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Middle East Conflict Reduces Pilgrimage Tourism in Iraq's Najaf and Karbala, Impacting Local Businesses

The Middle East war ignited in late February has silenced the holy cities of Najaf and Karbala in Iraq, with shrines standing empty and businesses suffering from the absence of pilgrims. Shopkeepers, hotel owners, and tour operators report massive layoffs and closures. A fragile ceasefire on April 8 has brought little relief to the religious tourism sector.

The Japan Times
Al-Monitor
2 sources·May 4, 3:42 AM(25 days ago)·2m read
Middle East Conflict Reduces Pilgrimage Tourism in Iraq's Najaf and Karbala, Impacting Local BusinessesThe Japan Times
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The shrine of Imam Ali in Najaf, Iraq, stands quiet with no pilgrims due to the Middle East war, its vast courtyards no longer filled with visitors. The absence of tourists has severely affected shopkeepers and hotel owners in the city. The war has stemmed the influx of pilgrims from Iran, Lebanon, the Gulf states, India, Afghanistan and elsewhere.

-Israeli strikes on Iran. U.S. interests and Tehran-backed armed groups in the country. A fragile ceasefire took effect on April 8, and Iraq's airspace reopened after the ceasefire on that date.

Millions of Shia Muslims from around the world typically flock to Najaf and Karbala every year. The Imam Ali Shrine is located in Najaf and is the ornate burial place of Ali, the Prophet Mohammed's son-in-law, the fourth Islamic caliph, and the first Shia Imam.

Karbala, located around 80 kilometers north of Najaf, is home to the shrines of Imam Hussein and his brother Abbas, grandsons of Prophet Mohammed.

Jewellery shop owner Abdel Rahim Harmoush, aged 71, said the loss of visitors has hit local businesses hard. He has worked in the old market near Najaf's golden-domed mausoleum for 38 years. People in Najaf live on religious tourism.

Iranians used to keep us busy, whether the jeweller, the fabric merchant or the taxi driver. Now there are none," said jewellery shop owner Abdel Rahim Harmoush.

It used to be hard even to step into the market because of foreigners... Even street vendors drew huge crowds of visitors," said Abdel Rahim Harmoush, aged 71. Hotel owner Abu Ali, aged 52, laid off five employees, leaving one to tend to nearly 70 empty rooms. According to Saeb Abu Ghneim, head of the hotel association in Najaf, 80 percent of Najaf's 250 hotels have closed, with more than 2,000 employees laid off or on unpaid leave. Most of Najaf's religious tourism relies on Iranians, followed by Lebanese visitors and other nationalities. In Karbala, the war has slashed tourist numbers by around 95 percent, according to Israa al-Nasrawi, head of Karbala's tourism committee. Hundreds of hotels in Karbala have closed due to the war. Akram Radi's pilgrim tour company once helped up to 1,000 visitors a month but is now operating at only 10 percent of capacity. Akram Radi has worked in the pilgrim tour sector for 16 years. Religious tourism constitutes a significant source of revenue for Iraq's non-oil economy. The situation persists even after the ceasefire, with only some Iraqi visitors appearing on weekends. Moustafa al-Haboubi, aged 28, works exchanging foreign currency for Iraqi dinars near the Imam Ali Shrine. He now receives one or two customers per day.

There are no pilgrims now, Iranian or otherwise," said Moustafa al-Haboubi.

Key Facts

Pilgrim decline in holy cities
The war has stemmed the influx of pilgrims from Iran, Lebanon, the Gulf states, India, Afghanistan and elsewhere, leaving shrines quiet.
Hotel closures in Najaf
80 percent of Najaf's 250 hotels have closed, with more than 2,000 employees laid off or on unpaid leave.
Tourist drop in Karbala
The war has slashed tourist numbers in Karbala by around 95 percent, with hundreds of hotels closed.
Economic reliance
Religious tourism constitutes a significant source of revenue for Iraq's non-oil economy.

Story Timeline

4 events
  1. 2026-04-08

    A fragile ceasefire took effect and Iraq's airspace reopened.

    1 sourceunattributed
  2. 2026-02-late

    The regional war was ignited by U.S.-Israeli strikes on Iran.

    1 sourceunattributed
  3. ongoing since war onset

    Iraq was drawn into the conflict with strikes targeting U.S. interests and Tehran-backed armed groups.

    1 sourceunattributed
  4. pre-war typical

    Millions of Shia Muslims from around the world flock to Najaf and Karbala every year.

    1 sourceunattributed

Potential Impact

  1. 01

    Reduced revenue for Iraq's non-oil economy due to halted religious tourism.

  2. 02

    Continued business closures and layoffs in Najaf and Karbala if pilgrim numbers do not recover post-ceasefire.

  3. 03

    Potential shift in local employment as workers seek alternative jobs outside tourism sector.

  4. 04

    Slight increase in domestic Iraqi visitors on weekends, providing minimal economic relief.

Transparency Panel

Sources cross-referenced2
Framing risk35/100 (low)
Confidence score59%
Synthesized bySubstrate AI
Word count451 words
PublishedMay 4, 2026, 3:42 AM
Bias signals removed3 across 3 outlets
Signal Breakdown
Loaded 3

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