25 September 2023 6:44 pm
A MERCANTILE MIDDLE EAST

A MERCANTILE MIDDLE EAST

Sep 1, 2023

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The Gulf states can catalyze trade within the Middle East and North Africa region and the region’s integration into the global trading system

The world has witnessed a tectonic shift in global economic geography and trade toward emerging Asia in the past two decades. However, the Middle East and North Africa (MENA) region has remained one of the least dominant, accounting for just 7.4 percent of total trade in 2022. The region’s trade is characterized by a relatively high concentration of exports in a narrow range of products or trading partners, limited economic complexity, and low participation in global value chains.

Even so, commodity-dependent nations in the MENA region have made substantial gains over time, specifically in trade diversification, as shown by the Global Economic Diversification Index, which tracks the extent of economic diversification from multiple dimensions, including economic activity, international trade, and government revenues.

The MENA region’s total trade in goods as a percent of GDP (an indicator of openness) was 65.5 percent in 2021, indicating a relatively open regional economy. Yet, as shown in Chart 1, intraregional trade is low, representing only 17.8 percent of total trade and 18.5 percent of total exports, despite a common language and culture as well as geographic proximity. The six oil-exporting Gulf Cooperation Council (GCC) nations—Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, and the United Arab Emirates—account for the bulk of intraregional trade.

Trade

Their dominance of intraregional trade suggests that the Gulf nations could become a catalyst for regional trade integration, helping lower barriers to trade, improving trade infrastructure, and diversifying the region’s economies. Greater integration of non-GCC Middle East nations with the GCC will lead to more intraregional trade and greater global integration (via the GCC’s existing global linkages and participation in global value chains). With the growing global economic integration of the GCC nations and their concerted effort in supporting the region’s other nations (via increased trade and investment deals with Egypt and Iraq, for example), they can be a conduit for greater integration of the rest of the region into world trade.

Region’s laggards

Why have non-GCC countries lagged when it comes to intraregional trade? In part it is a failure of the MENA region’s multiple regional trade (and investment) agreements. The share of intragroup exports in the Arab region, excluding the GCC, has remained below 2 percent of their trade flows, partially a reflection of regional fragmentation, violence, and wars since the mid-1990s and following the Arab Spring in 2011. The region comprises a group of nations characterized by significant political differences, and this is reflected in trade patterns as well. For example, the orientation of the Maghreb nations of North Africa has been toward Europe, with the regional Euro-Med program and agreements supporting such linkages.

A contributing factor to the stagnation of intraregional trade is the lack of growth of trade in services. MENA services trade has ranged between 4 and 6 percent of global services trade in the past two decades. This pales in comparison with the Organisation for Economic Co-operation and Development countries, which account for more than two-thirds of global services trade. Within the MENA region, the GCC accounts for the bulk of services trade, with the largest shares in relatively low-value-added sectors like travel (and tourism) and transportation. The services trade is held back by restrictive policies that limit entry in sectors dominated by state-owned enterprises, such as telecommunications, or that impose high fees and license requirements, especially in professional and transportation services.

Such restrictive policies, along with structural deficiencies, encumber MENA nations’ trade both within the region and globally.

MENA nations apply more, and more restrictive, nontariff measures than in any other region. These almost doubled between 2000 and 2020. Lack of uniform standards and harmonization, pervasive red tape, and corruption compound the effects of these barriers. Business and investment barriers include cumbersome licensing processes, complex regulations, and opaque bidding and procurement procedures.

MENA as a region underperforms on trade facilitation measures to ease the movement of goods at the border and reduce overall trade costs, though there are wide disparities across the region. The quality of trade- and transportation-related infrastructure is significantly lower in the non-GCC MENA nations. Furthermore, delays at the port result in excessive “dwell times” (delays of more than 12 days) for imported goods in some MENA countries. Algeria and Tunisia delays average about 20 days versus less than five days in the United Arab Emirates (among the top three globally).

Knocking down barriers

Overcoming these impediments to wider trade for the region requires removing barriers to trade and investment, diversifying the region’s economies, and improving infrastructure.

A new generation of trade agreements, including more knowledge-intensive services, would not only support export diversification policies but would also help bridge gender gaps, improve women’s economic empowerment, and subsequently result in more inclusive economic growth and integration.

