Despite a coronavirus vaccine on the horizon, tour guide Aamar Mohammed is pessimistic.
Instead of taking visitors through Jordan’s nature reserves during the tourism peak season, he is sitting at home debating whether he should hope for a turnaround in the spring or abandon his career altogether.
“I have gone from a job in the fastest-growing sector to wondering how I will put food on the table tomorrow,” said Mr Mohammed, a 20-year industry veteran. “It can’t go on.”
The kingdom's cash-strapped government is searching for solutions as it tries to keep afloat an industry that contributes 13 per cent to 15 per cent of GDP, employs 60,000 and is known as “the petrol of Jordan”.
This summer, the government issued tax and licence exemptions, soft loans, loan payment deferments, and incorporated freelance workers into the social security umbrella.
Its most ambitious initiative was Urdonnah Jannah – heavily-subsidised trips for Jordanian tourists to 60 destinations across the country, providing salaries to tour operators, bus drivers and 700 tour guides from July through October.
Yet government funds are running out and no return of foreign visitors is in sight. Surging Covid-19 cases brought weekend lockdowns, drying up the modest domestic tourism keeping the industry afloat.
As talks continue between the industry and the government on interventions beyond loans and tax relief, 60 of the country’s 260 tour operators and several hotels and campsites in Petra and Wadi Rum say they have closed for good, according to the Jordan Hoteliers Association and campsite owners.
"We have yet to find a way out," Awni Kawar, director of the Jordan Inbound Tour Operators Association, told The National.
“Staff are getting fed up and are leaving the sector to look for other jobs. As we face more delays in finding a solution, we are losing more skilled people on the way.”
Adding to the pain is the fact that the pandemic came months after a record-breaking year for tourism, with the kingdom attracting one million visitors and generating 4.1 billion Jordanian dinars ($5.8bn) in 2019. The boom encouraged many businesses to expand in expectation of a record-breaking 2020.
The blow to tourism from the pandemic has been particularly devastating for medium-sized businesses and sites outside the capital, where entire families, villages and towns rely on the sector.
One of those places is Dana, a cliffside Ottoman village in the dramatic Jordan Rift valley that is the heart of Jordan’s eco-tourism, a stopover for tourists heading south to Petra, and rated a top global travel experience by Lonely Planet.
Here, there are 150 local residents who rely solely on tourism, supporting 1,200 people in their village.
On a day in late October, the streets were empty and feral dogs outnumbered people 10 to one.
Yet owners of the community-based hotels continue to weld and lay bricks to complete expansion projects they paid for with loans shortly before the pandemic hit.
“Tourism in Jordan has seen ups and downs – we have survived the downturns from the Iraq war and ISIS,” said Suleiman Khawaldeh, director of the community co-operative Dana Hotel.
His hotel usually has between 200 and 400 visitors a day during the spring and autumn-winter high seasons. This year, he did not have a single visitor from March until late October.
“In the lean years people were still coming even if in reduced numbers. Right now, we have nothing to get by and we need an urgent intervention to help employees and their families make ends meet.”
To retain their tourism licences, restaurants and hotels like Mr Khawaldeh’s must stay open, retain employees and keep the lights on, running up thousands of dollars in operating costs as they hobble into 2021.
In Jerash, northern Jordan, artisan Nadim Tantawi goes each day to his souvenir stand in the now-empty visitors centre and makes decorative sand bottles on the off-chance a tourist may come through.
“Without visitors to Jordan, all of us are just sitting around or sitting at home, there is no money going through the economy,” said the father of two, whose monthly income has dropped from 400 dinars to 50 dinars. “We just don’t know what to do.”
“Quite frankly, we are devastated,” said Raed Abdulhaq, head of Jordan Tour Guides Association.
The association says only 200 of the country’s 1,200 licensed guides benefited from the soft loan programme.
“Loans are not really a solution, they are shifting the problem farther down the road,” said Mr Abdulhaq, who called for an extension of Urdonnah Jennah.
Tourism operators urged the government to ease its ever-changing travel restrictions and unclear quarantine requirements, which have scared off travellers eager to visit an exotic yet safe destination.
“We understand the government does not have the resources to help us, which is why we are asking the government to help us help ourselves,” Mr Abdulhaq said. “Ease restrictions and reopen Jordan to visitors.”
There are glimmers of hope on the horizon.
Inbound tour operators report that foreign tourists are postponing rather than cancelling the trips they planned this year, and several foreign charter flights are waiting for Jordan to ease restrictions.
In October, Lonely Planet listed Petra, the rock-carved Nabatean city in southern Jordan, as the top destination in its Ultimate Travel List and this month selected the capital Amman among its Best in Travel picks for 2021 as the “most welcoming” destination.
“Jordan will be back, I am optimistic,” said Mr Kawar of the tour operators' association. “Some say October 2021, it may be as early as April, but Jordan will welcome the world again.”
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
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
KLOPP%20AT%20LIVERPOOL
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The biog
Age: 46
Number of Children: Four
Hobby: Reading history books
Loves: Sports
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
KILLING OF QASSEM SULEIMANI