Dubai airports CEO says tariff war makes tourism unpredictable

U.S. tariffs have increased volatility in international tourism, but visitor numbers to the Middle East have held up, buoyed by the gradual return of Chinese tourists following the pandemic, Dubai Airports Chief Executive told Reuters on Wednesday.

Paul Griffiths, who runs Dubai International Airport connecting Asia and the West, one of the world's busiest, said it was difficult to assess the impact of the new U.S. tariffs.

"I mean, we haven't really seen any negative impact of it so far, but I think you know that it's a very volatile situation."

Trump's implementation of sweeping tariffs, including a 10% baseline on all imports and significantly higher rates on China, the world's second-largest economy, has sparked a trade war that is straining the global economy.

Griffiths said there were no significant fluctuations in passenger volumes across key markets, but there were shifts in demand, specifically from the United States.

"What we are seeing, of course, is a gradual strength in recovery of the Chinese market which has been quite welcomed," Griffiths said.

Dubai International Airport is forecast to handle 96 million passengers by the end of 2025, he said.

The airport, known as DXB, welcomed 23.4 million passengers in Q1 this year, up 1.5% compared to the same period last year, it said on Wednesday.

Griffiths also said he saw China becoming a major player in plane production, as it entered a jet delivery standoff with U.S. Boeing, which drew new criticism of Beijing from U.S. President Donald Trump.

"I'm hearing a lot of confidence around the Chinese manufacturing of planes and what they could do in the future," Griffiths told Reuters in an interview on the sidelines of the Arabian travel market fair held in Dubai.

"That would be interesting to have a third competitor in the market to Boeing and Airbus."