The Middle East holiday business had already suffered earlier this month when dozens of Iranian missiles flew toward Israel. The fighting, which began a year ago after the October 7 Hamas attack, has not only continued but is expanding regionally.
The missile attack was enough to convince travel agency Colette to cancel scheduled trips not only to Israel but also to neighboring countries. Due to the recent worsening situation in the region, we have informed our customers that we are canceling 16-day itineraries to Egypt and Jordan until October 31.
However, the company announced that solo travel to Egypt would continue as planned, reflecting some of the region’s characteristics.
A few years ago, the Middle East was seen as a potential rising star by travel companies looking to package history, culture, ancient wonders and desert landscapes for North Americans seeking a new vacation adventure.
But the year-long Israel-Hamas war put these plans on hold. Not all tour operators have canceled departures to the Middle East, but almost all who Travel Weekly contacted said interest had waned and business had come to a halt since the attacks.
“Sales to this region have definitely slowed down a bit over the last six to eight months,” said Sean Benner, one of G Adventures’ product directors. “We are actively promoting and operating tours to Egypt, Jordan, Morocco and Türkiye safely and confidently.”
Likewise, Tauck, based in Wilton, Conn., has seen a decline in bookings for trips to Egypt and Egypt/Jordan, said Tom Armstrong, marketing communications manager. “We had a significant number of cancellations immediately following the October 7 attacks and we continue to see some softness,” he said.
Among the casualties of the tourism downturn are suppliers in the Middle East who have invested 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 these assets were now languishing.
Most North American travel agencies are having a difficult time continuing their scheduled tour schedules. Instead of cutting offerings, combine tours that are typically slow sellers or merge weak starts with better-performing tours.
They are also transitioning to greener pastures.
Like other companies, EF Go Ahead Tours has seen poor bookings. “With the exception of Turkey, where travel from European countries remains very popular, demand for travel to the Middle East continues to decline each year,” said Lael Kassis, Vice President of Market Development. But Kassis said demand is shifting to Go Ahead tours in Latin America and Asia, which offer fresh experiences with less perceived risk.
A survey for EF Ultimate Break, another EF brand, found that nearly 30% of travelers aged 18 to 35 said Mexico and Latin America were good places to book guided tours in the next few years, compared to just 7.5% in Central and South America. . east.
Not all travelers avoid this area.
People who are open to traveling to the Middle East tend to be more adventurous anyway, said Lori Derauf, owner of Vacation Designers near Madison, Wisconsin. “Customers who book further afield are more intrepid travelers,” she said. “They’re not afraid to go anywhere.”
And EF is not the only company to see demand bounce back in Turkey, which does not share a border with Israel, following the immediate recession following the Hamas attacks last October.
The number of foreign visitors to Turkey plummeted from 5.8 million in September 2023 to 2.5 million in November 2023, and hit a low of 2 million in January 2024, then steadily increased every month, reaching 6.8 million in August. It is shown in the material.
According to Turkey’s Ministry of Culture and Tourism, about 1.3 million Americans vacationed in Türkiye last year, accounting for 2.5% of all foreign tourists. Global tourist arrivals to Turkey increased by 7.1% in the first eight months of this year.
egypt river cruise
Another sector that received significant investment before October 2023 was Nile cruises. Several operators have built vessels for the increasingly popular waterway.
River cruise operators said people were starting to return after demand for Nile sailings plummeted immediately after the attacks.
But selling could still be difficult after Oct. 7, said Pam Hoffee, president of Avalon Waterways.
“Demand definitely took a hit a year ago,” she said. “At that point, we lost about half of the guests we had booked for 2024.” The spring season was the most affected, with cruises this fall holding up better.
“People recognized that Egypt was not affected by this,” Hoffee added. “Over time, people became more comfortable.”
In a recent call with investors, Viking Holdings Chairman Torstein Hagen said Americans were “surprisingly willing” to go to Egypt, where Viking operates 10 ships on the Nile. “Obviously we were a little bit hurt by possession (but) we’re bouncing back,” he said.
Impact on Israel
Clearly, the country most affected by the heightened Middle East conflict has been Israel. Collette won’t offer tours there until 2026. All tours remaining in Israel tend to be with small national operators.
G Adventures’ Benner said the company suspended operations in Israel as the fighting began.
“We remain vigilant and eager to return if possible,” he said. “However, given recent events and escalations, that seems unlikely in the near future.”
Although the war has wreaked havoc on the Middle East’s tourism economy, its impact on global tourism has been minimal, said Julia Simpson, CEO of the World Travel & Tourism Council.
“Right now, in terms of travel and tourism, this tends to affect the countries directly involved, such as Jordan and parts of Egypt,” Mr Simpson said in a speech at the WTTC Global Summit in Perth, Australia. “But in reality, it doesn’t have as much of an impact on the global position of travel and tourism as it does today.”
Johanna Jainchill contributed to this report.
