Tourism’s contribution to GDP will rise despite regional turmoil — report

AMMAN — Despite the impact of the regional turmoil on the Kingdom’s tourism sector, a recent international report expected better indicators for the sector’s contribution to the country’s economy in the current year.

“Travel & Tourism Economic Impact 2015, Jordan” report expected that travel and tourism’s direct contribution to Jordan’s GDP will rise by 4.7 per cent in 2015 from around JD1.57 billion (6.2 per cent of total GDP) in 2014.

The direct contribution of travel and tourism to GDP reflects the “internal” spending on the sector, defined as the total spending within a particular country on travel and tourism by residents and nonresidents for business and leisure purposes, as well as government spending on travel and tourism services that is directly linked to visitors, such as cultural or recreational services.

The report also forecast an increase in the rate of direct employment in the sector, noting that in 2014 travel and tourism directly supported 78,000 jobs (5.1 per cent of total employment). This is expected to rise by 4.1 per cent in 2015 and by 4 per cent, to 120,000 jobs, (6 per cent of total employment) in 2025.

As for investments in the sector, they reached JD475.5 million in 2014, or 7.3 per cent of total investment. “It should rise by 1.7 per cent in 2015, and by 6.1 per cent over the next 10 years to JD870.6 million in 2025 [9.3 per cent of total investments],” according to the report.