Dubai hotel occupancy projected to fall to 10 percent due to Iran war, report says

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Hotel occupancy rates in Dubai are expected to plummet to 10% in Q2 2026 from a previous 80%, largely due to the effects of the ongoing Iran war. This marks a significant downturn for the tourism sector, leading to an effective shutdown in large parts of the hospitality industry.

Dubai hotel occupancy projected to fall to 10 percent due to Iran war, report says Hotel occupancy in Dubai is projected to fall to 10 percent in the second quarter of 2026 from 80 percent before the Iran war began at the end of February, the Wall Street Journal reported, citing Moody’s Analytics. Moody’s described the decline in the tourism sector as “an effective shutdown of large parts of the hospitality sector”.