Saudi Travel & Tourism Investment Market 2016

Case Study:

Building Jordanian Economic Sustainability

Through Tourism

Ibrahim K Osta

Director General, Economic Growth Through Tourism

iosta@siyaha.org

Financial

Sustainability of

Tourism Enterprises

About Chemonics (HQ: Washington, DC)

Multi-disciplinary

development consulting firm

A leader in international

development for over 40 years

Projects implemented in 145

countries, currently in 80+

countries

Largest implementer of USAID

programs worldwide

Regions

Africa

Asia

Europe and Eurasia

Latin America &

Caribbean

Middle East

Chemonics Practice Areas

Agriculture and Food Security

Conflict and Crisis

Corporate Partnerships

Democracy and Governance

Economic Growth and Trade

Education and Youth

Environment and Natural Resources

Gender Equality & Social Inclusion

Health

Supply Chain Solutions

Urban Development and Energy

Water and Sanitation

Chemonics International

What have we

done in tourism?

A sampling!

Rural Tourism in MOROCCO

Rural Tourism Trails

Restored largest beehive in the

world to become a tourist attraction

Traditional handcrafts

Mountain community solid waste

management

Foreign press & trade

FAM

Environmental Park Protection & Marine Tourism in EGYPT2004-2008

Protection of Red Sea coral reefs

Manual for resorts coral protection

Provision of equipment & international best

practices in conservation

Hurghada Environmental Protection Association

Support

International promotion of diving sector

Wadi El Gemal National Park Management

Ranger equipment, training & GIS

Handcraft development

Indigenous population visitor experiences

Niche Tourism Products in DOMINICAN REPUBLIC

To reduce emphasis

on beach tourism

Bed & Breakfast & rural

homestay

Visitor center & safety

equipment engaging river

communities around 27

waterfalls

With local communities

combated pollution and

destination cleanliness

Created marketing materials

emphasizing history and culture

A restored

Victorian house

in Puerto Plata

Professional Skills, Education and Promotion in ALBANIA

Established tourism diploma

programs to make the sector

more professional

Educated hotel professionals

on international standards for

hotels

Reformed country’s tourism

law

Albania featured in National

Geographic Traveler Magazine

Developed country website for

tourism

Promotion & Adventure Tourism in MONGOLIA

Destination Information

Established Mongolia’s first Tourism

Information Center

Destination booklet sold in 23

countries

International

Destination Recognition

2008 NatGeo Adventure Destination

Award

Local Development Program in Kyrgyzstan

Air & Sea Access

New flight route to Lake Issyk-

Kul

Restore ferry service to shore

destination

International Market

Development

National tourism website

Destination image building via

sponsored trade participation in fairs

Economic Empowerment via Aquatic Resources Protection in Nicaragua & El-Salvador

Protected at

least

1.5 million

sea turtle

hatchlings

throughout

Central

America

Food safety awareness

among tourists in Panama

Conservation in Indigenous

Managed Areas Project in Ecuador

Culture & Spa Tourism in Ukraine

Culinary Tourism &

Destination Branding in Moldova

Agribusiness & Village Tourism in Romania

Tourism Services SMEs in Georgia

Multi-country GeoTourism promotion in Central America

Multi-state

coastal

destination

promotion

Launched Go

Blue regional

Geotourism

website

Building Economic Sustainability Through Tourism in Jordan

$100 Million total USAID funding, a quarter billion dollars in development value

National tourism policy & regulation

Urban and master planning

International tourism promotion

Statistics, research and decision

support

Archaeological conservation and park

interpretation

New tourism products & experiences

Community-based tourism

Workforce development

For more details, see:

www.siyaha.org

http://www.siyaha.org/EGST2014

http://www.siyaha.org/Finalreport

ACCESS TO FINANCE

For Small & Medium Tourism Enterprises

New lending products

Build capacity of SMEs

to present bankable

applications

Improved lenders

handling of tourism loan

applications

Support SMEs

profitability

INCREASE ACCESS TO FINANCE

However,

Success requires a complete eco system

for growth

That’s what bankers want!

Competitive Business Enabling

Environment

Tourism Asset Development

Tourism Destination Marketing

Industry Development and

Destination Excellence

Increased Access to Finance

– OUR DEVELOPMENT APPROACH IN JORDAN

Business Enabling Environment For Competitiveness

National Tourism Strategy

Local sub-strategies

Integrate competitiveness

criteria

Develop Jordan Competitiveness

Index and annual work strategy

plans

Research capacity

– NATIONAL TOURISM STRATEGY 2016/20

Regulatory and

administrative reform

Business incentives

Business associations

Public Private Partnerships

SME regulation and

facilitation

POLICY AND INDUSTRY CAPACITIES

Tourism Asset

DevelopmentExperiential

Authentic

Community Engagement for SME Growth

Models to diversify products

Mexico’s ‘Magic Towns’ Model

Model to local destination

development reviewed

Two Jordanian destinations

selected competitively, to start!

