Tour Operators Lose Millions Due to Middle East Crisis

Company Losses Reach $1.5 Million per Day

Travel companies are facing significant additional expenses due to flight suspensions and delays affecting clients in the Middle East. Experts from the Russian Union of Travel Industry estimate that costs for extended stays amount to at least $1.5 million per day. If tensions in the region persist, total losses could reach tens of millions of dollars.

How Company Losses Were Calculated

RUT Board Member Artur Muradyan explained that calculations were based on the average cost of accommodating one tourist at $80–100 per day. These expenses now affect the entire Russian tourism sector, he added. Travel companies are offering clients extended stays or, if the hotel does not cooperate, alternative accommodations.

Co-chair of the RUT Outbound Tourism Committee Dmitry Arutyunov estimates even higher losses. “It is important to understand the scale of the situation,” he emphasized. “If around 50,000 of our citizens were in the Emirates when flights were suspended, and even half require urgent assistance, we are talking about several million dollars in daily expenses. Multiplying this by the number of days gives an idea of the total scale of costs.”

Experts believe companies should be allowed access to reserve funds, essentially their own money in the “Turpomoshch” funds, without relying on government support.

Hotels in Dubai Evicting Tourists

Authorities in the Emirates responded differently during the emergency. In Abu Dhabi and Ras Al Khaimah, measures were taken promptly to extend stays for guests unable to leave the country due to flight restrictions. All accommodation costs were covered by these Emirates, according to RUT.

In Dubai, hotel managers were recommended to allow guests to extend their stay under existing conditions. “There is no question of compensation,” clarified Artur Muradyan. “Most Dubai hotels extended bookings for Russian tourists, but some started demanding payment and blocking room keys.” The expert advises travelers not to check out for safety reasons and to remain in contact with their travel operators and local partners.

Muradyan noted that 95–98% of organized tourists are accommodated in hotels, but the situation will worsen if air travel does not resume. Independent travelers will have to cover accommodation costs themselves, and most complaints come from this group.

Situation in the UAE

The country has experienced multiple attacks by Iran. Several people were injured, and one person died. A missile was intercepted over Atlantis The Royal on Palm Jumeirah—debris pierced the roof of the Fairmont The Palm veranda, causing a fire. UAV debris also hit the Burj Al Arab hotel, causing minor damage, with no casualties. In Sharjah, a downed drone fell on a shopping center. Dubai airport was on fire for several hours, prompting passenger evacuations. A missile landed in the port of Abu Dhabi near the cruise ship Mein Schiff 4, carrying approximately 3,500 people.

On March 2, powerful explosions were reported near Khalidiya Palace Rayhaan in Abu Dhabi, around Business Bay, and on Palm Jumeirah in Dubai. TASS reports explosions in the Al Hamra Village residential area in Ras Al Khaimah: a drone exploded between two buildings. Air traffic is almost completely halted.

Flights from Oman Rise to €20,000

Russians are attempting to leave the Emirates via the land border to Oman and then return home. RBC reports that charter tickets from Muscat to Moscow have reached €20,000 per seat. Seats are being sold rapidly, but the capital’s airport is already closed to flights. Oman Air canceled flights between Muscat and Moscow, as well as to Amman, Dubai, Bahrain, Doha, Dammam, and Kuwait on March 1–2.

Flights from the UAE to Russia have started to resume, but only in minimal numbers. For example, on March 2, one Etihad Airways flight left Abu Dhabi for Moscow with passengers who were unable to leave on February 28. In total, over 50,000 Russians were in the strike zone in the Middle East. According to RUT estimates, there are about 1,000 organized tourists in Saudi Arabia, approximately 50,000 through operators and up to 100,000 independent travelers in the UAE, and 800–900 in Oman.

Conclusion

Analysts from International Investment note that the escalation of the conflict in the UAE has revealed the high vulnerability of the sector to geopolitical and military risks: companies are suffering significant financial losses, and travelers must cover accommodation and travel costs themselves, facing flight restrictions and limited availability of rooms.

The situation exposed weaknesses in support systems and coordination with local authorities, particularly in Dubai, where hotels do not always follow government recommendations. In the medium term, the recovery of tourist flows will depend on stabilizing security, restoring air traffic, and hotels’ willingness to accommodate guests under pre-crisis conditions. If tensions persist, international visitor traffic will recover slowly, continuing to pressure operators financially and limiting opportunities for travelers, including Russian citizens. Sustainable recovery is possible only after risks to tourists are reduced and transport routes in the region reopen.