Presentation Structure

Transcription

1

2 Presentation Structure PART 1: AN OVERVIEW Global Tourism The Jordanian Tourism Sector Key Indicators The Tourist Accommodation Sector Sustainable Development Tourism and Sustainable Development

3 Presentation Structure PART 2: KEY CHALLENGES FACING SUSTAINABLE DEVELOPMENT The First Challenge: The Dynamic Growth of Investments Investments in tourism in Jordan The Nature of the Profit-Driven Sector General Notes and Key Recommendations

4

5 Although the world has witnessed and experienced over the past several years a variety of events that affected geopolitical tension and tourism, 3 years ago, the world tourism entered an unprecedented phase with 800 million international arrivals, and since then it has grown by more than 20% with 842 million arrivals and a growth rate of 4% In the year 2007, and according to the WTO numbers were increasing higher than expected in global tourism, regions, with the exception of Africa, have shown growth above the forecast for the full year of 2007

6 Despite the regional success of the Middle East, the sector still suffers from ongoing conflicts in Lebanon, Palestine and Israel. Fortunately, Jordan has not been negatively affected by the conflicts in surrounding countries. Tourism is likely to keep developing as growth has strengthened during the 21st century with no signs of a slowdown, indicating that the tourism industry will double in size in the next 13 years yet supply growth forecasts stand at a modest rate per year. World Tourism Organization (WTO) forecasts international tourist arrivals to reach around 1.6 billion in 2020

7

8 THE JORDANIAN TOURISM SECTOR The Tourism sector contributes to the Jordanian economy with 11.5% of the GDP and more than $800 million According to information provided by the Ministry of Tourism and Antiquities for the year 2005, it is the Kingdom's largest export sector, its second largest private sector employer, and it's second highest producer of foreign exchange. Tourism has generated 1,021.6 millions in 2005 as an income, which is 8.3% more than the value of 2004, which was 943millions JD. About 29,394 jobs were offered as a direct employment by tourism sector, which is 24.8% more than the 23,544 jobs offered in 2004; all these numbers show the importance of tourism to the economy of Jordan.

9 THE JORDANIAN TOURISM SECTOR The potential of Jordan as a tourism destination has yet to be realized due to a number of factors. In general, tourism in Jordan is experiencing growth after a period of uncertainty. A number of large scale projects are under way, leading to future expansion of the accommodation sector and related tourist infrastructure.

10 THE NATIONAL TOURISM STRATEGY Mission : To develop sustainable tourism economy through partnership between the government, the Jordan Tourism Board, the private sector, and civil society to expand employment, entrepreneurial opportunity, social benefits, industry profits, and state revenues. The strategy aims to Increase tourism receipts from JD570 million in 2003 to JD1.3 billion (US$ 1.84 billion) Increase tourism-supported jobs from 40,791 in 2003 to 91,719, thus creating over 51,000 jobs. Achieve taxation yield to the government of more than JD455 million (US$637 million)

11 KEY INDICATORS Total Number of Arrivals and Tourists Number of Tourism Activities Numbers of Rooms in Hotels Numbers of Beds in Hotels No. of Hotel, Apartments & Others, Rooms, Beds & Number of Employees Distributed by Nationality &Classification 2007

12

13 Tourism in Jordan is steadily growing and expectations are high for further growth. Yet Demand exceeds Supply Therefore, many hotels and other accommodation projects are being established. Many Jordanian areas (e.g. Dead Sea, Aqaba, and the northern parts) are in desperate need of increased accommodation. The tourism sector offers a range of lodging facilities to inbound and outbound tourists, accommodations include resorts, hotels, hostels, apartments, suites, and camping, satisfying different tastes and budgets. Jordan has also has diverse hospitality services, that are simultaneously growing to support the industry.

14 Hotel Indicators Item Relative change between 2007/ Classified & Unclassified Hotels Number of Rooms in Hotels ,587 21,609 20,827 19,945 19,698 Number of Beds in ,140 42,029 40,480 38,658 37,859 Hotels *Source: Ministry of Tourism and Antiquities

15 Five-star hotels have the highest number of arrivals recording 714,099 visitors in 2006 compared to 721,913 in Amman has the highest number of nights spent since 2002 till Tourists usually take the capital as the base of their trip around Jordan. It is strategically located close to many sites that require day trips. Amman provides better services and quality of accommodation compared to other cities that visitors are considering visiting, such as Madaba, Jerash or Irbid. Nights spent in Amman reached 3,491,162 nights compared to 715,496 nights at the second highest city of Aqaba.

