Syria says it will make every effort to sustain the growth in tourism. Above, the bustling al Hamidieh souq in Damascus.
Syria says it will make every effort to sustain the growth in tourism. Above, the bustling al Hamidieh souq in Damascus.
Syria says it will make every effort to sustain the growth in tourism. Above, the bustling al Hamidieh souq in Damascus.
Syria says it will make every effort to sustain the growth in tourism. Above, the bustling al Hamidieh souq in Damascus.

Syria sees victory in tourism boom


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  • Arabic

Damascus // A significant growth of tourism in Syria, worth billions of dollars to the national economy, has come as a pay-off from successful foreign policies, according to senior government officials.

They also promised to further increase the number of tourists to Syria, saying it helped to "correct misrepresentations" about the country. Although the Obama administration has increased contacts with Damascus and has nominated a new ambassador after five years in which the post was left vacant, Syria remains under US sanctions, classified by Washington as a "state sponsor of terrorism". On Tuesday, the US defence secretary Robert Gates accused Syria, in conjunction with Iran, of supplying the Lebanese militant group Hizbollah with sophisticated rockets and missiles.

However, such concerns - far from new - have had little discernible impact on a booming tourism industry, and government ministers expect growth to continue unabated this year. Syria has become popular with European visitors, and even made it into The New York Times top 10 places to go in 2010, even though the US government's blockade has prevented Syria's national carrier from buying new aircraft, all but grounding its ageing fleet of Boeings.

"Tourism in Syria has benefited from the diplomatic and foreign policy successes, and a good promotion programme," Sardullah Agah al Qalla, the minister for tourism, told a conference of industry figures and potential investors in Damascus this week. Journalists from across the world have, of late, been invited to take tours in Syria, resulting in positive write-ups, even by the likes of Fox News - a dramatic turnaround from eight years ago when Damascus was implicated in George W Bush's "axis of evil".

The public relations offensive has already brought dividends, the Syrian authorities say. According to government figures, 6.1 million visitors came to Syria last year, a rise of 700,000 compared to 2008, and some 3.5 million more than in 2003. The overwhelming majority leaves with a positive feeling about the country, officials said. That the world was gripped by a financial crisis during 2009 made the increase in tourist numbers "absolutely exceptional", according to Frederick Beret, an executive director at the UN's World Tourism Organisation.

"Syria appears to be in an exceptionally good position," he said. "And the number of European tourists increased by 25 per cent, which is a remarkably good figure." Mr Beret said tourism in the region had proved to be resistant to political instability and the apparently perpetual threat of a new outbreak of hostilities between Israel, Syria and Lebanon. "Whatever the adverse conditions, be they economic problems, terrorism or natural disasters, tourism always recovers well," he said.

Israel, Tehran, Damascus and Beirut have been engaged in spiralling rhetoric this year, prompting alarm of another summer war. Last month, the Israeli president Shimon Peres accused Syria of equipping Hizbollah with Scud ballistic missiles, sparking a new round of recriminations and denials. His claims were not confirmed by US officials. The European Union foreign affairs chief, Catherine Ashton, called for an end to "provocation" by all sides on Tuesday - the same day the US defence secretary accused Syria of destabilising "the whole region".

The EU, France in particular, has been at the forefront of welcoming Syria back in from the diplomatic cold. Any incident that undermines tourism in the Middle East would now have a heavy impact on Syria, as officials here acknowledge. Last year, tourism was worth US$5.2 billion (Dh19.1bn) to the national economy, a figure that is forecast to rise to $6.3bn this year. It amounts to a significant portion of Syria's income.

That increased dependence on the tourist sector is in line with the government's economic modernisation plans, with the authorities working to end Syria's unsustainable reliance on oil. "Tourism represented almost 11 per cent of GDP in 2009, that's a dramatic change in the structure of the economy. It now represents a greater proportion of GDP than oil," said Abdullah al Dardari, Syria's deputy prime minister for economic affairs. "That is a fundamental transformation."

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A $10 hand-powered LED light and battery bank

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The charge is stored inside a battery

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A full hand wound charge is of 16.5minutes 

This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode

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The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge

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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.”

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Engine: 3.0-litre six-cylinder MHEV

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

If you go

Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.

Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com

A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com

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