The pandemic has underscored the need for trade diversification (both of products and partners) and development of new supply chains. Although the GCC’s oil trade remains dominant, its members have embarked on various policies and structural reforms, such as increasing labor mobility and opening capital markets across borders, to diversify away from overdependence on fossil fuels and associated revenues. This has resulted in diversification of both the output mix (for example, increased focus on manufacturing) and the export product mix (for example, more services exports) alongside an evident shift in trade patterns toward Asia and away from the United States and Europe. More recently, the war in Ukraine further highlighted the plight of food-importing nations in the Middle East in the context of food security. (Ukraine and Russia accounted for a third of global wheat exports; Lebanon and Tunisia were importing close to 50 percent of their wheat from Ukraine.)

The Global Economic Diversification Index trade subindex shows that the commodity-dependent nations with the most improved scores over time have either reduced dependence on fuel exports, reduced export concentration, or witnessed a massive change in the composition of exports. An example of the latter is Saudi Arabia’s increased focus on medium- and high-tech exports, which rose as a share of overall manufacturing exports, to almost 60 percent right before COVID from less than 20 percent in 2000. The MENA region as a whole has already made some headway toward diversification, as shown in Chart 2.

Trade 2

The GCC nations have benefited from the recent rise in commodity prices, but the pandemic reinforced strategies, including the development of free zones and special economic zones, to diversify into new sectors. These policies range from attracting investment (including foreign direct investment) to higher-value-added, higher-tech manufacturing; investing in new sectors (renewable energy, fintech, artificial intelligence); and opening markets to new investors and investments (as is evident in the recent spate of initial public offerings in both the oil and non-oil sectors). These reforms help expand markets (within the MENA region and toward Africa, Europe, and South Asia), while up-and-coming sectors like renewable energy and agritech offer sustainable ways of expanding the extensive and intensive margins of trade and generating new job opportunities.

Engine for regional integration

Full achievement of the benefits of regional trade integration requires a reform of trade policies to break down barriers, including restrictive nontariff measures, complex regulation, corruption, and logistical roadblocks.

Integrating the MENA region’s trade infrastructure (ports, airports, logistics) with that of the GCC would lower costs and facilitate intraregional trade, leading to greater regional integration and generating gains from trade for all parties. The GCC can lead the economic integration and transformation of the region via investments in hard infrastructure and trade-related infrastructure and logistics, in addition to developing an integrated GCC power grid. A GCC renewable-energy-powered, integrated electricity grid could extend all the way to Europe, Pakistan, and India.

The GCC nations have an opportunity to benefit from global decoupling and fragmentation with their unfolding strategy of pursuing globalization as a regional group through new trade and investment agreements, foreign aid, and direct and portfolio investment. The ongoing disengagement from long-standing regional conflicts, in Israel, the West Bank and Gaza, Yemen, the Islamic Republic of Iran, Libya, and elsewhere, and the forging of new links (diplomatic opening such as the Abraham Accords) reduce the geopolitical risks of promoting regional trade and investment. The GCC can use this as an opportunity to shape the MENA region into an interlinked trade and investment hub. The GCC’s accelerated new free trade negotiations with key partners in the MENA region, including Egypt and Jordan, and in Asia, including China and South Korea, could become the cornerstone of this transformation. The United Arab Emirates have already signed comprehensive economic partnership agreements with India, Indonesia, and Türkiye covering services, investment, and regulatory aspects of trade.

There are two complementary ways to move forward. One is to implement the GCC Common Market, invest in digital trade, lower tariff and nontariff barriers, and reduce restrictions on trade in services, along with reforms to facilitate greater mobility of labor and enhance financial and capital market linkages. Second, the GCC should develop new deep trade agreements with the other MENA countries, going beyond international trade to encompass agreement on nontariff measures, direct investment, e-commerce and services, labor standards, taxation, competition, intellectual property rights, climate, the environment, and public procurement (including mega projects). The GCC nations, which have historically used foreign aid and humanitarian aid to support MENA nations, should opt for an “aid for trade” policy to support their partners in implementing trade-boosting reforms that lower business and investment barriers, improve logistics infrastructure, and facilitate the movement of goods.

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NASSER SAIDI is the president of Nasser Saidi and Associates. He was formerly chief economist of the Dubai International Financial Centre Authority, Lebanon’s economy minister, and a vice governor of the Central Bank of Lebanon.

