UNIVERSITÀ DEGLI STUDI DI NAPOLI FEDERICO II The Jordanian National Tourism System A thesis submitted in partial fulfilment of the requirements of Naples University of Federico II for the degree of Doctor of Philosophy in Tourism Management Submitted by Ziad Alrawadieh Under the supervision Of Prof. Sergio Sciarelli And Prof. Valentina Della Corte Naples, in 30 November 2009 1 To my father’s soul To my mother, my brothers and sisters To my Arabic Nation 2 Summary The study of National Tourism System in Jordan aims to shed some light on the structure of tourism industry in Jordan by illustrating the real resources present in the country, assessing the quality of services, and then exploring the management efficiency, ie. Governance dimension. The work has been based on the structure provided by the Resource-based Theory (RBT) which gives a significant weight to the existed resources in the territory and considers them as an important factor for the development of the product. Moreover RBT draws a connection between the various components in the area and the evolution and sustainability of tourism product. The author used the Resource-Service-Governance framework to show the relationship between these three elements in order to understand to how extent they affect the final product and its image. Five Jordanian tourist destinations were chosen, for this purpose, as a research field. That was useful to portray the reality of the Jordanian product, and to give a holistic idea about the local tourism systems adopted in these destinations. It is quite clear that the first dimension of the framework (Resources) represents the cornerstone from which to launch any tourist destination by exploiting these resources that can attract both tourists and investors. The analysis of tourism resources in Jordan is considered necessary before putting into place any global master plan for development. Moreover, exploring the nature of resources in Jordan leads us to put in order our priorities of work, focusing on the economic projects and programmes that can generate rapid and sustainable economic results. The second dimension (services) also has a crucial role in the life of the tourist destination. Indeed, a destination with poor tourist facilities (accessibility, accommodation, food and beverage services, and entertainment) will not be able to attract the numbers of tourists that it deserves even if it is rich in resources. The third dimension of the framework is Governance, and here we highlight the impact of policies and strategies adopted by both the public and private sectors to develop the 3 tourism industry in the country. The form of the role played by governance is extremely crucial and significant in the development of tourist sites. In most cases, this role is assumed by government bodies, politicians, and decision makers who undertake practical procedures to realise their visions. Moreover, the concept of “Governance” sheds some light on the managerial aspects of the tourist destination, the degree of coordination between the various stakeholders, and the role given to those stakeholders in terms of the policies and strategy making. Indeed, many countries, especially the developing ones, have started to involve the private sector more in the planning process since it has became an important partner on the development path. Jordan, for example, has launched a great initiative that aims to bridge the gap between the private and public sector, and to build an integrative relationship between them instead of a hostile and unfriendly one. The author attempted to demonstrate several aspects of the Jordanian products such as; evolution of tourist sites, the competitiveness of Jordan as a tourist destination, quality of tourism services, the impact of the transport sector on the performance of Jordanian tourism system, price-quality relationship in the Jordanian product, relationship between private and public sector, decision making process, relationship between various public bodies and private sector, the role of private sector in the enactment of regulations and laws, the role of private sector in the promotion of product, and finally the efficiency of tourism statistical system and its impact on the availability of tourist database in Jordan. 