Just a few months can completely change the outlook. At the start of this year, Dubai was marking a historic milestone in tourism, reporting a record 19.59 million international visitors in 2025.

That momentum has since faltered. Following the recent US and Israeli conflict with Iran, visitor numbers have fallen sharply. Hotel occupancy, once hovering around 80%, is now projected to dip to 10% in the months after the emirate experienced missile strikes in March.

Authorities are now investing heavily in efforts to restore confidence in a destination long regarded as one of the Middle East’s safest hubs.

A newly introduced initiative promises UAE residents and citizens reward packages valued at up to AED 3,000 (approximately $816) for inviting friends or relatives to visit Dubai.

Incentive scheme

Introduced earlier this month, the program titled “A Dubai Invite” allows individuals aged 18 and above who hold a valid Emirates ID to nominate up to three visitors for trips scheduled between now and October 31. The incentives include hotel accommodations and dining benefits.

Those nominated must live outside the UAE, possess a valid tourist visa and arrive by air, sea or road, according to Visit Dubai.

“At a time when trust and personal recommendations play a greater role than ever in travel choices, ‘A Dubai Invite’ highlights what truly defines this city: the residents who know it intimately and the loved ones they encourage to discover it firsthand,” said Noor Al Geziry, Assistant Vice President of Special Projects & MENA at Dubai’s Department of Economy and Tourism.

On the surface, Dubai appears to be operating as usual, but underlying challenges remain.

“I see it as a very constructive step,” says YouTuber and beauty editor Lauren O’Connell, who relocated from the United States to Dubai in 2009.

“I’ve already reached out to relatives who’ve considered visiting for years. For those of us who enjoy living here, it’s another motivation to persuade friends and family to finally make the journey.”

This incentive plan follows other measures aimed at reviving tourism. Authorities have suspended the nightly hotel tax imposed on upscale properties and eliminated the 7% municipal charge previously added to hotel and restaurant bills.

Efforts to rebuild Dubai’s tourism image intensified after Iran launched strikes across parts of the Middle East earlier this year, including ballistic missile and drone attacks directed at the emirate.

‘Ultimate nightmare’

While most incoming missiles were intercepted, several prominent sites sustained damage. Among them were the five-star Fairmont The Palm resort and the Jumeirah Burj Al Arab hotel, the latter now undergoing an 18-month restoration.

Dubai International Airport, one of the world’s busiest transit centers, temporarily shut down in March. Major carriers, including British Airways and Emirates, also suspended flights to the city during that period.

Physical repairs may be manageable, and many air routes have resumed, but the longer-term impact on Dubai’s reputation remains uncertain.

“This scenario represents Dubai’s worst-case situation because its identity has long rested on being a secure haven within a volatile region,” noted Cinzia Bianco, a specialist in Gulf affairs at the European Council on Foreign Relations, in commentary shared earlier this year.

“Resilience is possible, but a full return to the previous status quo may not be.”

Several governments continue to maintain travel advisories for the UAE, with the United States urging citizens to reconsider plans to visit.

The city’s carefully cultivated image as a stable and secure destination has undoubtedly been shaken.

“The situation has introduced caution more than it has caused lasting damage to confidence in the UAE,” said Naim Maadad, founder and CEO of Gates Hospitality, whose portfolio includes hospitality brands across the region.

He added that many international travelers tend to view the Middle East as a single entity rather than distinguishing between individual nations, a perception that can influence travel behavior.

Maadad emphasized that the UAE continues to project stability, strong infrastructure and smooth operations. Airports, hotels, restaurants and attractions are functioning normally, he said, but acknowledged that the primary hurdle now is psychological rather than logistical.

Additional reporting was provided by Melanie Swan.