The UAE tourism sector is expected to create more than 250,000 new jobs by 2036, despite a sharp near-term impact from regional conflict, according to the World Travel & Tourism Council (WTTC).
The forecast offers a positive long-term outlook for the UAE’s travel and tourism industry. However, the sector is expected to face job losses in 2026 as the impact of the US-Iran conflict weighs on tourism demand across the Gulf.
UAE tourism sector faces short-term job losses
The tourism industry employed around 3.2 million people across the six GCC states in 2025. However, employment across the sector is expected to decline by 4.3% in 2026, according to WTTC forecasts.
The UAE is expected to account for around 46,000 tourism-related job losses during the year.
Saudi Arabia is also expected to see a significant impact, with around 69,000 tourism jobs at risk.
Across the GCC, the tourism sector could lose about 137,000 jobs as the regional conflict affects travel and business activity.
UAE tourism outlook remains positive
Despite the short-term pressure, the longer-term outlook for the UAE remains strong.
Dubai and Abu Dhabi continue to rank among the world’s major tourism destinations. Meanwhile, Ras Al Khaimah is strengthening its position as an emerging tourism hub.
The emirate has several major tourism projects under development. These investments are expected to support future demand for workers across hospitality, travel and related services.
The UAE has also been able to limit some of the impact through domestic and religious tourism within the wider Middle East region.
Middle East tourism expected to grow rapidly
The WTTC expects travel and tourism across the Middle East to expand at a compound annual growth rate of 6.3% between 2026 and 2036.
That would make the Middle East the fastest-growing tourism region during the period.
The projected growth could create further demand for talent across hotels, airlines, travel companies, attractions and other tourism-related businesses.
Hotels feel impact of regional conflict
Hotels across the UAE have also felt the impact of weaker regional tourism activity.
The Middle East was the poorest-performing market for major hotel groups in the second quarter of 2026.
Marriott, Hilton, Hyatt and Accor all reported revenue declines. The companies linked the weaker performance to the regional conflict.
However, continued investment is supporting the sector’s longer-term recovery.
Tourism investment reaches new milestone
Global investment in travel and tourism exceeded $1 trillion in 2025 for the first time since 2019, according to the WTTC.
Capital investment increased by 8.5% during the year.
Investment in the Middle East, particularly Saudi Arabia, is expected to play an important role in the region’s tourism expansion.
For the UAE, the combination of new tourism projects, established destinations and rising regional travel demand could support substantial job creation over the next decade.
What the jobs outlook means for the UAE
The figures point to a mixed employment picture.
In the short term, the UAE tourism sector could lose thousands of jobs as regional uncertainty affects travel demand. Over the longer term, however, the sector is expected to create more than 250,000 jobs by 2036.
This could increase demand for workers across hospitality, travel, aviation, events and tourism services.
