AGP Executive Report

Iran Funeral & Diplomacy: Iran has begun public mourning for Supreme Leader Ali Khamenei, with his body arriving at Tehran’s Grand Mosalla ahead of a massive state funeral expected to draw millions and foreign delegations, while Iran and the US maintain a fragile ceasefire and keep Hormuz tensions in focus. Pakistan-Iran-Türkiye Travel: Pakistan PM Shehbaz Sharif has departed for Iran to attend the funeral, with a follow-on visit to Türkiye, underscoring the region’s tight diplomatic calendar. Turkish-Iranian Outreach: Türkiye’s Vice President Cevdet Yilmaz met Iran’s President Pezeshkian in Tehran, reiterating support for peace, dialogue, and normalization after the war. Aviation Resumes, Disruptions Linger: Airlines are restarting some Middle East routes—Turkish Airlines is phasing back services to Abu Dhabi, Dammam, Kuwait and Bahrain—while other carriers keep cancellations and reduced schedules. Oil & Travel Costs: Persian Gulf flows are recovering toward pre-war levels, but oil prices remain choppy, shaping jet-fuel expectations and summer travel planning. Hospitality Spotlight (Sharjah): Sharjah Collection won multiple Haute Grandeur Global Awards, including Best Luxury Retreats and Best Glamping Experience in the Middle East. Sports Tourism (Saudi): Saudi Arabia and Pakistan signed an MoU to develop an international cricket stadium in Jeddah, aiming to boost sports tourism under Vision 2030.

Iran-US Talks & Hormuz: US officials warned Israel may try to assassinate Iran’s top negotiators, including parliament speaker Mohammad Bagher Ghalibaf and FM Abbas Araghchi, after Doha talks resumed amid a fragile ceasefire and Hormuz toll demands. Diplomacy & Mediation: Pakistan said it saw “positive progress” in indirect Iran-US talks in Doha and may host the next round after Khamenei’s funeral. State Funeral Mobilisation: Iran is preparing for massive multi-city mourning for Supreme Leader Ali Khamenei, with officials expecting up to 20 million in Tehran and ceremonies spanning Tehran, Qom, Najaf, Karbala and Mashhad. Regional Travel Disruption: Turkey blocked a US LGBTQ+ cruise ship from docking, rerouting it to Cairo and Crete instead of Turkish ports. Aviation & Trade: Syrian Airlines resumed direct Amsterdam–Damascus flights, while Dubai cargo carrier SolitAir launched Dubai–Sofia cargo service. Tourism Ops: SITA reports baggage mishandling fell 23% globally, with the Middle East at 5.3 mishandled bags per 1,000 passengers. Business Travel Signal: Apple held talks in Ethiopia on digital transformation, hinting at future tech investment that could boost regional connectivity.

Air Travel & Costs: UAE-based Tumodo says average air ticket prices in the region jumped 45.6% in H1 2026, with fares peaking near Dh2,200 in May as school-holiday demand and jet-fuel costs bite. Aviation Disruptions: KLM pushed back restarts to Dubai, Riyadh and Dammam until at least Aug 23, while other carriers have delayed Middle East route resumes amid ongoing regional volatility. Tourism & Culture: Bahrain’s must-visit art galleries spotlight a growing local scene, from Abbas Almosawi Art Gallery to community-focused exhibitions. Middle East Shipping & Safety: Iran warns tankers to use approved Strait of Hormuz routes or face “forceful response,” as Iranian state TV claims a ship ignored Tehran’s instructions and ran aground. Iran-US Diplomacy: US and Iran’s indirect Doha talks focused on Strait of Hormuz management and a 60-day MoU, with mediators urging continued discussion. Regional Travel Links: EgyptAir launched its first direct Cairo–Chicago flights in 2026, adding another US destination to its network. Funeral Travel: Pakistan PM Shehbaz Sharif will visit Iran and Türkiye July 3–5 for Khamenei’s funeral and bilateral talks. Tourism Numbers: Nepal reported 91,363 foreign tourists in June 2026, up 19.5% year-on-year. Travel Security Reminder: UK CAA warns passengers not to pack lithium batteries, vapes and power banks in checked luggage due to fire risks.

