Israel-Iran Conflict Cuts Pilgrims to Najaf and Karbala, Closes Hotels, Reduces Jobs

-Israeli strikes on Iran has severely curtailed the influx of pilgrims to Iraq's holy cities of Najaf and Karbala, leading to widespread hotel closures and job losses. Millions of Shia Muslims from around the world typically flock to Najaf and Karbala every year, but the conflict has stemmed visitors from Iran, Lebanon, the Gulf states, India, Afghanistan and elsewhere.

U.S. Interests and Tehran-backed armed groups in the country. A fragile ceasefire took effect on April 8, 2026, after which Iraq's airspace reopened, yet pilgrim numbers remain low. In Najaf, home to the Imam Ali Shrine—the ornate burial place of Ali, the Prophet Mohammed's son-in-law, the fourth Islamic caliph and the first Shia Imam—local businesses have suffered.

Jewellery shop owner Abdel Rahim Harmoush, 71, who has worked in the old market near Najaf's golden-domed mausoleum for 38 years, said, "Iranians used to keep us busy, whether the jeweller, the fabric merchant or the taxi driver. " He added, "It used to be hard even to step into the market because of foreigners...

" People in Najaf and Karbala live on religious tourism, which constitutes a significant source of revenue for Iraq's non-oil economy.

Harmoush warned of economic ruin if the crisis persists, noting shop owners unable to pay rent and taxes, cab drivers without passengers and labourers struggling to find work. Hotel owner Abu Ali, aged 52, was forced to lay off five employees, leaving just one to tend to nearly 70 empty rooms.

Saeb Abu Ghneim, head of the hotel association in Najaf, stated that 80 percent of the city's 250 hotels have closed, with more than 2,000 employees laid off or put on unpaid leave.

He added that most of Najaf's religious tourism relies on Iranians, followed by Lebanese visitors and other nationalities. The sector previously weathered the closure of mosques and shrines during the pandemic. Moustafa al-Haboubi, 28, who works exchanging foreign currency for Iraqi dinars near the shrine in Najaf, said, "We barely receive one or two customers...

Even after the ceasefire, some pilgrims arrive during the week, while weekends see somewhat more activity from Iraqis visiting the sacred sites. Karbala, located around 80 kilometers north of Najaf, is home to the shrines of Imam Hussein and his brother Abbas, grandsons of Prophet Mohammed.

Israa al-Nasrawi, head of Karbala's tourism committee, stated that the war has slashed tourist numbers by around 95 percent and forced hundreds of hotels to close.

Akram Radi, who has worked in the pilgrim tour sector in Karbala for 16 years, said his company once helped up to 1,000 visitors a month but is now operating at only 10 percent of capacity. He noted he might have to close and look for another job.