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SECTION V Tourism Development Strategy…………………………………………… 32-48 Diagnosis of Present Tourism Situation …………………………………

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SECTION V Tourism Development Strategy…………………………………………… 32-48 Diagnosis of Present Tourism Situation ………………………………… Republic of Yemen Mukalla City Development Strategy Tourism Sector The World Bank / Cities Alliance Gianni Brizzi, Consultant May 2008 Contents INTRODUCTION EXECUTIVE SUMMARY ……………………………………………………………… i-ix SECTION I Description of the Hadramout Region …………………………………… 1-8 Mukalla City ……………………………………………………………... 1 Hadramout Coastal Area ……………………………………………….... 3 Wadi Hadramout ………………………………………………………… 4 Socotra …………………………………………………………………… 5 Socio-economic environment ……………………………………………. 5 Climatic conditions ………………………………………………………. 6 Issues and prospects …………………………………………………….… 6 SECTION II Present situation of tourism sector in the Hadramout Region ……………. 9-19 Tourism demand ………………………………………………………….. 9 Tourism supply …………………………………………………………… 12 Accommodation facilities ………………………………………………… 12 Tourism services ……………………………………………………......... 14 Tourism economy ………………………………………………………… 16 Issues and prospects ……………………………………………………… 17 SECTION III Governance and administration of tourism sector ……………………....... 20-26 Ministry of Tourism ………………………………………………………. 20 Ministry of Vocational Training …………………………………………. 21 Ministry of Culture ……………………………………………………….. 22 Ministry of Interior ……………………………………………………….. 23 General Investment Authority …………………………………………… 23 Private institutions ………………………………………………………... 23 Issues and prospects ……………………………………………………… 24 SECTION IV Strengths, Weaknesses, Opportunities and Threats (SWOT)…………….. 27-31 SWOT analysis …………………………………………………………… 27 Overriding country issues ………………………………………………… 29 SECTION V Tourism development strategy…………………………………………… 32-48 Diagnosis of present tourism situation …………………………………..... 32 Assessment of constraints ……………………………………………….... 33 Identification of priority products and markets …………………………… 34 Development objectives and associated indicatots………………………… 37 Action plans and priority projects …………………………………………. 38 Benefits …………………………………………………………………….. 47 Contents List of tables Table 1. Hadramout Region. Selected socio-economic indicators. Year 2002 ………….. 6 Table 2. Mukalla and Hadramout Region - Ranking of tourism destination relative to international market …...……………………………………………... 7 Table 3. Mukalla and Hadramout Region - Impact of international tourism on local Population ...………………………………………………………………….….. 7 Table 4. Arrivals and bed nights in the Hadramout Region from 2000 to 2006 ….…........ 9 Table 5. Arrivals and bed-nights in Mukalla city and coastal area from 2000 to 2006 ...... 9 Table 6. Arrivals and bed-nights in Wadi Hadramout from 2000 to 2006……………….. 9 Table 7. International arrivals in Yemen from 2000 to 2006……………….…………….. 10 Table 8. Arrivals and bed-nights by nationality in Mukalla City and coastal area in 2006……………………………………………………….…………………… 10 Table 9. Hadramout Region: accomodation capacity in 2006……………………………. 12 Table 10. Hotel beds by category in the Hadramout Region in 2006 …….……………….. 12 Table 11. Average construction cost per hotel room and hotel category..………………..... 14 Table 12. Monthly salary range of hotel staff ………………………………………….…. 14 Table 13. Mukalla and Hadramout coastal area - tourist facilities..………….…………….. 15 Table 14. Average tourist expenditure by type of tourist in the Hadramout Region ……… 16 Table 15. Hotel employment in the Hadramout Region in 2006……………………….….. 16 List of boxes BOX 1. Most significant tourist attractions of Mukalla City ……………………………. 2-3 BOX 2. Mukalla City - Survey of 3 Hotels Operating on International Market …..….…. 13 BOX 3. Tourism Development Plan …………………………………………………….. 21 BOX 4. National Hotel Tourism Institute (NAHOTI) …………………………………... 22 Annex I Images of Mukalla. Pictorial Tour…………………………………………… 49-60 INTRODUCTION This report contributes to the studies for the formulation of a long-term economic development strategy of the city of Mukalla. With Aden and Hodeida, Mukalla is part of the Port City Development Program sponsored by the Government of Yemen with World Bank support. Cities Alliance provides assistance by funding selected research activities, including the present study. The selection of tourism as a strategic sector for the economic development of Mukalla stems from the outcome of a competitiveness analysis of the city’s development factors. This analysis indicates that, along with the fishing industry and the service sector, tourism holds the best development promises. The present report addresses the fundamental questions of what is the scope of these promises, what will it take to materialize them, and how can they best be fulfilled. In particular, the report addresses the above questions by: 1) presenting Mukalla and its tourism assets, including those of the Hadramout