With the industry’s total contribution to the GDP accounting for 23 percent, tourism remains a key engine for growth in Jordan, thus, the endeavours to unlock its full potential even in the face of challenges.
To match the county’s long-term ambitions, the National Tourism Strategy (NTS) 2011 – 2015 set the goal to increase tourism receipts to JOD4.2 billion (USD5.9 billion) by 2015 and establish the Kingdom as a distinctive destination offering diverse experiences.
In line with these, the plan targeted 9.4 million visitors, up from 5.5 million in 2004 and 8.2 million in 2010.
“As a continuation of the strategy drawn out between 2004 – 2010, Jordan continues to firmly strengthen its reputation as a destination of choice for both visitors and investors, positioning the Kingdom as a high-quality destination and raising its competitiveness to the level required for long-term sustainable growth,” praised the joint efforts Ziad Fostuq, general manager and acting director, operations, Belle Vue Amman.
Yet, the Jordanian tourism industry witnessed severe challenges in recent years resulting in a sharp decline in arrivals to 5.3 million in 2014, prompting industry stakeholders to explore new streams of revenue.
“Our NTS could not foresee at that time the long-lasting neighbouring conflicts and the socio-political developments across the entire region,” maintained Michael Koth, director of operations, Levant, InterContinental Hotels Group (IHG), reminding that over the past decade, Jordan has successfully manifested itself as an attractive cultural and religious destination, yet, due to the current pan-regional dynamics, this constant flow of visitors was significantly reduced.
“Jordan is a safe country with amazing hospitality and touristic infrastructure, yet, we must be cognitive of the strong decline of international markets resulting mostly from a media-led [misadvising] which has turned into reality,” said Koth.
Nayef Al Fayez, tourism minister, Jordan, also cited misconceptions among foreigners in regards to the safety and security situation in the Kingdom as one of the main challenges.
To counter these headwinds, a range of measures and actions have been introduced in 2015 to lure back both regular visitors – especially from the Gulf region – as well as first-timers, with these including marketing promotions, incentives as well as the expansion of transportation links.
In a bid to revise the trend, the government embarked on various schemes to lower the cost of visiting and exploring the destination and dropped visa fees for select markets as well as ticket prices at a number of landmarks and archaeological sites.
Despite the situation, the Jordanian tourism industry has remained steadfast in its commitment to propel the Kingdom’s growth and – as Nizam Bou Antoun, general manager, Corp Executive Hotel Amman, noted – witnessed several sector related developments mainly in Aqaba and the Dead Sea area, which ultimately have helped market Jordan as a tourist destination and enhance its standing on the tourism map.
“Managing this success into the future now poses new challenges for all stakeholders in the industry in terms of sustaining the momentum and progress, positioning Jordan as a high-quality destination and raising industry competitiveness […],” stressed Bou Antoun.
As Fostuq noted, the initiatives have helped diversify the market mix by tapping into areas, such as China, India and Russia, and to better adapt to current trends the management has shifted its focus to online travel agencies, non-governmental organisations (NGOs), free independent travellers, small groups as well as MICE business.
To maintain business levels, IHG, which operates seven city and resort properties in the Kingdom, also placed an increased emphasis in terms of sales and marketing initiatives on the domestic clientele, shared Koth, stating that local corporate, governmental and diplomatic segments along with NGOs have proved to be valuable contributors.
“Our resorts nowadays cater predominantly to families from the capital, thus, [we have adjusted] their offering for the domestic weekend clientele.
Had Jordan Tourism Board not continued its efforts to promote the country, we would potentially see even less mid-week meetings and international corporate events in Aqaba or the Dead Sea,” said Koth, calling for the further expansion of the leisure oriented tourism product in the Red Sea area, a destination, which according to him, boasts an increasingly diverse offering.
“The existing hotels in combination with the new touristic and real estate developments have the potential to attract a new GCC clientele as well as international charters,” indicated Koth.
Jordanians are indeed of high importance to hoteliers, confessed Layali Nashashibi, director of public and community relations, Jordan, Mövenpick Resort & Residence Aqaba, saying that in Aqaba, locals and other Middle Eastern guests account for 75-80 percent of the clientele, thus, the management is working with travel agencies
to encourage domestic tourism, while also keeping an eye on developments though international sales offices.
