Jordan’s tourism sector poised for strong post-pandemic recovery

0


Jordan’s tourism sector boomed before the Covid-19 pandemic, and after a rebound from the 2020 collapse, the industry is expected to exceed pre-pandemic levels in 2022, with further growth expected in the coming years according to a strategic market analysis from Glasgow Consulting Group.

New research report from Glasgow Consulting Group (a research and management consultancy) assesses the development of Jordan’s tourism economy from 2015 to present, and uses a combination of research methods to predict its future . Currently, Jordan’s 10 million people receive between 2 and 3 million foreign tourists per year.

Between 2015 and 2019, inbound tourism increased from 2.23 million arrivals to 2.97 million, a CAGR of 7.3%. The growth was mainly driven by government efforts in promoting archaeological and cultural sites in the country. Jordan is home to more than 100,000 archaeological and tourist sites, including major attractions Petra and Jerash, according to the National Tourism Board.

Not surprisingly, tourist arrivals fell by 39% in 2020, mainly due to travel restrictions linked to Covid-19 (Jordan restricted international travel from March 2020 to September 2020 to minimize the spread of the virus).

The tourism sector is expected to experience a strong recovery according to the Glasgow Consulting Group, with international tourist arrivals expected to reach 3.5 million in 2025. While the majority of international tourists visit Jordan for leisure travel, the share business travelers are expected to increase as cities such as the capital Amman increase their economic influence in the region.

Tourist arrivals in Jordan + Length of stay

Who is visiting Jordan?

Regional tourists represent more than half of all tourists arriving in Jordan, with Saudi Arabia, Iraq and Israel being the main countries of origin (as tourists can for example travel to Jordan for a short tour of a day as part of their regional circuit).

Going forward, arrivals from Asia are expected to overtake other regions, increasing at a CAGR of 6.1%. Europe follows, with Russia, Germany, France and Italy the most represented countries among Jordan’s mix of tourist nationalities.

Where do tourists stay in Jordan?

Where are they staying?

In 2020, accommodation units available to tourists in Jordan reached 1,764 units, compared to 1,032 units in 2015, representing a CAGR of 11.3%. Growth was mainly driven by an increase in short-term rental housing such as foster families. The higher demand for these short term rentals is mainly due to budget tourists and tourists who want to experience “local culture” while staying at home (as opposed to hotels).

How long do tourists stay in Jordan?

Amman is by far the most popular attraction in Jordan, accounting for 37% of all tourist arrivals and 45% of all tourist overnight stays in the country. Petra, a historic and archaeological city in the desert of southwest Jordan dating from around 300 BC (then the capital of the Nabataean kingdom), is the second most visited destination.

Aqaba is the third most visited city, accounting for 13% of tourist visits and 17% of tourist nights. The town is especially popular among sporty tourists who enjoy water sports such as scuba diving, windsurfing, water skiing, and snorkeling. Other popular cities / regions are: Dead Sea, Wadi Rum, Madaba and Tafeleh.

How much do tourists spend in Jordan?

How much are they spending?

On average, tourists visiting Jordan are staying longer and visiting more tourist attractions than a few years ago. In 2015, 1.7 million tourists visited the country on an overnight trip, which rose to 2.5 million in 2019. During the same period, the number of tourists visiting on the same day increased from 488,000 to 483,000. As a result, the average length of stay has gradually increased from 3.7 nights per tourist in 2015 to 4.8 days per tourist in 2019.

During 2015-2019, spending by international tourists increased at a CAGR of 11.3%, with spending per tourist increasing from $ 1,320 to $ 1,528. In 2019, total tourism receipts were estimated at $ 4.9 billion, a figure expected to rise to $ 5.8 billion by 2025.

In related news, according to recent research from IBISWorld, the size of the global tourism industry has grown from $ 1.9 trillion in 2019 to $ 1.1 trillion in 2020. This year, approximately $ 200 million of suppressed revenues are expected to return as the industry ends the year at an expected value of $ 1.3 trillion.


Share.

Comments are closed.