AATHIRA PRASAD is director of macroeconomics at Nasser Saidi and Associates.

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Oil leaves invisible footprint on Gulf’s non-oil economies

Oil leaves invisible footprint on Gulf’s non-oil economies

Jun 20, 2023

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Oil leaves invisible footprint on Gulf’s non-oil economies

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Touted progress in diversifying Gulf economies beyond the fossil fuel rent comes with a caveat. Oil and gas revenues indirectly propel large chunks of the non-oil economy through public expenditures such as wages, subsidies and infrastructure spending.
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Dubai economy
This picture shows cranes on a construction site with a backdrop of the Dubai skyline, including Burj Khalifa, the world’s tallest building, on May 23, 2023. – GIUSEPPE CACACE/AFP via Getty Images
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Sebastian Castelier
@SCastelier

The International Monetary Fund (IMF) expects the non-oil segment of Gulf economies to grow 45% faster than the overall gross domestic product (GDP) this year, which includes the oil and gas sector. The figure is in line with the 2000-2019 average trend.

This follows a unique situation in 2022 when the Gulf’s overall gross domestic product expanded 57% faster than the non-oil segment after oil prices surged to their highest levels since 2008 as Western sanctions against Russia threatened to disrupt global oil supply. Even so, the World Bank noted in a May 2023 report that Gulf economies’ “stellar growth” last year “was not just a result of buoyant hydrocarbon prices but also continued growth of non-oil economies.”

“Hopefully by 2030, I wouldn’t care if the oil price is zero”, Saudi Arabia’s finance minister Mohammed Al Jadaan told CNN in 2017. But the prospect of decoupling the Gulf’s overall economy from its main export commodity in the near future has long been exaggerated.

“It is a mixed picture,” said Justin Alexander, director of Khalij Economics, a consulting firm. “Looking at just non-oil GDP figures is misleading.” Parts of the economy, he said, “are basically the result of the recycling of oil revenues through government spending rather than independent value creation.” Since oil revenues still account for about two-thirds of Saudi Arabia’s government revenue, the kingdom remains a petrostate.

Oil is sticky 

Across Gulf economies, most economic developments are directly or indirectly driven by government spending, according to Jalal Qanas, an assistant professor in economics at Qatar University. The share of Gulf countries’ GDP from government expenditure has been trending up since the 2007-09 global financial crisis. In 2021, IMF data showed that it ranged from 29% in the UAE to 52% in Kuwait.

The fossil fuel rent’s invisible footprint runs deep into Gulf’s non-oil economy, from grocery shopping, entertainment activities, cab rides, and cars paid with public sector wages to flats bought with subsidized housing loans and wedding ceremonies funded by marriage grants. Alexander called it “complicated interlinkages” between Gulf’s economies and governments. Yet, non-oil economies are the cornerstone of everyday life in the Gulf region, a major source of employment and social interactions.

In Qatar, the government has wound down its public spending frenzy estimated at $300 billion ahead of the FIFA World Cup 2022. “Once you turn off the tap, will the private sector survive?” Qanas asked. “We need to wait at least one to two years to see how the country’s private sector will behave with less government spending”

Saudi Arabia launched the $1.3 trillion Shareek initiative in 2021 to push companies to invest domestically, particularly in the non-oil economy. But there is a catch: two of the initiative’s largest contributors are the kingdom’s top fossil fuel giants, national oil company Saudi Aramco and petrochemical firm SABIC.

Also, the private sector has done a poor job so far of converting the Gulf’s fossil fuel rent into economic sectors that can stand on their own. Corporate performance in Gulf economies, although it varies between countries and industries, is deteriorating. Profitability of the median firm in the region plummeted from 15.2% in 2007 to 4.1% in 2021, the IMF found.

Dubai has “set an example” 

A notable exception is Dubai, where oil output peaked in 1991. The emirate’s oil sector slipped from about half of the local economy 50 years ago to only 1% of pre-pandemic GDP as the sheikhdom, one of the seven that form the UAE, built the Gulf’s first post-oil economy. In the third quarter of 2022, wholesale, retail trade, real estate, construction, manufacturing, and financial and insurance activities accounted for 60% of its GDP. The emirate’s push to become a global hub decouples its economy further from the region’s oil boom and bust cycles.