4 Acknowledgment I would like to express my deep acknowledgment to all those who helped me to fulfill this work. For my supervisor Prof. Sergio Sciarelli –Coordinator of Tourism PhD program-, who was always available, and whose suggestions and remarks were helpful to orientate me to choose the path that should be followed in my research. He gave an infinite support during my stay at the university and was dealing me as a son more than a student. I am so grateful and thankful for his generous support. My thanks go also to my co-supervisor Prof. Valentina Della Corte- Assistant professor at the Department of Business Administration- for her appreciated suggestions; she contributed significantly in setting up my research plan. My thanks go also to professors of Business Administration department, especially to Prof. Mauro Sciarelli and Prof. Roberto Vona who were always close to me. I am grateful to Prof. Mike Robinson, Director of Centre for Tourism and Cultural Change-Leeds Metropolitan University, and Prof. Philip Long, Associate Professor at CTCC, for receiving me as a visiting scholar. My gratitude also goes to my close friend Suleiman Farajat, PhD candidate at CTCC; for his warm friendship and infinite support during my stay in Leeds. I thank also all of my friends in the department, especially Mario Tani with whom I have succeeded to build a strong friendship that hope it will last, he was very kind to me and he never spared any efforts to help me when I was need. Many thanks, also, to my friends Miss Carol Ferndale and Miss Ghada Mahmoud, for their appreciated help by reading the text and giving suggestions to correct any grammatical mistakes. I express also my gratitude and acknowledgment to all the administrative staff at Naples University –Federico II, in particular Mr. D’Oriano for PhD Students’ Office, department secretary staff, library staff, and bar staff for their kindness and warm friendship. I am grateful for the Naples University –Federico II for giving me a scholarship to pursue my PhD study, without which it was so hard to continue. 5 Special thanks also go the head of Statistics Department at the Ministry of Tourism (Mr. Fayyad Alsukkar), to the head of Research Department at Jordan Tourism Board, to Petra Region Authority Staff, to ASEZA staff, Madaba visitors centre, Main Library of Jordan University, Alhussein Bin Talal University, Centre for Tourism and Cultural Change (Leeds-UK), Jordan Central Bank, Directorate of Statistics, Jordan Investment Board. I thank all people that I met during the field work on my study, to the tourists who filled out the questionnaires, to the interviewed people whether from public institutions or private firms. I thank all of family members, my friends around world for their ultimate support for me during my study. 6 Table of Contents Summary 3 Acknowledgment 5 Preface 10 1 Introduction 15 1.1. Study problem 15 1.2. Study goal 20 1.3. Main issues and questions 21 1.4. Study Structure 28 1.5. Previous studies and literature 31 1.6. Difficulties and obstacles faced in the research 48 2 Conceptual Background 51 2.1. Resource-based Theory (RBT) 51 2.2. Tourism in the Middle East 54 2.3. Tourist Destination Management 57 2.4. Tourism impact 58 2.4.1. Economic impact of tourism 58 2.4.2. The Socio-cultural Impact of the Tourism Industry 60 3 The Tourism Industry in Jordan 64 3.1. The general view of the tourism sector in Jordan 64 3.2. Tourist supply 73 3.2.1. Accommodation 73 3.2.2. Restaurants 76 3.2.3. Travel Agencies 77 3.2.4. Rental car agencies 78 3.2.5. Tour guides 78 3.3. Tourist Demand 79 3.4. Tourist manpower in Jordan 82 * Foreign manpower in the Jordan tourism sector 83 * The presence of women in the Jordanian tourism sector 83 3.5. The contribution of tourism to the Jordan GDP 85 3.6. Investment in the Jordanian tourism sector 85 3.7. Added value created by the tourism industry 88 3.8. Foreign exchange earnings and the enhancement of the balance of payments 89 3.9. Jordanian strategies to develop the tourism sector 89 3.9.1. National tourism strategy 2004-2010 90 3.9.2. Plans prepared by tourism activities players 91 3.9.2.1. The Jordan Tourism Board (JTB) plan 91 3.9.2.2. The hotel and restaurant sector plan 92 7 3.9.2.3. Tour operators and airlines plan 93 3.9.2.4. Tour guides plan 93 3.9.3. Tourism marketing strategy of ASEZA 94 3.9.4. The strategy of retraining the human resources of the tourism industry 95 3.10. Tourism vision for 2020 95 4 Public policies and laws 99 4.1. The division of responsibility for tourist affairs between the different public authorities 100 4.1.1. Ministry of Tourism and Antiquities (MOTA) 100 4.1.2. ASEZA (Aqaba Special Economic Zone Authority) 102 4.1.3. Jordan Tourism Board (JTB) 104 4.1.4. Petra Region Authority (PRA) 105 4.1.5. Petra Archaeological Park (PAP) 107 4.1.6. Jordan Valley Authority (JVA) 107 4.1.7. Baptism Site Board (BSB) 108 4.2. Relationship between the various tourist bodies 109 4.3. Incentives and privileges offered to attract investment to the tourism sector 110 4.4. Legislation concerning the conservation of cultural heritage and the protection of natural 112 and environmental resources 5 Tourist demand analysis 117 5.1. Total tourist arrivals to Jordan 117 5.2.