Although Jordan’s hospitality industry has been affected by acts of terrorism in the past, hoteliers across the country are confident in the country’s attempt to reposition itself as a regional safe haven – home to one of the recently announced ‘new’ Seven Wonders of the World.
In November 2005 a series of Al-Qaeda linked suicide bomb attacks on three hotels in the Jordanian capital Amman left 38 dead and the country’s hotel industry in shock. But the effect was not long-lasting: arrivals to the country increased by 7.4% in the nine months to September 2006 compared to the same period the previous year.
More than 4 million of the 4.9 million visitors arrived from neighbouring Arab states, the number of European visitors increased by 8% and arrivals from America were up 31%.
We cannot change people’s perception of our neighbouring countries because that is reality, but what we can do is position Jordan in such a way that it is perceived as a very friendly nation.
The country was also affected by the conflict in Lebanon last year, which saw hotel occupancy in Amman fall to 58%, down from 70 % in 2005, according to HVS International’s Jordan – Country Snapshot 2007 report.
Although average room rates for the capital increased 12% to US $132, RevPAR was down 6% to $77, the report stated.
Grand Hyatt Hotel Amman property manager Otto Steenback says there is still an international perception that the country may still be unsafe, “which is being perpetuated by various media”.
“We’re surrounded by some very challenging situations in this region, like the Arab conflict between Palestine and Israel – and Iraq,” he explains.
The 311-room property was one of the three hotels bombed in 2005, and it has only been fully operational again since November last year.
“We cannot change people’s perception of our neighbouring countries, because that is reality, but what we can do is position Jordan in such a way that it is perceived as a very friendly nation,” Steenback says.
He adds that the work of the government, the country’s royal family – His Majesty King Abdullah II and Queen Rania al-Abdullah – and the recent naming of Petra as one of the ‘new’ Seven Wonders of the World are helping to change the negative international perception of Jordan. He estimates that the extra exposure of Petra will lead to a 100% increase in tourist numbers over the next five years.
Jordan Hotel Association president Michel Nazzal agrees that Petra and Jordan are going to benefit greatly from the historic city’s inclusion on the list.
“Being on a list of seven in this world is a major attraction, and the value of the exposure Jordan and Petra have received is worth millions [of dollars],” he says.
“This should make the task of the Tourism Board easier for many years to come.”
Steenback has a few reservations about the hotel industry’s capability to cope with growing visitor numbers, but he believes with all the new properties coming online across the country there will soon be enough room supply.
“As a country we will probably be struggling to provide the adequate facilities for [everyone], although Aqaba is coming on line in the next few years, you’ll see a lot of hotels opening up there,” he says.
“And in Amman the Hilton is being constructed, and the Rotana Towers, which should come online between 2009 and 2012.”
InterContinental Hotels Group (IHG) senior vice president of hotel operations and franchising for the Middle East and Africa region Rey Alcocer believes that fact that things are back on track after the troubles of recent years is a testament to the country’s attitude, and he is confident that the hotel industry is ready for the influx of travellers expected due to the Petra vote.
“It’s a resilient country, and [despite] difficulties in any one region, the country as a whole will always bounce back, so I see a great future for Jordan,” he says.
“The awareness is growing, and as long as the infrastructure is there, we’re working very hard to make sure that we can accommodate the extra travellers.”
Raising awareness
The Jordan Hotel Association was set up in 1969 to support the Jordan Tourism Board and represents 400 hotels throughout the country. Its role is to promote cooperation between hotels, businesses and the tourism industry.
Its president, Nazzal, explains that the Jordan Tourism Board – a joint private-public partnership – is working hard to promote the country and the hotel industry, but more could be done.
“Giving the private sector more freedom to operate and increasing the funding of the promotion [would be an improvement] and supervising the quality of services at antiquity sites is a major challenge for the government,” he says.
“The industry has benefited from a two year period of calm in the region, but the lack of funds to promote the product further did not produce the results expected in occupancy and average room rates, which remain relatively low.
“Investors flock when the returns on investment are high. Unfortunately so far the return due to low room rates is still modest, but better planned promotion in Europe is expected to increase the numbers by at least 30%.”
Despite these problems, IHG’s Alcocer is confident that the government is doing enough to ensure the continuing growth of the industry in Jordan.
“What is being done today by the government in terms of promotion, in terms of [raising] awareness and in terms of facilitating the growth of hotels and the demand for hotels [is a positive thing],” he explains.
