The Petra archeological site is a landmark of Jordan tourism sector, which is targeting new source markets in Latin America and Africa. EPA
The Petra archeological site is a landmark of Jordan tourism sector, which is targeting new source markets in Latin America and Africa. EPA
The Petra archeological site is a landmark of Jordan tourism sector, which is targeting new source markets in Latin America and Africa. EPA
The Petra archeological site is a landmark of Jordan tourism sector, which is targeting new source markets in Latin America and Africa. EPA

Jordan forecasts flat growth in tourist arrivals this year as Israel-Gaza war rages on


Deena Kamel
  • English
  • Arabic

Jordan expects to record flat growth in tourist arrivals this year as the Israel-Gaza war rages on, chasing away holidaymakers and depriving the country of a major source of employment and hard currency.

The country hosted just over five million visitors in 2023 and aims to maintain similar numbers this year by diversifying its source markets with promotional campaigns in countries in Africa, Asia and Latin America, Abdelrazzak Arabiyat, managing director of the Jordan Tourism Board, told The National.

Last year, we had 5.4 million visitors and we need to at least maintain this number this year, and we hope it will not decrease,” Mr Arabiyat said.

“I'm always optimistic. At the end of the day, people have a short memory and I think that the second half of the year will witness an increase in numbers, especially that low-cost carriers will come back in the winter season and charter flights will resume again to Jordan.”

Tourism in Jordan – in pictures

  • Passengers boarding a Ryanair plane from Amman to Treviso, Italy, last month. Photo: Khaled Yacoub Oweis / The National
    Passengers boarding a Ryanair plane from Amman to Treviso, Italy, last month. Photo: Khaled Yacoub Oweis / The National
  • Visitors at the Roman era citadel in Amman in July 2021. Reuters
    Visitors at the Roman era citadel in Amman in July 2021. Reuters
  • The citadel contains the remains of a Roman temple. Reuters
    The citadel contains the remains of a Roman temple. Reuters
  • The Treasury is among the main tourist sites in Petra. EPA
    The Treasury is among the main tourist sites in Petra. EPA
  • A tourist poses in front of the Treasury. Reuters
    A tourist poses in front of the Treasury. Reuters
  • Tourists gather in front of the historic site. Reuters
    Tourists gather in front of the historic site. Reuters
  • Men prepare a hot-air balloon in Wadi Rum, Jordan. Reuters
    Men prepare a hot-air balloon in Wadi Rum, Jordan. Reuters
  • Hot-air balloons rise from Wadi Rum. Reuters
    Hot-air balloons rise from Wadi Rum. Reuters

The Israel-Gaza war is heightening tensions in the Middle East, weighing on Jordan's tourism sector and curbing trade, S&P Global Ratings said in a March report.

Tourism is the country's main export and a key source of private sector employment, contributing about 15 per cent to the gross domestic product in 2023, according to the report.

Jordan's economic growth will ease to 2.1 per cent this year, from 2.6 per cent in 2023, as tourism arrivals will probably be lower than last year's record-breaking levels, according to S&P Global Ratings.

American and European tourist arrivals, which together make up 17 per cent of Jordan's tourism receipts, are expected to decline the most, the rating agency said.

Arab tourist arrivals, including Jordanians living abroad, should “continue to prove resilient” to regional tensions, it said.

“What happened in the region affected tourism, especially [as] tourism is fragile and sensitive towards what’s going on and people will definitely change their plans, postpone or cancel their trips or change to another destination,” Mr Arabiyat said.

“People don’t know that Jordan is the calm house between the noisy neighbours. As usual, Jordan is an oasis of peace and always resilient and we have a high-security environment.”

This aims “to convey the message that everything is OK in Jordan, we don’t have any common borders with Gaza and what’s happening there, and that we’re still receiving tourists from different countries in the world”, Mr Arabiyat said.

In the first quarter of 2024, Jordan had forecast a 50 per cent drop in international tourists due to the war but recorded a better-than expected performance with a smaller decrease of six per cent, he said.

A 26 per cent increase in visitors from the GCC and Arab countries helped to compensate for the 40 per cent decline in other markets such as US and Europe, he said.

People don’t know that Jordan is the calm house between the noisy neighbours
Abdelrazzak Arabiyat,
managing director, Jordan Tourism Board

Jordan is seeking to change misperceptions about safety and security through “user-generated” marketing content by travel influencers and testimonials from international tourists.

