Who really controls Kurdistan’s gas? The Dana Gas deal, the KRG’s silence and the hidden cost of selling energy to Iraq

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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis      A $2.239 billion arbitration settlement, a contract running until 2049, expanded rights for Pearl Petroleum and a new battle over gas sales to Baghdad are raising uncomfortable questions about who ultimately controls Kurdistan’s most strategic natural resource. The latest dispute over Khor Mor gas is exposing a much deeper problem in the Kurdistan Region’s energy sector: the public still does not appear to have a clear picture of who controls the region’s gas, who is authorized to sell it, and how much of its future value has already been committed to private companies. At the center of the controversy is Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum, and a settlement agreement reached with the Kurdistan Regional Government (KRG) on August 30, 2017. Kurdistan Parliament member Kawa Sheikh Ali has now sharply criticized that agreement, asking why a government would effectively commit its natural ...

Kurdistan’s Tourism Boom Defies Middle East Chaos as Hotels Reach Full Capacity During Eid

By Dr. Pshtiwan Faraj

Sulaimani, Iraqi Kurdistan, Kurdish Policy Analysis- 29 May 2026  

While conflict and instability continue to shake the wider region, tens of thousands of Iraqi tourists are flooding into the Kurdistan Region, turning Erbil, Sulaimani, Duhok, and Halabja into rare islands of stability and economic resilience.

Tens of thousands of tourists have flocked to the Kurdistan Region during the Eid al-Adha holiday, with tourism officials across the Region reporting hotels operating near full capacity as visitors continue arriving from central and southern Iraq.

Tourism authorities in Sulaimani, Erbil, Duhok, and Halabja said the number of visitors this Eid has surpassed arrivals during Eid al-Fitr, when the US and Israel war against Iran affected travel.

Goran Qadir, spokesperson for the Sulaimani tourism directorate, told local news agency Rudaw on Thursday that “tens of thousands of tourists” had visited the province’s districts and that authorities had made extensive preparations to accommodate them.

“We have distributed brochures in various languages to tourists. Our information center on Salim Street is assisting visitors, security procedures have been streamlined to take as little time as possible, and we have welcomed them at the checkpoints,” Qadir said.

The Kurdistan Region, known for its mountainous landscapes, cooler summer climate, and historical landmarks, attracts the majority of its visitors from central and southern Iraq during holidays and summer seasons, while foreign tourists account for a smaller share of arrivals.

Sulaimani province currently has around 380 tourist hotels, 50 budget hotels, eight five-star hotels, and hundreds of tourist cabins and huts.

Qadir added that “hotels and motels are operating at full capacity,” noting that restaurants and eateries had been instructed ahead of Eid to remain open to receive visitors.

In Erbil province, tourism officials also reported a sharp increase in arrivals compared to Eid al-Fitr.

“Tourist arrivals are very good; a large number has arrived. The rate has increased significantly compared to Eid al-Fitr, as there was conflict during that holiday,” Nariman Fazil, spokesperson for the Erbil tourism directorate, told Rudaw on Thursday.

According to tourism figures, Erbil province has approximately 445 hotels and motels, 47 tourist villages, and hundreds of tourist huts.

“Tourists have been arriving for three days, and the flow will continue through today and tomorrow. Most guest houses and hotels are booked and full of tourists,” Fazil said.

In Duhok province, where tourism remains one of the Region’s major economic sectors, hotel occupancy rates have also surged.

“A vast number of tourists have arrived, and 90 percent of hotels and motels are filled,” Sheikh Ihsan Issa, head of the Duhok branch of the Restaurant and Hotel Association, told Rudaw on Thursday.

Isa said visitors from Erbil, Halabja, and Sulaimani, in addition to tourists from central and southern Iraq, had traveled to Duhok during the holiday.

Duhok province is home to nearly 900 tourist sites, including 145 hotels and around 250 designated tourist zones.

In Halabja province, officials said tourism facilities were prepared to receive large crowds visiting popular destinations in the Hawraman region, including the resorts of Byara and Zalm.

“A large number of tourists have arrived. All preparations have been made, and accommodation is available for those who wish to stay overnight,” Hawraman Jalal, director of media and communications for Halabja tourism, told Rudaw.

Although Halabja has fewer hotels and motels than other provinces, Jalal said “many kiosks, cabins, and tourist houses have been built and are ready to receive visitors.”

Kurdistan’s Tourism Boom Defies Middle East Chaos as Hotels Reach Full Capacity During Eid

As much of the Middle East remains consumed by conflict, economic uncertainty, and geopolitical tension, the Kurdistan Region of Iraq is witnessing something increasingly rare in the modern region: a tourism boom driven by perceptions of stability.

During the Eid al-Adha holiday, tens of thousands of tourists from central and southern Iraq traveled to Erbil, Sulaimani, Duhok, and Halabja, pushing hotels and tourism facilities close to maximum capacity across much of the Region.

The surge is more than a seasonal travel story.

It reflects a deeper transformation underway inside the Kurdistan Region — one in which security, climate, geography, and relative political stability are becoming strategic economic assets in an increasingly unstable Middle East.

Stability as an Economic Commodity

For years, the Kurdistan Region has attempted to market itself not only as an autonomous political entity, but as Iraq’s safest and most attractive domestic tourism destination.

The strategy increasingly appears to be working.

Tourism officials across the Region reported that Eid al-Adha visitor numbers surpassed those recorded during Eid al-Fitr, when regional tensions linked to the US-Israel confrontation with Iran disrupted travel patterns.

In Sulaimani province alone, tourism authorities said “tens of thousands” of visitors arrived during the holiday period.

