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1. Oil prices up 64% since start of Iran war
Crude oil prices have surged by 64% since the start of the U.S. and Israeli war with Iran and Lebanon. Tourism Economics reports the increase is “the most significant price disruption since 2022 and [one that is] affecting the aviation sector significantly.”
“Around one-fifth of Europe-Asia demand and 10% of North America-Asia demand travels via Middle East and is at risk. Assuming a two-month conflict, recovery is expected to begin by [the second half of] 2026, but sentiment may slow the rebound,” said Stephen Rooney, lead economist at Tourism Economics.
2. Two more Dubai hotels close for renovations
Following news that the Jumeirah Burj al Arab has closed to complete an 18-month renovation, now the Anantara World Islands Dubai Resort and the Park Hyatt Dubai plan to do the same, according to Gulf News and The National, respectively. Gulf News reports “Minor Hotels confirmed in a statement that the resort stopped operating on April 10, following a joint decision with owner Seven Tides Ltd.”
A statement from Anantara said, “the closure is the result of a combination of external factors and is not attributable to any single issue. While this is not the outcome we had hoped for, our immediate focus is on supporting our team members through this transition.” The National added the Park Hyatt Dubai will close in May and reopen later in the year.
Neither hotel alluded to the Iran crisis and any resultant dip in occupancy and demand as reasons for closing temporarily, nor did the Jumeirah Burj al Arab.
3. European Union employment grows to record percentage level
Employment in the European Union grew to its highest percentage ever, according to Eurostat. Of people aged 20 to 64, 76.1% were employed, the highest level since records began in 2009. In comparison with results from full-year 2024, the percentage increased by 0.3%.
Eurostat added that for individual EU countries, “the highest employment rates were recorded in Malta (83.6%), the Netherlands (83.4%) and the Czech Republic (82.9%). The lowest rates were recorded in Italy (67.6%), Romania (69%) and Greece (71%).”
4. US remains largest travel market but is losing share
According to the World Travel & Tourism Council, the U.S. is the largest travel market in the world in terms of the sector’s effect on gross domestic product, benefitting from direct and indirect spend of $2.63 trillion. However, the WTTC warned the world’s biggest economy is losing market share.
Globally, travel and tourism contributed to 4.1% GDP growth, but in the U.S., “visitor numbers declined 5.5% against 2024, and international visitor spending [to the U.S.] fell 4.6% to $176 billion.”
China is the second largest tourism market and has done well in the last 12 months. Travel there contributed $1.75 trillion to its GDP, “growing 9.9% year on year. … Both international visitor spending (up 10.5% to $135 billion) and domestic spending (up 10.7% to $890 billion) saw strong gains.”
5. Euro inflation rises above 2% in March
Eurozone inflation rose above 2% — the preferred rate by most European central banks — in March, the Wall Street Journal reports. In the month, inflation across the member-state area increased 2.6%, “a bit higher … than previously thought, as the energy shock from the Iran war proved more pronounced than expected.”
European Central Bank president Christine Lagarde said earlier this week “that the impact of the war was landing between the bank’s baseline and adverse scenarios, the latter of which predicts a sharper rise in inflation and slower economic growth.”