16 Number of Arrivals, Rooms, and Beds at Tourist Accommodation Facilities by Classification [2006] Classification Arrivals Rooms Beds Five Stars 714,099 1,042,013 1,507,340 Four Stars 507, , ,281 Three Stars 312, , ,156 Two Stars 189, , ,530 One Star 97, , ,233 Apartment B 29,224 66, ,184 Apartment C 99, , ,572 Suites A 5,890 8,579 15,469 Suites B 18,897 37,467 72,394 Suites C 29,624 41,366 82,491 Camping 18,665 14,893 27,270 Unclassified 162, , ,363 * Source: Ministry of Tourism and Antiquities

17 Nights Spent According to City [ ] City Amman 3,491,162 3,911,277 3,189,312 2,282,151 2,231,817 Aqaba 715, , , , ,122 Petra 400, , , , ,490 Madaba 19,461 15,324 8,926 3,917 6,173 Ma in Spa 11,904 3,206 17,583 13,142 16,224 Dead Sea 270, , , , ,479 Irbid 36,205 36,251 25,322 10,242 26,006 Jerash 8,938 9,526 8,051 4,683 5,059 * Source: Ministry of Tourism and Antiquities

18 General Notes Employees working in tourism services are mostly distributed in Amman (22,108 employees), Aqaba (2,316 employees,( Petra (1,398 employees,( Dead Sea (1,135 employees), and Wadi Rum (962 employees), the rest are distributed over other locations, the same can be said about tourism services (Mainly hotels). Many locations lack the presence of either the service or its employees, it becomes important then to supply areas with tourism services and to train local people to work in them, which will enhance living quality in these areas. There is an urging need to provide locals with affordable types of accommodation in different areas.

19 SUSTAINABLE DEVELOPMENT : is a process to meet the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development is therefore about creating a better life for all people in ways that will be as viable in the future as they are at present. In other words, sustainable development is based on principles of sound husbandry of the world s resources, and on equity in the way those resources are used and in the way in which the benefits obtained from them are distributed. The World Commission on Environment and Development (1987) Definition

20 The concept has evolved since the 1987 definition, notably through The plan of action which emerged from the UN Conference on Environment and Development (Rio, 1992), and the plan of implementation from the World Summit Three pillars of sustainable development are now recognized and underlined : 1. Economic, Social and Environmental Sustainability.

21 Tourism and Sustainable Development Tourism is in a special position in the contribution it can make and the challenges it might impose on sustainable development: Tourism is a dynamically growing sector Tourism is a major contributor to national economy And tourism have a substantial impact on the local community Tourism is an activity which involves a special relationship between consumers (visitors and guests), the industry, the environment and local communities. As indicated by the world Tourism Organization, this special relationship arises because, unlike most other sectors, the consumer of tourism (the tourist) travels to the producer and the product.

22 Tourism and Sustainable Development This leads to three important and unique aspects of the relationship between tourism and sustainable development: Interaction: The nature of tourism, as a service industry that is based on delivering an experience of new places, means that it involves a considerable amount of interaction, both direct and indirect, between visitors, host communities and their local environments. Awareness: Tourism makes people (visitors and hosts) become far more conscious of environmental issues and differences between nations and cultures, which can affect the attitudes and concerns for sustainability issues not only while traveling but throughout people lives.

23 Tourism and Sustainable Development This leads to three important and unique aspects of the relationship between tourism and sustainable development: Dependency: Much of tourism is based on visitors seeking to experience intact and clean environments, attractive natural areas, authentic historic and cultural traditions, and welcoming hosts with whom they have a good relationship. The industry depends on these attributes being in place.

24 Tourism and Sustainable Development Opportunities Tourism can: Provide a growing source of opportunities for enterprise development and employment creation as well as stimulating investment and support for local services, even in quite remote communities. Bring tangible economic value to natural and cultural resources. This can result in direct income from visitor spending for their conservation, and an increase in support for conservation from local communities. Be a force for inter-cultural understanding and peace.

25 Threats Tourism Can: Tourism and Sustainable Development Place direct pressure on fragile ecosystems causing degradation of the physical environment and disruption to wildlife. Exert considerable pressure on host communities and lead to dislocation of traditional societies. Compete for the use of scarce resources, notably land and water. Be a significant contributor to local and global pollution. Be a vulnerable and unstable source of income, as it is often very sensitive to actual or perceived changes to the environmental and social conditions of destinations.

26 Purpose and Scope The paper seeks to cast a light on a number of key challenges facing and hindering the achievement of environmental sustainable development, and the main reasons contributing to these challenges in the tourism sector in Jordan with a special attention to tourist accommodation.

27

28 Investments and Sustainable Development in Jordan Hotel investments increased by 390% between the years 2005 and 2006 Values Of Investments Benefiting From The Investment Law From In Millions Sector Hotels Convention centers and exhibitions Recreational cities *Source: Jordan Investment Board

29 This has led MOTA to announce plans on May 2007 to launch the Jordan Tourism SME Investment e-map in collaboration with JIB. The map will provide specific data on the various potential investment projects, with a basis of 75 projects or investment opportunities each at a value of $100,000 or more The map will be used as reference for the interested investors that can use it as a guide; providing brief information about the economic and social status of the area that could facilitate decision making The e-map proposes project sites including areas such as Um Qais, Jerash and Ajloun, as well as Shobak and Tafileh in the south of the country. Because, the Kingdom is witnessing an investment boom in key hotspots such as the Dead Sea and Aqaba, but other areas with rich tourism potential remain untapped.

