AMMAN -- Business is booming on the eastern shore of the Dead Sea, according to the head of the association that represents Jordan's hospitality sector.
Yassar Majali, general manager of Jordan Hotels Association (JHA), told The Jordan Times in an interview on Sunday that Dead Sea hotels are bustling with activity, "better than those in Amman".
He indicated that demand from both local and international holiday seekers is driving occupancy rates at the Dead Sea hotels up to 65-70 per cent.
The reason, he said, is the competitive prices, compared to those in the region.
"Five-star hotels in Jordan charge $150 a night compared to around $400 a night in Beirut or Cairo, and much higher in Dubai," Majali said, adding that although the rate is high from a local perspective, it is affordable at regional standard.
Majali admitted, however, that it would be tough for the hotels in Aqaba to compete with those in the Red Sea area, especially Egypt's Sharm El Sheikh, where costs are lower in many aspects.
The JHA head explained that because Aqaba is a seasonal vacation destination, hotels there are at a disadvantage as they have to spread the income generated from a few months over a whole year of operational costs.
"Hotels cannot hire staff to work on a seasonal basis," he said.
"They are also unable to guarantee a steady flow of holiday seekers all year round and that is why they are in no position to be flexible on prices."
Majali blamed all stakeholders in the tourism industry for not putting into high gear a drive to attract more visitors to the Kingdom, especially when the sector generates $2.4 billion in annual income that accounts for 14 per cent of the gross domestic product.
A government decision that raised, at short-notice, the sales tax from 8 per cent to 16 per cent as of May 1, 2013, was detrimental, he said.
"Hotels are not against the higher tax in principle, but shouldn't government officials realise that the short-notice has unsettled the hoteliers and spoiled all plans made in advance by tourists, businessmen and visitors who have already made bookings, financial arrangements and preparations for the coming months," the JHA general manager asked.
According to Majali, also general manager of the Jordan Federation of Tourism Associations, there is no strategy for the tourism product and, consequently, the sector's marketing is weak, lacking adequate and targeted promotion despite a diversity of attractions.
He listed as possible strategies convening conferences during the low season, directing tourists to visit historical castles, such as the one in Karak, and guiding visitors to religious sites that carry historical significance.
"Even Jordan's moderate climate can be a tourist product," said Majali, underlining seasonality as a key factor that marks the Kingdom's tourist map.
Within this context, and the effect of regional developments, Majali said that hotel occupancy at Jordan's hotels stands currently at about 53 per cent and tourists' length of stay at 1.8 nights.
He said the hotel business is fluctuating, in general, and will continue to do so in the near future.
An important source of business for the hotels in the past couple of years was the Libyans who came to Jordan for medical treatment, he said.
It is not the case with the Syrians, however, who are either living in refugee camps or have accommodation with relatives, or have taken up rent if not ending up with purchasing apartments.
The general manager dismissed "group tourist packages" as something of the past and irrelevant today, with all the technological advancement.
According to Majali, online booking is on the rise and the trend of individual tourism is increasing.
"Out of 8 million visitors to Jordan annually, 3 million are tourists of whom only around 0.8 million come through group packages and the rest make their arrangements individually through online booking and business trips," he said, noting that this procedure has been prevailing in Europe for several years.
As such, he stressed the importance of adjusting the local approach to this trend in order to promote Jordan, taking advantage of technological developments and not resorting to traditional methods.
The JHA general manager also stressed the need for a real public-private partnership, noting that financial requirements are much higher than the JD9 million budget of the Jordan Tourism Board, which receives 50 per cent of this amount from the private sector hotels.
According to the JHA 2012 annual report, the association has 494 members spread over 28 5-star hotels (7,072 rooms), 28 4-star hotels (3,548), 50 3-star hotels (3,456), 54 2-star hotels (2,070), 53 1-star hotels (1,212), 140 hotel apartments and wings (4,771), 123 less luxurious hotels (1,615) and 18 tourism camps (882).
© Jordan Times 2013