Hormuz & aviation disruption: Iran-linked reports say a foreign container ship ran aground in the Strait of Hormuz after using a non-approved route, as US-Iran indirect talks continue in Doha and shipping leverage remains a travel concern. Travel costs watch: IATA warns jet fuel prices won’t snap back to pre-crisis levels quickly, so airfares may stay elevated through the summer. Gulf investment despite uncertainty: Gulf sovereign wealth funds logged a record $53.9bn in first-half investments across 108 deals, signaling capital confidence even with war volatility. Regional tourism & business travel: Türkiye is pushing high-end honeymoon tourism (Antalya, Bodrum, Istanbul, Cappadocia), while Perk (formerly TravelPerk) opened an Abu Dhabi office to boost GCC business travel spend. UK holiday boost: Sterling hit a one-year high vs the euro, a win for Britons planning European trips. On-the-ground help: Egypt medical case update—an ill UK tourist in Hurghada was cleared to fly home after assessment. Safety incident: A US Navy MH-60S helicopter made an emergency water landing in the Arabian Sea; three crew rescued, one missing. Mobility: UAE passport ranked second globally for travel access. Middle East travel market signals: IATA says global air passenger demand fell 2.2% in May amid the Middle East crisis.

Strait of Hormuz Tensions: Iran says a foreign container ship ran aground after leaving the Tehran-approved corridor, as US-Iran indirect technical talks continue in Doha with Qatar and Pakistan mediators. Diplomacy Watch: Iran insists it won’t hold negotiations with the US in the coming days, focusing on MoU implementation and frozen-asset issues, while US officials frame Tehran’s denials as a “Persian negotiating tactic.” Tourism & Hospitality Growth: Ascott will open Ascott Villas Riyadh in Q4 2026, its first villa community in Saudi Arabia, targeting families and long-stay guests. Saudi Demand Signals: Saudi Arabia is emerging as a top destination for Chinese travellers, with air links and “China-ready” upgrades boosting interest. Travel Disruption Ripple: Asian airlines report weaker Europe-bound momentum as Gulf carriers recover and competition returns after Iran-conflict disruptions. UAE Nature Spotlight: Fujairah’s Wadi Wurayah is highlighted as a major natural heritage site, with biodiversity and conservation credentials. On-the-ground Safety: An Iraqi oil tanker overturned and burned in Syria’s desert region, destroying the vessel with no reported casualties. Tourism Sector Pressure: Cyprus expects tourism losses to stay under 12% in 2026, but MPs accuse the ministry of slow response. Travel Policy Friction: Schengen delays are frustrating Turkish travellers as visa backlogs and rejections mount. Health Travel Alert: A Welsh mother-of-three is reportedly fighting for survival after severe illness in Egypt, with a return to the UK hinging on costly air ambulance care.

UAE–Lebanon Travel Lift: The UAE has lifted its travel ban on Lebanon for Emirati citizens from June 29, a move seen as a wider regional reset as Beirut navigates a new Israel framework and shifting alliances. Doha Iran Talks Clarified: Qatar says a US delegation is in Doha but no direct US–Iran meeting is scheduled; Iran also insists it won’t meet US envoys, focusing instead on MoU implementation and frozen-asset steps. Strait of Hormuz Pressure on Travel & Trade: With shipping partially resuming and Hormuz transit a key concern, the broader Middle East conflict continues to ripple into travel costs and demand. Air Travel Demand Hit: IATA reports global air travel demand fell 2.2% in May, with Middle East conflict weighing on carriers. Saudi Tourism Push: Saudi’s Aseer region is offering 44 seasonal tourism investment sites for the summer, aiming to boost hospitality and events. Turkey–Iraq Trade Watch: Turkish exports to Iraq dropped 26.5% in May, a reminder that regional travel and tourism flows depend on wider economic stability. World Cup Culture in Israel: Israelis without a home team are turning World Cup screenings into community events, with choices shaped by family ties and war-era politics.

