Paris Attack Economic Impact: Gulf States, Travel Companies Could Suffer If Tourists Fear Arab Region

The recent terror attacks in Paris that claimed the lives of at least 129 people may have a wider economic impact outside of Europe. An analyst at Euromonitor International, a market intelligence firm in London, predicted Tuesday that the Gulf region could suffer economically as some travelers will fear coming to the Arab region, according to Gulf News, an English language newspaper in Dubai.

“Arab countries in general are expected to be perceived as relatively dangerous following the Paris attack [and not to mention the] Russia plane crash – both linked to Islamic militant groups,” analyst Kinda Chebib told Gulf News. “They are likely to look for alternative destinations, such as Asia Pacific, Latin America or even Africa.”

Police have been conducting raids in Paris to find suspects in Friday’s terror attack, CNN reported. The Islamic State group, also known as ISIS, has claimed responsibility for the attacks. ISIS also claimed responsibility for the downing of a Russian passenger jet over Sinai, Egypt in October, which killed more than 224 people.

Companies in the Gulf travel industry that focus on meetings, incentives, conferencing and exhibitions could expect slower business as a result of the attacks, and some Dubai travel agencies have said travelers that were heading to Paris have cancelled their trips. Gulf stock markets also hit a slump Sunday, just two days after the attacks.

“Investment companies, including those operating in construction, real estate, energy and tourism are the most impacted,” Chebib said to Gulf News. “Their earnings are likely to slow down in the short to medium term as a consequence of those challenging market conditions.”

Gulf leaders threw their support behind France Tuesday, saying the Paris attacks will reinforce the need to combat terrorism worldwide, according to Arab News. The Gulf Cooperation Council — a political and economic grouping of Gulf States — condemned the Paris attacks.

Gulf leaders join a large chorus of supporters for France following the attacks. The United States, the United Kingdom and Spain were among the first to condemn the attacks, the National reported.