Tourism has always been high on Jordan's business agenda but the kingdom has been trying hard to attract foreign investment despite its geopolitical problems. Pam Doughtery reports
When it comes to tourist and cultural attractions, Jordan's got it all. You can follow Biblical trails, mingle with Bedouins in the desert, cleanse your skin in the Dead Sea, explore the amazing Nabatean city of Petra, dive the coral-rich Red Sea, gaze at ancient Roman splendour and enjoy a falafel sandwich outside Amman's amphitheatre. But what has it got to offer to the keen business traveller? Jordan is generally known more for comfort than for speed but today it is buzzing.
Its economy has always been moved by regional developments, good and bad, but never more than now. The surge in liquidity produced by high oil prices, instability in Iraq and its own economic reform and liberalisation efforts are combining to produce strong growth, attract investor interest and boost the country's role as a regional services centre. The 2004 economic picture says a lot with GDP growth for the year reaching 7.5 per cent, boosted by healthy activity in real estate, the stock market, industry and trade. The trends have continued in 2005 with Jordan now firmly established as one of the major gateways for business with Iraq and tourism also picking up strongly. Regional investor interest in Jordan has also been growing and major players such as Bahrain-based Gulf Finance House (GFH), Dubai Holdings and Saudi Oger are coming into the market. The process started immediately following the war in Iraq in March 2003.
When Iraq's borders were opened and customs were abolished, Iraqi businessmen rushed to import the goods that had been missing from the local market for over two decades. With a history of strong trading ties behind them, Jordanian businesses were ideally placed to meet Iraqi needs and both local manufacturers and traders could scarcely keep up with demand. At times Iraqi businessmen were buying retail to meet demand at home. Amman also quickly established itself as the meeting place for business, non-governmental organisations (NGOs) and UN agencies dealing with Iraq and as the security situation declined, more of them chose Amman as a base.
Now Amman's hotels and up market restaurants are thriving as businessmen, the United Nations, foreign embassies and NGOs all choose the city as a safe haven from which to handle their business with Iraq. Jordan has also become a major training centre for Iraqis while for anyone travelling to and from Iraq; Jordan is also the only country offering scheduled flights to Baghdad on both Royal Jordanian and Iraqi Airways.
Increasingly however, Iraqi business people are not just visiting Amman, they are settling and one of the major beneficiaries of the Iraqi situation has been the real estate market. It is now estimated that as many as half a million Iraqis are living in Jordan while they wait for security at home to improve. Their presence, and that of foreign companies, UN, NGOs and other staff, and the general improvement in the economy, has led a surge in demand. Property values in Amman rose by an estimated 30 per cent in 2004 as developers scrambled to meet the extra demand for residential property for both purchase and rental, and for quality office space.
Foreign ownership
The government is also making it easier for foreigners to buy property. Any foreigner can buy a house or land in Jordan if their home country offers reciprocal rights for Jordanians and they do not sell on for five years and permission can now come through in as little as ten days. The major interest is coming from Iraqis although some Syrian and Gulf buyers are coming into the market as well and there are some signs of European interest in Amman and Aqaba (see Aqaba report page30).
Jordan's free zones have been another major beneficiary of the recent changes in Iraq. The Zarqa Free Zone has seen trading with Iraq surge over the past two years and when Free Zones Corporation completed the 50-hectare first phase of a new 150-hectare zone at Karameh on Jordan's border with Iraq in 2004 it was rented immediately. The corporation will add another 70 hectares to the zone in 2005 and says it is already seeing lot of interest from Gulf and US investors and in the longer term expects it to serve Saudi Arabia and Syria as well as Iraq. The nature of the real estate development is also changing with the emergence of a number of major projects that are set to change the face of both Amman and its southern port city of Aqaba, and to open new opportunities for investors.
The most advanced so far is the Al Abdali Urban Regeneration Project that is designed to create what its promoters call "a new downtown for Amman." The project is being carried on a 30-hectare site that was used by the Jordanian Armed Forces and sits between the major banking and commercial district of Shmeisani and Amman's old downtown area. The developer is Abdali PSC, a joint venture between the local National Resources Investment and Development Corporation (Mawared) and Oger Jordan, a subsidiary of Saudi Oger. Mawared is also working on the redevelopment of 250 hectares of former army land in the industrial city of Zarqa, adjacent to Amman, while the new Development and Investment Projects Fund has been given responsibility for the developing the King Abdullah II Garden project that will see the commercial development of 60 hectares of land adjacent to the Raghadan Palace complex in downtown Amman.
In all three projects the developers are handling master planning and infrastructure but are looking for private investors for the residential, office, commercial and recreational components. While the impetus for the existing new developments has been local, big name regional investors are beginning to sit up and take notice. Gulf Finance House was the first to announce its own projects, Jordan Gate and the Royal Village.
Jordan Gate will include two high rise towers connected by a multi-storey podium, conference facilities, a five-star hotel and retail outlets. The Royal Village in the Marj Al Hamam area on the road to the Dead Sea will have a gated residential complex with recreational facilities, a shopping mall, a hotel and commercial facilities. The Kuwait Investment and Finance Company (KFIC) will finance the initial stages of both projects but GFH and KFIC are planning to establish a new investment company that will also allow small investors in Jordan to participate.
