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Annex I Tourism Sector in Yemen: Problems and Prospects

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Annex I Tourism Sector in Yemen: Problems and Prospects Annex I Tourism Sector in Yemen: Problems and Prospects he tourism sector is widely seen as a potential Tsource of growth in the non-oil sector. It is also Figure 24. Visitor Arrivals widely recognized that a number of structural im- (In thousands) pediments—such as security concerns, first and foremost, and lack of infrastructure—constrain this potential and would need to be fundamentally ad- dressed before the tourism industry could start mak- ing a major contribution to future economic growth and employment. Sector Potential Yemen has abundant tourism resources and poten- tial for further growth and development. Yemen's long history, reflected in its rich and unique culture, has left a wealth of significant archaeological sites and a unique vernacular architecture. Yemen has a mixture of scenery—ranging from desert through verdant val- leys to mountain ranges—some 2,000 kilometers of Source: Data provided by the Yemeni authorities. coastline, fringing the Red Sea and the Gulf of Aden, and more than hundred islands. Finally, after cen- turies of isolation from the rest of the world, Yemen Size and Trends remains one of the last unknown destinations. In addition to the traditional tourism potential of In general, since unification in 1990, international its existing historic and scenic attractions, Yemen tourism in Yemen has been on an upward, trend, with has significant opportunities for the development of visitor arrivals growing on average by about 5 per- other forms of tourism that are still largely unknown cent a year (Table 17 and Figure 24). The tourism there, but which possess increasing market potential. sector suffered major setbacks in 1991, after the These include trekking and mountain hiking, moun- Gulf crisis erupted; in 1994, the year of the civil war tain biking, beach resort tourism, scuba diving, and in Yemen; and in 1999, after a fatal kidnapping inci- eco-tourism, both terrestrial and marine. dent in December 1998. Table 17. Visitor Arrivals and Tourism Revenues 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Visitor arrivals, thousands 51.8 27.3 72.2 69.8 39.9 61.4 74.5 80.5 87.6 57.8 Revenue, US$ million 40.0 21.0 46.9 54.0 35.0 50.0 55.0 69.0 84.0 48.4 Source: General Tourism Authority. 73 ©International Monetary Fund. Not for Redistribution Security Concerns Table 18. Average Tourism Statistics Since Unification At present, the image of Yemen in the Western world is relatively poor and, prompted by continu- ous security-related incidents, the country is often Yearly Duration Revenue characterized in the Western media as "kidnapping Arrivals, of Stay, per Stay, and bombing prone."93 Thousands Nights US dollars Although Yemen was unified in 1990, civil unrest 63.9 5.4 805 lasted and a 70-day civil war erupted in 1994. There are areas, especially in the North, which are still not (Of which: By Region) under the full control of the central government. Re- Percent portedly, there are large numbers of firearms in the Share Nights country, almost four per head.94 Illicit weapons, in- Europe 65.2 6.1 ... cluding assault rifles, are openly carried. Politically Middle East 17.4 5.4 ... motivated violence persists and security violations Asia 7.2 5.6 ... 95 The Americas 6.7 6.4 ... occasionally occur in rural areas. Tribal disputes, Africa 2.4 7.7 ... kidnappings, and shootouts between sheikhs' armed Australia 1.1 5.1 ... entourages and government security forces are fre- quent, including in major cities and public places Source: General Tourism Authority. such as Sana'a International Airport. More than 100 kidnappings have occurred through- out Yemen since 1991, mainly conducted by armed tribesmen with specific grievances against the gov- 96 Yemen's principal tourism source market is West- ernment. These kidnappings are normally resolved ern Europe (Table 18), in particular, Germany, peacefully, but tribesmen have held some foreigners France, Italy, and Britain, which to a large extent re- for extended periods, and the December 1998 inci- flects the contacts established by the existing tour op- dent—when four tourists were executed by a group erators. The peak tourist season in Yemen is between of Islamic militants—gave Yemen front page inter- October and March. International tourism is mainly national news coverage and dealt a severe blow to concentrated in the governorates of Sana'a, Hadhra- the nascent tourism industry. mout, Al-Jouf, Al-Hodeidah, Marib, and Shabwa. Since then, many countries, including the United States, the United Kingdom, and Japan, have ad- In 1998, the tourism sector provided jobs, either vised their nationals against traveling to Yemen;97 directly or indirectly, to an estimated 23,000 work- Germany has reduced the number of accredited ers, including those in the hotel industry and related Yemeni tourist agencies to two; and KLM Airlines sectors. As tourism extends to remote regions, it 98 helps provide employment opportunities and in- has