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Iraq proposes to build alternate routes around the Strait of Hormuz to safeguard oil exports and ease traffic congestion in the region. The plan by Iraq to develop alternative routes to the Strait of Hormuz to bypass it and protect its oil exports is set to have far-reaching effects on the Gulf tourism industry as well as the airline and cruise industries in the region. While Iraq seeks to develop other routes for its oil exports, the emphasis is likely to be on the impact that energy security, fuel prices and regional confidence would have on future travel demand in the Gulf.

The strategy comes as regional tensions have highlighted the risks of relying heavily on a single maritime corridor. Iraq previously depended on Gulf shipping routes for the majority of its crude exports, with around 80–85% of its oil shipments passing through the Strait of Hormuz. The government is now seeking alternative export channels to protect national revenue and reduce exposure to geopolitical disruptions.

For the tourism sector, the development carries importance because the Gulf’s travel economy is closely connected with aviation fuel availability, airline operating costs, maritime security and visitor confidence.

Iraq’s Hormuz bypass strategy aims to secure energy flows and reduce risks

The Strait of Hormuz remains one of the world’s most important energy corridors, connecting Gulf oil producers with international markets. Any disruption in this narrow waterway can create uncertainty for global energy markets and industries that depend on stable fuel supplies.

Iraq’s oil export system has historically been concentrated around southern terminals near Basra, where crude is transported through Gulf waters before reaching global buyers.

The government’s current approach is focused on creating a more flexible export network by strengthening alternative pipelines and land-based corridors.

Iraq’s major oil export dependence and diversification plan

The move is designed to ensure that oil exports can continue even during periods of regional uncertainty.

Alternative oil routes could reshape Gulf energy security

Several pipeline options are being considered or strengthened as Iraq attempts to create additional export flexibility.

One of the most important alternatives is the Kirkuk–Ceyhan pipeline, which connects northern Iraq with Türkiye’s Mediterranean coast. This route allows Iraqi crude to reach international markets without travelling through the Strait of Hormuz.

Another potential pathway involves western export corridors through neighbouring countries, including routes towards Mediterranean ports.

Potential alternative routes for Iraqi oil exports

Regional producers are also expanding alternative energy routes. Saudi Arabia uses the East-West Pipeline to transport crude towards the Red Sea, while the UAE has developed infrastructure connecting oil supplies to ports outside the Strait of Hormuz.

Aviation fuel prices could become a key concern for Gulf tourism

The Gulf has developed into one of the world’s largest aviation centres, with millions of international travellers connecting through airports in Dubai, Abu Dhabi, Doha, Riyadh and Jeddah.

Because aviation relies heavily on fuel costs, any uncertainty in regional energy markets can influence airline operations.

Potential impacts include:

Fuel stability is particularly important for Gulf tourism because many visitors arrive by air from Europe, Asia and North America.

A rise in aviation expenses could affect travel affordability, especially for international tourists planning Gulf holidays.

However, stronger energy diversification could help create greater long-term stability by reducing dependence on vulnerable transport routes.

Gulf airlines depend on secure energy networks for tourism growth

The Gulf’s tourism expansion has been strongly supported by aviation connectivity.

Major carriers have built global networks connecting continents through Middle Eastern hubs. Stable fuel availability allows airlines to maintain:

• International route expansion
• Competitive ticket pricing
• Increased flight frequency
• New tourism partnerships

A more resilient energy system could therefore support the continued growth of Gulf aviation.

For destinations investing heavily in tourism development, including luxury resorts, cultural attractions and large-scale events, reliable air connectivity remains essential.

Cruise tourism faces growing focus on maritime stability

The Gulf cruise sector has expanded rapidly, with destinations including:

• Dubai
• Abu Dhabi
• Qatar
• Bahrain
• Oman
• Saudi Arabia’s Red Sea coastline

Cruise operators depend on safe maritime routes and predictable operating conditions.

Any prolonged uncertainty around Gulf shipping routes could influence cruise planning, vessel deployment and passenger confidence.

Possible cruise tourism impacts

The development of alternative oil corridors could indirectly support cruise tourism by improving perceptions of regional economic resilience.

Travel costs across the Gulf could be influenced by energy markets

Tourism depends on a wide network of services, many of which are connected to energy prices.

Higher fuel costs can affect:

• Airport transfers
• Rental vehicles
• Domestic transport
• Hotel operations
• Tourism experiences

Hotels and resorts across the Gulf require significant energy resources for cooling systems, water management and daily operations.

A stable energy supply helps tourism businesses maintain predictable costs and competitive pricing.

Tourism confidence remains a critical factor for Gulf destinations

Beyond direct financial impacts, regional uncertainty can influence traveller decisions.

Tourism markets often respond not only to actual disruptions but also to perceptions of safety and stability.

Potential consequences include:

• Slower bookings
• Increased demand for flexible travel options
• Changes in cruise reservations
• More cautious business travel decisions

The Gulf has positioned itself as a global tourism destination through major investments in airports, resorts, entertainment districts and international events.

Maintaining traveller confidence is therefore a key priority.

Iraq’s energy diversification could support long-term Gulf tourism resilience

Iraq’s push for Strait of Hormuz bypass routes represents more than an oil export decision. It reflects a wider regional effort to strengthen economic resilience.

For tourism, the connection is clear. Stable energy networks support:

• Affordable aviation
• Reliable transport systems
• Competitive travel costs
• Investor confidence
• Visitor growth

The immediate focus remains on protecting oil exports, but the long-term impact could extend into the wider Gulf economy.

Iraq is considering alternate routes through the Hormuz Strait to offset the impact on oil tourism in the region. The impact of the diversion could have a significant impact on energy prices, as well as the cost and confidence of travel in the Gulf.

As the energy routes become more diverse, the tourism industry can look forward to increased stability and reduced risk of future disruption.