Tourism Sector Profile

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SECTOR PROFILE

Tourism
Overview of the Tourism Sector in Jordan
Jordan’s fast-growing tourism sector involves many promising niches and high-potential investment
opportunities. Travel and Tourism continues to be a vitally important pillar of Jordan’s economy.
Jordan features some of the world’s most unique and iconic assets such as; Petra - one of the seven
world wonders, the Dead Sea - the lowest point on earth, the Baptism site, and Wadi Rum desert,
turning the country into a rich destination with a wide range of tourist attractions.

A total of approximately 3.8 million tourists visited Jordan in 2017, culminating US$4,064.9 million in international inbound
receipts.1 Employing 71,882 people, Travel and tourism account for 4.5% of the Kingdom’s labor force. Jordan has a well-
developed tourism infrastructure with a plethora of luxury hotels and resorts, advanced transport infrastructure, a wide range of
activities and cultural events, spas and wellness centers, and numerous tour operators and Destination Management
Companies (DMCs). Jordan has an established leisure and tourism cluster of more than 2,200 establishments2 including hotels,
restaurants, resorts, and entertainment facilities, generating about 19,298 jobs in the accommodation sub-sector3.

120 Travel and Tourism Competitiveness


96
100 87
74 75
80 63
Rank

60
40
20
0
Saudi Arabia Egypt Jordan Tunisia Lebanon
Global Rank
(out of 136 countries
World Economic Forum, 2017, “Travel & Tourism Competitiveness Index 2017”

Investment Opportunities
1
World Economic Forum, Travel and Tourism Competitiveness Report, 2017
2
Ministry of Tourism and Antiquities, 2015
3
Ministry of Tourism and Antiquities, 2017

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Jordan has maintained constant international tourism arrivals over the past years with a positive outlook for 2018. Jordan’s
tourism proposition and experiences also hold potential to attract tourists in other emerging and promising niches. Eight of the
most prominent investment opportunities are detailed below.

01. Leisure Tourism


This more “conventional” type of tourism and revolves around Jordan as a premiere leisure tourism destination, featuring key
cultural heritage experiences that differentiate Jordan from its key competitors. The leisure-tourism activities that Jordan offers
include both cultural heritage adventure as well as typical getaway resort vacations. Investment opportunities in this niche are
widespread, ranging from different types of accommodations (e.g. hotel apartments, rural residential villas, tourist resorts,
lounges, and restaurants, tourist villages, chalets, and tourist lodges) to leisure activities (e.g. amusement city and aqua park,
amusement park, children’s museum, heritage traditional market, theme park, amusement water park, and touristic traditional
market). A variety of leisure tourism investment opportunities are revealed as the overall tourism sector grows in Jordan.

02. Aqaba’s High Lake ResportResort


The Aqaba High Lake Resort project entails the establishment of a mega resort to be built on 650,000 m2 of land north of
Aqaba’s coast and adjacent to Marsa Zayed project. The main attraction of this project is the lake at the top of the mountain
(spanning 100,000 m2 with a 4m depth, which will serve as the heart of the resort. The project includes, but is not limited to:
hotels coffee shops, restaurants, commercial facilities, recreational facilities, a beach club, lagoons, water sports and fishing
facilities, residential villas and apartments, serviced studios, tele freak and water taxi components, in addition to the utilities and
facilities needed to serve the main functions of the project. Moreover, ASEZA through ADC is willing to partner with future
investors on this project. Total estimated investment for the project is US$1 billion.4

This project presents two exciting investment options:


1. Full ownership.
2. Partnership with ADC (partial ownership: ADC to provide infrastructure such as roads, turbines, pumps, and the lake).
03. Medical & Wellness Tourism
Jordan is considered one of the Middle East’s most preeminent medical tourism destinations with further growth likely to
materialize in the upcoming years as a result of increased medical tourism from Yemen, Sudan, Saudi Arabia and other Gulf

4
Jordan Investment Commission Investment Guide, 2018

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Cooperation Council (GCC) countries. Medical tourism alone attracts at least 250,000 patients to Jordan per year, generating
40% of the country’s overall tourism revenues.5 Medical and wellness tourism is becoming one of the most promising tourism
segments in Jordan. Many of the visitors of Jordanian hospitals are international and come from various parts of the region (e.g.
Palestinians, Iraqi’s, Syrians) as well as from the Gulf countries and South-East Asia. Investment opportunities such as medical
tourism facilitators, health spas, medication centers, wellness centers, physiotherapy, Dead Sea cosmetics, and mud processing
and refining are prevalent in order to accommodate medical tourists and cater to their needs.

04. Sports City Camps – Aqaba


The Sports City is a multi-venue sports complex investment opportunity in Aqaba, and will be a vital dynamic space that will
serve the local community and host international teams. The Sport City can provide a mix of activities for up to 3,000 users. This
project is proposed for the northern region and will be on a plot of land with an area of 250 Dunum, and is offered as an
investment opportunity based on B.OO basis for interested investors under the supervision of Aqaba Development Corporation
can be considered as an option. The total estimated investment for this project is US $84.6 million.