Speaking about the all-important leisure segment, Bou Antoun reaffirmed that despite the promising performance of the MICE market, leisure travel still accounts for a significant share of business, especially for brands such as Corp Executive – operated by UAE-based Hospitality Management Holdings – which mainly caters to value conscious businessmen and holiday-makers.
“Driven by the efforts [that are in line with NTS], there has been a great demand in the leisure segment and for packaged travel,” explained Bou Antoun, admitting that average length of stay has suffered greatly, decreasing from 4.5 days in 2010 to 3.7 in 2015 and it currently stands around 2.5 days. Keeping this in mind, similarly to his colleagues, Bou Antoun also urged the continuous development of the country’s tourism offering.
“I strongly believe in investing in ancillary services and packaged travel to enhance the traveller experience,” stressed Bou Antoun, saying that this would also boost bottom line results.
The continuous review and adjustment of business efficiencies is indeed crucial to protecting operating profits against volatile revenue trends, underlined Koth, disclosing that in light of the changing patterns of demand, the management is now focussed on building solid ties with NGOs and leveraging other up and coming niche segments, such as medical tourism and cruise arrivals, which have shown notable increases in Aqaba.
Aqaba has witnessed major developments in recent years, thanks to the relentless work of Aqaba Special Economic Zone Authority (ASEZA), which has not spared any efforts to market the destination in both well-established as well as emerging markets.
As Sharhabeel Madi, commissioner, economic affairs, ASEZA, explained, in recent months, the authority has laid great emphasis on promoting the destination internationally, hence, its partnership with Cedok Cestovni Kancelar in the Czech Republic with the support of Turkish Airlines.
“In nowadays’ competitive [environment], it is important to be present and visible for both customers and travel agents.
[These] co-marketing activities accomplished intended purposes and had a positive impact on the perception of Aqaba and Jordan as a safe and attractive tourist destination offering a range of activities,” claimed Madi, further disclosing that as a result of the meticulously planned and well-targeted strategies, in 2015, Aqaba attracted 124 charter flights from Sweden, Austria, Belgium, Netherlands and Hungary.
“ASEZA is focussing on increasing the number of visitors and flights arriving at King Hussein International Airport, [while also boosting] average length of stay by offering a new support programme for charter operators,” informed Madi.
“ASEZA offers cooperative marketing support for tour operators interested in selling and promoting a minimum four-night programme for Aqaba, Wadi Rum and Petra,” added Madi, citing statistics that have shown that the volume of divers have not been affected to the extent of the decline in tourist arrivals.
“Steps have been [taken] to focus on certain markets, including the UK, Germany, Spain, the Netherlands, Moscow and Dubai, by exhibiting at the main dive shows to attract major [specialised] operators and promote Aqaba,” concluded Madi, saying that the positive figures follow the launch of airport facilities, as well as the introduction of new touristic venues and the upgrade of existing sites.
As he further noted, four of the area’s key hotspots have all witnessed major developments.
In Tala Bay, for example, 2,000 hotel rooms are scheduled for completion within the next years, while at Marsa Zayed, hailed as the Kingdom’s largest mixed-use project to date, world-class hotels and marinas are coming up.
With four five-star hotels, Saraya Aqaba is another must-visit, while Ayla Oasis will be the home to an 18-hole golf course, 419 hotel rooms, man-made lagoons and more.
The upcoming 13,000m2 Aqaba Recreational Complex, part of ASEZA’s strategy, also marks a positive step in the enhancement of the tourism product and as Madi revealed, the authority has proposed a host of attractive investment opportunities in the tourism sector in line with its long-term vision to enhance the image of Aqaba and Jordan in general.
Another prime example of how Jordan is taking strides to enhance its attractiveness is Abdali, hailed and the new downtown of Amman. Developed on 384,000m2 of land, it features hotels, serviced apartments, residential units, retail outlets as well as medical and entertainment offerings.
Highlighting the economic and touristic values of the project, which was recently visited by nearly 60 French investors, Samih Barbir, chairman, Abdali Investment and Development, said “Jordan is the ideal location to conduct business [….]. Jordan enjoys an atmosphere of security and safety, creating a ripe investment platform where businesses can flourish.”