Doha Diplomacy: US President Trump says Iran requested a meeting in Doha on Tuesday, but Tehran insists no US talks are scheduled and says its delegation will go to Qatar via mediators to discuss the interim deal—leaving the next steps on the Strait of Hormuz and the 60-day roadmap up in the air. Gulf Travel Impact: With negotiations mixed and strikes recently paused, airlines and travelers are still feeling the uncertainty, while the strait remains a key corridor for oil-linked logistics that can quickly spill into regional travel conditions. Hospitality & Real Estate: Accor and Margins Developments are launching Novotel & Novotel Residences New Cairo Lusail, adding a 120-room hotel plus 450+ branded residences in New Cairo. Tourism Infrastructure: Egypt’s NAIA Developments plans Ras El Hekma’s first branded serviced residences under Swissôtel Residences, with Phase One nearly complete. Aviation Growth Watch: Turner & Townsend reports Middle East net revenue up to £169m (+from £97m) as it expands teams for transport and urban projects. Leisure & Mobility: Carnival’s Celebration Key pier extension in the Bahamas doubles capacity for up to four ships at once, boosting daily guest arrivals. Culture: Qatar and Mexico’s Year of Culture partnership brought contemporary Arab cinema to Mexico’s Cineteca Nacional de las Artes, featuring films from Iraq, Palestine, Syria, Egypt and more.

US–Iran Diplomacy: The US says envoys Jared Kushner and Steve Witkoff will travel to Doha for talks after a ceasefire pause, while Iran denies any direct US negotiations and says a technical delegation will visit Qatar to discuss implementation of the memorandum. Strait of Hormuz & Travel Risk: Oil and markets ticked up as both sides stood down, but shipping and insurers remain on alert after weekend flare-ups and warnings about route control. Gulf Connectivity: Dubai received its first Tehran flight since the Iran war began, signaling cautious restoration of Iran–UAE air links. UAE Travel Rules: Emiratis can resume travel to Lebanon after the UAE lifted its ban, but must register on Twajudi first. Saudi Tourism Jobs: Red Sea Global graduated 386 trainees from its vocational programme, training locals for tourism and hospitality roles. Hospitality Growth: IHG plans to bring all six Luxury & Lifestyle brands to Saudi Arabia by 2028. Regional Mobility: Etihad Rail launches passenger service between Fujairah and Abu Dhabi, cutting travel time between the emirates. Local Consumer Travel: Primark opens its first Indiana store at Castleton Square Mall on July 23.

Aviation & Connectivity: Philippine Airlines will restart nonstop Manila–Dubai flights from Oct 2, initially four weekly services, aiming to restore direct access for overseas Filipinos as Middle East conditions ease. Travel Rules: Saudi Arabia has lowered the traveller cash/gold declaration threshold to SAR 40,000 for arrivals and departures, with ZATCA stressing it’s a disclosure rule, not a carry ban. Tourism Growth: Qatar Tourism expects a stronger inbound rebound in the second half of 2026 after 1.13 million visitors in Q1, boosted by summer events and more domestic travel. Hospitality Awards: Coral Beach Resort Sharjah and its Casa Samak Seafood Restaurant picked up major Hozpitality Group Chef and F&B honours, including Best Sunset Spot. Energy & Shipping: Despite renewed Strait of Hormuz attacks, Middle East oil and LNG producers kept loading, while the U.S. and Iran said they agreed to halt hostilities and renew talks. Markets Watch: U.S. stock futures rose on reports of a U.S.–Iran ceasefire, easing some Middle East tension fears. Immigration Enforcement: In the Philippines, authorities arrested 10 foreign nationals in Siargao, including Israelis accused of overstaying and working without proper permits.

Saudi Tourism Tech: Saudi Arabia’s Ministry of Tourism launched an “AI Tourism Vision” and a new global platform, TourismX, to push AI across the visitor journey and boost investment and productivity. Gulf Security & Travel: Kuwait and Lebanon expanded intelligence sharing to fight terrorism, organized crime and drug smuggling, with tighter cooperation on nationality and travel documents. World Cup Fallout (Travel Impact): Iran’s World Cup exit turned into a travel-and-visa row, with captain Mehdi Taremi calling it a “disaster World Cup” after restrictions and last-minute departures; the team also thanked Seattle in a post-match message. Hormuz Risk to Tourism & Costs: Iran again attacked Bahrain and Kuwait after US strikes and warned it could halt talks, keeping Strait of Hormuz tensions front and center for regional travel planning. Egypt Privatization: Egypt approved preliminary listings for four state firms, including petroleum players and a tourism development company, as part of its stock-market privatization push. Saudi Workforce Pipeline: Pakistan targets deploying 1 million workers to Saudi Arabia by 2030, with hospitality and tourism among key sectors. Qatar Summer Demand: Qatar expects a surge in summer visitors in 2H 2026, citing events and a strong inbound calendar. Turkey Heritage Tourism: Türkiye registered Alexander the Great’s first battle site (Battle of Granikos) as a protected historical site, aiming to strengthen cultural routes and tourism.

