UAE launches new tourism support package, aiming to ease sector's pressure amid war in Iran

As regional tensions affect the UAE's tourism sector, authorities are stepping up support with a fresh economic package aimed at easing the pressure on an industry struggling with disruptions, according to Gulf News.

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, confirmed the move, stating, “We are supporting the tourism sector, we are speaking to them daily. We do have a package that will come up very soon that will really address the tourism issues and the challenges that they are facing.”

The announcement comes as travel flows and aviation activity have been impacted, straining hospitality operators and related businesses. To provide immediate relief, Dubai has introduced a Dh1 billion economic support package that will allow hotels and businesses to defer government fees for three months starting April 1. The deferrals include 100% of sales fees on rooms, food, and beverages, as well as the Tourism Dirham, helping ease liquidity issues across the sector.

The scope of the relief is expanded to include hotel apartments and holiday homes, offering broader support to the industry. Authorities have emphasised that the package will help businesses manage near-term costs while ensuring operational continuity through a challenging period.

Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, explained that the response has been shaped by regular consultations with stakeholders in the tourism sector. “We have been closely engaging with stakeholders across the tourism sector as they navigate through unique challenges,” he said. This ongoing dialogue has helped shape both the immediate measures and the upcoming package, which aims to maintain momentum and address operational concerns.

The UAE government is also closely monitoring price controls and supply conditions to ensure market stability and prevent disruptions from impacting consumer costs. “Retailers, for instance, when it comes to food and beverages, cannot really increase any price without coming and actually submitting on the ministry website, [and] we haven’t approved any price increase,” Al Marri stated. Consumers have been advised to shop through major outlets and avoid stockpiling, as authorities reassured that the UAE’s strong supply chain structure remains intact.

Policymakers are confident that the country’s resilience will carry it through. “The UAE is strong, a 40-day conflict will not determine the future of the UAE economy,” Al Marri declared, adding that the country would “bounce back.” This confidence is underpinned by the combination of policy agility, strong infrastructure, and continuous engagement with businesses and consumers.