17 February 2009
Syria is seeking to parlay its new-found acceptance on the world stage into tourism revenue, ramping up investments, increasing advertising and broadening its appeal to international holiday makers.
Damascus has identified tourism as a sector with strong growth potential - one that in years to come could replace falling earnings from its dwindling oil industry and provide employment for the expanding workforce.
According to Tourism Minister Saadalla Agha Al Qala, the government is committed to doing all that is necessary to assist in the development of the sector, which he described as an important part of the Syrian economy.
Speaking at a press conference in Rome on January 18 to promote Syria as a destination for religious pilgrims, the minister said there was a 15% increase in the number of overseas arrivals last year compared to 2007, and that new tourism developments worth $5.79bn were currently being undertaken to meet this rising demand.
At least some of this increased interest in Syria is due to the somewhat altered perception of the country over the past year. The warm welcome afforded President Bashar Al Assad at the Mediterranean summit held in Paris in July as well as Damascus' apparent willingness to engage Israel in peace negotiations and establish diplomatic ties with neighbouring Lebanon have all served to improve the country's image.
That image helped to attract 5.9m visitors in 2008 and generate earnings of $3.5bn, according to Tourism Ministry figures released in mid-January. Of these tourists, 3.3m were from Arab countries, 1.1m of other nationality while the remainder constituted expatriate Syrians returning home for a visit.
Another possible reason for the growing number of tourists is the state's increased emphasis on advertising. The government boosted the Tourism Ministry's budget for promotional activities last year to $8m, well up on the $5.5m it outlaid in 2007 and more than five times the $1.5m spent in 2006, according to the local press.
This expanded promotions budget has seen Syria represented at a growing number of tourism fairs around the world, particularly in Europe, which Al Qala identified in July as being a prime market for the industry, and in Asia, where Damascus hopes it can tap previously little touched clientele.
It is not just the government that sees potential in the tourism sector. In a report issued in the middle of last year, the World Travel and Tourism Council (WTTC) predicted the industry would become one of Syria's main income earners over the next decade.
By 2018, travel and tourism will contribute $9.6bn to Gross Domestic Product (GDP), while employment levels in the sector are expected to rise from 1.1m in 2008, equivalent to 15.2% of the total workforce, to 1.95m, just under 18%, according to the WTTC.
Though the government has high hopes for the tourism sector, it also has concerns that the global financial crisis could disrupt the flow of foreign investments needed by the industry at the very time that it gears up to become a regional force.
In an interview with the Reuters news agency on February 4, Abdullah Al Dardari, Syria's deputy prime minister for economic affairs, said one of the main focus points for the economy was tourism, with the objective being to add 40,000 hotel beds to the existing stock to accommodate an anticipated 8m visitors annually by 2015.
While keen to attract more foreign investment, the economic downturn has raised the question of whether Gulf states will postpone investments in Syria as liquidity dries up, the minister said.
With some estimates putting the level of Gulf investment in the tourism sector at above 50% of the total, any waning of interest could slow the industry's development. A slowing of the Gulf economies could also see a fall in visitor numbers from this key market, with potential tourists preferring to stay at home or holiday in one of the neighbouring Gulf states as personal budgets come under pressure.
Syria's tourism industry also has to contend with strong competition in the region, with a more stable Lebanon now drawing increasing numbers of visitors, Egypt always a perennial attraction and Jordan also popular. All boast the similar draw cards of sun, sea, sand and a rich historical heritage, and all are seeking to lift visitor numbers and boost overseas investment.
Having been a relatively late starter in the tourism trade, Syria has a lot of leeway to make up before it can challenge its nearby rivals. Indeed, the country will need to continue the good work of the past few years if it is to achieve its goal of becoming an international destination of choice.
Syria is seeking to parlay its new-found acceptance on the world stage into tourism revenue, ramping up investments, increasing advertising and broadening its appeal to international holiday makers.
Damascus has identified tourism as a sector with strong growth potential - one that in years to come could replace falling earnings from its dwindling oil industry and provide employment for the expanding workforce.
According to Tourism Minister Saadalla Agha Al Qala, the government is committed to doing all that is necessary to assist in the development of the sector, which he described as an important part of the Syrian economy.
Speaking at a press conference in Rome on January 18 to promote Syria as a destination for religious pilgrims, the minister said there was a 15% increase in the number of overseas arrivals last year compared to 2007, and that new tourism developments worth $5.79bn were currently being undertaken to meet this rising demand.
At least some of this increased interest in Syria is due to the somewhat altered perception of the country over the past year. The warm welcome afforded President Bashar Al Assad at the Mediterranean summit held in Paris in July as well as Damascus' apparent willingness to engage Israel in peace negotiations and establish diplomatic ties with neighbouring Lebanon have all served to improve the country's image.
That image helped to attract 5.9m visitors in 2008 and generate earnings of $3.5bn, according to Tourism Ministry figures released in mid-January. Of these tourists, 3.3m were from Arab countries, 1.1m of other nationality while the remainder constituted expatriate Syrians returning home for a visit.
Another possible reason for the growing number of tourists is the state's increased emphasis on advertising. The government boosted the Tourism Ministry's budget for promotional activities last year to $8m, well up on the $5.5m it outlaid in 2007 and more than five times the $1.5m spent in 2006, according to the local press.
This expanded promotions budget has seen Syria represented at a growing number of tourism fairs around the world, particularly in Europe, which Al Qala identified in July as being a prime market for the industry, and in Asia, where Damascus hopes it can tap previously little touched clientele.
It is not just the government that sees potential in the tourism sector. In a report issued in the middle of last year, the World Travel and Tourism Council (WTTC) predicted the industry would become one of Syria's main income earners over the next decade.
By 2018, travel and tourism will contribute $9.6bn to Gross Domestic Product (GDP), while employment levels in the sector are expected to rise from 1.1m in 2008, equivalent to 15.2% of the total workforce, to 1.95m, just under 18%, according to the WTTC.
Though the government has high hopes for the tourism sector, it also has concerns that the global financial crisis could disrupt the flow of foreign investments needed by the industry at the very time that it gears up to become a regional force.
In an interview with the Reuters news agency on February 4, Abdullah Al Dardari, Syria's deputy prime minister for economic affairs, said one of the main focus points for the economy was tourism, with the objective being to add 40,000 hotel beds to the existing stock to accommodate an anticipated 8m visitors annually by 2015.
While keen to attract more foreign investment, the economic downturn has raised the question of whether Gulf states will postpone investments in Syria as liquidity dries up, the minister said.
With some estimates putting the level of Gulf investment in the tourism sector at above 50% of the total, any waning of interest could slow the industry's development. A slowing of the Gulf economies could also see a fall in visitor numbers from this key market, with potential tourists preferring to stay at home or holiday in one of the neighbouring Gulf states as personal budgets come under pressure.
Syria's tourism industry also has to contend with strong competition in the region, with a more stable Lebanon now drawing increasing numbers of visitors, Egypt always a perennial attraction and Jordan also popular. All boast the similar draw cards of sun, sea, sand and a rich historical heritage, and all are seeking to lift visitor numbers and boost overseas investment.
Having been a relatively late starter in the tourism trade, Syria has a lot of leeway to make up before it can challenge its nearby rivals. Indeed, the country will need to continue the good work of the past few years if it is to achieve its goal of becoming an international destination of choice.
© Oxford Business Group 2009
