'Shutdown': Moody's expects Dubai hotel occupancy to plummet to 10 percent

“'Shutdown': Moody's expects Dubai hotel occupancy to plummet to 10 percent Submitted by MEE staff on Thu, 05/07/2026 - 15:55 The UAE's tourism sector has been in crisis since the US-Israeli war on Iran began on 28 February Emirati army helicopters fly past the hotel, Atlantis The Royal, in Dubai, UAE, on 16 January 2026 (Fadel Senna/AFP) Off The US-based financial analysis firm Moody's predicts that hotel occupancy in Dubai is set to plummet to 10 percent from a pre-war figure of 80 percent in the second quarter of the year, which ends on 1 July, The Wall Street Journal reported on Wednesday. "This represents an effective shutdown of large parts of the hospitality sector," Moody’s said. Dubai is facing an existential crisis with the US-Israeli war on Iran, which began on 28 February, forcing visitor numbers to fall sharply and leading to widespread hotel closures and job losses while decimating the global tourism hotspot's hospitality sector. On Monday, Dubai airports reported that first-quarter passenger traffic was down by at least 2.5 million from the same period in 2025, with March seeing a 66 percent drop in passenger numbers as travellers chose to steer clear of the Gulf. The company did not specify forecasts for this year, but on Saturday, in a bid to kickstart tourism, the UAE announced that all air travel restrictions - put in place after Iran launched retaliatory strikes on Gulf countries that house or cooperate closely with US forces - had been lifted. Middle East Eye spoke to workers in the hospitality sector as well as businesspeople in the UAE earlier this week , and captured a souring mood. Tatiana, a Russian national who runs a logistics company for businesses looking to set up shop in the Gulf, said she was shocked at how quickly the mood shifted for existing and prospective businesses. "Within the first two weeks, people [said] it's no longer worth [living here]. They weren't scared, per se; they just felt like it's no longer worth it. "Businesses were suddenly liquidating their assets." She said her family was now looking at options in Europe as an alternative to Dubai. Hotel prices fall sharply 'We need people to come back': Dubai's tourism industry reels as foreigners flee Read More » A cursory glance by MEE at some of the luxury hotel brands in Dubai found unusually low prices for one of the most expensive cities in the world. The newly constructed Atlantis The Royal, which dubs itself "the most ultra-luxury experiential resort in the world", has priced its standard suite with a private balcony overlooking the sea at $800 for this weekend. The stay includes an ornate breakfast for two. The Mandarin Oriental Jumeira, right on the beach, has priced its standard room at $448 a night, including parking and breakfast. The Four Seasons Resort Jumeira is even lower at $359 a night for this coming weekend. The Four Seasons International Finance Centre in downtown Dubai is priced at $243. Current rates listed are lower, often substantially so, than in previous years for the same hotels and rooms during the same season. War on Iran News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0

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