Opportunity, not crisis

The economics of tourism deserves more research to shed light on this vital sector, to help decision makers take the right action.

Available data indicate that Jordan’s net receipts from incoming tourism this year are estimated to reach JD3.1 billion, while Jordanians travelling abroad are expected to spend some JD800 million.

The above figures show that the balance of tourism would have been in Jordan’s favour had it not been for the fact that some 60 per cent of the receipts will be used to import material and equipment needed to accommodate tourists.

The value added in the tourism sector is believed to be around 40 per cent of the gross receipts, which are roughly equal to 12 per cent of the gross domestic product.

The end result is that the tourism sector contributes no more than 5 per cent of GDP, a good rate that is, however, way below the aspirations and the potential.

The attractions in Jordan are good enough, if promoted properly, to at least double the present volume of incoming tourists.

Officials believe that the tourism sector, along with the transportation sector, are the most hurt by the present troubles in the region.

It is of course normal and expected for the transportation sector to be influenced by insecurity in the region. The obvious reason is the central location of the country, which makes it a hub for transiting a substantial part of neighbouring countries’ exports and imports.

In fact, the Jordanian transport sector has now only the Gulf states to look at, having lost business in Syria, Lebanon, Iraq and Turkey.

There is no study that I know about to quantify the losses accruing to the transport sector.

However, as far as tourism is concerned, what we have now is an opportunity rather than a crisis.

The proceeds from incoming tourism during the first half of this year are 12 per cent higher than they were in the same period of last year, hardly a sign of losses.

The assumption is that troubles in neighbouring countries, especially Syria, Lebanon and Iraq, may send away European and American tourists because they look at the Middle East as one unit that they see unsafe under the present circumstances.

By contrast, it does not influence Arab tourism, especially originating from the Gulf states, which is more important in terms of number and volume of spending.

Arab tourists that used to spend their summer vacation in Syria and Lebanon will now find that Jordan is the best alternative, a place where they feel safe and secure.

It is good that the government is currently paying attention to tourism as a productive sector that generates jobs and earns foreign exchange.

Under the present circumstances, this attention should be based on the understanding that Jordan is facing an opportunity to be exploited not a crisis to be averted or alleviated.

The number of tourists from the Gulf states can and should be doubled. The modest amount of money allocated for the promotion of tourism should be directed to audiences in the Gulf states. Creative ads should appear on all their popular television stations.