region and Socotra which are intimately linked to the city’s tourism development; 2) reviewing the present situation of tourism in Mukalla and its region within the context of Yemen; 3) describing the governance and administrative systems that oversee the tourism sector; 4) assessing the strengths, weaknesses, opportunities and threats that influence local tourism development; and 5) defining a tourism development strategy inclusive of recommendations on institutional strengthening, public infrastructure investments, marketing and branding, human resource development, and development targets and indicators. An executive summary precedes the full report. EXECUTIVE SUMMARY i. Nestled in precipitous cliffs dropping into the Arabian Sea, isolated from the rest of the country and from the entire world, the city of Mukalla has been for centuries a small seaport bypassed by international trade but for its role of gateway to Wadi Hadramout, a hidden paradise behind vast desert plateaus. Only in the last decade, the city has experienced significant demographic and economic growth as a result of the strengthening of its role of regional capital and public and private investment in infrastructure, services and real estate. ii. In spite of its limited notoriety, Mukalla is a city of considerable beauty that maintains almost intact the architectural flavor of the old city ports that dotted the trade routes along the Arabian and the Red sea. The coastal area around Mukalla is equally impressive. To the West, it boasts a succession of charming bays and natural sites with unspoiled beaches and an uncontaminated environment; to the East, in addition to rare natural sites, it has a number of historical towns and fishing villages set on a sandy coastline. Though physically separate and somewhat distant, Wadi Hadramout and its network of tributary canyons is a unique and well- known tourism destination. This area maintains the charm of a distinct and rare place with villages of great architectural beauty, traditional farming activities, lush tropical vegetation and a largely unspoiled physical environment. iii. Comparable cities and sites in other countries of North Africa and the Middle East as well as on the Indian Ocean would have experienced major tourism development. Yet, Mukalla and the Hadramout Region received only 269,000 tourists in 2006 of which only 47,670 were international visitors including 15,000 from other Gulf countries. The striking modesty of the latter figures emerges when compared, for example, with tourism arrivals to Hammamet in Tunisia, Agadir in Morocco and Sharm-el Sheik in Egypt which, in the same year, received 635,000, 578,700 and 1,2 million international visitors, respectively. iv. If tourism development is a government objective for Mukalla and its region and this objective is shared with the local population, questioning the reasons that until now have prevented or delayed such development is at order. In assessing these reasons, it is essential to acknowledge that Mukalla and the Hadramout Region very much share this situation with Yemen as a whole. Indeed, in 2006, in spite of its considerable tourism assets, Yemen received only 382,332 international tourists, compared with 6.5 million in Tunisia and Morocco and 8.6 million in Egypt. v. Common views point to the lack of adequate accommodation and other tourism facilities, limited land and air transportation, insufficient marketing, and, more specifically for Mukalla and Wadi Hadramout, their isolation and resulting marginalization within Yemen. All of these reasons are relevant but they are more an effect than a cause. The roots of the problem should be rather searched in governance, cultural and political factors that negatively affect the establishment and operations of a vital tourism industry in Yemen, in general, and in the Mukalla Region, in particular. i vi. Opaque administrative procedures, dysfunctional legal and judicial systems, unwarranted interferences by central and local officials, and crowding out pressures from privileged national and local business groups hamper foreign and new domestic investment and, therefore, prevents the development of adequate accommodation and other tourism facilities. Traditional family values and social behaviors combined with widespread dislike for service activities limit the participation of women and hold back the development of an effective and dedicated workforce in the tourism sector. International and domestic political tensions create real and perceived security problems that discourage international tourism. vii. Is there any way to overcome these entrenched problems and create a positive climate for tourism development in Yemen, Mukalla and the Hadramout Region? The challenge is open. Recent government policies and associated measures, such as the identification and planning of tourism development zones by the General Tourism
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