The United Arab Emirates’ tourism sector is set for a gradual rebound following the regional conflict that battered visitor demand earlier this year, with hotel executives pointing to a preliminary US-Iran agreement and the lifting of a key UK travel warning as triggers for recovery.
Abu Dhabi-based daily The National reported on June 23rd that the UAE hotel industry is recovering, with a full rebound expected by late 2026 or into 2027. Chief executives at Accor, Leva and Rotana told the newspaper they expect a strong resurgence over the winter.
The report said the UAE was removed from a list of countries the UK advises against traveling to following the signing of a US-Iran agreement, a shift expected to restore confidence among one of Dubai’s most valuable source markets. That agreement is a preliminary framework: a memorandum of understanding signed remotely by US President Donald Trump and Iranian President Masoud Pezeshkian on June 17th, which extends the ceasefire and sets a window of up to 60 days to negotiate a permanent deal. Accor regional CEO Duncan O’Rourke described the sector as already being in the recovery stage, with the high-end luxury market expected to lead the rebound.
The turnaround follows a steep downturn. According to data published by STR and CoStar, Dubai hotel occupancy collapsed to 22.8 percent for the week ending March 14th, the market’s worst performance since April 2020, down from a January-February average of about 84.8 percent.
In early May, Moody’s Analytics warned that occupancy could fall to 10 percent in the second quarter, describing the scenario as an effective shutdown of large parts of the hospitality sector. Dubai responded with an AED1 billion ($272 million) support package approved on March 30th, centered on hospitality fee deferrals.
The National also flagged Wynn Resorts’ Wynn Al Marjan Island as a catalyst, noting that the country’s first gaming resort is expected to boost Ras Al Khaimah and neighboring emirates when it welcomes guests in 2027.
The $5.1 billion project has slipped slightly but remains on track. On the company’s 1Q26 earnings call on May 8th, CEO Craig Billings confirmed a “modest delay” to the opening while insisting that construction continues to progress.
Billings attributed the delay to logistical and shipping challenges in the Middle East tied to the conflict in Iran, while noting that deliveries had largely continued. He said the company was re-routing shipments and sourcing alternative materials where needed, with more than 22,000 workers on site.
Wynn has said it is closely watching the situation and remains in regular communication with the US and Ras Al Khaimah governments to make informed decisions. The comments followed a Bloomberg report on May 5th that Wynn was weighing a postponement of the project’s first-half 2027 opening timeline.
Wynn’s construction updates show the project is well advanced. The tower topped out in December 2025 and, as of the company’s February update, had reached 299 meters, with all of the tower’s structural concrete complete and façade installation at 83 percent. All 1,530 guest accommodations are structurally complete, with interior fit-outs underway across 1,504 rooms and suites, while the surrounding low-rise buildings are 99 percent structurally complete.
The connecting Wynn Bridge and the Wynn Oasis staff village are due for completion in late 2026 and summer 2026, respectively.
