Tourism is already the largest global industry and according to the World Tourism Organization (WTO), the international tourism market will triple in size to reach $2 trillion by 2020. Dana Baradei sits with Michael Nazzal, vice chairman for the Jordan Tourism Board and chairman of Jordan Hotel Association (JHA), to talk about the impact on Jordan.
Jordan's attraction has been on the rise ever since the country signed a peace treaty with Israel 10 years ago, give or take a few setbacks such as the Palestinian intifada in 2001, followed in 2005 by the 9/11 Jordan hotel bombings and the Lebanese war in the summer of 2006. Although the volume of western tourists to Jordan has declined, the number of Arab visitors last year made up for their shortfall. As Vice Chairman for the Jordan Tourism Board (JTB) and Chairman of Jordan Hotel Association (JHA), Michael Nazzal is hoping to make Jordan the tourist destination of choice for visitors from all around the world. Yet Nazzal is the first to admit that the industry has a few hurdles to overcome first.
JB: How did you get started in the hotel industry?
MN: I come from a family whose members have dedicated their professional careers to the hotel trade; in fact, my brothers and I are the fifth generation in the hotel industry. My family's interest in the business started in Jerusalem and expanded to Jericho in the beginning of the last century. Later we launched establishments in Jordan. In Amman we opened the old Philadelphia hotel opposite the amphitheater in 1925, and later the Nazzal camps at Petra in 1930. Several other hotels at other locations in Jordan were opened in the past 20 years.
JB: This is your seventh elected term as chairman of Jordan Hotel Association. What progress has the association made recently?
MN: My main responsibility, and that of the association, is to identify the needs of industry and find out how we can fill up the rooms. During my seven terms with JHA we were able to identify a severe need for marketing, a lack of properly trained staff to reduce the cost of operations, and to offer services that are internationally competitive.
One of our greatest achievements was the fact that we were able to successfully privatize the Ammoun Hotel School, which has been totally renovated by the private sector for the amount of JD3 million. The school has been upgraded to include various levels of education, including high school degrees and university bachelor's program. JHA has also pushed for a marketing arm for the industry and the establishment of a tourism board, which is managed by a board of directors, chaired by the Minister of Tourism and Antiquities, and has several representatives of the tourism industry on board. It is one of the first joint private/public sector partnerships to promote tourism in the country.
JB: Situated between Israel, Palestine and Iraq, Jordan in the past few years has often had a hard time promoting its tourism industry. How difficult is it to operate in such a tough neighborhood?
MN: One cannot help but fully acknowledge the fact that we are situated in a region full of conflict, and that has stopped the industry from thriving the way we'd like it to. However, by following the footsteps of HM King Abdullah by promoting Jordan as an island of peace and prosperity, the image of Jordan, due to the Hashemite rule, has always been very positive in the West. Furthermore, the constant support we get from Their Majesties and their constant traveling to promote Jordan have assisted us tremendously. True, we are affected every once in a while when a war breaks out in a neighboring country, but we have always tried to quickly pick up where we left off. For example, our bookings were affected during the autumn of last year due to the unfortunate war that broke out in Lebanon in 2006, but we managed to bring the numbers back up by 36% by the beginning of this year. For summer 2007, we are expecting at least a 50% increase over last year's volume of tourists. We believe that tourism is a very resilient industry; you just need the proper marketing tools and follow-up to guide you through the tough times.
JB: The tourism industry has in recent years made great progress, and is now estimated to account for approximately 11% of GDP. This has been the product of several factors, including rising FDI (which has resulted in the establishment of several 5-star hotels in Amman, the Dead Sea and Aqaba); Jordan's safe haven status; proactive government policy (Jordan Tourism Board, National Tourism Strategy, SIYAHA, various tax breaks, etc.); and the events of 9/11/2001, which caused more Arabs to travel within the region. Yet, skeptics argue that Jordan has historically failed to supplement traditional tourist attractions with additional investment in leisure facilities to enhance the visitor's vacation experience after they spend the day in Petra or Jerash.
MN: We represent ourselves as a niche destination, we're not after mass tourism, and we actually represented 11% of the GDP at the end of last year. We believe we can actually achieve a higher number than 11% if we increase the average room rates. If both the occupancy and the demand for rooms increase, the room rates will go up automatically and these higher numbers will go directly into the direct revenue of the government. Every tourist gives a direct revenue of more than JD120 between visa fees, entry fees in sites, VAT collected from hotels and transport. So we believe that we will exceed our expectations and exceed the 16% benchmark eventually. We also feel that sustainable tourism requires that the local population has to benefit in and around sites. The example of the Roman Army show in Jerash is a good start and that employs many locals. The handicraftsmen can start selling souvenirs of Roman Army statues and many other products that go along with the show. Other similar activities should come up in Ajloun, Petra, Umm Qais and other sites to revive the experience of the travelers.
JB: The Jordanian tourism product is now better defined and developed, the result of over a decade of work on the country's sites and services, as well as intensified efforts to promote Jordan as an attractive tourist destination abroad. However, some say that more needs to be done in this regard.
