GULF TRAVELERS CONTRIBUTE TO A SUCCESSFUL SUMMER TOURISM

UNCLAS SECTION 01 OF 03 AMMAN 004074 SIPDIS SIPDIS STATE FOR NEA/ELA STATE PASS USAID E.O. 12958: N/A TAGS: EAID ECON EIND JO SUBJECT: GULF TRAVELERS CONTRIBUTE TO A SUCCESSFUL SUMMER TOURISM SEASON; HIGH EXPECTIONS FOR MORE GROWTH REFS: A) AMMAN 3260 B) AMMAN 3159 C) AMMAN 1335 D) 05 AMMAN 2394 ¶1. (U) Summary: As of the end of August 2007, the number of Gulf state-based tourists visiting Jordan had increased 3.4% compared to the same 8-month period in 2006. Gulf tourists visit Jordan primarily in the summer for the relatively temperate weather, family entertainment, and common culture. The majority comes to the capital Amman, and the city has been investing in infrastructure improvements and cultural events that appeal to local citizens and fellow Arab tourists. Tourism executives and officials said that Amman still needs additional investment, but many believe that Gulf tourists represent the greatest opportunity for Jordan's growing tourism industry. End Summary. Location, Location, Location ... and Weather -------------- ¶2. (U) On September 25, the Ministry of Tourism announced that 1.3 million Arab and Gulf tourists visited Jordan in the first eight months of 2007, representing 3.4% growth over the same period in ¶2006. Hisham Salaitah, Manager of Customer Satisfaction Measurement at Royal Jordanian Airlines, estimated that 22% of their customers were Arabs from countries other than Jordan. ¶3. (U) In recent discussions with EconOff, hotel managers, restaurant owners, and tourism officials indicated that Gulf tourists are coming to Jordan for the weather, its relative safety, its proximity, and family ties. Fayiz Khouri, Deputy Managing Director of the Jordan Tourism Board (JTB),said that a limited number of hotel rooms in Damascus and security concerns in Beirut have led to increased Gulf tourism in Jordan, particularly during the summer and Muslim Eid holidays. He added that Gulf visitors usually rent furnished apartments, sometimes for as long as two months, and that only a small percentage stay in hotels. Given the ease of driving or taking a direct flight to Amman, the capital is the most popular destination in Jordan, followed by the northern and cooler cities of Jerash and Ajloun. Jordan: Family-Friendly Destination for Gulf Tourists -------------- -------------- ¶4. (U) Our tourism industry contacts emphasized that Gulf tourists travel as families. Bassam Banna, Director of Sales and Marketing at Le Meridien Hotel Amman, added that these travelers are often conservative Gulf families who see Beirut as too liberal, and view the Jordanian culture as compatible with their own. Minister of Tourism Osama Dabbas told EconOffs on October 2 that the top three Gulf countries for Jordan-bound tourists are Saudi Arabia, Kuwait, and Bahrain. ¶5. (U) Khaled Burgan, Tourism Advisor to the Mayor of Amman, emphasized that Amman is a family destination that does not have gambling or nightlife like Beirut or Damascus. Gulf tourists do not typically visit historical sites, but Khouri reported a record number of Gulf visitors to Petra this summer after it was designated one of the New Seven Wonders of the World (Ref B). Jordan is also a regional hub for medical tourism, and the Ministry of Health estimates that Jordan earns $600 million annually from foreign patients (Ref D). Dabbas commented that there is much more Jordan needs to do to attract a steady stream of medical tourists, including establishing a fee structure for common procedures, a project recently undertaken by an inter-ministry committee. Investments by Amman and the Government of Jordan -------------- -------------- ¶6. (U) Burgan reported that 2007 is the first year the Greater Amman Municipality (GAM) has had a bona fide tourism department. In 2006, GAM worked with USAID's Siyaha tourism project to develop a master plan aimed at making Amman a destination city. He said that GAM has been working to improve Amman in ways that will help residents and tourists, including developing pedestrian areas, removing billboards, putting up addresses and street signs, and better zoning of industrial areas. He said that the creation of pedestrian zones is particularly tourist-friendly, because it creates a safe place for children. GAM and Siyaha are also working together to convert an old electricity company hanger into a crafts marketplace. A USAID grant will finance 70 percent of the project, and GAM will contribute the remaining 30 percent. ¶7. (U) Khouri said that JTB and GAM felt they had a limited window, during current instability in Lebanon and Syria, to make a good impression on Gulf tourists. This summer, GAM