Jordan’s Tourism Sector Shows Resilience According to Deloitte Analysis of 2009 Hotel Performance
In what was a testing year for tourism markets globally after the fallout of the world financial crisis, Jordan showed signs in 2009 of withstanding the challenge. The country observed an occupancy rate of 56.1 percent in the 12-month period ended December 2009, according to statistics from STR Global, which reflects a year-on-year decrease of 18 percent. However, revenue per available room (RevPAR) in the same period decreased relatively less, by 5.7 percent, to US$82.11.
“The decline in RevPAR was a far lower fall than many other countries in the region,” commented Robert O’Hanlon, Tourism, Hospitality and Leisure Partner at Deloitte Middle East. “This was helped by a 15 percent increase in the average room rate achieved by Jordan’s hotels and can be taken as an indication of the resilience of the Jordan tourism market.”
According to the World Travel and Tourism Council (WTTC), the Jordanian travel and tourism economy’s real GDP (gross domestic product) is expected to grow 4.9 percent per annum between 2010 and 2019. “This growth forecast places Jordan fifth out of 12 countries in the Middle East. In terms of the travel and tourism economy’s contribution to national GDP, Jordan ranks third in the Middle East”, continued O’Hanlon.
With a GDP of USD 3977.1 million, Jordan’s travel and tourism economy ranks 79 out of 181 countries around the world, according to the WTTC. Its relative contribution to national economy GDP was 18.3 percent in 2009. Direct industry travel and tourism jobs number 302,000 and account for 16.7 percent of total Jordanian employment in 2009 and are expected to form 18.1 percent of the total by 2019.
In the Travel and Tourism Competitiveness Index, constructed by the Travel & Tourism Competitiveness Report 2009, Jordan ranks 54 out of 133 countries. Its regulatory framework and human, cultural and natural resources are cited as competitive advantages. However, its business environment and infrastructure present opportunities for improvement and growth.
“If Jordan can improve infrastructure as part of its prioritization of the travel and tourism sector, it will be able to maximize its natural and cultural resources to generate high growth in the future,” observed Karim Nabulsi, office managing partner for Deloitte in Jordan.
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Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu (DTT) with a presence in the Middle East region of more than 85 years. It is among the region's leading professional services firms, providing audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with over 2,200 partners, directors and staff. In the first study of its kind in 2009, Hewitt Associates recognized Deloitte & Touche (M.E.) as a Best Employer in the Middle East.
