GCC Travel Bookings Rebound Towards Pre-War Levels As Confidence Returns

(MENAFN- Khaleej Times) [Editor's Note: For the latest updates on US-Iran hostilities since a 14-point MoU expired on August 17, follow the Khaleej Times live blog.]

Travel between Gulf countries is steadily rebounding to pre-war levels as flight operations and travel conditions stabilise, travel agents say. Although international travellers remain mostly reluctant to travel to the region, travel between the Gulf is showing signs of rebounding to pre-war levels, according to Capital Economics.

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While travel is not completely back to pre-conflict levels yet, the gap is narrowing week by week, Imtiaz Hussain Nasir, CEO of Pinoy Tourism, said.

'Postponed demand, not lost'

Industry executives say that even while some travellers remain cautious regarding their travel plans, demand remains strong.

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“I would describe the GCC travel market as resilient and recovering faster than many initially expected,” Nasir said.“There is still some caution, but people have not lost their appetite for travel. A considerable amount of demand was postponed rather than lost.”

If a lasting ceasefire deal is reached between the warring parties, the travel expert said he is optimistic about the GCC's peak winter tourism season in the next few months.

Geoffrey Salatan, Founder & CEO of Geof Travel, noted that intra-GCC and regional travel“appears to be recovering faster” as travellers opt for shorter, more convenient trips.

Travel bookings have improved noticeably compared with the immediate aftermath of the war, which left many travellers cautious.“We are now seeing more enquiries and confirmed bookings as confidence returns,” he said.

Leisure travel leads recovery

Travelling for leisure and visiting relatives and friends is tracking at around 85 per cent of pre-conflict levels, said Rashida Zahid, vice president of operations at musafir. Business travel is also seeing positive sentiment, at around 70 per cent.

“We're already seeing that demand build on musafir well ahead of schedule, which signals confidence is genuinely returning rather than just spiking,” she added.

In terms of travel between the GCC countries, Salalah tops the list for leisure travel, while Riyadh dominates in business travel.

How soon will travel return to pre-war levels?

The UAE is one of the most tourism-dependent economies in the region, and its hospitality sector dwindled soon after the war started, with recovery set in the second half of this year.

Property consultant Cavendish Maxwell expects hotel occupancy rates to recover by 60 – 66 per cent over the next four months, after it fell almost 30.3 per cent in the first half due to the regional war.

While uncertainty still lingers, especially as many international carriers extend suspension of flights to the region, tourism in the Gulf is expected to recover into the fourth quarter.

Zahid, the VP at musafir, said that forward booking intent is strong for the remainder of the year, adding that“as corporate activity resumes post-summer, we expect a meaningful acceleration.”

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