05. Faith Based Tourism


Religious holy site experiences and pilgrimages to Jordan are growing. The Baptism Site, Mount Nebo, and the Mosaic Map in
Madaba are popular to Christian tourists while the Jordan River and the Dead Sea are also very popular for other religious
tourists. Muslim pilgrims are offered a chance to add the Kingdom to Hajj and Umrah programs. 6 Jordan’s rich variety of
numerous medieval mosques and churches and 34 religious sites add to the Kingdom’s attractiveness as a popular faith-based
tourism destinations.

06. Adventure Tourism


Jordan’s natural scenery provides extensive adventurous outdoor opportunities and attracts many international tourists looking
for adventurous activities and experiences. Adventure tourists staying in Jordan can enjoy rock-climbing in the Wadi Rum desert,
hiking in Jordan's northern mountainous region, or scuba diving near Aqaba's magnificent coral reefs. Eco tourism activities
enjoyed by adventure tourist in Jordan include lodging, hiking, camping, and scuba diving. Investment opportunities in this niche
include diving centers, climbing centers, and tourist camps.

5
Medical Tourism Index, 2017
6
The Investor Jordan, 2016

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07. Educational Tourism
Jordan's excellent education programs and infrastructure attracts many international students looking to study Arabic in the
Middle East or students from the Middle East looking to study at Jordan’s European and American universities. Jordan has a
higher percentage of foreign students in tertiary education than most of the surrounding countries.7

Foreign Students in Tertiairy Education

Cyprus 17.6%
Jordan 12.9%
Lebanon 9.9%
Saudi Arabia 4.8%
Tunisia 2.0%
Egypt 1.9%
Turkey 0.9%
Percentage
(of a country's total tertiairy enrollment)

Source: World Intellectual Property Organization, 2018, “The Global Innovation Index 2018”

08. Meetings, Incentives, Conventions, and Events Tourism (MICE)


Meetings, Incentives, Conventions, and Events (MICE) Tourism in Jordan is underdeveloped relative to its potential, particularly
considering the stable, safe, and secure environment Jordan offers8. Investment opportunities exist for event management &
organization companies, convention centers, and multi-purpose halls. In developing these areas of tourism, bringing in tourists,
the other sub-sectors of tourism will naturally entice tourists and spur organic growth of the sector.

Why Jordan? The Kingdom of Jordan is a stable, business-friendly, modern, and prepared location for your next engineering,
manufacturing, information technology, or life sciences activities in the Middle East and North Africa (MENA) region.
This dynamic nation provides a sound environment from which companies can find key talent, business assistance, and
a willing Government partner who will help enable their growth into the MENA region and beyond.

7
World Intellectual Property Organization, 2018, “The Global Innovation Index 2018”
8
Jordan Tourism Board Return to Growth Strategy 2017-2019, 2016

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Regional Business Operations Destination for Leisure & Medical QUICK FACTS
Hub Tourism
Jordan offers a vibrant, innovative, and globalized The Kingdom’s widely recognized welcoming and Free Trade Agreements
business environment with a high ease of doing hospitable lifestyle in combination with its diverse
8
business at stable, competitive, and predictable costs, scenery, appealing landscapes, and comfortable
positioning Jordan as the region’s prime hub for climates, turn Jordan into a popular destination for all
business operations requiring a highly skilled talent pool. kinds of tourism. Direct Market Radius
1.35 billion consumers

Development Zones
Regional Logistics & Access to Regional & 12 across Jordan
(Re)construction Hub International Markets
A strategic location together with safety and stability, an Jordan’s comprehensive network of free trade and Connectivity
unparalleled connectivity, and competitive logistics bilateral investment agreements features privileged 12 seaports and airports
platform make Jordan the right place for regional access to over 1.5 billion consumers in the largest
logistics and (re)construction. markets around the world. Economic Freedom
th
4 across MENA region (2018)
Center for Venture Capital &
Population
Innovation 9.7 million (2017)
The combination of an abundance of venture capital,
innovative pool of tech-talent, and a sound financial Total GDP
sector turn Jordan into an innovative ecosystem ready US$40.07 billion (2017)
for investors and start-ups.
Annual GDP Growth
2.0% (2017)

Exports
US$14.26 billion (2017)

Imports
US$22.85 billion (2017)

Why Jordan for Tourism?

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01. Increasing Demand
Indeed, Jordan’s tourism demand forecast is favourable:9
• Leisure travel spending is expected to grow by 8.8% in 2018
• Business travel spending is expected to grow by 8.6% in 2018
• Capital investment in Travel & Tourism is expected to grow by 4.8% in 2018
• Domestic visitors’ travel spending is expected to grow by 6.4% in 2018

The tourism sector in Jordan is forecasted to grow significantly. This increase in demand will reveal a host of lucrative
investment opportunities.

02. Cultural Heritage


Jordan encompasses a wealth of historical, archeological, and natural attractions for tourists seeking a cultural experience. The
Dead Sea, Petra the ancient rock-cut city, and the ancient ruins in the capital are only a few of the many deep-seeded historical
experiences one can find in Jordan. The Kingdom provides tourists with the unique opportunity to tour and learn about the
Middle East while feeling safe and secure in their travels. Citizens, visitors, and tourists enjoy the good life in Jordan with much
personal freedom and safety, a good education and health system, and a diverse, tolerant, and family-friendly environment with
all the conveniences of the 21st century.