coordinated a summer festival with daily events, and JTB hired students to visit hotels AMMAN 00004074 002 OF 003 and furnished apartment complexes to advertise the festival. Khouri said JTB's goal was to encourage Gulf tourists to stay longer. Burgan was optimistic that in a few years, Amman would be an even stronger tourist destination than it is today. Dabbas said that Gulf tourists are a good complement to Jordan's tourism sector because they travel during the slow summer season; European tourists typically visit Jordan in the spring and fall. He added that the Ministry worked to ease access to Jordan from the Gulf by adding additional customs and border crossing staff this summer, and streamlining airport arrival procedures so that visitors depart the airport within 30 minutes of arriving. Despite the family-friendly environment and ease of traveling, Dabbas commented that Gulf tourists complained about the rising prices in Amman, especially relative to Beirut and Cairo. Investments by Private Sector -------------- ¶8. (U) Many in the tourism sector also commented on the increased investment in Amman, from new hotels to a new children's museum to restaurants. Khouri said that the presence of western restaurant franchises often reinforces tourists' impression that Jordan is a good place to visit. Hani Ashour, President of Food City and Shmeisani Mall, said that he is attracting more Gulf customers by featuring a women-only section of his food court so that fully veiled customers can eat in privacy. Ashour said he also sponsors his own twice-weekly, family-oriented summer events featuring music, storytellers, and contests. Khouri also described a summer camp that opened this year expecting 20 kids per day and ended up recruiting 200 daily participants, half of whom were from the Gulf. Amman ... Room for Improvement -------------- ¶9. (U) Tourism officials named many ways that Amman could improve as a family destination, including the addition of a new theme park, parks or a first-class zoo, and renovation of existing theme and water parks. In addition to serving locals and Gulf tourists, these attractions could draw Lebanese and Syrian customers as well. Two hotel executives both said that Amman is not appealing to customers under age 30, noting that Amman needs more nightclubs, particularly clubs that allow single, male patrons. Yasmeen El Ajou, Marketing Communications Director at Grand Hyatt Amman, named this summer's all-night rave party at "Little Petra" featuring Dutch DJ "Tiesto" which attracted an audience of approximately 6,000 people, as proof of the potential market for more nightlife. Recent PA-sponsored musical events targeting youth, including visits by American salsa/funk/hip-hop band Ozomatli and jazz musicians Alvin Atkinson and the Sound Merchants, have reinforced this, drawing large crowds of more than 1000 young people at their public events(Refs A, C). Jan Heesbeen, Country Director of Sales and Marketing at Marriott, however, said that Jordan should not copy nearby cities and resorts, but should focus on its unique historical and cultural features in marketing itself. Potential for Growth -------------- ¶10. (SBU) According to Al-Arab Al-Yawm newspaper, a report issued by the Central Bank of Jordan shows that during the first eight months of this year, tourism revenues reached a total of JD 841 million ($1.18 billion) - a 12% increase over the same period in 2006 when tourism revenues stood at JD 750 million ($1.05 billion). The largest increase was in the number of European tourists, and both Iman Rihani, Director of Public Relations at Royal Jordanian, and Heesbeen thought Europeans represented the greatest tourism opportunity for Jordan. JTB and GAM disagreed, citing Gulf tourism as the greatest opportunity, particularly because these tourists stay longer and spend more. European and American tourists travel primarily as part of tour packages and do not spend much money in Jordan beyond the package cost. In contrast, Khouri said that one-third of the customers at Amman's largest shopping mall are from the Gulf. Comment -------------- ¶11. (SBU) Tourism continues to grow in Jordan and contribute to the growth of Amman. While Petra's attendance numbers have already spiked after its Seventh Wonder victory (and the entire town is booked for October),Amman will need to continue to work to ensure that tourists include the capital in their itinerary. GAM and JTB's focus on Gulf tourism in Amman is reasonable, given the mismatch between European and American tourists interests and what is available in Amman. AMMAN 00004074 003 OF 003 Visit Amman's Classified Website at http://www.state.sgov.gov/p/nea/amman HALE