Hotels, motels, restaurants, and tourist resorts quickly filled as families from Baghdad, Basra, Najaf, Karbala, and other Iraqi cities escaped extreme summer heat and political tension in central Iraq.

The symbolism is important.

For decades, Iraq was associated internationally with conflict and insecurity. Today, parts of the Kurdistan Region are increasingly viewed domestically as spaces of relative calm, natural beauty, and recreational escape.

In a fractured Middle East, stability itself has become an economic commodity.

The Rise of Domestic Iraqi Tourism

Unlike Gulf tourism hubs built around international visitors, the Kurdistan Region’s tourism industry remains heavily dependent on domestic Iraqi travelers.

Most tourists arriving during Eid came from central and southern Iraq rather than abroad.

This dynamic reveals an important shift inside Iraq itself.

Many Arab Iraqi families now view the Kurdistan Region as:

  • Safer than many Iraqi cities

  • Cooler during summer months

  • Better organized for tourism

  • More environmentally attractive

  • More family-friendly

The Region’s mountains, waterfalls, forests, resorts, and historical sites have become increasingly popular among urban Iraqi travelers seeking alternatives to overcrowded and overheated cities further south.

Sulaimani alone now contains:

  • Around 380 tourist hotels

  • 50 budget hotels

  • Eight five-star hotels

  • Hundreds of cabins and tourism facilities

Erbil maintains roughly:

  • 445 hotels and motels

  • 47 tourist villages

  • Hundreds of tourist cabins and huts

Meanwhile, Duhok — one of the Kurdistan Region’s most tourism-oriented provinces — boasts nearly 900 tourist sites and approximately 250 designated tourism zones.

These numbers illustrate how tourism is gradually becoming one of the Kurdistan Region’s most important non-oil economic sectors.

Duhok and the Geography of Kurdish Tourism

Among the Kurdistan Region’s provinces, Duhok has emerged as a major tourism center.

Its mountainous geography, proximity to Turkey, and relatively developed tourism infrastructure have transformed the province into one of Iraq’s leading summer destinations.

During Eid al-Adha, tourism officials reported hotel occupancy rates exceeding 90 percent.

Visitors arrived not only from central and southern Iraq but also from Erbil, Sulaimani, and Halabja.

This internal regional tourism matters economically because it creates interconnected commercial activity across the Kurdistan Region itself.

Hotels, restaurants, transportation services, retail markets, cafes, and recreational facilities all benefit from seasonal visitor flows.

For a region still heavily dependent on hydrocarbons and vulnerable to disputes with Baghdad over oil revenues, expanding tourism represents an attempt at economic diversification.

Halabja and the Rebranding of Memory

Perhaps the most symbolically important tourism development is occurring in Halabja.

Historically associated internationally with trauma and genocide following Saddam Hussein’s 1988 chemical attack, Halabja is increasingly attempting to reposition itself as both a memorial space and a tourism destination.

The broader Hawraman region, including Byara and Zalm, has become increasingly attractive to visitors because of its mountainous landscapes and cooler climate.

Tourism officials in Halabja reported large crowds during Eid despite the province having fewer formal hotels than Erbil or Sulaimani.

Instead, local tourism increasingly relies on:

  • Cabins

  • Guest houses

  • Eco-tourism facilities

  • Rural hospitality infrastructure

This reflects a broader trend across the Kurdistan Region toward localized and nature-based tourism development.

Tourism and Kurdish Soft Power

Tourism is not merely an economic issue.

It is also a form of soft power.

Every Iraqi family visiting Erbil, Duhok, or Sulaimani experiences a different political and social reality from the one often portrayed in broader Iraqi political discourse.

Tourism helps normalize Kurdish-Arab interaction inside Iraq while simultaneously strengthening the Kurdistan Region’s image as:

  • Stable

  • Open

  • Economically functional

  • Relatively secure

This has political implications.

Perception matters enormously in fragile states.

The more the Kurdistan Region becomes associated with order, hospitality, and development, the more strategic leverage Erbil gains domestically and internationally.

In many ways, tourism is reinforcing the Kurdistan Region’s broader attempt to evolve from a vulnerable autonomous entity into a durable regional actor.

The Structural Challenges

Despite the tourism boom, major challenges remain.

The Kurdistan Region still faces:

  • Economic dependency on oil

  • Infrastructure limitations

  • Political fragmentation

  • Budget disputes with Baghdad

  • Regional instability

  • Environmental pressures

Tourism growth alone cannot resolve these structural issues.

There are also concerns regarding:

  • Overdevelopment

  • Environmental degradation

  • Water shortages

  • Uneven investment distribution

  • Seasonal economic volatility

Moreover, the tourism sector remains highly vulnerable to regional conflict.

The previous Eid al-Fitr holiday demonstrated how quickly geopolitical escalation involving Iran, Israel, or the United States can disrupt travel patterns and economic activity.

The Kurdistan Region’s stability remains connected to broader regional security dynamics largely beyond its control.

Conclusion

The Eid tourism surge across the Kurdistan Region reflects something larger than holiday travel. It reveals the emergence of a new Kurdish economic and political reality in which relative stability itself has become one of Erbil’s most valuable strategic assets.

In a Middle East increasingly defined by war, fragmentation, and geopolitical confrontation, the Kurdistan Region is attempting to position itself as an island of predictability and economic opportunity. Whether tourism can become a sustainable pillar of long-term Kurdish economic resilience remains uncertain.

But one thing is increasingly clear: The Kurdistan Region is no longer competing only through politics or security. It is increasingly competing through perception, stability, and soft power.

Internal References

#Kurdistan #Tourism #Erbil #Sulaimani #Duhok

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