European Tourists Abandon Eastern Mediterranean Holidays Amid Middle East Conflict
European holidaymakers are dramatically shifting their summer travel plans away from the eastern Mediterranean region as the ongoing Middle East conflict causes widespread travel disruptions. Major travel operators report a significant surge in cancellations and destination changes for trips to Turkey, Cyprus, and Greece, with tourists instead opting for western Mediterranean destinations and Caribbean getaways.
Travel Industry Sees Rapid Destination Changes
Tui, Europe's largest holiday operator, has observed a sharp increase in demand for holidays in Spain, Portugal, Greece, and Cape Verde as customers seek what they describe as "familiar, easy-to-reach locations." Neil Swanson, a director at Tui, explained that while the company is experiencing some cancellations in affected areas, these are currently outweighed by customers choosing to amend their travel plans instead of canceling entirely.
Jonathon Woodall-Johnston of Hays Travel noted particularly strong demand growth for trips to Italy, Malta, and Croatia. The travel agency, which took over some of the collapsed Thomas Cook high street stores, has seen customers increasingly looking across the Atlantic for their summer holidays in an attempt to avoid potential travel disruptions.
Caribbean Demand Surges as Prices Escalate
Swanson revealed that Tui is experiencing exceptionally strong demand for direct long-haul flights to the Caribbean, especially to the Dominican Republic and Jamaica. Mark Duguid of Surrey-based holiday operator Kuoni described interest in Caribbean destinations as "off the charts" for trips in the coming weeks.
This sudden shift in demand has created significant price increases. Duguid explained that everything has been squeezed, with huge increases in flight prices due to limited remaining seats. He noted that economy seats have increased by approximately £1,000 per person, pricing many customers out of the market for certain destinations.
Price tracking data from Google shows dramatic increases, with round-trip flights from London to Antigua and Barbuda for the last week in March rising from £720 to £917 in just one week, representing a 27% increase.
Travel Industry Faces Financial Consequences
The tourism industry is beginning to count the substantial costs of the Middle East conflict. Shares in On the Beach, the online holiday agent, fell by as much as 13% after the company suspended its annual profit guidance due to the "unknown" duration and outcome of the war and its long-term impact on travel.
On the Beach informed investors that it has already experienced a significant slowdown in bookings for destinations including Turkey, Cyprus, and Egypt. The company also reported a slowdown in bookings for Greece, where tourism serves as the cornerstone of the country's economy, though Tui noted it has seen strong demand for Greek holidays in recent days.
Other travel operators have seen similar stock declines, with shares in easyJet and Jet2 falling by 16% and 10% respectively since the conflict began. Loveholidays, which had been expected to be the London Stock Exchange's first major listing of 2026, is reportedly preparing to delay its flotation according to Financial Times reports.
Middle East Tourism Suffers Catastrophic Losses
The Middle East's tourism industry has been virtually wiped out by the conflict, with the UK Foreign Office advising against travel to the United Arab Emirates, Jordan, Qatar, Bahrain, and Oman. British Airways has canceled its seasonal Abu Dhabi route from Heathrow until "later this year," while low-cost airline Wizz Air told Bloomberg it is reallocating approximately half of its Middle East capacity to European leisure and city destinations.
Wizz Air is moving about 25 to 30 daily flights to destinations including Croatia, Spain, Portugal, and Italy until September. The World Travel & Tourism Council estimates that the Middle East's tourism sector is losing $600 million (£448 million) daily in visitor spending due to the disruptions.
Before the conflict, the global trade body estimated that international visitors would spend approximately $207 billion in the Middle East this year. The region's tourism industry had grown rapidly in recent years, but some of its most famous sites and hotels have been directly affected by the war, including strikes on Dubai's Fairmont hotel and damage to the iconic Burj Al Arab hotel and Dubai International Airport.