30 Investment growth in the tourism sector and tourist accommodation, represents a growing pressure on the environment in Jordan, affecting ecosystems, natural resources, land resources and coastal zones through waste generation, wastewater discharges and air emissions Expansion of the hotel sector has encroached on historic and cultural centres, as well as in protected areas (e.g. Petra). Aqaba Red Sea resorts have attracted large-scale hotel clusters, with significant altered action to the natural coastline and increased urban stress on the marine environment. Investors must enter virgin territories in an environmentally planned manner; causing the least possible damage and achieving the highest sustainability levels. Currently this is the responsibility of key governmental bodies, yet we ve seen recently a number of local community practices that reflect increasing awareness levels.

31 It s advised to support the mobilization of such parties in a participatory manner (e.g. evaluation and approval of such investments). The growth of investments in tourism and tourist accommodation extends to reach other relevant sectors and industries. E.g. The transport Sector

32 The Profit Driven Private Sector The relative roles of the public and private sectors are changing,.the private sector is becoming a major player in many areas previously controlled by the public sector Partnerships between public and private sectors are likely to increase given the availability of private capital and government s need to reduce expenditures

33 Private sector organizations can be encouraged to support sustainable development for one or more of the following reasons Customers behaviors are changing, thus we can see that many are becoming more aware and informed and are increasingly supporting and participating in sustainable development. Environmental sustainability is trendy, and can be utilized as a marketing tool promoting social responsibility. The upper management is adopting sustainable development as a management framework to build long-term value in line with shareholders and society s expectations. Policies, laws and regulations are mandatory, whether those enforced by the government or sometimes mother companies that these organizations relate to. Sustainable development enhances organizational performance (especially cost reductions).

34 It has been proved in many countries all around the world that commitment to corporate social responsibility moves companies to a triple bottom line of financial excellence, social justice, and environmental superiority, increasingly, it is recognized that environmental sustainability improves competitiveness. Thus environmental and social responsibility and good environmental management practices in the private sector must be promoted, and investments in environmentally friendly private sector operations, systems, and products must be encouraged.

35

36 Economic Growth thru Investments Economic growth that results from investments is essential if environmental sustainability is pursued. it is a mistake to imagine that there is a simple dichotomy between growth and no growth. Growth can take a variety of forms, and, as several studies have shown, the quality of growth matters (World Bank, 2000b). A focus on maximizing growth narrowly defined in GDP terms to the exclusion of all other considerations often imposes substantial costs and proves unsustainable.

37 The Investment Climate To achieve the best integration between aspired investment outcomes and environmental sustainability it s advised to evaluate the total value of the current flow of benefits from an ecosystem, by: - understanding the contributions of this ecosystem - determining the net benefits of an investment that alters ecosystem conditions to assess whether the intervention is worthwhile or not. There should be more support to incentives and programs that encourage the private sector to become a driving force in sustainable development.

38 The Investment Climate The government must reform its current environmental legislative framework, and make the minimal trade-offs (reluctance to enforce strict environmental laws, fearing that companies would not chose Jordan as an investment destination or would relocate elsewhere). An accountable and effective public sector governance is critical to establishing a favorable investment climate. Investments stability and longevity must be taken into consideration. Many argue that the rapid flows of investment into and out of countries result in harm to the environment; economy and certain aspects of the social life (e.g. job losses, inequality increase, and lower wages).

39 Urban Governance The Uncontrolled urban sprawl of tourism investments can generate urban stress, which impacts the environment as well as social and economic development. Suggestions provided within this context are: Partnerships between the public, private sectors, civil society organizations and local communities must be facilitated to address: - urban investment challenges, - resolve environmentally sensitive issues - and agree on benchmarks for good environmental management. The multi-disciplinary character of issues involved requires a sustainable development approach to urban governance that includes balanced decentralization, local environmental planning, local capacity building, and financial and technical assistance.

40 Urban Governance Urban planning is a necessity, and especially in new virgin areas where this concept s application can be easier. To ensure sustainable environmental development this responsibility requires much more than what s been done so far, the evaluation of these investments must be conducted at an urban scale. And natural resources must be considered as a capital asset belonging to a general portfolio, which is comprised of other assets and capitals, including material, financial, human and social. Managing this portfolio in a good and sustainable manner to maximize its returns and benefits over time is good investment. It is also central to sustainable development.

41 For Further Details Please Contact: For Further Contacts Eng. Ghada Ajjour Mobile: