Syria returns to the global tourism map... Major hotels compete for investment opportunities

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Senior officials told Reuters that international and regional hotel groups are looking to enter the Syrian market or expand their business there, relying on the fact that its rich history and coastal destinations will attract foreign tourists as well as Syrians who have lived abroad for a long time.

Although the devastating civil war in Syria, which left cities and archaeological sites in ruins, ended nearly two years ago, major challenges remain in attracting tourists again to this Middle Eastern country, which is still witnessing waves of violence.

While the United States removed Syria from its list of states sponsoring terrorism in August, which deterred investors, the US State Department still advises its citizens against traveling there. However, last year international flights and tourists began to return.

The Syrian Arab News Agency (SANA) reported, citing government data, that the number of tourists increased more than double from the same period last year during the first half of 2026 to 3.52 million tourists.

Founder and Chairman of the Board of Directors of the Emirati company Eagle Hills, Mohammed Al Abbar, which is among the companies studying the available opportunities along with other companies such as the French Accor, said: “Tourists will always flock there because this city (Damascus) is the oldest city in the world.”

Alabbar, who also heads Emaar Properties, which built the Burj Khalifa in Dubai, added that many Syrians living abroad want to return.

The Syrian Arab News Agency indicates that the number of tourists in the first half of this year reached 2.13 million Syrian expatriates, about 660,000 from Arab countries, and about 720,000 from other countries.

Syrian President Ahmed al-Sharaa worked to improve relations with the West and attract billions of dollars for reconstruction, including from the Gulf states.

Eagle Hills signed a framework agreement with Syria on Monday regarding two projects it wants to develop, one of which is 10 million square meters in Damascus and another of 4.3 million square meters in the coastal city of Latakia. The company did not disclose financial details.

Alabbar said that Emaar, which is working on a separate development project in Damascus, may also participate in the two projects, which have a total cost of billions of dollars.

At the same time, the Emirati real estate development company Arada announced that it plans to enter the Syrian market with a project costing $7 billion.

Western companies are also examining opportunities in Syria, which has become easier to travel to and from, thanks to flights from Gulf airports, including services by Qatar Airways and Flydubai.

Antonaldo Neves, CEO of Abu Dhabi-based Etihad Airways, said last month that his company may add more destinations depending on local support and customer demand.

Etihad Airways announced yesterday, Wednesday, that it will operate a daily flight to Damascus, raising the number of weekly flights from 4 to 7.

Duncan O'Rourke, CEO of Accor's Middle East, Africa and Asia Pacific region, told Reuters that his company is in advanced negotiations on two projects, while the American company Wyndham Hotels and Resorts is exploring opportunities in Damascus and beach destinations.

Dimitris Manikis, President of Europe, Middle East and Africa at Wyndham, said: “I am confident that we will announce very soon the first agreement we sign in Syria.”

Chief Operating Officer of Minor Hotels Middle East and Africa, Amir Gulbarg, stated that some buildings in Old Damascus could be converted into small hotels, while new projects could also be built.

“History and its strategic location, to me, make it one of the countries with really great potential,” Gulbarg said.

Although a few traditional houses in the capital have been used as small hotels for decades, some areas in the suburbs have protested some of the mega projects announced by the government.

Although Visa and MasterCard announced last month the start of their operations in Syria, electronic payments are still limited to certain cards issued by foreign banks, and are only available in specific locations.

Syria also faces the challenge of rebuilding or modernizing its infrastructure, including hotels.

The World Bank announced last year that its best conservative estimate of reconstruction costs in Syria amounted to $216 billion, including $75 billion for residential buildings and $59 billion for non-residential buildings.

“The challenge for the market is that it has been essentially out of the sector for many years. So the (hotel) inventory that exists right now is very depleted,” Gulbarg said.