Minister says compensation issue closed
AMMAN. The standoff between Petra hoteliers and the government broke new ground Thursday after Tourism Minister Samer Tawil pledged support for ideas promoting tourism but rejected further debate on compensation.
Representatives from 30 Petra and Wadi Musa hotels met with Tawil on Thursday to present grievances and detail financial struggles resulting from the prevailing tourist slump.
One hotel representative told The Jordan Times that the minister rejected their request for direct financial assistance, offering instead support programmes to revive their business.
“Our request for direct financial assistance was rejected. But he did say he would support ideas for tourism projects we come up with that could help rejuvenate business over the long-run,” the source said.
The compensation issue the minister dismissed has been a sore point for Petra hoteliers, who regard their share of the compensation based upon social security statements as minimal when compared to their losses.
Tawil told The Jordan Times yesterday that the compensation formula was designed primarily as a means to protect staff from being fired and not to heal ailing businesses.
“The compensation has already been disbursed. It is not open for reevaluation. In any case, we've decided to take all necessary measures to help Petra hotels revive business over the long-term and have, in principle, agreed to support ideas they propose towards that end,” said Tawil.
The minister underlined the fact that providing hoteliers with immediate cash would only be a short-term panacea compared to projects that could reap better results for some time to come.
Hotel representatives welcomed the minister's proposal yesterday, saying they would meet Friday to brainstorm and submit their ideas to Tawil Monday.
One plan already being examined involves the creation of a cultural festival similar to that of Jerash. Tawil said the director general of Jerash Festival was already examining prospects for such a venture.
But the minister emphasised that hotels in Petra and Wadi Musa must also work to improve their services, ensuring guests a good stay, as well as assisting national efforts to promote the Kingdom both here and abroad.
European and American visitors that comprised a major portion of the tour market here have to a large degree abandoned the hospitality industry, now facing one of its lowest occupancy rates in years.
Petra's tour sector, which relied heavily on this segment, has suffered the most, as Western visitors to the red-rose city are seen less and less.
Tawil also pointed out that the government had already responded to appeals from struggling hotel owners last year, deferring interest due JD1 million in loans from 12 Petra and Wadi Musa for two years.
The Planning Ministry covered interest obligations for these hotels through the government-sponsored Enhanced Productivity Programme.
Earlier this year, the government took another step, extending hotel debt repayment and paying off some interest for the year through the JD2 million contested compensation package allocated to the tourism sector to alleviate strains brought on by the war on Iraq.
Tawil said the room rate subsidy package initiative put in place by the Jordan Tourism Board to help Petra hoteliers was bearing fruit, with as many as six buses making their way since its inception.
The JTB initiative launched Monday was designed to promote local tourism to Petra. Although welcomed by some hoteliers, the general reaction was it would do little to address short-term financial woes.
By Dalya Dajani
© Jordan Times 2003
