Jordan's tourism industry reels from Israel-Gaza war fallout

[MIDDLE EAST] The ongoing Israel-Gaza conflict has sent shockwaves through the Middle East, with far-reaching consequences that extend beyond the immediate war zone. One of the most significant casualties of this conflict has been Jordan's tourism industry, a vital sector that has long been a cornerstone of the country's economy. As the war continues to rage, Jordan finds itself grappling with a severe downturn in visitor numbers, threatening livelihoods and economic stability across the nation.

Jordan's tourism sector, which previously contributed 12.5% to the national economy, has been hit hard by the ongoing conflict. The country, known for its rich historical sites and natural wonders, has seen a dramatic decrease in visitors since the outbreak of hostilities in October 2023. Flight bookings to Jordan plummeted by 35% year-on-year from mid-September to early October, according to travel analytics company ForwardKeys.

The impact of this decline is felt most acutely in popular tourist destinations like Petra, Wadi Rum, and the Dead Sea. Petra, Jordan's most visited tourist site, has seen businesses shuttered and hotel occupancy rates plunge to an average of 10%. Marcus Massoud, a vendor at one of Petra's souvenir stalls, paints a stark picture of the situation: "We used to welcome 4,000 tourists daily. Now it's down to 300 to 400. It's nothing like before."

Key Factors Contributing to the Tourism Downturn

Several factors have contributed to the sharp decline in Jordan's tourism industry:

Regional Instability: The Israel-Gaza war has created a perception of regional instability, deterring many Western tourists from visiting the Middle East.

Travel Advisories: Many countries have issued travel advisories warning their citizens against visiting the region, further impacting tourist numbers.

Cancellations by Tour Operators: International travel companies like Intrepid and Riviera Travel have canceled trips to Jordan following Iran's ballistic missile attack on Israel.

Reduced Airline Services: Several international airlines have suspended flights to Jordan, limiting access for potential visitors.

Economic Ripple Effects: The conflict has led to increased delivery times and higher logistics costs, affecting the overall economy and tourism infrastructure.

Impact on Local Businesses and Employment

The tourism downturn has had a devastating effect on local businesses and employment in Jordan's tourism sector. Hotel owners and tour operators are struggling to keep their businesses afloat:

Enas Al Hinti, manager of the Nomads hotel in Petra, has been forced to cut staff pay by 50% and ask workers to take unpaid leave.

Seif Saudi, managing director of Jordan Direct Tours in Amman, reports that prospects for improvement were nullified by the ongoing conflict.

Hasanat, president of Petra Hotels, describes the situation as dire: "We need a lifeline. Investments in Petra are on life support. When tourism halted, so did bookings."

Government Response and Adaptation Strategies

The Jordanian government, recognizing the severity of the situation, has taken steps to mitigate the impact on the tourism sector:

Domestic and Regional Tourism Push: The government aims to implement measures to boost domestic and regional tourism, focusing on markets in Asia and Africa.

Diversification of Energy Sources: To reduce reliance on Israeli gas, Jordan is exploring new energy agreements.

Maintaining Foreign Aid: While private sector investment may weaken, the government is working to maintain foreign aid inflows.

Focus on Stable Markets: Tourism Minister Lina Annab has emphasized the need to concentrate on the most stable markets that are less affected by the current situation.

Long-term Implications and Recovery Prospects

The long-term implications of the current crisis on Jordan's tourism industry are significant:

Prolonged Recovery: The tourism sector is expected to see a significant slump throughout Q1 2024 at least, with subdued inflows from Western tourists likely to persist throughout the year.

Economic Pressure: A significant drop in tourism revenues, coupled with disruptions in Red Sea shipping, is likely to worsen Jordan's balance-of-payments position.

Shift in Tourist Demographics: There may be a slight uptick in tourist arrivals from the region in Q2 2024, but this is unlikely to fully compensate for the loss of Western visitors.

Despite these challenges, there are some signs of resilience. Dorothy Lawson, a Californian tourist visiting Petra in late October, represents a small but important segment of visitors who remain undeterred: "We understood the trip would be canceled if it was genuinely unsafe. They informed us it was safe, so we came, and we're thrilled we did."

Statistical Overview of the Tourism Decline

Recent data from the Ministry of Tourism and Antiquities and the Central Bank of Jordan provide a clear picture of the tourism sector's decline:

The number of tourists arriving in Jordan in the first four months of 2024 dropped by 8.8% compared to the same period in 2023.

Tourism revenues in the first four months of 2024 totaled $2.1 billion, marking a decrease of 4.9% compared to the corresponding period of 2023.

In April 2024 alone, tourism revenues went down by 2.6% to $529 million, compared with the same period of the previous year.

These figures stand in stark contrast to the sector's performance in 2023, when tourism income increased by 27.4%.

Regional Context and Broader Economic Implications

The impact of the Israel-Gaza war on Jordan's tourism industry must be viewed within the broader regional context:

Red Sea Disruptions: Jordan's port of Aqaba, which receives nearly one-third of its imports through the Red Sea and uses it for more than 50% of its exports, has been affected by the conflict.

Diplomatic Tensions: Jordan's diplomatic relations with Israel have been strained, potentially affecting cross-border tourism and economic cooperation.

Refugee Situation: Jordan continues to host a large number of Syrian refugees, adding to the economic pressures faced by the country.

Future Outlook and Potential for Recovery

While the current situation presents significant challenges, there are potential pathways for recovery:

Diversification of Tourism Markets: Focusing on emerging markets in Asia and Africa could help offset losses from traditional Western markets.

Investment in Domestic Tourism: Encouraging local travel could provide a buffer against international tourism volatility.

Enhanced Safety Measures and Communication: Implementing and effectively communicating robust safety measures could help rebuild tourist confidence.

Regional Cooperation: Collaborating with neighboring countries on tourism initiatives could create new opportunities for growth.

The Israel-Gaza war has dealt a severe blow to Jordan's tourism industry, threatening a sector that has long been a pillar of the country's economy. The sharp decline in visitor numbers, coupled with broader regional instability, has created significant challenges for businesses, workers, and the overall economic landscape of Jordan.

However, the resilience shown by some tourists, coupled with government efforts to adapt and diversify, offer glimmers of hope. As Jordan navigates these turbulent times, the ability to innovate, adapt, and leverage its unique cultural and historical assets will be crucial in charting a path towards recovery and future growth in its tourism sector.

The situation remains fluid, and much will depend on regional developments and the eventual resolution of the conflict. For now, Jordan's tourism industry faces an uphill battle, but with strategic planning and international support, there is potential for eventual recovery and renewed growth in this vital sector of the Jordanian economy.