suspended its service to Yemen. creases incomes among the local population. Total foreign exchange revenues from tourism are still rel- Inadequate Infrastructure atively small—at about 3 percent of total exports of goods and services, or 18 percent of non-oil exports Addressing security concerns is necessary, but not in recent years—but have been growing on average enough for the successful development of the by 8 percent a year. tourism sector in Yemen. The lack of adequate infra- The Yemeni government believes that developing 93See The Economist, April 10, 1999, page 61. tourism will help enhance long-term economic 94 growth and improve the living standards of the See Yemen—A Travel Survival Kit, Lonely Planet Publica- tions, January 1996, page 87. Yemeni people, as well as protect and preserve 95See Business Middle East, January 1, 2000, The Economist Yemen's cultural heritage and natural environment. Intelligence Unit, page 11. 96See Yemen—Consular Information Sheet, September 14, 1999, U.S. Department of State website, http://travel.state.gov/yemen.html, and Business Middle East, February 1, 1999; The Economist Intel- Structural Impediments ligence Unit, page 10. 97See Yemen—Travel Warning, November 5, 1999, U.S. Depart- Concerns over peace and security, and inadequate ment of State website, http://travel.state.gov/yemen warning.html. infrastructure, are the two largest immediate obsta- 98Preliminary estimates suggest that, as a result, tourist arrivals cles to the successful development of the tourism in- in 1999 declined by about 35 percent relative to 1998 and tourism foreign exchange receipts stood at less than 60 percent of their dustry in Yemen, while the danger of losing the his- 1998 level. The two largest hotels in Sana'a have seen their occu- toric and cultural heritage and environmental pancy rates drop below 50 percent, and Yemenia Airlines was re- degradation are longer-term problems. ported to have lost more than US$2 million in revenues. ©International Monetary Fund. Not for Redistribution structure—such as hotels, roads, catering, and air- protect the natural environment are limited and port services—is another major factor constraining poorly enforced. As a result, there is a real threat to the growth of the tourism sector. the historic heritage of Yemen, the very feature that Only a third of roads in Yemen are paved. Poor constitutes the principal tourist attraction. According roads and lack of easy access to tourist attractions en- to anecdotal evidence, some 30 percent of "physi- tail long and uncomfortable journeys by four-wheel cal" heritage in the countryside has been lost in the drive vehicles, which means that visits to places of past 10 years to unregulated commercial develop- interest have to be of relatively short duration. ment, and parts of the coastline with significant Existing hotel stock is heavily concentrated in the beach resort potential are being lost to industrial de- urban areas of Sana'a, Aden, Hadhramout, and Taiz, velopment.101 Furthermore, the potential for eco- with more than 50 percent of first class rooms lo- tourism, especially in the coastal areas, is being de- cated in Sana'a. Despite a significant increase in stroyed as various species—such as sea turtles—are hotel construction since unification, the number of driven to extinction because of poor enforcement of hotel rooms suitable for international tourists who seasonal hunting and fishing restrictions. prefer to stay in high-grade properties has remained unchanged and is currently only about 1,100, or less than 15 percent of the total room stock." Conse- Policy Implications quently, tour operators have reported problems get- ting enough rooms of a suitable standard during the Given the undoubted potential of tourism in high season and have often had to reject big tour Yemen, the foregoing discussion suggests that the group reservations because of accommodation and following are critical to the successful development transportation constraints.100 of the tourism sector in Yemen: The development of tourism is also constrained oy • Guaranteeing of security and maintaining a the absence of basic services—such as eating and toi- stable political and economic environment as let facilities—and a shortage of potable water both at preconditions for investment, both domestic places of interest and at possible stopover points. and foreign, in the tourism sector, given the Furthermore, there are no tourist information or inter- long-term, and hence high-risk, nature of such pretation centers outside Sana'a, while those avail- investment; able in Sana'a are not up to international standards, • Investing in essential infrastructure and tourism- lacking appropriately trained or licensed tour guides. related services and facilities; The situation is compounded by the shortage of • Providing training and licensing for both public trained and experienced local personnel and the ab- and private sector tourism personnel to ensure sence of facilities providing professional training in that tourists receive a standard of service consis- the services sector.
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