PESTEL Analysis on Tourism

JORDAN

PREJO-BAAAAKHUDA

Jordan at a Glance

• Jordan has an area of about 35,475 square miles (91,900 square kilometers).

• It lies in the center of the Middle East, sharing its northern border with Syria, eastern border with Iraq, it's southern and eastern borders with Saudi Arabia, and western border with the Jordan River, the Dead Sea, and Israel.

• Capital-Amman• Population- 6,407,085 (July 2010 est.)• 0-14 years- 36%• 15-64 yeARs- 59.4%• 65+ years- 4.6%

• Ruler’s Name- Abdullah II bin al-Hussein. He ascended the throne on 7 February 1999 after the death of his father King Hussein

• Arabic is the official language, but English is understood by most people involved in the tourist industry and by middle to upper class Jordanians.

• The official currency is the Dinar (JOD),

• Foreign currency and travelers cheques can be changed at any bank or moneychanger, although the latter will usually give a better rate of exchange. Banks are closed on Fridays.

• Official Airline- Royal Jordanian

• Jordan is the only Arab country where Palestinians can become citizens. The differentiation between Jordanians, Bedouins, and Palestinians is clear in this society. Jordanians are defined as residents who have lived east of the Jordan River since before 1948.

SUHAIL- KOL ME THORAPPAN

Climate

• Most of Jordan has a desert climate with little or no rainfall and summer temperatures soaring especially high in July and August, the hottest and driest months of the year.

• Amman and the Jordan Valley have more pleasant weather during spring and autumn, when days are sunny and temperatures moderate. During winter the weather can be extremely cold, especially in Amman, accompanied by snow, rain and wind.

Tourist Spots in JordanThe best known attractions in Jordan include: Amman

AqabaAjlounAzrak Wetland ReserveBaptism SiteBeidaDana Nature ReserveDead SeaDesert CastlesJerashKerakMadabaMa'inAl Mujib Nature ReserveMukawerMount NeboPellaPetraShaumari Wildlife ReserveShobakUm El JimalUm QaisUm RassasWadi Rum

PESTEL Analysis

• What is PESTEL Analysis?

PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

• Political factors are how and to what degree a government intervenes in the economy.

• Economic factors include economic growth, interest rates, exchange rates and the inflation rate.

• Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

• Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change.

• Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.

• Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

• PESTEL Analysis is a useful tool for understanding the ‘big picture’ of the environment in which you are operating, and for thinking about the opportunities and threats that lie within it.

• By understanding your environment, you can take advantage of the opportunities and minimize the threats.

NABLY- KOL ME MALLU

PESTEL Analysis on Tourism in Jordan

Political

• Government to boost the tourism industry, particularly through the development of the private sector to strengthen the industry’s institutional and regulatory framework.

• Contribute to economic development and job creation.• Allocating 4% of the national tourism receipts for

international marketing, product development and human resoursce development.

• support and encourage entrepreneurial-ship and pioneering ideas that could be transformed into productive projects.

Economic

• Jordan is investing heavily in its tourist infrastructure in the form of luxury hotels, spas, resorts, and massive real estate projects, as The "Abdali Urban Regeneration" Project and the "Marsa Zayed" in Aqaba. Luxury residential housing like Sanaya Amman and the Living Wall are attracting affluent Persian Gulf vacationers to buy property in Jordan.

Queen Alia International Airport is being expanded to handle 9 million passengers annually in the first phase; 12 million in the second phase.

• rate of inflation remained within acceptable levels which did not exceed 2.5%

• With the establishment of the Aqaba Special Economic Zone, nearly twenty billion dollars have been invested in Jordan's sole coastal city.

SHORBY-CHERBY

social• Jordan has a low crime rate by international

standards, with few petty crimes such as robbery reported.

• develop vocational training programs and upgrade them to accommodate the requirements of labor market changes.

• To extend programs to include training in modern living skills such as communication, dialogue, negotiation, non violent problem solving, and critical, creative and futuristic thinking.

• Jordan is a diverse community. There are many different ethnic groups living in this small country; it has been a mixing pot of cultures for millennia.

Technological

• The rapid development of technology is affecting the businesses in Jordan.

• Changes in the technology have changed the way businesses operate i.e. Internet booking for tickets and holidays.

• Amman Metro currently under construction, dedicated lanes for bus lines will serve as part of the new urban rapid transit, should be completed by 2016 with the entire capital transportation system completed by 2025.

• Mobile phone companies have roaming agreements with most international mobile phone operators. There are Internet cafes in Amman and most major towns.

• Better communication, transport and safety have encouraged new consumers to the industry.

• Improvements in water supply, medicine and knowledge have meant areas are opened up which were not possible before technological advances.

RASHID-THE KHAMSAN

Environmental• Dana Biosphere Reserve covers 308 square kilometres. It

is composed of a chain of valleys and mountains which extend from the top of the Jordan Rift Valley down to the desert lowlands of Wadi Araba.

• The Shaumari Wildlife Reserve was created in 1975 by the RSCN as a breeding centre for endangered or locally extinct wildlife.

• The Azraq Wetland Reserve is a unique wetland oasis located in the heart of the semi-arid Jordanian eastern desert, one of several beautiful nature reserves managed by the Royal Society for the Conservation of Nature.

legal

• The cost of one entry visa for all nationalities is 20 JD (around $30) obtained upon arrival at the airport;

• for multiple entries for all nationalities it is 60 JD (around $85) and can be obtained at the nearest embassy/consulate.

• Jordan has banned the entry of Israeli goods manufactured in Jewish settlements in occupied Palestinian territories.

• Travelers to Jordan over 18 years do not have to pay duty on 200 cigarettes or 25 cigars, or 200 grams of pipe tobacco; 1 liter of alcohol, 1 or 2 bottles of perfume or lotion for personal use; and gifts to the value of JD50 or US$150.

• Restricted items include firearms, sporting guns and other weapons without prior approval from authorities of country of origin and destination country.

• Prohibited items include all narcotics and birds or bird products.

Conclusion

• The Ministry of Tourism and Antiquities (MoTA) and the Department of Antiquities (DoA) has new strategic directions for Management of Archaeological Heritage in Jordan.

• The gravest environmental challenge that Jordan faces today is the scarcity of water.

• Dams are being built to store the rainwater and underground water.

• Tourism Industry in Jordan is expanding daily with more government strategies being introduced to promote strategies.

• Jordan King Abdullah II bin al-Hussein’s leadership in promoting Jordan tourism to the world have made a positive impact on its whole economy.