In Iraq’s holy city of Najaf, the shrine of Imam Ali stands unusually quiet, as the regional conflict has sharply reduced the flow of foreign pilgrims who once filled its courtyards.
The downturn follows the war triggered in late February by United States and Israeli strikes on Iran, which have disrupted travel across the region. Pilgrims from Iran, Lebanon, Gulf countries, India and Afghanistan have largely stopped visiting, leaving local businesses struggling.
“Iranians used to keep us busy, whether the jeweller, the fabric merchant or the taxi driver. Now there are none,” said Abdel Rahim Harmoush, a 71-year-old jewellery shop owner who has worked near the shrine for decades. “It used to be hard even to step into the market because of foreigners.”
Najaf and Karbala typically attract millions of Shia Muslim pilgrims each year. Religious tourism is a key source of income for these cities and an important contributor to Iraq’s non-oil economy.
With visitor numbers collapsing, the economic impact has been severe. Harmoush warned that prolonged disruption could leave shopkeepers unable to pay rent or taxes, while drivers and labourers face a loss of income.
Hotel owners are also under pressure. A hotel operator in Najaf, Abu Ali, said he had laid off five employees, leaving only one staff member to manage nearly 70 empty rooms. “How can I pay salaries if there is no work?” he said.
Saeb Abu Ghneim, head of the hotel association in Najaf, said around 80 per cent of the city’s 250 hotels have closed, with more than 2,000 workers either laid off or placed on unpaid leave. He noted that most religious tourism in Najaf depends on visitors from Iran and Lebanon, both affected by the conflict.
The sector had only recently recovered from disruptions caused by the Covid-19 pandemic, when mosques and shrines were temporarily closed.
Even after a ceasefire took effect on 8 April and Iraq reopened its airspace, visitor numbers have remained low. Some domestic pilgrims visit during weekends, but international arrivals are still limited.
The situation is similar in Karbala, about 80 kilometres north of Najaf, which hosts the shrines of Imam Hussein and his brother Abbas. Once crowded streets are now largely empty, with visitors mostly from within Iraq.
Israa al-Nasrawi, head of Karbala’s tourism committee, described the impact as severe. She said the war had reduced tourist numbers by around 95 per cent and forced hundreds of hotels to shut.
Tour operators have also been affected. Akram Radi, who has worked in the sector for 16 years, said his company once handled up to 1,000 visitors a month but is now operating at only 10 per cent capacity. “I might have to close and look for another job,” he said.
For workers such as currency exchanger Moustafa al-Haboubi, the change has been stark. Before the conflict, he struggled to keep up with crowds exchanging foreign currency. Now, he said, “We barely receive one or two customers. There are no pilgrims now, Iranian or otherwise.”
While the ceasefire has brought some stability, uncertainty remains. Local businesses say recovery will depend on the return of international pilgrims, which in turn hinges on a lasting resolution to the regional conflict.