New source markets

Jordan is now wooing tourists from Latin America and African countries including Kenya, Rwanda, Ethiopia and South Africa.

Also on its radar are Asian countries including China, Korea, Malaysia and Indonesia.

The campaigns are highlighting medical tourism and visits to Jordan's historical Christian sites and churches.

The Jordan Tourism Board is in talks with foreign airlines such as Emirates and Qatar Airways to support its plans as the country does not have direct flights to many of these markets, he said.

It is also co-operating with national carrier Royal Jordanian to bring more tourists to the country through joint marketing activities.

In the second quarter of 2024, the drop in tourist arrivals, particularly from the US and Europe, is expected to continue, Mr Arabiyat said.

However, efforts are under way to attract more visitors from Gulf countries such as Kuwait and Saudi Arabia with a line-up of entertainment events and activities during the summer holidays, he said.

“Hopefully the second half of the year will be better,” he said, as more tourists from Europe go on holiday to warmer countries during their winter season.

The tourism board has signed deals with charter companies for flights from Eastern Europe to Jordan in the second half of this year.

Mr Arabiyat said he is also hoping for an increase in budget airline traffic – mainly driven by Ryanair and Wizz Air – and their return to full capacity to Jordan in the winter season after some carriers reduced or suspended operations.

Wizz Air and Ryanair did not respond to The National's request for comment on their plans.

In terms of attracting foreign direct investment into Jordan's tourism sector, feasibility studies are under way for building hotels and exhibition centres, Mr Arabiyat said.

Jordan's Aqaba Special Economic Zone has a “lot of opportunities” for tourism investments in its port, airport, cruise terminal and logistics city.

With the June opening of the exhibition centre in Aqaba, the country hopes to attract lucrative corporate travel and business events that bring in high-spending company executives, Mr Arabiyat added.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

US PGA Championship in numbers

Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.

To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.

Number of seasons without a major for McIlroy, who finished in a tie for 22nd.

4 Louis Oosthuizen has now finished second in all four of the game's major championships.

In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.

For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.

Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.

Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.

Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.

10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.

11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.

12 Paul Casey was a combined 12 under par for his first round in this year's majors.

13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.

14 The world ranking of Justin Thomas before his victory.

15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.

16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.

17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.

18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).

Ponti

Sharlene Teo, Pan Macmillan

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

GAC GS8 Specs

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Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Results

2-15pm: Commercial Bank Of Dubai – Conditions (TB) Dh100,000 (Dirt) 1,400m; Winner: Al Habash, Patrick Cosgrave (jockey), Bhupat Seemar (trainer)

2.45pm: Al Shafar Investment – Handicap (TB) Dh80,000 (D) 1,200m; Winner: Day Approach, Ray Dawson, Ahmad bin Harmash

3.15pm: Dubai Real estate Centre – Handicap (TB) Dh80,000 (D) 1,600m; Winner: Celtic Prince, Richard Mullen, Rashed Bouresly

3.45pm: Jebel Ali Sprint by ARM Holding – Listed (TB) Dh500,000 (D) 1,000m; Winner: Khuzaam, Pat Dobbs, Doug Watson

4.15pm: Shadwell – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Tenbury Wells, Royston Ffrench, Salem bin Ghadayer

4.45pm: Jebel Ali Stakes by ARM Holding – Listed (TB) Dh500,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson

5.15pm: Jebel Ali Racecourse – Handicap (TB) Dh76,000 (D) 1,950m; Winner: Rougher, Pat Dobbs, Doug Watson

Top 10 most polluted cities
  1. Bhiwadi, India
  2. Ghaziabad, India
  3. Hotan, China
  4. Delhi, India
  5. Jaunpur, India
  6. Faisalabad, Pakistan
  7. Noida, India
  8. Bahawalpur, Pakistan
  9. Peshawar, Pakistan
  10. Bagpat, India

Turkish Ladies

Various artists, Sony Music Turkey 

'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

The specs

Engine: 3.5-litre V6

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Torque: 331Nm from 5,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.7L/100km

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Price: Dh149,000

 

MATCH INFO

West Ham United 2 (Antonio 73', Ogbonna 90 5')

Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')

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Updated: June 03, 2024, 5:49 AM