GCC tourists turn away from Jordan

Inflation and increased competition from Lebanon and Egypt have caused a drop in the number of GCC tourists to Jordan.

Wearing traditional Bedouin dresses, Abdul Rahman Issa's children pose for a picture in Amman.

AMMAN // In the shadow of a canopy at the Reem al Bawadi restaurant in the Jordanian capital, Abdul Rahman Issa, his wife and their four children enjoy a barbecue lunch. "We love Jordan and this is the first time we have ever come here," the Saudi citizen said. "It is a clean country and people here are hospitable ? it is expensive, but prices are not as bad as we thought they would be for us." However, business at this traditional Arabic restaurant is not as good as it used to be, with Gulf visitors making up only 10 per cent of the clientele compared with 30 per cent to 40 per cent last year.

"In fact, it has been going down in the past two years," said William Massouh, who supervises the dining hall. Cars with Saudi and UAE licence plates are a common sight on the streets of Amman most summers, but have been less visible this year. Inflation and increased competition from Lebanon and Egypt, as well as the changing travel plans of Gulf holidaymakers, have caused a drop in the number of GCC tourists to Jordan, tourism analysts said.

Between January and May this year, Jordan received 543,717 Arab and Gulf tourists, a drop of 15.7 per cent from the corresponding period last year. Last year, the number of overnight tourists from Gulf countries - who generally make up 50 per cent of the market - dropped by 12 per cent from 2006, with 735,539 visiting Jordan, according to official figures. This has prompted Jordan's Tourism Board, the promotional arm of the ministry of tourism, to intensify its campaign in the oil-rich countries, ahead of the onset of the high season this summer.

The goal of the JTB campaign, known as "Jordan Beautiful Summer", is to show Jordan as a family destination and highlight the country's temperate weather and such major tourist attractions as Petra, the Dead Sea and Jerash. Jordan also offers parks, outdoor cafes, malls and restaurants, in addition to cultural events, including the Jordan Festival. "Unlike traditional tourists who usually arrive on package tours to explore the country's historical sites, Gulf vacationers generally live the Jordanian life," said Nayef Fayez, head of the JTB. "They go to the hairdresser and to the malls, and thus they revive the cycle of economy. And therefore, we aim to extend their stay as much as possible."

Because most western and European tourists are put off by the perceived regional instability in the Middle East, tourism from GCC and other Arab countries including Syria and Egypt, plus the Palestinian territories, is considered to be Jordan's bread and butter. Mr Fayez said the Arab market generally represents more than 60 per cent of the country's tourism pie. But a change in their travel patterns in addition to inflation means that many GCC tourists would rather spend the same money on a trip to Europe or outside the region. "Business is good, but it is not like last year," said Khaldoun Alhares, director of revenue at the Holiday Inn hotel in Amman. "The occupancy rate stands at 80 per cent this month [July], but it could be better."

Saudis are the most common GCC tourists, followed by Kuwaitis. Both their numbers last year dropped by 15.7 per cent and three per cent respectively compared with 2006. Ayham Fakhereldin, a member of the Jordan Inbound Tour Operators, cited inflation that has swept the region as the main reason for GCC tourists to changing their travel habits. "Gulf tourists do not arrive on package tours. They arrive on their own where they stay in hotels and rent cars. This makes the cost of their stay on par with Europe," he said.

"Hotels in Jordan and other Arab countries sell the rooms at 20 to 30 per cent higher to the GCC tourists as they are considered high per capita spenders," he added. And, as the political crisis in neighbouring Lebanon eased after the Doha deal in May that paved the way for a new national government, Gulf tourists are returning once more to Beirut and other places in the country. "Last year, with the crisis in Lebanon, Jordan made the most out of the Gulf tourists," Mr Fakhereldin said.

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