Saudi Tourism Boost: Saudi Tourism Authority launched “Unlock More” for Saudi Summer 2026, a unified digital hub with offers and partner packages to drive domestic and Gulf travel. Tourism Investment Pipeline: Saudi TDF says it completed its Grow Tourism Incubator, backing 30 startups with mentorship, workshops and grants. UAE Travel Access: UAE expanded visa-free entry eligibility for about 70 countries and confirmed direct Iran-UAE flights resume from July 1. Makkah Real Estate for Visitors: Jabal Omar plans to sell 400 hotel residential units after new rules allow non-Saudis to own property in designated zones. Regional Air/Transit Updates: Ben-Gurion’s Terminal 1 reopened for domestic flights, with international services from July 1; Netherlands temporarily closed its consulate in Erbil amid Iran-Israel tensions. World Cup Fallout with Travel Impact: Iran’s World Cup exit was tied to VAR and late drama, while players complained about US visa and logistics hurdles; the “Pride Match” between Egypt and Iran drew global attention. Shipping & Safety Watch: Fresh US-Iran strikes around the Strait of Hormuz keep maritime risk in focus, with potential knock-on effects for freight and travel planning. Qatar Summer Outlook: Qatar Tourism expects a rebound in inbound visitors in H2 2026 as summer events and offers roll out.

World Cup & Travel Friction: Iran’s coach Amir Ghalenoei and captain Mehdi Taremi called the 2026 tournament a “disaster” after a 1-1 draw with Egypt in Seattle ended with a late VAR offside ruling out Iran’s stoppage-time winner, leaving them waiting on third-place qualification; both cited visa/logistics problems and extra travel tied to US-Iran tensions. Middle East Security & Shipping: The US launched fresh strikes on Iranian military infrastructure near the Strait of Hormuz after attacks on commercial shipping, as Iran retaliated and Bahrain raised the threat level for vessels; markets also reacted to renewed Strait risk. Diplomacy Watch: Iran’s foreign minister Abbas Araghchi is set to visit Iraq for talks, while Israel says it will send a delegation to Washington to raise concerns over any long-term US-Iran nuclear deal. Egypt Tourism & Economy: Fitch forecast Egypt’s current account deficit widening to about 4% of GDP in 2025/26, while still pointing to tourism resilience; separate reporting says Italian arrivals to Egypt rose 15% in Jan–early June. Regional Air Travel: Iran plans to resume direct Tehran–Dubai flights from June 30, with bookings reopened as Gulf tensions ease. Heritage & Tourism Assets: Roman villa remains were uncovered in Alexandria, and Iraq completed nominations of five villages for UN Tourism’s Best Tourism Villages 2026 award. On-the-ground Enforcement: Saudi Arabia arrested 15,231 illegal residents in a week and deported 11,297.

World Cup Fallout (Iran-Egypt): Iran’s stoppage-time winner was ruled offside in a 1-1 draw with Egypt in Seattle, leaving Mehdi Taremi and coach Amir Ghalenoei furious over FIFA’s “disaster” logistics and US travel restrictions; Egypt still booked the Round of 32 and will face Australia, while Iran waits on other results to reach the knockout stage. Injury Watch (Egypt): Mohamed Salah was withdrawn with a hamstring complaint and is set for scans, casting a fitness race over Egypt’s next match. US-Iran Tensions (Hormuz): The US hit Iranian missile/drone and coastal radar sites after an attack on a cargo ship in the Strait of Hormuz; Iran says the strikes violated the ceasefire understanding, while Bahrain condemned an alleged Iranian drone attack. Regional Diplomacy (Israel-Lebanon): US Secretary of State Marco Rubio announced a framework deal for a first step toward peace, including a process to dismantle Hezbollah and a Lebanon military coordination mechanism. Travel & Tourism (Cyprus): Cyprus hotel bookings are improving after cancellations, but the season still faces an average 20% loss. Visa Services (India): InstaeVisa expanded global visa assistance as international travel and overseas education demand keeps rising. Saudi Travel Rules (Ebola): Saudi Arabia suspended travel and visas for three African nations amid Ebola concerns. UAE-Iran Navigation Talks: UAE and Iran discussed protecting Hormuz maritime routes and ensuring freedom of navigation. Saudi Gold Declarations: Saudi tightened anti-money laundering declarations for gold and valuables above SAR40,000.

