspension and cancellation of bookings that have left operators unable to generate revenue.
He indicated that the continuation of the war will only increase the losses since travel and tourism offices must continue to pay rent which constitutes a large portion of their revenues in addition to their obligation to meet salary payments. These fixed costs persist even as operations remain grounded according to Al-Mutairi whose federation represents the sector in Kuwait. The impact extends to the wider Gulf tourism industry which has seen a temporary standstill since the conflict intensified with American-Israeli actions against Iran.
Al-Jazzaf told Arab Times that the ongoing war has put the Gulf states into a severe economic crisis particularly affecting the tourism and travel sector which is considered the most important economic sector in the Gulf after oil. He said travel is an important pillar of the Gulf economy pointing to reports from international financial institutions that predicted financial losses in the tourism and shopping sectors of GCC countries exceeding $10 billion in the initial days of the war. The economist cited data from the World Travel and Tourism Council indicating that travel and tourism revenues in Middle Eastern economies reach about $370 billion annually with the Gulf states accounting for at least $195 billion of this amount.
Al-Jazzaf warned that if the war continues for more than two months it will reduce global tourism revenues which exceed $11 trillion annually according to the same data. He said the suspension of 30,000 Gulf flights in the first week of the war in addition to disrupting millions of passengers has inflicted enormous losses on airlines especially since the Gulf region is a transit hub between the East and West and is home to some of the world’s largest airlines. The economist added that the suspension of air traffic in Kuwait and the other Gulf countries will lead to a recession in the hotel and retail sectors in the Gulf states.
He explained that a prolonged war will disrupt the Kuwaiti Gulf and global economies and its repercussions on the aviation sector will persist for a considerable period even after the war ends due to the congestion and overcrowding that Gulf airports will experience once the crisis subsides and flights are rescheduled. Al-Jazzaf disclosed that among the losses suffered by the average person is the rise in global airfare prices resulting from the increase in jet fuel prices which rose from between $85 and $90 per barrel in February to between $150 and $190 per barrel in addition to the rise in insurance and shipping costs. He stressed that the losses will not stop there but will lead to tourists fearing the Gulf countries due to geopolitical tensions.
“This will cause other indirect losses including market contraction especially since stimulating tourism is the main factor that stimulates all markets” Al-Jazzaf told Arab Times. “When most markets are affected by recession it could result in the termination of services for many workers” he added. A World Travel and Tourism Council assessment found that prior to the conflict the Middle East travel sector contributed $385.8 billion to GDP in 2025 and supported 7.1 million jobs with Saudi Arabia accounting for $178 billion or 46 percent of the regional total according to the council’s 2026 Economic Impact Research.
