European Tourists Shift Summer Holidays from Eastern Med Amid Middle East Conflict
Summer holidaymakers are increasingly opting for more familiar and accessible locations in the Western Mediterranean and Caribbean, as the travel industry grapples with the financial fallout from the ongoing Middle East war. Travel companies have observed a significant trend of customers moving their planned trips away from eastern Mediterranean hotspots like Cyprus, Turkey, and Greece.
Rising Demand for Alternative Destinations
Tui, Europe's largest holiday operator, noted a sharp increase in demand for holidays in Spain, Portugal, Greece, and Cape Verde in recent days. Neil Swanson, a director at Tui, explained that while there have been some cancellations in affected areas, these are currently outweighed by customers amending their plans to safer regions.
Jonathon Woodall-Johnston of Hays Travel added that demand is growing strongly for trips to Italy, Malta, and Croatia. Additionally, more travellers are looking across the Atlantic to avoid potential travel disruptions, with Swanson highlighting particularly strong demand for direct long-haul flights to the Caribbean, especially the Dominican Republic and Jamaica.
Impact on Flight Prices and Industry Shares
Mark Duguid of Kuoni described interest in the Caribbean as off the charts for upcoming trips, noting that flight prices have surged due to limited seat availability. He cited examples where economy seat prices increased by up to £1,000 per person, pricing many holidays out of the market. For instance, round-trip flights from London to Antigua and Barbuda rose by 27% in a week.
The tourism industry is beginning to count the cost of the conflict, with shares in On the Beach falling by as much as 13% after it suspended annual profit guidance due to the war's uncertain impact. The company reported a significant slowdown in bookings for destinations like Turkey, Cyprus, and Egypt, and noted a similar trend for Greece, despite Tui's strong demand there recently.
Broader Industry Disruptions and Delays
Other travel operators have also been affected, with shares in easyJet and Jet2 down by 16% and 10%, respectively. Loveholidays, which was expected to list on the London Stock Exchange in 2026, is reportedly delaying its flotation due to the conflict.
In the Middle East, tourism has been severely impacted, with the Foreign Office advising against travel to countries like the United Arab Emirates, Jordan, Qatar, Bahrain, and Oman. British Airways has cancelled its seasonal Abu Dhabi route, and Wizz Air is reallocating about half of its Middle East capacity to European destinations until September.
Economic Consequences for Middle East Tourism
The World Travel & Tourism Council estimates that the Middle East's tourism sector is losing $600 million daily in visitor spending, a stark contrast to the pre-conflict forecast of $207 billion in international visitor spending for the year. Iconic sites like Dubai's Fairmont hotel and Burj Al Arab have been affected by the war, further dampening tourism prospects.
This shift in holiday patterns underscores the broader economic and logistical challenges faced by the travel industry as it navigates the uncertainties of the Middle East conflict.