The GFH hotels will not come into the market for at last four to five years and will be the first additions to Amman's five-star stock since the opening of the Four Seasons in 2003. Amman saw a rise in hotel building following Jordan's peace treaty with Israel in 1994 only for business to decline with the onset of the second Palestinian Intifada and the 9/11 bombings in the US. Five-star hotels are now enjoying their best business in years and have been able to raise prices over the past 12 months but over the next couple of years they are more likely to concentrate on building their revenues than expanding. The same does not apply to the Dead Sea, which currently has just three five-star properties - a Movenpick, a Marriott and a newly opened Kempinski. The area is popular with both foreign tourists and Jordanians and rooms can be in short supply at weekends and on holiday but two properties are under development: a 180-room Holiday Inn due to open in mid-2006, and a 450-room Crowne Plaza due by 2008.
Tourist boost
Now tourist arrivals are on the rise and the Dead Sea is likely to attract more investor interest. Calculated according to World Tourism Organisation criteria and including package, single, conference and business visitors, Jordan's tourist numbers rose from 1.62 million in 2003 to 1.74 million in 2004 and the good business has continued into 2005. In the first quarter of the year, Aqaba enjoyed a 50 per cent increase in visitor numbers while Petra saw a 47 per cent rise. The trends are certainly giving the Jordan Tourism Board greater confidence that a national tourism strategy for 2004-2010 launched in September 2004 will meet its targets. The strategy was developed jointly by the public and private sectors and has three key goals for 2010: to increase tourism receipts to $1.84 billion from just $800 million in 2003, to increase tourism-supported jobs to 91,700 from 40,790 in 2003 and to provide the government with tax revenues of over $637 million. The industry is hoping to increase the value of the tourism sector by concentrating on niche markets that will bring high yielding and longer stay visitors, including MICE business.
The Iraqi factor has certainly helped to boost activity in Amman, which has been the location for numerous conferences and exhibitions on rebuilding Iraq over the past two years. Amman has also seen some displaced conference and meeting business from Beirut following the assassination of Lebanese politician Rafik Hariri in February. There is also a general expectation Jordan will retain more Gulf visitors who drive through on their way to Lebanon and Syria for their summer holidays. The improvements are not solely due to other's misfortunes. The Jordan Tourism Board has been actively promoting Jordan for both MICE business and as a holiday destination for visitors from the Gulf, emphasising its mild climate, good facilities and rich historical sights. And it is these positive features, not just its neighbours' problems that are producing results. MET AMMAN HOTELS.
Amman has a good selection of five star hotels and rates are low by regional standards at $110-$140 per room.
The Four Seasons Hotel Amman tops the luxury league in Amman with its elegant interiors, first class rooms, quality restaurants and an unbeatable attention to service. It also boasts a full service spa that links to its outdoor pool that is located to take advantage of the hotel's hilltop location and its great views over the city.
Tel: 962 6 5505555
Fax: 962 6 5505556
www.fourseasons.com/amman/
The Grand Hyatt Amman is smart and also centrally located at Third Circle. The hotel is complemented by the adjoining Hyatt Tower, which offers fully furnished 1, 2, 3 and 4-bedroom apartments available on a minimum one month rental and the Zara Expo that has extensive conference and exhibition facilities.
Tel: 962 6 465 1234
Fax: 962 6 465 1634
E-mail: info@ammgh.com.jo
www.amman.grand.hyatt.com
The Intercontinental Jordan is Amman's oldest five-star hotel and remains a favourite for journalists and business visitors. The hotel enjoys a central location at Jabal Amman's Third Circle and has developed the knack of reinventing itself at regular intervals. It was one of the first to respond to the "Iraqi" effect, providing quality telecoms, converting a number of rooms into self-contained suites and offering special services for long-stay guests.
Tel: 962 6 464 1361
Fax: 962 6 464 5217
E-mail: ammha@interconti.com
www.amman.intercontinental.com
Le Royal Hotel completes the Third Circle trio of five-star properties so it shares the great central location. Its architecture and design, a mix of towering Iraqi Ziggurat exterior and New York art deco interiors, is not to everyone's taste but it certainly has a lot to offer in the way of facilities. It has no less than 13 restaurants and bars, along with a three-cinema complex, shopping mall, fitness centre and pool, adding to make it almost a destination in itself.
Tel: 962 6 460 3000
Fax: 962 6 460 3002
E-mail: info@leroyalamman.com
www.leroyalhotel-amman.com
The Sheraton Amman Al Nabil & Towers, located in Amman's business and embassy district, commands magnificent views from its spectacular hilltop setting. The hotel boasts heated indoor and outdoor pools, a cocktail terrace, seven flexible meeting rooms, and a pillar-less ballroom that can accommodate up to 1,000.
Tel: 962 6 593 4111
Fax: 962 6 593 4222
E-mail: reservations.amman.jordan@sheraton.com
www.sheratonamman.com
Tips for travellers Amman is not a city for formal addresses as the practice of street names and numbers has always defeated its otherwise quite efficient managers; so navigation is generally done according to landmarks. Taxis are cheap and metered. Amman's business people are generally sophisticated and western oriented but the traditional Arab courtesies remain important. Take time for the greetings and coffee and tea drinking at meetings. Jordan is not the Gulf, be prepared for cold, wet weather in Amman in winter. You can relax in relatively mild daytime temperatures in summer but take a jacket for evenings. If you are lucky enough to visit in spring when the country is at its green best, try to get out of town at least once. The wild flower covered Roman ruins at Jerash in spring are a real treat. Amman's nightlife is picking up and there are good options for dining and entertainment. If you want something more cultural, check the back page of the daily Jordan Times for concerts and art exhibitions.
© Middle East Travel 2005
