Gulf Luxury Hotels Offer Discounts to Locals as International Tourism Declines Post-February Conflict

Luxury hotels across the Gulf are slashing prices and targeting local residents as international tourism has plummeted since a war began on February 28, 2026, Semafor reported. Hotel occupancy in Dubai dipped to 16% in the weeks after the war began on February 28, 2026.

Conferences, concerts, and major sporting fixtures like Formula 1 have been postponed in Saudi Arabia, causing hotel bookings there to dry up.

Burj Al Arab in Dubai has marketed a 25% discount. FIVE Palm Jumeirah is converting room costs into credit for food, beverage, and spa services. A room at the St. Regis Saadiyat in Abu Dhabi cost about $300 a night over Eid, compared to more than $2,000 for a night at the same hotel over the weekend prewar.

Many hotels in the Gulf are operating with skeleton crews. Staff at Gulf hotels have been relocated to properties outside the region or let go after occupancy collapsed. Employees at the St. Regis Saadiyat reported that getting a snack took more than one hour last weekend due to a fuller beach.

Dubai’s Fairmont The Palm launched a “workation” package allowing guests to use laptops in its lobby lounge while offering 30% off food, drinks, and the spa.