The war in the Gulf has brought misery to GCC and Levant operators — and made winners out of Egypt and Morocco

War rarely creates tourism winners in our region, but the Iran conflict may have done exactly that. While GCC and Levant tourism businesses grappled with flight disruptions, falling hotel occupancy, and USD bns in lost visitor spending, North Africa destinations quietly emerged as the region’s biggest beneficiaries, industry experts tell us.

“We saw demand shift toward Egypt and Morocco, almost immediately,” travel search engine Wego’s chief business officer, Mamoun Hmidan, tells EnterpriseAM, adding, “Many travelers who had planned to visit elsewhere in the region redirected.” Wego’s main customer base is in Southeast Asia, India, the Middle East, and Egypt.

This demand shift was particularly visible in Egypt, recording the strongest growth across flights, hotels, accommodations, and excursions on Wego's platform. “That translated into nearly 30% growth on Wego,” Hmidan says. “Egypt posted the strongest growth across every category we track. Morocco ranked second, but Egypt remained comfortably ahead,” he adds.

Gulf travelers were key in propping up demand on North African destinations, as many residents looked for a break from the war. Wego data shows Saudi Arabia and Kuwait emerged as Egypt’s largest source markets during the conflict period. Cairo and Egypt’s Mediterranean coast were thronged with Gulf visitors during last week’s Eid Al Adha break. Record-high ticket prices made Egypt particularly attractive as Gulf travelers opted for shorter-haul destinations rather than long-distance trips that carried higher costs and greater uncertainty.

Geographic proximity is key. Many travelers who were initially planning to go to the GCC looked for alternatives that are close to their initial destinations and are still offering sunshine, beaches, cultural attractions, and relatively short flight times. And North African destinations happened to tick most of those boxes. “People also became more hesitant about long-haul travel because they wanted the reassurance that if something happened, they would be closer to home,” Michael Melika, CEO of Dubai-based tourism and hospitality advisory Via Consultation, tells us.

Cultural familiarity also helps: For many travelers, particularly families, Egypt, Morocco, and Tunisia offered something increasingly valuable for GCC travelers during a period of geopolitical uncertainty: familiarity. “Gulf travelers increasingly gravitate toward destinations where they find the same language, appealing food, and a familiar culture,” Melika says.

And the thing about Egypt and Morocco is that they also come at a much lower cost than Europe. “At a time when airfares are rising and travelers are becoming more cautious, nearby destinations become much more attractive,” Melika tells EnterpriseAM.

For Egypt, the 30% rise in demand after mid-March was driven by both regional and international travelers, per Wego data. Traveling families were a key demographic, accounting for 55% of bookings made, while average stays stretched to roughly 10 days. Egypt’s standing as a core and timeless destination for GCC travelers also shone through. “Some destinations go through cycles of popularity, but Egypt has remained a constant one,” Melika says.

Morocco’s story looks slightly different. While the conflict provided an additional boost, Hmidan says Morocco’s recent growth is increasingly being driven by business travel as much as leisure tourism. “The upcoming World Cup 2030 is adding another layer of momentum. Projects are moving ahead, construction activity is picking up, and more travel is being driven by businesses exploring opportunities on the ground,” he adds.

Tunisia’s tourism market is also growing — but remains a smaller story: Wego recorded booking growth of roughly 4% for Tunisia in the weeks that followed the beginning of the war; in March, hotel occupancy in Tunis nearly doubled y-o-y. But Tunisia continues to lag behind Egypt and Morocco in overall visibility and traveler awareness. “Egypt has a clear historical identity, while Morocco has built a lifestyle and leisure identity… Tunisia still has not established a clear identity for either Europe or the GCC,” Melika says. Tunisia is most popular among European travelers, rather than GCC-based ones.

The North Africa resilience isn’t an accident

Egypt, Morocco, and Tunisia weren’t accidental beneficiaries. Egypt welcomed nearly 19 mn tourists in 2025, a record year that saw arrivals rise 21% y-o-y. Morocco attracted 19.8 mn visitors, becoming Africa's most visited destination for the first time. Tunisia’s post-2015 tourism recovery has been slower, but tourism indicators have continued improving as European visitors returned, receiving roughly 11 mn visitors in 2024.

Covid’s key lesson? Travel never ceases completely. “Covid effectively gave tourism operators a free crash course in crisis management. One thing it proved is that the travel market across MENA and the GCC is incredibly resilient. People travel for all sorts of reasons — it's often a necessity, not a luxury. Tourism businesses are used to managing fluctuations in demand, which is why the sector remains so resilient,” Hmidan adds.

This has been the case in Lebanon, for example, which is among the hardest hit in the region. We previously reported that Lebanese hotels were hanging by a thread during the war — and that thread is essentially Lebanese expats visiting, journalists covering the war from Beirut, NGOs workers, and displaced folks from the south of the country.

The challenge isn’t just accommodating a dip in demand, but managing its sudden redistribution. Even when demand surged beyond expectations, as in the cases of Egypt and Morocco, businesses largely absorbed the increase without major disruption. “Hotels in Egypt typically run at around 70% to 75% occupancy through the year. Even when that climbed above 90%, it was still manageable. There was enough capacity,” Hmidan says.

That flexibility may be one of North Africa’s biggest competitive advantages. “You might feel some pressure at airports, passport control, or ground transportation. But those are operational issues. The infrastructure is there, the workforce is there, and operators know how to respond quickly. The more demand the region sees, the faster the sector adjusts,” Hmidan explains. “Tourism here is far more flexible than many people assume,” he adds.

What’s next

The big question now is whether North African destinations can turn this momentum into something that lasts. Melika argues that this will require active marketing and unlocking new markets and traveler segments. “The problem is that many countries still wait for tourists to come to them. They need to go to the tourists,” he says. Governments and businesses need to understand which source markets are growing to capitalize on and where the shortage is to address,” Melika adds. “[Many] countries regularly attend travel exhibitions and tourism conferences but often fail to follow up with sustained marketing campaigns, partnerships with travel agencies, or incentives that can convert interest into bookings,” Melika added.

For now, the tailwinds for Morocco and Egypt will continue up to 1Q 2027, Melika tells us. What happens after that is still hard to crack with forecasts. “No tourism trend lasts forever.”