Dubai in the United Arab Emirates (UAE), whose image as a "safe destination" has been badly damaged by the Iran war, has rolled out an extraordinary compensation plan offering incentives to attract travelers.
CNN reported on the 28th that Dubai has begun offering incentives worth up to 3,000 dirhams (about 1.2 million won) if UAE residents and citizens recommend relatives or friends as visitors to Dubai.
Adults 18 and older holding a valid UAE ID can recommend up to three friends for stays starting through Oct. 31 and receive benefits such as hotel lodging and dining discounts. According to Dubai's tourism authority, the recommended visitors must be UAE nonresidents who hold valid tourist visas and enter by air, sea or land.
Dubai is implementing this policy because its tourism sector has slumped since the Iran war. After Iran was hit by U.S. and Israeli airstrikes on Feb. 28, it launched ballistic missile and drone attacks on neighboring countries in retaliation, inflicting heavy damage on Dubai's tourist attractions.
The Fairmont The Palm and the Burj Al Arab Hotel, both flagship five-star resorts, came under direct attack, and the Burj Al Arab has suspended operations for an 18-month restoration project. Dubai International Airport, a global aviation hub, also temporarily halted operations after a bombing in March.
While the physical damage to tourist sites has been largely repaired, Dubai's image, tarnished by the Iran war, has yet to recover. At the start of this year, Dubai was on track to attract 19.59 million overseas visitors in 2025, a record for tourism, but after Iran's attacks, hotel occupancy is estimated to have fallen from 80% to around 10% over the coming months.
Moreover, several countries still maintain travel advisories for the UAE. The U.S. government is advising its citizens to reconsider travel to the UAE. Naim Maadad, founder and chief executive officer (CEO) of Gates Hospitality, which operates venues including Dubai's Ultra Brasserie, told CNN, "Rather than fundamentally undermining trust in the UAE itself, this situation has heightened travelers' hesitation."
Dubai is making every effort to revive tourism. Since April, it has temporarily exempted luxury hotels from lodging taxes and has rolled out several measures, including abolishing the 7% local government tax that was added to hotel and restaurant bills.
Noor Al Geziry, deputy director for special projects and the Middle East and North Africa (MENA) at the Dubai Department of Economy and Tourism (DET), said of the incentive program, "At a time when personal recommendations and trust matter more than ever in deciding to travel, this program showcases Dubai's enduring appeal by having residents who know the city best personally invite their family and friends to experience Dubai."