• A tourist poses for pictures in front of the treasury site in the ancient city of Petra, south of Amman, Jordan. Reuters
    A tourist poses for pictures in front of the treasury site in the ancient city of Petra, south of Amman, Jordan. Reuters
  • The Propylaeum gateway to the Temple of Artemis in Jerash, Jordan. Getty Images
    The Propylaeum gateway to the Temple of Artemis in Jerash, Jordan. Getty Images
  • Dana Biosphere Reserve in Jordan was founded in 1989. Photo: Getty Images
    Dana Biosphere Reserve in Jordan was founded in 1989. Photo: Getty Images
  • People watch the sunset at Books@Cafe in the trendy Jabal Amman district. Photo: Getty Images
    People watch the sunset at Books@Cafe in the trendy Jabal Amman district. Photo: Getty Images
  • A tourist walks next to the pillars of the Roman Temple of Hercules during his visit to the Amman Citadel, an ancient Roman landmark, in Amman. Reuters
    A tourist walks next to the pillars of the Roman Temple of Hercules during his visit to the Amman Citadel, an ancient Roman landmark, in Amman. Reuters
  • Hot-air balloons fly in the Wadi Rum desert, Jordan. Reuters
    Hot-air balloons fly in the Wadi Rum desert, Jordan. Reuters

Tourism 'thriving' in Jordan again despite war in Europe


Ahmed Maher
  • English
  • Arabic

Jordan is on track for a tourism boom despite the economic consequences of Russia's invasion of Ukraine, according to its tourism and antiquities minister.

The kingdom has had its best year for tourism in the past three years, Nayef Hamidi Al Fayez told The National.

Though the outlook is bleak for some countries as the war’s economic effects pummel the favoured destinations of Russian and Ukrainian tourists, Jordan's tourism is picking up after two years of lockdowns due to the coronavirus pandemic, Mr Al Fayez said, during a visit to the Arabian Travel Market in Dubai.

“For us in Jordan, we are lucky in terms of the size of the Russian and Ukrainian market, but still, there’s an impact. We were fortunate that the impact was less harmful than in other countries,” the minister said.

Mr Al Fayez said Jordan had mainly not catered to holidaymakers from the two countries. He said he is not expecting much business to the kingdom's hospitality industry from Europe in general.

“From what I recall from the good years before the pandemic, there were around 50,000 visitors from the Russian market every year,” he said. “Ukraine was much less than that. That's similar to many other European markets for us. So our distribution of the market is equal to many other European markets. And some of the European markets are actually larger than that.”

Nayef Hamidi Al Fayez, Jordan's Minister of Tourism and Antiques, said the impact of the Russia-Ukraine war was 'less harmful' for the kingdom than other countries. Picture: Pawan Singh/The National
Nayef Hamidi Al Fayez, Jordan's Minister of Tourism and Antiques, said the impact of the Russia-Ukraine war was 'less harmful' for the kingdom than other countries. Picture: Pawan Singh/The National

Russia’s tourism industry is facing the double whammy of the pandemic and the economic and financial consequences of its invasion of Ukraine in February.

The Russian economy has been battered by western sanctions, with the rouble nosediving amid growing instability following the war on Ukraine.

The sharp change in the dollar and the euro exchange rates against the rouble have left many tourists, who favour getaway beach resorts in the Arab world, unable to afford air tickets and hotel bills. The war has driven up oil prices and made travel more expensive for holidaymakers around the world.

Aeroflot, Russia’s largest airline, suspended nearly all its international flights in early March.

The tourism industry is one of Jordan’s most important economic sectors, accounting for 13 per cent of its gross domestic product in 2019, when it welcomed an annual average of more than five million tourists — including Jordanians living abroad. Revenue reached $5.7 billion in 2019 before dropping to $1.4 billion in 2020 because of the pandemic.

The Jordanian minister talked to The National as he represented his country at the Arabian Travel Market, the leading event for the travel industry in the Middle East.

Tourism professionals from around the world gathered the Dubai World Trade Centre for the four-day event, which concludes on May 12, to market their countries’ ancient treasures and sun-drenched cities and beaches as the industry attempts to get back on its feet.

Short flights a plus for Jordan

Mr Al Fayez said returning demand is largely concentrated in the Middle East, Gulf and North Africa.

He noted Jordan’s diverse tourist attractions, from ancient cities such as Jerash and Petra — one of the New Seven Wonders of the World — to the splendour of the Dead Sea, nature reserves and hot springs.

But the weather is one of Jordan's most significant assets, with summer temperatures usually around 33°C.

“Well, to start with, we would like to look at our neighbours and our friends, especially in the GCC market. And at the same time, the expats who are living within these countries,” said Mr Al Fayez.

“But still, we saw also an interest in Jordan during winter because our winter season is also pleasant.”

A tourist views the pillars of the Roman Temple of Hercules during his visit to Jordan's Amman Citadel. Tourism accounted for 13 per cent of Jordan's GDP in 2019. Reuters
A tourist views the pillars of the Roman Temple of Hercules during his visit to Jordan's Amman Citadel. Tourism accounted for 13 per cent of Jordan's GDP in 2019. Reuters

As oil prices have been on the rise, topping $110 a barrel, the travel industry is among many sectors bearing the burden of higher prices due to the war in Ukraine.

Nevertheless, travel by plane can be an advantage for Jordan.

“The diverse product that we offer in Jordan, within a short flight, is a plus for us,” he said.

Mr Al Fayez said politics should not influence tourism, which is a key source of hard currency and income to many countries.

“We would always like to separate politics from tourism. Tourism brings people together", he said.

What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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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

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More than 2.2 million Indian tourists arrived in UAE in 2023
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Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
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What are the regulations?
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Updated: May 11, 2022, 11:57 AM