Tourism and real estate insulate Dubai’s economy from the wider Gulf. Seven out of ten tourists who visited Dubai in the first quarter of 2023 did not come from the Middle East, while top non-resident buyers of real estate in Dubai in 2022 were Russian, British, Indian, German, and French citizens.

Dubai may be the first, but it will not be the last Gulf post-oil economy. Omani luxury fragrance brand Amouage sells its perfume in more than 80 countries, Bahrain is a fintech hub for the Middle East, Qatar makes its mark in global sporting events, and Muslim pilgrims from all over the world flock to Saudi Arabia’s Mecca.

“Dubai has set an example for the region, and now Gulf countries are all trying, I would not say to copy, but to learn from what Dubai did,” Qanas said.

 

Read more on Al-Monitor : https://www.al-monitor.com/originals/2023/05/oil-leaves-invisible-footprint-gulfs-non-oil-economies#ixzz85AYUK0ty

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Partnership between private, public sectors main pillar for sustainability

Partnership between private, public sectors main pillar for sustainability

Jun 14, 2023

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Partnership between private, public sectors main pillar for sustainability is certainly not a vain word in Kuwait.

The image above is of  Participants in the conference, which stressed the importance of cooperation between the private and public sectors to achieve prosperity, are seen in this group photo.

 

Partnership between private, public sectors main pillar for sustainable economy: Official

Cooperation encourages foreign investment, creates job opportunities

 KUWAIT: Khaled Mahdi speaks at the conference for partnership between the private and public sectors held on Monday. — KUNA photos

KUWAIT: Partnership between both private and public sectors is imperative for a diverse and sustainable economy in accordance with Kuwait’s 2035 Vision, General Secretary of the Supreme Council for Planning and Development (SCPD) Dr Khaled Mahdi said Monday. Mahdi made the statement while inaugurating the second Kuwait conference for partnership between the private and public sectors, organized by the Kuwaiti Federation of Engineering Offices and Consultant Houses with the participation of some government agencies and under the sponsorship from SCPD.

Partnership between the two sides is one of the main tools for economically enabling the private sector, including small and medium enterprises, and encouraging foreign investment, Mahdi told attendees. Cooperation between the two sectors “is no longer a complementary policy for economic development only, but also necessary and inevitable for economic growth,” he said.

It contributes to creating new job opportunities, raising production efficiency, achieving better value for investment and helps with the transfer and localization of technology. The partnership also creates investment opportunities for the local and foreign private sector, he elaborated. Although SCPD projects have so far been focused on infrastructure, specifically generating electricity, water desalination and sewage treatment, Mahdi said, the authority will be expanding to other fields when collaborating with the private sector.

Meanwhile, Bader Suleiman, head of the Kuwaiti Federation of Engineering Offices and Consultant Houses (KFEOCH) which organized the conference, said the gathering aims at discussing executive, legal and legislative aspects required to achieve the success of partnership projects and removing obstacles. The three-day conference will also touch upon the best global practices in this field to avoid delays and ineffecient government measures, he said. Partnership is the way for the private sector to actively participate in achieving renaissance and prosperity of society, he said, stressing the federation’s support for this aspect to reach the desired positive results. – KUNA

Read the original Kuwait Times

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Prioritising water and food security in smart City Development

May 15, 2023

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We all know technology could turn one of the greatest challenges of today into one of the greatest opportunities for sustainable socio-economic development to maintain economic progress while dramatically reducing emissions, but beyond Tech: Prioritising water and food security in smart City Development would be a must, especially in certain regions of the globe.

The image above is credited to the Gulf Times

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Beyond Tech: Prioritising water and food security in smart City Development

By Chandra Dake, 

May 14, 2023
Female Farm Worker Using Digital Tablet With Virtual Reality Artificial Intelligence (AI) for Analyzing Plant Disease in Sugarcane Agriculture Fields. Technology Smart Farming and Innovation Agricultural Concepts. Image used for illustrative purpose. Getty Images

Dake Rechsand’s Chandra Dake examines why water and food security networks are equally essential for the smart cities of the future.

