In a situation heated with heavy social media attention and a mix of news from unchecked sources, ACROSS asked Will Odwarka, CEO of Heartatwork Hospitality Consulting, a Dubai-based F&B and retail expert, for a clear and professional view.
FACTS & FIGURES 2025
Dubai welcomed more than 20 million overnight visitors, seeing a +5% year-on-year increase
In December 2025 alone, the number of Dubai visitors rose above 2 million
The average occupancy rate in Dubai hotels amounted to 80.7%
The number of occupied room nights stand at 22.24 million
Source
“We live in a different world than we lived a few weeks ago,” explains Will. Since late February 2026, the United Arab Emirates has been caught in the crossfire of the war between Iran and US-Israeli forces. As part of a retaliation, Tehran has launched missiles and drones at all the GCC countries, particularly the UAE. According to the authorities, almost 2000 projectiles have been fired against the UAE, but only minor damage through falling debris has occurred. “I do believe it is important to not picture Dubai or the UAE as a warzone, since this could not be further from the truth,” Will added. Nonetheless, to make matters worse, the closure of the Strait of Hormuz – the most important part of it lying in Iranian Territory – has driven up oil prices and disrupted worldwide trade.
The Business Reality: Not a Place Tourists would Prefer
On a business level, all these events mean significant repercussions for Dubai as an internationally famed premium retail destination. The city cemented as haven of luxury retail with mega malls and iconic developments once busy with crowds of visitors from all around the world is now facing an obvious reluctance of tourists and business travelers to visit. The very understandable uncertainty also has an impact on residents and their shopping and dining behaviors and that adds additional pressure.
A key driver of footfall, tourism has sharply dropped as flight cancellations and travel advisories deter visitors from traveling to the Emirates during these times. As Will further remarks, “The lack of tourists puts our entire hospitality industry and high-end dining massively under pressure. That leads to a multitude of challenges from dropping sales, unsold products to layoff considerations. We are quite early in the crisis, though, and the companies have significantly smartened up since COVID.”
This, of course, affects the landlord-tenant relations as well. On one hand, landlords want to avoid letting tenants close stores, as it would drive away even more customers from their assets. On the other hand, the economic uncertainty is influencing new leasing activity and retail real estate investment decisions – especially from international brands that were looking at expansion to the UAE. “It seems that in these times of uncertainty, landlords, investors, operators alike are more receptive to new ideas and that could potential create a mid-term opportunity – something we haven’t seen for a while in the region,” explains Will.
Nevertheless, it is too early to say, that landlords are moving into Pandemic mode yet. Therefore, rents will not automatically drop for tenants and despite first unit closures in certain areas, we are not even close to a mass-exodus. Obviously, the main question is, when the hostilities will end and diplomatic reason kicks in to bring us back to whatever the new “normal” will be.
Although there are some small signs of opportunity, this is not the time for “lucky losers”, individuals must seek guidance before considering entering the region.
From Global to Local
While these are clearly challenging times, both economically and personally, there is always place for hope. If we had to define the shift taking place on the business scene, it would definitely be headed by the slogan ‘Go Local’.
According to Will, hotels and retailers that originally targeted an international touristic audience now is working on winning over local residents of Dubai. This shift in strategy includes offers, such as +50% discounts and other special incentives that especially cater to locals. Hotels, beach clubs, and restaurants also offer deals, staycations, free dinners or free beds upon booking a room to reanimate a disheartened audience.
Unfortunately, the reality of cost reduction efforts by operators cannot be ignored, however, there is another aspect to the story. “It is the camaraderie, the community outreach, the WhatsApp groups that are here to encourage, support and offer council,” says Will. “Local support becomes a thing: local brands, local suppliers and local service providers.”
Will Odwarka
CEO of Heartatwork Hospitality Consulting
Personal Perspective
Will Odwarka and Manuela Odwarka have started their business, Heartatwork Hospitality Consulting with a strong belief that “the true spirit of hospitality has always been about care, resilience, and community.”
As Will sums it up: “If there is one thing I learned in my almost 8 years in Dubai, it is that this place is a shining beacon of resilience and determination to protect what they have built for their residents, guests and tourists. It will bounce back as soon as things take a better turn. Until then, it will be a challenging ride for all businesses dependent on traffic.”
“Now, more than ever, we must support one another, stand strong, and keep our hearts at work.”