“Of course the development of infrastructure, airports, roads, anything that comes along that supports growing tourism and the travel industry [helps].”
IHG area director of sales and marketing for Jordan and Palestine Janet Abrahams is also positive about the government’s efforts.
“In 2006 awareness of the importance of tourism to the economy increased across the government, private and the public sectors. This will have a positive effect, [encouraging] support for destination promotional campaigns, attracting more investments and developing a better institutional and regulatory framework,” she says.
“The government and the Jordan Tourism Board both play a huge part in constantly improving what the country has to offer. Alongside their own marketing campaigns, they have jointly started hosting trade missions from the corporate sector like the British Trade Mission and the French Trade Mission to facilitate the continued growth of the country’s industries, including tourism.
“Domestic events and festivals such as The Global Village and the Jerash Cultural Festival are among the efforts to continually raise the profile of the attractions and amenities in Jordan.”
Regional markets
Amman has traditionally been regarded as a business hub, with the majority of hotel business coming from the MICE sector. According to the Grand Hyatt’s Steenback, 85% of his hotel’s guests are business travellers, but IHG’s Alcocer says that separating business and leisure customers is not that simple.
“Obviously with Amman being the centre of business – where a lot of the companies are based – it is definitely going to try and attract business travellers, but what I see from our customers is more mixed travellers,” he says.
“Typically today’s traveller tries to incorporate a bit of leisure as well as business, so it’s very common to have mixed purpose travel. Calling Amman a purely business destination does not do justice to the city because it has a lot of leisure attractions to offer. If you go there for a meeting you can go and see the amphitheatre, or the Roman ruins, and it would make a trip that much richer.”
Abrahams agrees that Amman is more than just a centre for MICE and business travellers.
“Amman is a natural entry point for most travellers and it offers some spectacular ancient sites. After a visit here you can understand why Jordan is often described as an open air museum. Jerash, for example, is one of the largest and most well preserved sites of Roman architecture in the world outside Italy,” she says.
“The InterContinental Jordan Amman is only minutes away from the Roman Amphitheatre and the Citadel. There are also many art galleries and old souks and markets in Amman.”
But Abrahams adds that hotels in Amman currently experience occupancy of around 66%, and it is not a great draw for investors at the present time.
Mövenpick Resort and Spa Dead Sea general manager and regional manager for Jordan, Bruno Huber says that Amman doesn’t have an undersupply of hotel rooms, so there is no need to build more.
“The lack of hotel rooms at the moment is in Aqaba, but there is huge development down there,” he says.
Nazzal explains that several new projects are under construction, or planned, most of which are in Aqaba and on the shores of the Dead Sea. He says that 10,000 additional rooms are expected to be available within the next four years.
The coastal town of Aqaba in the far south of Jordan has a total of five properties due to come online between now and 2009, and according to Steenback the destination will be aiming at a niche market.
“I think that the future will lie more in regional tourism in Aqaba,” he says.
“We’re not looking at mass markets; we’re looking more at the niche and we want to sell more at a higher rate. We want to look at Jordan as a small country and want to be very discreet and selective. Aqaba will do well.”
Mövenpick’s Huber explains that the 340-room property offers both quality spa and MICE facilities.
“We are concentrating on conventions and MICE business and spa,” he says.
“We have the largest spa in the Middle East, which is 6000 m2, with 25 treatment rooms concentrating on Jordanian Dead Sra treatments.”
The Dead Sea also boasts the King Hussein Bin Talal Convention Centre, which offers 25 fully equipped conference rooms and meeting halls and has played host to international events such as the World Economic Forum. Huber explains that all of the hotels in the region are feeding the centre and that attracting MICE bookings is one of Mövenpick’s main targets in the Dead Sea region.
Abrahams explains that IHG is constantly researching the market and trying to spot industry trends. Despite the traditional markets in Amman, Aqaba, Petra and the Dead Sea, new opportunities are presenting themselves all the time, she adds.
“The launch of the first limited service brand in the Middle East, Express by Holiday Inn, will cater to a burgeoning market for budget travellers looking for quality accommodation and real value for money,” she explains.
Steenback believes Jordan’s future is bright and that every region is clear about what market it is aiming for.
“The Dead Sea as a major market for medical, health and wellness, so you have a lot of Europeans flying out there,” he explains. “It’s a MICE destination together with a leisure destination. Petra is a tourism attraction with people coming from Egypt, Palestine, and other countries. Aqaba is a longer stay destination, visited by Europeans and people from this region. Every single market has the potential for growth.”
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