Iran War Costs Planner $1.5 Million

Coordinated airstrikes by Israel and the U.S. on Iran have triggered widespread airspace restrictions across parts of the Middle East, leading to flight cancellations, rerouting, and mounting uncertainty for global travelers.

For the events industry, the impact is expanding well beyond Iran. Hundreds of events tied to the region have already been canceled or postponed. These include programs scheduled through the end of the year.

Jennifer Storey, founder and co-owner of EPG Meetings and Incentives, said her company has already lost $1.5 million in anticipated revenue for three group bookings. Two are in Dubai and one is in Abu Dhabi.

“It’s less about the Middle East itself and more about the uncertainty getting there,” said Storey, whose firm plans incentive trips and corporate meetings across the U.S., Middle East, and Europe. EPG also includes destination management services specializing in the Middle East. 

The cancellations are reaching deep into the calendar. A group scheduled to meet in Dubai in November, seven months away, has already canceled. A high-end Formula 1 program in Abu Dhabi this December has been canceled, despite plans for a VIP program at Yas Marina Circuit. Another December program, this one in Oman, has also been scrapped.

“A lot of our clients are from Europe, and there’s definitely hesitation, even avoidance, of the region right now,” she said.

Perception Overtaking Reality

While destinations like Dubai remain fully operational, Storey said perception is overtaking reality.

“When people see coverage of travelers stranded at airports, it changes how they feel,” she said. “What we’re seeing on TV isn’t completely accurate, life on the ground is still normal, but perception is everything.”

To mitigate losses, planners are pivoting quickly. Storey is actively working with clients on finding alternative destinations. One of her U.S. clients is considering moving an incentive from Dubai to Aruba. Another Italian client is considering moving from Dubai to New York City. 

“We’re trying to preserve the 2026 programs rather than lose them entirely,” she said. “We’re showcasing cities that may not have been considered before.”

The uncertainty is not confined to the Middle East. A 500-person group from Italy scheduled to meet in Las Vegas in June recently inquired about cancellation policies, highlighting how geopolitical instability is influencing decision-making globally.

“It’s just a really uncertain time,” Storey said.

For now, planners like Storey are focused on salvaging business where possible, even if it means rerouting programs across continents.