Tourism in the Kingdom of Jordan - Case Study Example

Tourism in the Kingdom of Jordan Introduction The Hashemite Kingdom of Jordan is a constitutional monarchy, based on the constitution promulgated on Jan. 8, 1952. With a population of approximately 5.9 million the King plays an especially active role in Jordan (CountryWatch, 48). In 1999, King Hussein died after ruling the country for more than 40 years. Just before his death, he appointed his son, Abdullah, to succeed him. King Abdullah II bin Hussein has both executive and legislative authority over the land. Jordan has a bicameral national Assembly. Jordan has unenviable distinction of being in the midst of a war like situation all around the country, without any active role in the war itself. It is a small Arab country with not much supply of water and other natural resources like oil. Debt, poverty, and unemployment are fundamental problems, but since 1999, some broad economic reforms have been in place in a long-term effort to improve living standards. Under the leadership of King Abdullah, Jordan's government has taken some concrete steps towards encouraging foreign investment in the country. Key areas where maximum attention is being paid include tourisms and services. The country's economy largely depends on services, tourism and foreign aid. Aims and Objectives Tourism in general is being developed the world over as a revenue spinning industry Jordan too has an ambitious plan for inviting the attention of the world's touring community towards its vast historic treasures and nature's gifts to the country. Thourhg this study we'd like to analyse; The present condition of tourism industry in the country. How competitive Jordan is as compared to some of its neighbors. What is the overall potential for tourism industry for the international community in general and Jordan in particular. Literature Review Tourism being one of the key sectors for Jordanian economy, the government of Jordan has realized the potential of this rapidly growing sector, and the government is supporting the industry with aggressive marketing strategy with an aim to promote Jordan as a boutique destination. Despite being in the midst of disturbed surroundings the number of regional tourists is rising sharply. Now the government is paying more attention towards attracting the high-yield visitors from outside the Middle East. In this era of globalisation, tourism is said to drive transnational flows of people, commodities and capital. This flow results in circulation of globally coordinated production networks governed by Multi national corporations in the business of airlines, tour operators and hotel management (Hazbun, 313). As per the studies undertaken by organisation like CountryWatch (83) and Country Insight (3), the flow of tourists has been on an upward journey. The figure below takes a look at the number of tourists that arrived in the region for the period 1998-2004. Until the late 1990s Jordan's tourism sector remained hugely underdeveloped, with regional political instability doing most of the damage. Since there was no real effort on the part of the government of Jordan to come out of the shell and market the potentials of the country, the region remained largely un-explored. But with the concepts of globalisation have now made the government understand the benefits of being pro market. In fact Jordan realizes (EIU, 1) that it can't be a direct competitor for other popular Arab holiday destinations like Cairo or Beirut, but now Jordan has actually started selling its holiday proposition by way of offering quiet family holiday. This has materialized in earning revenues as well, which is reflected by some of the key points of tourism industry in Jordan like (Euromonitor, 2); Jordan received US$783 million in tourism receipts in 2004 and this is expected to rise to US$826 million in 2005. Tourism accounts for around 10% of the Kingdom's GDP. Tourism is the largest export sector, the second largest private sector employer and the second most important form of foreign exchange for the country. The Jordanian dinar is pegged to the US dollar and has remained steady at a rate of JOD 0.71 / US$ since the mid-1990s. Jordan plans to create 51,000 new jobs in the tourism sector by 2010. The US$783 million that Jordan earned by way of tourist receipts is in fact equivalent to about one-tenth of overall GDP. Tourism prospers in an environment of market friendly policies, industrial development and an overall prospering economy. The World Tourism Organization defines "tourism" as comprising the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for the purpose of leisure, business, and other purposes. As such, it includes all reasons for travel - business trips, visits to relatives, and vacations - and domestic as well as international tourism (USAID, 5). Tourism, in all of its forms, is termed as the largest industry in the world, with continuous growth for the last 20 years. Tourism provides an earning potential without much of investments to developing countries. Business trips, vacations, holidays, sporting, activities, health and treatment, conferences, conventions, World heritage sites, Historical monuments, Beauties of nature, Flora and fauna, Business hubs, Adventures