Smart city projects dominate the development vision of economies across the world. In the Middle East, such developments are gaining momentum by the day. Therefore, a future where the word “smart” prefixes every city in the developing world is not too far away. However, at this juncture, the question remains: What are smart cities beyond their obvious technological underpinnings?

By definition, smart cities are urban centres where infrastructure, such as power grids, water utilities, and traffic control, is connected via different information and communication technologies (ICT). In the Middle East, smart city developments must prioritise food and water networks due to long-standing scarcities. Due to systemic challenges, including but not limited to an arid climate, high soil salinity, unreliable rainfall, and desert conditions, the region has not made progress toward sustainable water and food security.

Systems thinking approach to food security

Food scarcity has many causal factors as well as consequences. In the regional context, it has led to a trade deficit, with nearly 90 percent of food being imported. Such supply-chain dependencies are not sustainable in the long run. While the obvious solution is local food production through agriculture, it is anything but easy due to desert conditions, soil salinity, and water scarcity, among other detriments. This complex situation calls for a “systems thinking” approach.

Systems thinking posits a multidimensional assessment of a problem, as well as a strong focus on how various constituents interrelate. For example, due to soil salinity, local food production requires excessive irrigation, which further aggravates existing water scarcity. The adoption of smart agriculture technologies (AgriTech), such as irrigation sensors and precision farming, carries merit. However, their impact is limited to increased efficiency in irrigation and yield measurement; they cannot address systemic challenges such as soil salinity.

Water-retentive mediums such as ‘Breathable Sand’ make a compelling case here. Through its permeability, it ensures effective nutrient supply to the roots, leading to optimal yield with nearly 80 percent less water usage. Combined with smart AgriTech, such solutions can enhance food security without compromising water goals, characteristic of systems thinking. Concurrently, smart cities, through the effective use of sensors and networks, must make provision for a reduction in water usage, reuse, and recycling.

Sponginess adds to smartness in cities

As part of smart city projects, developers can implement Sponge City solutions like ‘IDer’ across public areas. In application, they absorb rainfall runoffs, keep surfaces free from waterlogging and skidding, and even filter and store the water in underground reservoirs. The harvested water can enhance the city’s water security, as well as supercharge its agriculture-led food security efforts. Instead of traditional carbon-intensive techniques, such as the construction of canals and sewers, urban master planners can explore Sponge Cities to address flooding incidents associated with increasing rainfall.

Thanks to smart cities’ ICT capabilities, stakeholders can effectively measure the positive outcomes. The “measurability” is paramount because, in the short term, it enables regional economies to show accountability and transparency in key conventions such as COP28 and, in the long term, helps stay on track to achieving ambitious goals like net-zero emissions.

The bottom line is that the standalone capabilities of ICT in smart cities need on-the-ground, practical solutions to contribute to sustainable development goals.

 

Chandra Dake is the Executive Chairman and Group CEO of the Dake Group. 

ZAWYA

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The Latest Middle East & North Africa Tourism Statistics

Apr 29, 2023

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Here are The Latest Middle East & North Africa Tourism Statistics [2022-2023] as compiled by TrustYou

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Hospitality Hotspots: The Latest Middle East & North Africa Tourism Statistics [2022-2023]

By Catalina Brinza

The latest Middle East & North Africa tourism statistics from top-performing countries based on the latest third-party and TrustYou data [2022-2023]

The Middle East and North Africa (MENA) travel industry benefited from one of the strongest recoveries last year, especially the Middle East. While the global recovery was estimated at 63% in 2022, arrivals in the Middle East reached 83% of pre-pandemic numbers. Hosting FIFA World Cup was a major contributor to the success and increase of tourism there. In Q4 2022, the region registered a 4% increase in arrivals compared to 2019, way above the global numbers (a 30% decrease compared to 2019).

MENA is a dynamic and diverse region with much to offer for leisure and business travelers: luxurious hotels and restaurants, rich culture and traditions, breathtaking scenery, and historical landmarks.

To give you an overview of the state of MENA travel, we looked at the top-performing MENA countries based on guest feedback and compiled the latest third-party and TrustYou statistics.

#1 Top-Performing Countries in MENA

Using TrustYou’s Performance Score, we looked at the top-performing countries in terms of reputation. Performance Score is a metric showing an accommodation’s and/or restaurant’s average rating over a selected period. For this list, we chose the countries with the highest review volumes  – over 100k reviews in 2022 and 25k reviews in Q1 2023. We ordered the countries with the same performance score based on the highest review volume.

