Country Report Jordan February 2011

Economic performance: Higher inflows of tourists encourage new hotel-building

The Ministry of Tourism has announced that tourism enjoyed a strong 2010, with revenue up by 17% to JD2.423bn (US$3.42bn). In a statement issued in late January, it said that the number of overnight visitors had risen to 4.56m from 3.79m, with day visitor numbers up by 12% to 3.69m. Of the total, some 80% were from the Middle East or were Jordanians living abroad. The better 2010 figures came after a relatively poor 2009 that saw a 12% drop in revenue and a 2% decline in arrivals. Although Arab visitors dominate the numbers, the visitors to Jordan's historic sites tend to be mainly non-Arab foreigners. The tourism authorities will be watching to see if the political turmoil in the region, which has had a massive impact on the tourism sector in Tunisia and Egypt, and television footage of demonstrations in Jordan, will have an impact on visitor numbers in 2011.

Tourism was one of the best-performing sectors of the economy in 2010, and hotel development is emerging as an active area of construction, with two substantial projects announced for Amman. The UAE-based Arabian Construction Company has been awarded a US$93.7m contract by the Emirates Tourism Investment Company of Abu Dhabi to build the 425-room Rotana Hotel Tower as part of the Abdali Urban Regeneration project in central Amman. The tower will be the tallest building in Jordan at 188 metres and is due for completion in 2013. The second project will be the construction of the US$300m St Regis hotel in Amman, with work due to start in May 2011 and completion by 2014. Another Abu Dhabi firm, Al Maabar, is the main developer for the project, which will be managed by US-based Starwood Hotels and Resorts.

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