Upgrade local tourism offerings in

rural areas

Support rural cooperative in

upgrading services and

marketing

DISTINCTIVE TOURISM DESTINATIONS

DEVELOP AND EXPAND PLACE-CENTERED TRIP CIRCUITS AND

TOUR ROUTES

600 Kilometers North to

South

52 villages

Encourage SME tourism

offerings along segments

Trail marketing

Support Trail Association

JORDAN TRAIL

PROMOTING FOR NICHE MARKETS

PROMOTING FOR NICHE MARKETS

PROMOTING FOR NICHE MARKETS

Craft routes or circuits

Promote new experience

for domestic and

international tourists

Engage community SMEs

in experience provision

Guaranteed departures

NEW ROUTES AND CIRCUITS WITH JETT

Launch a motorcycle

circuit as an annual

event

Create new

community tourism

opportunities

Support international

promotion to attract

participants

Create attraction for

international media

coverage

DEVELOP MOTORCYCLE TOURS AS AN

INTERNATIONAL ATTRACTION

A model for

replication

SITE-BASED

CLUSTER

APPROACH

HOLISTIC

DEVELOPMENT

Site is the anchor

Region is theater of

operation

Local assets

Local culture &

traditions

Potentials

Visitor experience

defines approach

The true

Cradle of

Civilization

NEW PETRA

TRAILS

INFORMATION &

INTERPRETATION

SUPPORT DEVELOPMENT OF NEW OR ASSIST WITH

SCALING UP OF NASCENT TOURISM ASSETS AND PRODUCTS

Support themed activities

rooted in Jordan’s

cultural heritage

Community-based

festivals

THEMED CULTURAL EXPERIENCES AND FESTIVALS

Support Ministry in Concessions

Business model for Ministry Site

Management Unit

Concessions manual

Capacity building in contract

management

Investment promotion

EFFECTIVE SITE MANAGEMENT & PRIVATE

SECTOR CONCESSIONS

INCOMES FROM THE ENVIRONMENT

COMMUNITY ENTERPRISE DEVELOPMENT

TELLING THEIR STORY ……..

AND MAKING A PROFIT ……..

Tourism Awareness

Destination Excellence

Update classification

standards for hotels

and restaurants

Advise enterprises on

upgrade requirements

– SUPPORT HOTEL & RESTAURANT CLASSIFICATION

Enhance standards desert

and eco camps

Assist camp owners in

upgrade and promotion

– STANDARDS FOR CAMPSITES

Gap analysis of university

curriculum vs industry

needs

Forge industry-academia

partnership to update

education programs

Support universities pursue

international certification

(UNWTO TedQual )

Update university

professors with current

industry practices

Integrate entrepreneurship

& business start-up and

finance in curriculum

– UPGRADE HIGHER EDUCATION PROGRAMS

Supporting Destination Marketing

Keep up with the world

WHAT’S OUR CHALLENGE?

“We didn’t do anything

wrong, but somehow we

lost!” Nokia CEO

Destination choice heavily influenced by perceived risk

– PERCEPTION OF RISK IS WHAT MATTERS

– DISRUPTIVE CHANGE RESHAPING THE INDUSTRY

Support Jordan Tourism

Board marketing strategy

and messages

effectiveness

Trade e-marketing and e-

commerce readiness

Business-to-business

support

SUPPORT JTB AND TRADE DESTINATION

MARKETING

Cooperative marketing

Support MICE strategic

business unit

International travel

agents education

SUPPORT JTB AND TRADE DESTINATION

MARKETING

Online campaigns to portray destination positive image

Support press and familiarization trips with tourist board and trade

Social media campaigns

ENHANCED DESTINATION IMAGE

INTERNATIONAL PERCEPTION MANAGEMENGT

Support Jordan

promotion as a

filming destination

DEVELOP EXISTING AND NEW MARKET NICHES

–WAYS WE

WORK WITH

INDUSTRY IN

FINANCE

NEEDS

Tourism Partnership Fund Grants

Seed or complementary

capital

FACILITATE LOANS

&LOAN

GUARANTEES

Like

these!THANK

YOUwww.chemonics.com

www.siyaha.org