MN: The sites themselves are, by all means, magnificent. However, continuous work is being done on all sites in Jordan to improve the facilities and amenities available to make sure that the tourist has an overall enjoyable experience while touring. Nowadays, it is safe to assume that Petra is one of our most popular sites and is receiving a lot of attention and amenities, which, although few in number, are available and well maintained. It is important to keep in mind that the site has its limitations as well, and this is for reasons beyond our control. For instance, you cannot just plant a restroom anywhere. Plenty of studying and planning goes into the selection of an ideal area; we have to guarantee that any additions will not harm the site. Petra is recognized by UNESCO as a World Heritage Site and is protected by international laws that prevent tampering with the site. If services are lacking, it's not for lack of trying.
Our main goal, however, is not merely to plug in facilities but to provide the tourist with an overall memorable experience. For example, we have solicited the services of a company in Jerash that performs a reenactment of life in ancient Roman times, complete with chariots and races. It's these touches that make a tourist feel like they are part of the history and will want to take their memories with them back home. This will actually encourage the tourist to purchase a souvenir, a DVD, anything.
JB: Despite progress on many fronts, skeptics say that the level of human resources in the tourism industry needs to reach a higher level of professionalism. How do you see the sector going about this? What about training? The benefits of training in this industry are many-fold, including making people more open and tolerant; helping to break the gender barrier in tourism jobs; and providing significant positive social and cultural spillover effects.
MN: We've been working with many different establishments in the country, including ministries and directorates, about raising the awareness of the importance in this sector. The returns in this industry are rather high compared to other sectors; in fact, an employee in the tourism industry can make up to three times as much as blue-collar workers in other fields. There have been certain limitations in raising awareness. For example, school textbooks do not mention tourism at all. Instead they talk about parents who work in factories or in shops, but never in a hotel as a waiter or a chambermaid, so we are really looking to tackle this at the grassroots level. Unless you implant this image at an early age, it is very difficult to teach older people to accept hospitality as a profession. USAID/Jordan Tourism Development Project (Siyaha) has recently launched an awareness campaign that will hopefully entice more Jordanians to join the profession. INJAZ is also launching a campaign to encourage students at school to look into hospitality. As a people we are very hospitable, but those who do accept to work in food and beverage are reluctant to serve others for a salary.
Although we have seen a lot of change, over 90% of our hotel employees are Jordanian. With the proper training we will reach the required level of courteousness that is at par with international standards. I am proud to say that our current level is far more impressive than that of some countries in the region and around the world. Perhaps our biggest current disadvantage is the rate at which highly qualified Jordanians are hired by neighboring countries in the Gulf, and we cannot provide enough professionals as quickly as they are hiring them. There are a lot of hotels under construction in the Gulf and here. We are unhappy about these transfers, because it all detracts from revenue for the sector.
JB: Tourism is typically a labor-intensive industry, and the sector has an important role in combating unemployment in Jordan, which remains stubbornly high. What's happening on that front? Could you provide us with some numbers?
MN: Currently, approximately 10,000 hotel rooms are under construction, creating around 15,000 jobs for Jordanians, and 70,000 to 80,000 jobs for support services. That means that each hotel room hires around seven people. We try to coordinate with those who are building hotels so that surprises are kept to a minimum. As a sector, I do feel that we are doing what we can to combat unemployment in Jordan.
JB: The last few years have witnessed a shift in the tourism sector, which now focuses more on regional arrivals. The latter stay mainly in Amman, often in furnished apartments, and visit nearby sites such as the Dead Sea or Jerash. Some argue that the industry should focus instead on tourists from beyond the region, who stay at hotels, mainly five star, use operators and bus transport, and are more likely to have interest in sightseeing. What are your thoughts on that matter?
MN: Summer is the season for Arab and regional movement and the Arab tourist has different requirements than their European counterparts. We have proceeded to categorize the different types of tourists who come to Jordan and try to cater to the various segments. Right now, we have identified six different types of tourism namely: cultural tourism; eco-tourism; wellness and health tourism; adventure tourism; and meetings, incentives, conferences, and exhibitions tourism. We also have activities to complement each of the categories mentioned. One of our highlights for 2008 is the World Rally Championship, which the Kingdom will be hosting. Jordan will get coverage from all around the world for three weeks.
JB: Many of the regional tourists come to Jordan for medical treatment, which looks like a strong niche for Jordan. What is the industry doing to promote this?
MN: We have subdivided medical tourism into three segments: hospitalization, clinical intervention, and wellness (alternative therapy, spa treatments, etc.). We are currently cooperating with the Ministry of Health to promote all segments but as JTB our focus right now is mainly on wellness tourism.
JB: Eco-tourism looks like another successful niche for Jordan. With an area of less than 90,000 square kilometers, Jordan has no fewer than 12 distinctive ecological regions. Furthermore, most of the country is unspoiled and unknown to the average non-Jordanian. This makes the country perfect for what is known in the industry as "soft adventures." How do you see this evolving?
MN: The Royal Society for the Conservation of Nature (RSCN) has done a great job in promoting this kind of tourism in Jordan. Wadi Feynan, Azraq and Dana Reserve have all been tailored to cater to the eco-conscious tourist, and as a result, most RSCN facilities maintain a high occupancy rate throughout the year. JTB is now working with RSCN to introduce the ecological wonders of Jordan to a wider client base.
Jordan Business 2007