03. Safe and Secure


Jordan is generally perceived safer than other destinations in the region. Jordan’s safety perception is far ahead of other highly
travelled destinations such as Mexico10 and when compared to larger regional tourist destinations such as Egypt and Turkey.
The safety and security of Jordan’s tourism environment is similar to that of Cyprus.11 The GoJ understands the importance of
the tourism sector to the national economy and ensures the Kingdom is ready and equipped with the necessary resources to
enable the growth and strength of Safety
the sector.
and Security
150 125 130
113 116
102
100
Rank

61
36 38
9 50
World Tourism Council, Travel & Tourism Economic Impact 2018
10
World 0Economic Forum Travel & Tourism Competitiveness Index, 2017
11
World Economic Forum
Cyrpus Travel & Saudi
Jordan Tourism Competitiveness
Tunisia MexicoIndex, 2017 Lebanon
Turkey Egypt
Arabia
Global Rank
7| (out of 136 countries) JORDAN INVESTMENT COMMISSION © 2018
Source: World Economic Forum, 2017, “Travel & Tourism Competitiveness Report 2017”

04. High-Quality Tourism Infrastructure


Proximity to the large regional feeder markets, major air hubs (e.g. Istanbul and Dubai), and high volume destinations within the
GCC is one of Jordan’s key competitive advantages. Royal Jordanian Airlines – based at Amman’s Queen Alia International
Airport - is a member of the OneWorld alliance while the JTB has signed Memorandums of Understanding with Etihad Airways
and Emirates Airlines. Jordan supplements the regional tourism proposition in that it offers a vastly different tourism product
from, for instance, the United Arab Emirates (UAE). With two airports in Amman and one airport specifically serving Aqaba, the
quality of Jordan’s air transport infrastructure and connectivity is among the highest in the region.12

Quality of Air Transport Air Transport Connectivity


Infrastructure
Jordan 33 Saudi Arabia 45
Egypt 42 Jordan 53

Saudi Arabia Lebanon 59


46
Tunisia 69
Tunisia 98
Egypt 94
Lebanon 100
Cyprus 118
Kuwait 117
Global Rank Global Rank
(out of 137 countries) (out of 136 countries)
Source: World Economic Forum, 2017, “Travel & Tourism Competitiveness Report 2017”

05. Hub for Special-Interest Tourism


12
Source: World Economic Forum Travel & Tourism Competitiveness Index, 2017

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The country offers experiences that fit the fast-growing niche of special interest tourism (e.g. medical & wellness tourism, faith
based tourism, adventure tourism, and MICE tourism). Jordan is a competitively priced hub these tourism niches. The many
special interest tourist activities that Jordan offers incorporate a variety of other economic sectors in the country. These special
interest tourism markets present a large spectrum of investment opportunities.

06. Competance to Facilitate Growth


Jordan’s tourism proposition is fully anticipating on emerging trends in tourism demand, as well as more conventional leisure
tourism (e.g. cultural heritage tourism, city trips, family tourism, resorts, and charters), offering growth in tourism demand
coupled with a unique competitive advantage. The Government of Jordan is committed to further developing and investing in the
tourism sector, which is demonstrated by its high policy prioritization and relatively high budget spending (10.7% of total budget)
on the tourism sector.13 Jordan’s Vision 2025 reflects the GoJ’s commitment to tourism sector growth as it puts specific
emphasis on the development of the tourism clusters present in the country. The Jordan Tourism Board (JTB) has launched
several marketing campaigns in major tourism markets to contribute to a positive image of Jordan and is committed to continuing
that momentum.

07. Tourism-Oriented Development Zones


Tourism-orientated Development Zones are located in various touristic areas offering high quality infrastructure, streamlined
business operating environment, and a conducive business environment, which is further boosted by attractive incentive
packages for tourism businesses operating inside Development Zones. The most relevant Development Zones for the tourism
sector include:
• Aqaba Special Economic Zone Authority (ASEZA), located in Aqaba, which is Jordan’s coastal city located at the Red
Sea.
• Dead Sea Development Zone, where a number of large tourism and real estate development projects are under
construction, particularly in the Corniche District and the North Eastern shore of the Dead Sea. Investment opportunities
in this Development Zone vary considerably in terms of investment size and type, thereby depending on the investor’s
preference, expertise, and appetite.14
• Jabal Ajloun Development Zone, located north of Amman the area is famous for its vegetation, forests, traditional village
landscapes and ancient sites.

13
World Economic Forum Travel & Tourism Competitiveness Index, 2017
14
The Investor Jordan, 2016

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Contact Details

Main Premises – Fifth Circle: Musa Bin Nusir


Street
P.O. Box 893, Amman, 11821, Jordan
Telephone:+962 (6) 5608400/415
Fax: +962 (6) 5608416
Email: [email protected] Website: www.jic.gov.jo

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