Strait of Hormuz Flashpoint: The US launched strikes on Iran after an Iranian drone attack hit a Singapore-flagged cargo ship (M/V Ever Lovely) near Oman, with CENTCOM citing “unwarranted aggression” and Trump calling it a “foolish violation” of a ceasefire—raising fresh uncertainty for the interim de-escalation. Diplomacy on the Border: In Washington, Israel and Lebanon signed a US-brokered framework aimed at easing fighting with Hezbollah, described as a “first step,” though details and enforcement remain unclear. Shipping Stabilizes (For Now): South Korea reported eight additional commercial vessels safely exited Hormuz, cutting remaining South Korean-managed ships to five, as maritime risk appears to ease after the ceasefire. Travel Advisories Ease: Japan downgraded travel warnings for seven Middle Eastern nations from Level 3 to Level 2 following the US-Iran security memorandum, signaling a cautious return of confidence for travelers. World Cup Travel Buzz: Toronto hosted a packed Senegal-Iraq finale with big crowds and fan marches, underlining how major matches keep pulling visitors into Middle East-linked travel networks. Tourism & Business: Airtripmaker promoted more affordable business-class options from US cities, while Reuters flagged luxury property demand in Spain from buyers seeking refuge from Middle East instability. Immigration Policy Impact: US Supreme Court moves to end TPS for some Syrians and Haitians, a reminder that travel planning can be disrupted by policy shifts.

Strait of Hormuz Security: Iran fired a projectile/drone at a cargo ship transiting the Strait, hours after IRGC warnings that only authorised routes are safe—raising fresh uncertainty for shipping and the fragile US-Iran ceasefire talks. Aviation Impact: Heathrow forecast a 1.1% passenger dip this year as Middle East volatility cuts Middle East routes by 25%, with profits also expected to fall. World Cup Travel Politics: In Seattle’s “Pride Match” between Iran and Egypt, FIFA rejected a joint request to ban rainbow flags, while Iran’s coach said the team will focus only on football amid travel-restriction controversy. Immigration & Travel Risk: The US Supreme Court cleared Trump’s plan to end Temporary Protected Status for Haitians and Syrians, with the US State Department warning against travel to both countries. UAE Tourism & Connectivity: GCC travellers are shifting toward cooler summer escapes, and Etihad Rail unveiled a first look at future UAE travel experiences. Saudi Hospitality Deal: Blacksand and Marriott agreed to develop 10 hotels across Saudi Arabia (1,300+ rooms) by 2030.

Strait of Hormuz Disruption: The UN’s IMO paused its evacuation of about 11,000 mariners after a vessel was hit in the Gulf of Oman, renewing fears for shipping safety as the US-Iran de-escalation talks continue. Diplomacy Under Pressure: US Secretary of State Marco Rubio said the US wants a deal with Iran, but “not at any price,” while also rejecting Iran’s reported push for Strait of Hormuz transit fees. Maritime Rules Clash: Iran’s Persian Gulf Strait Authority warned it won’t guarantee safety for ships outside its approved routes, with officials saying owners would bear consequences. Travel & Health: Saudi Arabia suspended travel and visas for citizens to Ebola-affected DR Congo, Uganda and South Sudan. Regional Security: Israeli forces and Hezbollah exchanged fire near the Lebanon border, with one Israeli soldier reported killed. US Immigration Shock for Travelers: The US Supreme Court cleared Trump’s plan to end Temporary Protected Status for Haitians and Syrians, potentially affecting hundreds of thousands. World Cup Travel Demand: Fox’s top World Cup broadcast team logged nearly 14,000 miles in the group stage, highlighting how tournament travel is straining schedules.