• 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

Budget airline tourism gives Jordan's small businesses a boost


Khaled Yacoub Oweis
  • English
  • Arabic

Jordanian leather maker Ahmad Maghribi learnt his craft by watching YouTube videos before opening his shop in an old district of Amman four years ago.

He makes wallets, pouches and bags designed by him and his wife, from Turkish leather tanned at a factory in Hebron.

Mr Maghribi’s merchandise is pricier than the mass Chinese-produced goods in the market. His customer base is also limited by rough economic conditions in Jordan, and at least 23 per cent unemployment.

But business has picked up since European budget airlines sharply increased the number of flights to the country last year, after authorities lifted Covid-19 restrictions.

A few weeks ago, a tourist from Venice bought a dark brown backpack with exterior pockets from Mr Maghribi.

Worth $225, it was the most expensive item in the shop.

“He was so happy that the backpack was made in Jordan that he went out of the shop wearing it,” says Mr Maghribi.

The threefold increase in budget airline traffic — mainly driven by Ryanair, and easyJet and Wizz Air to a lesser extent — to 77 flights a week has brought in a cross-section of western visitors and much-needed hard currency to Jordan’s stagnant economy.

It has spurred the development of businesses catering to the new arrivals — from hostels and trinkets to bespoke goods — although Jordan is one of the most expensive countries in the Middle East.

The kingdom’s relatively closed society has also been put in direct contact with people from across the continent, with Ryanair flying to Amman from Bologna, Brussels, Bucharest, Budapest, Krakow, Vienna, Paris, Madrid and 10 other European cities.

German tourist Anna Richard took a bus with her four-member family from Berlin to the Polish city of Poznan and flew from there to Amman on Ryanair.

They saved two thirds of the ticket price, compared with Lufthansa.

“Flying Lufthansa often means changing in Frankfurt, which is a nightmare. The new Berlin airport is also far away,” she says, referring to the airport on the eastern outskirts of the city.

“We wanted a biblical-archaeological trip, with time to relax at the Dead Sea, and we did not want to go to Israel,” Ms Richard says.

She says she was struck by “how expensive Jordan is”. The €75 ($79.42) entry fee for Petra, she says, was not worth it, given how commercialised the site has become.

But Wadi Rum, she says, remains for her one of the three most beautiful places in the world, together with Tibet and northern Switzerland.

Regional factors

The new appetite for Jordan is also linked to the upheaval that swept Syria and Lebanon over the past decade.

Chaos caused by financial meltdown in Lebanon and the civil war in Syria left Europeans keen on travelling to the Levant with little choice other than to make Jordan their primary destination.

Some come seeking a detailed introduction to Jordan's Roman sites. Others are more interested in hiking in the Wadi Rum desert valley or spending a few days floating in the Dead Sea.

The Dead Sea, where sodium chloride and potassium salts are produced, is a leading tourist attraction in Jordan. AFP
The Dead Sea, where sodium chloride and potassium salts are produced, is a leading tourist attraction in Jordan. AFP

Amman has also become a centre to study Arabic, largely taking the position Damascus held before the 2011 revolt against five decades of Assad family rule.

Many young westerners with tourist visas extend their stay in Jordan to learn the language from private teachers or at several private academies.

However, protests and riots in December over unemployment and rising prices caused a dip in tourism activity before demand appeared to rebound, travel agents say.

The unrest was mainly in the south, where Petra and Wadi Rum are located, and resulted in the death of four police officers.

“We saw a decline in booking but it seems to have been temporary,” says an industry executive in Amman.

Government data shows that the number of foreign visitors to Petra quadrupled last year to 670,000, compared with 2021.

European arrivals, according to the central bank, rose to 304,000 in the first nine months of last year, from 142,000 in 2021.

“Low-cost passengers tend to spend less on the airline tickets, spend more during their visit and stay longer,” says Tourism Ministry spokesman Ahmad Rifai.

He says 40 per cent of European tourists arrive on low-cost flights.

Before Ryanair and the other budget airlines started flying to Jordan in 2018, the kingdom mainly received tourists travelling in groups who followed a rigid itinerary, stayed at large hotels and were taken mainly to the more famous sites in the country, with little interaction with Jordanians.

But now, “everyone is coming to Jordan,” says businessman Madian Al Jazira, who owns Books@Cafe, a franchise with two locations in Amman and the main destination for young Jordanian residents and visitors.

“There [are] lots of foreign individual travellers and they really have [affected] the economy,” says Mr Jazira. “Many are mingling with the people and a cultural exchange is happening.”

“Jordanians are also now able to travel more and get more out of their buck,” he says. “They becoming more exposed and, hence, becoming more tolerant.”

Improved city centre

A new hand-woven rug store opened recently to the left of Mr Maghribi’s leather goods shop. On the right, Abu Ahmad, Amman’s oldest shoe makers, gave his shop a makeover.

The facelift helped to attract Europeans who had been ordering his made-to-measure shoes.

“I rarely had foreigners come in and buy my shoes before,” he says. “If they don’t have time, they ask me to ship it to their home address.”

The Jebal Amman neighbourhood of the Jordanian capital is undergoing renovation. Getty
The Jebal Amman neighbourhood of the Jordanian capital is undergoing renovation. Getty

In the nearby centre of Amman, the new tourists have helped somewhat revive the area, which dates back to the 1920s. The area has been run down since many businesses left in the late 1980s and moved to newer parts in the western regions of the capital.

Some abandoned buildings have been converted into cheap hotels while the premises of closed businesses became souvenir shops.

Trinket shop owner Raed says many of his western customers buy key rings and other small items because they travel only with hand luggage, to save on ticket fares.

But he still receives more discerning clientele who fly Ryanair but look for quality items such as Jordanian embroidery and Hebron-made ceramics, of which he has run out of stock.

21 Lessons for the 21st Century

Yuval Noah Harari, Jonathan Cape
 

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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.”

WRESTLING HIGHLIGHTS
THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

RESULTS

Tottenham 1

Jan Vertonghen 13'

Norwich 1

Josip Drmic 78'

2-3 on penalties

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

My Country: A Syrian Memoir

Kassem Eid, Bloomsbury

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Updated: January 11, 2023, 1:06 PM