Compared to 2022, Q1 2023 brought a newcomer to the list: Egypt, currently fourth in our top-performing MENA countries. 

What makes these countries receive higher scores from travelers? We decided to take a deep dive into the latest statistics to understand the specifics of each country and identify emerging trends.

#2 Morocco Tourism Statistics  Onwards and Upwards 

In Q1-Q3 2022, Morocco ranked third among the most visited Arab countries, with 11 million visitors, representing 84% of the 2019 numbers. Saudi Arabia ranked 1st, with 18 million visitors, followed by United Arab Emirates (UAE), with 15 million visitors.

Casablanca is among the most popular tourist destinations in Marocco

Last year, the sector’s revenue more than doubled compared to 2021, reaching 91 billion dirhams, exceeding 2019 levels.

The historic success of the national team at the 2022 World Cup in Qatar brought more than a sense of unprecedented pride for the North-African country—the interest in visiting Morocco surged in the first months of 2023.  Forty days after the World Cup, the country registered a 40% increase in arrivals.

By the end of February 2023, 1.9 million tourists visited Morocco,  464% more than in 2022.The authorities seek ways to capitalize on these successes and substantially boost the sector. By 2026, Morocco aims to reach the top 10 global destinations and increase its number of arrivals to 17.5 million tourists. The actions that will help achieve these targets include launching new air routes, 200k new jobs, and a $580 million investment in the sector.

#3 Qatar Tourism Statistics


Qatar was the first Arab country to host a FIFA World Cup.   What’s next after the World Cup?

The FIFA World Cup brought an impressive number of visitors to Qatar. In November and December 2022, international arrivals more than tripled compared to the previous months.

International arrivals registering record increases during the World Cup, source: Qatar Tourism

This event placed QATAR on the world tourism map, with authorities aiming to increase the country’s attractiveness.

By 2030, Qatar wants to reach 6 million tourists annually and increase tourism contribution to GDP from 7% to 12%. Immediately after the World Cup, Qatar registered another win. Doha was chosen as the Arab Capital of Tourism awarded by the Arab Ministerial Council for Tourism, proving its commitment to improving its performance as a destination. Among other indicators of excellence, Qatar Airlines have been chosen for the seventh time as the best airline worldwide, based on 14 million surveys distributed across 100 countries by Skytrax.

The first numbers for 2023 also show an encouraging recovery. Qatar Tourism reports 340k arrivals in January 2023 and 389k in February 2023.

Further plans include hosting a few sports events – the 2023 Asian Football Cup and the Asia Games. Qatar is also preparing its candidacy for the 2036 Olympic Games. All these actions will help leverage the stadiums built to host the FIFA World Cup.

#4 Israel Tourism Statistics

The Holy Land welcomed 2.7 million international visitors in 2022 – 60% compared to 2019. The first data for 2023 shows an accelerated recovery – 199% more tourists visited the country compared to Q1 2022, reaching 87% of pre-pandemic levels.

Jerusalem is a top destination for religious pilgrimages. One of the world’s oldest and most sacred cities, it attracts more than 1.5 million Jewish, Muslim, and Christian pilgrims each spring, increasing the city’s population by 55% during Passover, Ramadan, and Easter. Tourism Continues to Be VAT Exempt After Pressures From the Industry

The Netanyahu government planned to cancel the 17% tax on services exemption for tourists starting with the next state budget. Currently, travelers visiting Israel are exempt from the tax on accommodation, car rental, travel agency services, catering, etc. The government estimated that reintroducing the tax can generate up to $500 million yearly. But industry experts said the losses would be more significant than the gains. This proposal, which also was rejected in 2013, didn’t pass a ministerial committee.

#5 United Arab Emirates Tourism Statistics 

When thinking about the Emirates, one place is at the top of the mind of almost every tourist: Dubai. In 2022, the iconic destination welcomed nearly 14.4 million overnight visitors, a 97% increase from 2021 and 86% of the 2019 volume  – above the global averages for recovery indicators. The occupancy rate also increased – from 67% in 2021 to 73% in 2022.

The beginning of 2023 is more than encouraging. The first numbers for January and February show a 42% increase in tourism visitors compared to last year.

