The Middle East holiday industry was already in trouble when dozens of Iranian missiles were fired at Israel earlier this month. The fighting that began a year ago after the Hamas attack on October 7 not only continues but is also expanding regionally.
The missile attack was enough to convince travel agent Colette to cancel upcoming trips, not just to Israel but to neighboring countries. The company told customers it was canceling its 16-day Egypt and Jordan itinerary through October 31 due to recent escalations in the region
But the company said Egypt-only travel will continue as planned, reflecting some of the nuances in the region.
A few years ago, the Middle East was viewed as a potential up-and-comer by travel agencies eager to package its history, culture, ancient wonders and desert landscapes for North Americans seeking fresh vacation adventures.
But Israel’s harrowing year-long war with Hamas put those plans on hold. While not all tour operators have canceled flights from the Middle East, nearly all contacted by Travel Weekly said tourist interest has declined and business has declined since the attacks.
At G Adventures, “our sales have definitely slowed down in the region over the last six to eight months,” said Sean Benner, one of the company’s product directors. “We do continue to actively promote and operate our tours in Egypt, Jordan, Morocco and Turkey safely and confidently.”
Likewise, Wilton, Conn.-based Tauck has seen a decline in bookings for its Egypt and Egypt/Jordan tours, said Tom Armstrong, marketing communications manager. “We did see a lot of cancellations after the attacks on October 7, and we’re still seeing some softness,” he said.
Among the victims of the tourism downturn are suppliers in the Middle East, who are investing in infrastructure in hopes of growth. Hotels were built, buses were ordered, tour guides were hired and trained, and computer systems were modernized. One operator said those assets are now withering away.
Most North American travel agencies insist on keeping travel itineraries as planned. Rather than cutting back on their offerings, they typically combine slow-selling tours or combine underperforming tours with better-performing tours.
They are also turning to greener pastures.
Like other companies, EF Go Ahead Tours has seen a decline in bookings. “With the exception of Turkey, a European country that remains popular for travel, demand for travel to Middle Eastern destinations continues to decline year over year,” said Lael Kassis, vice president of market development. But Kassis said demand is improving Turn to Go Ahead tours in Latin America and Asia that offer fresh experiences with less perceived risk.
In a survey for another EF brand, EF Ultimate Break, some 30% of travelers aged 18 to 35 considered Mexico and Central and South America to be good places to book guided tours in the next few years, compared with only 1% in the Central Region. 7.5% Oriental.
Not all tourists avoid the area.
People willing to go to the Middle East tend to be more adventurous, said Lori Derauf, owner of a resort designer store near Madison, Wisconsin. “The clients I book with are more intrepid travelers,” she says. “They’re not afraid to go anywhere.”
EF is not the only company to see demand pick up in Turkey, which does not share a border with Israel, as the economy went into a downturn immediately after the Hamas attacks last October.
The latest data shows that the number of foreign tourists to Turkey dropped sharply from 5.8 million in September 2023 to 2.5 million in November 2023, bottomed out at 2 million in January 2024, and then increased steadily month by month, 8 The number of visitors reached 6.8 million per month.
According to Türkiye’s Ministry of Culture and Tourism, about 1.3 million Americans vacationed in Türkiye last year, accounting for 2.5% of the total foreign tourists. In the first eight months of this year, global tourist arrivals to Turkey increased by 7.1%.
egypt river cruise
Another area requiring significant investment until October 2023 is Nile cruises, with several operators building ships for this increasingly popular waterway.
River cruise operators said demand for Nile cruises fell sharply shortly after the attacks, but people began returning.
But Avalon Waterways President Pam Hoffee said sales were still difficult as of Oct. 7.
“Demand definitely took a hit a year ago,” she said. “At that point we lost about half of the guests booked for 2024.” The spring was most affected, with cruises this fall doing better.
“People have recognized that Egypt is not affected by this,” Hoffe added. “As time goes on, people become more comfortable.”
On a recent investor call, Torstein Hagen, chairman of Viking Holdings, which operates 10 ships on the Nile, said Americans were “surprisingly willing to go to Egypt.” “Of course it hurt occupancy a little bit, [but] It’s starting to pick up again,” he said.
Impact on Israel
To be sure, the country most affected by the intensification of conflict in the Middle East is Israel itself. Colette will not offer tours there until 2026. Any remaining tours in Israel tend to be offered by smaller, country-specific operators.
Benner of G Adventures said the company suspended operations in Israel when the fighting began.
“We remain vigilant and keen to return if possible,” he said. “However, given recent events and escalations, this looks unlikely in the near future.”
Julia Simpson, chief executive of the World Travel and Tourism Council, said that while the war had wreaked havoc on the Middle East’s travel economy, the impact on global tourism would be minimal.
“Right now, in terms of travel and tourism, it tends to affect the countries directly involved and some countries like Jordan and parts of Egypt,” Simpson said, speaking at the WTTC Global Summit in Perth, Australia. “
Johanna Jainchill contributed to this report.
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