GIZ JORDAN EMPLOYMENT-ORIENTED MSME PROMOTION PROJECT (MSME)) JORDAN’S TOURISM SECTOR ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT Authors: Ms Maysaa Shahateet, Mr Kai Partale Published in May 2019 GIZ JORDAN EMPLOYMENT-ORIENTED MSME PROMOTION PROJECT (MSME) JORDAN’S TOURISM SECTOR ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT Authors: Ms Maysaa Shahateet, Mr Kai Partale Published in May 2019 JORDAN’S TOURISM SECTOR — ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT TABLE OF CONTENTS ABBREVIATIONS ................................................................................................................................................................................................................................................... 05 EXECUTIVE SUMMARY ............................................................................................................................................................................................................................. 06 1 INTRODUCTION ...........................................................................................................................................................................................................................................08 1.1 Context ............................................................................................................................................................................................................................................................ 09 1.2 Scope and methodology of study ....................................................................................................................................................................................... 09 2 SECTOR PROFILE ....................................................................................................................................................................................................................................... 12 2.1 Brief sector description .................................................................................................................................................................................................................. 13 2.2 Jordan’s tourism value chain ..................................................................................................................................................................................................... 14 2.3 Jordan’s tourism performance: an overview ............................................................................................................................................................. 16 2.4 Jordan’s tourism competitiveness and business enabling environment ................................................................................. 18 2.5 International, regional and domestic markets and trends ..................................................................................................................... 21 2.6 Conditions and implications for Jordan’s tourism sector ......................................................................................................................... 22 3 MSME INFLUENCERS AND SUB-SECTORS .................................................................................................................................................26 3.1 Profiling of MSME influencers supporting the sub-sectors .................................................................................................................... 27 3.1.1 Tourism MSME supply and employment ........................................................................................................................................................................ 27 3.1.2 Description of MSME products, services and business models ..................................................................................................................... 29 3.1.3 Promotion and distribution by MSMEs .......................................................................................................................................................................... 30 3.1.4 Competitive performance and trends .............................................................................................................................................................................. 31 3.2 Sub-sector characteristics .......................................................................................................................................................................................................... 32 3.2.1 Culture and heritage tourism – priority sub-sector ................................................................................................................................................ 33 3.2.2 Adventure tourism – priority sub-sector ......................................................................................................................................................................... 37 3.2.3 Faith tourism .................................................................................................................................................................................................................................... 40 3.2.4 Beach and sun tourism ............................................................................................................................................................................................................... 41 3.2.5 Medical and wellness tourism ............................................................................................................................................................................................... 41 3.2.6 MICE tourism .................................................................................................................................................................................................................................... 42 3.2.7 Film tourism ...................................................................................................................................................................................................................................... 43 TABLE OF CONTENTS 03 4 CHALLENGES AND OPPORTUNITIES ................................................................................................................................................................... 44 5 STRATEGIC INTERVENTIONS .................................................................................................................................................................................................50 5.1 Improving MSMEs’ competitiveness in the tourism sector ................................................................................................................... 52 5.2 Enhancing competences of tourism MSMEs and employment ......................................................................................................... 56 5.3 Improving the business climate through policies and governance facilitating MSMEs ........................................ 58 6 ANNEXES .................................................................................................................................................................................................................................................................61 6.1 Bibliography ............................................................................................................................................................................................................................................... 62 6.2 Sector interviews and validation meetings ............................................................................................................................................................. 64 6.3 Associations / Chambers and Business Service Providers ....................................................................................................................... 66 JORDAN’S TOURISM SECTOR — ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT 04 LIST OF FIGURES Figure 1: Institutional set-up of tourism in Jordan ..................................................................................................................................................... 13 Figure 2: Model of a tourism value chain in Jordan .................................................................................................................................................... 14 Figure 3: International tourist overnights 2007-2017 .............................................................................................................................................. 16 Figure 4: Economic contribution of travel and tourism (T&T) ......................................................................................................................... 17 Figure 5: Top-15 inbound markets – tourist overnights in 2017 (in thousands) ............................................................................ 17 Figure 6: Average length of stay of the leisure market .......................................................................................................................................... 18 Figure 7: Travel and tourism performance of Jordan, 2017 ................................................................................................................................. 19 Figure 8: Travel and tourism performance of Jordan, 2011–2017