Middle East War Sparks Security Fears, Diverts Travel Demand

The escalating conflict in the Middle East, including strikes involving Iran, triggers volatile security perceptions and halts tourism momentum across the region. Airspace closures cancel over 5,000 flights in the first two days, stranding holidaymakers and prioritizing evacuations for residents. Analysts project inbound arrivals could plunge 11-27% year-over-year in 2026, slashing 23-38 million visitors and $34-56 billion in spending from prior forecasts.