Dubai ranked first for the second consecutive time in TripAdvisors’ Travelers’ Choice of the Best Destination Awards 2023.

In 2023, a new decade starts for Dubai’s economy and tourism with the Dubai Economic Agenda D33. The strategy aims to double the size of Dubai’s economy by 2033 and place it among the top three global cities for tourism and business.

Scrapping Taxes to Boost Tourism

Both Dubai and Abu Dhabi are revising certain taxes to make the tourism sector more attractive for travelers and industry professionals. Since the beginning of 2023, Dubai has no longer applied the 30% municipality tax on alcohol. Tourists and ex-pats don’t have to pay fees to get an individual liquor license for purchasing alcohol.

Abu Dhabi is also scrapping taxes in an effort to boost event tourism. Organizers are now exempted from the 10% tax per ticket sold.

#6 Jordan Tourism Statistics

In 2022, Jordan registered an increase of 110.5% in tourism revenue, corresponding to a recovery in visitor arrivals – 5.05 million, compared to 2.36 million in 2021. The income has slightly surpassed the pre-pandemic levels by 0.4%.

2023 looks even more promising: in the first quarter, the Kingdom’s tourism revenue grew by 88.4% compared to the same period in 2022. The number of overnight visits increased by 90.7% compared to 2022, surpassing the pre-pandemic volume by 5%.
In March 2023, another Jordanian landmark was recognized for its focus on preserving traditions and promoting inclusiveness and accessibility. The village of Umm Qais received the UNWTO’s Best Tourism Villages Award.

View of the ruins of the ancient city of Gadara in Umm Qais. The village recently focused on reviving the Aqueduct Tunnel to scale up adventure tourism. Known as the longest water tunnel in the world, the Aqueduct connects Southern Syria with Umm Quais. Tourism Reform Continues

In April 2023, the government launched the third phase of reforming the tourism sector. Part of the Kingdom’s National Tourism Strategy 2021-2025, this stage focuses on improving the licensing system by creating a clear and simplified regulatory framework for businesses in the sector.

#7 Egypt Tourism Statistics 

Egypt recorded a 46% growth in the number of tourists in 2022 compared to 2021. Last year, 11.7 million visitors entered the country of pyramids.

Authorities expect a 28% increase in the number of tourists in 2023. The recent data for the first months of the year indicate a strong beginning. In February and March alone, the number of tourists increased by 34% compared to 2022.

The Pyramids of Giza are an iconic destination attracting more than 14 million visitors yearly. An Ambitious Strategy

According to the recently adopted tourism strategy, the government aims to attract 30 million tourists by 2030. This will be possible if the yearly growth reaches 25%-30%.

Doubling the hotel rooms, enhancing air connectivity, investing in promotional projects, and improving the overall visitors’ experience are among the main priorities to help boost tourism.

Among the first actions taken by the government are focused on simplifying the visa process. In March, the Ministry of Tourism and Antiquities announced that citizens of more than 180 countries can apply for a 5-year multiple-entry visa. Tourist visas for certain countries will be automatically renewed at Egyptian airports.

#8 How TrustYou Can Help Destinations Attract More Visitors

For destinations, the competition is getting stronger in the post-pandemic scene. Countries are planning elaborate strategies to help the sector go beyond recovery and make tourism a driver of economic growth.

A true understanding of customer profiles in the post-pandemic world is the key to luring high-yielding tourists to your destination and making connections that enable unforgettable experiences. This is made possible through one thing only: listening to travelers. Listening gets you feedback and data.

Create inspiring, exciting, unforgettable experiences. Collect feedback. Attract more visitors.

With TrustYou’s reputation management platform, you access valuable insights from thousands of hotel reviews – to understand your visitor’s behavior and improve key areas. You can integrate our review widgets onto your DMO website to give travelers the information they need to make a booking decision. Benchmark yourself against competitor destinations to identify your strengths and weaknesses to position yourself properly in the market. Help your DMO’s accommodations build their collection and understanding of guest feedback to increase the number of reviews.  Contact us today to find out how to keep your visitors happy every step of the way.

Catalina Brinza

Catalina is a social media and data enthusiast. At TrustYou, she’s on the mission to bring the most out of travel and hospitality data. One day, she hopes to experience Japan’s culture to its fullest.

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