sports, Religious sites, Meditation missions, Unusual happenings (like slow eruption of a volcano etc), Mega merchandise sales, Zoological parks, Night safaris, Games extravaganza (e.g. World cup soccer etc.), Cultural extravaganza etc. all form part of the tourism economy. While on such a trip, the tourist requires hotels, restaurants, transportation, means of entertainment, shopping sites etc. This results in an upswing in the other components of the economy as well. As for the tourist destinations in the country Jordon's capital city Amman takes the lead. This historic city is a sprawling city spread over 19 hills, or "jebels". There are other historic destinations like Madaba, Petra, Jerash, Aqaba, Desert Castles, Crusader Castles, Umm Qays, Pella (Tabqat Fahl), Umm Al Jimal, Umm ar Rasas, The Kings Highway etc. The World Travel and Tourism Council 2004 have projected a forecast of an annual real growth rate of 6 percent in total demand for the next ten years. By 2010, a total of around 937 million tourists are expected to be part of the global economy. World Tourism Forecasts of 2002 indicate that by 2020, about 2000 million tourists will be providing strength to the hospitality industry with a turnover of approximately 2000 billion USD (Taji, 2).Taji gives a promising figure of 20% for the Jordanian tourism industry. Agenda 21 of the World Tourism Organisation (WTO) holds the key for providing an impetus to the initiatives undertaken by different governments in the tourism and international development. Agenda 21, provides a comprehensive program of action for attaining "sustainable development" in the 21st century. The agenda was adopted by more than 180 national governments at the United Nations Conference on Environment and Development in Rio de Janeiro in 1992 (USAID, 4). Country watch (92) states that for the purpose of carrying out development Jordan also provides investment incentives to companies on the basis of the businesses they are in. The country is divided into three development areas: zones A, B, and C. Investments in Zone C, the least developed areas of Jordan, receive the highest exemptions. Hotel and tourism-related projects set up along the Dead Sea coastal area, leisure and recreational compounds, and convention and exhibition centers receive Zone A designations. Research Methodology Research approaches and methods radically influence research content and, consequently, the policies designed in response to that content. It would be stating the obvious that research benefits society in general. It is worth reiterating that research, whether basic or applied, is the most important means of adding to our knowledge about the society, its concerns and possible remedies. This type of research could be carried out by; i. Analyzing the reports of government agencies, and international organisations. ii. Preparing Questionnaires, interviews with visitors, hospitality industry people, government officials etc. iii. Analyzing the reports and researches carried out by other researchers. iv. Observing the tourist inflows at some tourist sites, for a predetermined period of time. Conclusion Jordan has been trying hard to make maximum out of the tourism industry in future. Outdoor 'Adventure Tourism' is also being developed in Jordan1. Such type of tourism promises to remain one of the most dynamic and innovative travel industry sectors for years to come. Eco-tourism is being taken up by many Jordanian companies, particularly for the high yielding western tourists. For eco-tourism and adventure tourism, Jordan has great comparative advantage. Guaranteed sunshine is available in Jordan for eight months of the year. Places like Petra, Jerash and Bethany present a unique blend of history and culture. Quality hotels and restaurants are coming up in good numbers throughout the country to cater to the needs of the global tourist. Well, a lot will depend on how soon the Iraq war ends, and what form it takes in the near future for the tourism industry to grow at a faster pace in the region. Besides this, there are the perennial problems of middle-east which too require amicable solution in the near future for tourism industry to grow with leaps and bounds. References: 1. CountryWatch (2007). Jordan - Country Profile. CountryWatch, Inc. Houston, Texas 2. Jordan tourism. Available online at http://www.visitjordan.com/ (March 28, 2007) 3. Taji, Elina Taisir (). Marketing Strategis for Tourism Recovery in Jordan (Emphasis on Niche Market). 4. USAID (2005). USAID and sustainable tourism: meeting development objectives. Natural Resources Information Clearinghouse, Virginia Polytechnic Institute and State University 5. EIU (2003). Jordan: Long View. Business Middle East June 1st-15th 2003, Economist Intelligence Unit Ltd. 6. Waleed Hazbun (2004), Globalisation, Reterritorialisation and the Political Economy of Tourism Development in the Middle East. Geopolitics, Vol.9, No.2 (Summer 2004) pp.310-341. 7. CultureGrams (2007). Hashemite Kingdom of Jordan. ProQuest Information and Learning Company, Michigan 48106 USA 8. Euromonitor Country Insight (2005). Jordan's ambitious tourism plans. Euromonitor International 9. UNWTO (2007). World Tourism Organisation. available online at www.world-tourism.org (March, 29, 2007) Read More