The Iran-US war is putting billions of dollars of Gulf tourism investment at risk, with the Middle East facing potential losses of up to $56 billion, according to a report, threatening an industry worth about $367 billion annually.

More than 300,000 British citizens are currently in the UAE, the report said, with over 100,000 having registered to return to Britain. Experts say the situation could mark the biggest air travel crisis since the coronavirus pandemic.

Vacation rental cancellations in the UAE have doubled, with most bookings affected for March, the report said.

More than 8,450 reservations have been cancelled, according to experts, as Turkiye and Azerbaijan emerge as alternative routes for Gulf tourists.

Airlines and travel companies said passengers are redirecting travel plans to Portugal, Italy and Greece, while in Asia, travellers are opting for Thailand and Malaysia in search of cheaper accommodation.