Coronavirus Crisis Punctures Tunisia Tourism Rebound

A cafe stands empty in the Tunisian village of Sidi Bou Said, where streets are usually filled with tourists at this time of year | AFP
A cafe stands empty in the Tunisian village of Sidi Bou Said, where streets are usually filled with tourists at this time of year | AFP
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Coronavirus Crisis Punctures Tunisia Tourism Rebound

A cafe stands empty in the Tunisian village of Sidi Bou Said, where streets are usually filled with tourists at this time of year | AFP
A cafe stands empty in the Tunisian village of Sidi Bou Said, where streets are usually filled with tourists at this time of year | AFP

As the novel coronavirus pandemic wipes out a recovery from militant attacks in 2015, Tunisia's vital tourism sector is trying to find ways to avoid going under.

"Normally, the season starts now. But there is nobody," said Mohammed Saddam, who owns an antiques shop in the famous blue and white village of Sidi Bou Said, near the capital Tunis.

Usually its streets are filled with tourists at this time of year, but now Saddam is only opening his store for an hour a day to air it out.

"We are waiting for the airspace to reopen," he said. "But 2020 is a write-off."

The North African country has registered 45 deaths from the COVID-19 illness, and for several days this week saw no new infections, putting it among Mediterranean countries faring relatively well in the pandemic.

But the crisis has led to a shortfall in tourism revenues of six billion dinars (over $2 billion), the country's national tourism office has estimated, and some 400,000 jobs are at risk.

The sector had been bouncing back to levels not seen since before the 2011 revolution that toppled longtime autocrat Zine El Abidine Ben Ali

"Tunisia had started off the year well, with an increase in (tourism) revenue of 28 percent," said Feriel Gadhoumi, a coordinator at the tourism office.

But that all came to a halt in March as countries imposed travel restrictions and border closures to curb the spread of the pandemic.

Now, seaside resorts are empty and hoteliers are trying to salvage what they can of the season, counting on the country's relatively optimistic health situation and sector-specific virus prevention measures.

- Steps to 'regain trust' -

While most hotels have shut for now, some are providing accommodation for people in compulsory quarantine, notably Tunisians repatriated from abroad.

The tourism ministry is preparing protocols for facilities that reopen, with some planning to do so from June.

Measures are expected to include temperature checks at hotel entrances, rooms being disinfected and left empty for 48 hours between guests and the intensive cleaning of common areas.

Such steps are necessary to "regain the trust of partners", Gadhoumi from the tourism office said.

The UN World Tourism Organization has warned that international tourist numbers could drop by 60 to 80 percent in 2020.

The sector accounts for around 14 percent of Tunisia's GDP, according to the tourism ministry.

Other changes could include offering fixed menus instead of buffets and giving guests the same tables and umbrellas for the length of their stay, hotel sales manager Anis Souissi said.

Clients will focus "on health and hygiene", he added.

But it is unclear whether hotels, some of which are already on the edge of bankruptcy, will be able to make the necessary investments.

Even before the pandemic struck, a series of crises had weakened Tunisia's tourism sector.

After the political instability that followed the fall of Ben Ali, jihadist attacks in 2015 targeted European holiday-makers at the Bardo museum in Tunis and the coastal tourist resort of Sousse.

The attacks killed 60 people, many of them British tourists, and dealt a heavy blow to the sector.

- Limited options -

The security situation has greatly improved since then, and tourist numbers last year had returned to pre-2011 levels, with 9.5 million visitors.

But the collapse in September of British tour operator Thomas Cook, which brought five percent of Tunisia's European tourists, shook some hotels.

Thomas Cook had suspended trips to Tunisia after the attacks, but had returned in force in the last two years.

Now, the sector is searching for ways to survive, as the coronavirus crisis persists and as passenger flights from Europe, Tunisia's main market, are expected to remain grounded for much of the summer.

Although thousands of foreigners remain stuck in the country due to border closures and flight suspensions, their presence won't be nearly enough.

Instead, hoteliers have their eyes set on local tourists, as well as Algerian or Russian holiday-makers who helped dampen the previous crises.

But domestic tourism accounts for just 20 percent of Tunisia's market, and many locals have seen their income and holiday allowances disappear during the lockdown.

Bringing more bad news, Algeria has been seriously affected by the pandemic and reopening its borders is not envisaged in the short term, while Russia currently has the second-highest number of reported infections in the world.

"Targeting the local market and preparing for the next season are the only choices we have," sales manager Souissi said.



Trump Set to Lead Largest-Ever US Delegation to World Economic Forum in Davos Next Week

This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
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Trump Set to Lead Largest-Ever US Delegation to World Economic Forum in Davos Next Week

This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)

US President Donald Trump will return to the World Economic Forum's annual meeting of business, political and cultural elites in Davos, Switzerland next week, leading a record-large US delegation, organizers said Tuesday.

The Geneva-based think tank says Trump, whose assertive foreign policy on issues as diverse as Venezuela and Greenland in recent months has stirred concerns among US friends and foes alike, will be accompanied by five Cabinet secretaries and other top officials for the event running from Monday through Jan. 23.

A total of 850 CEOs and chairs of the world's top companies will be among the 3,000 participants from 130 countries expected in the Alpine resort this year, the forum says.

Forum President Borge Brende says six of seven G7 leaders — including Trump — will attend, as well as presidents Volodymyr Zelenskky of Ukraine, Ahmed al-Sharaa of Syria and others. A total of 64 heads of state or government are expected so far — also a record — though that number could increase before the start of the event, he said.

China's delegation will be headed by Vice Premier He Lifeng, Beijing's top trade official, Brende said.

The forum, which held its first annual meeting in 1971, has long been a hub of dialogue, debate and deal-making. Trump has already attended twice while president and was beamed in by video last year just days after being inaugurated for his second term.

Critics call it a venue for the world’s elites to hobnob and do business that sometimes comes at the expense of workers, the impoverished or people on the margins of society. The forum counters that its stated goal is “improving the state of the world” and insists many advocacy groups, academics and cultural leaders have an important role too.


World Bank: Global Economy Shows Resilience Amid Historic Trade, Policy Uncertainty

A woman places coins inside a red wallet in Germany. (dpa)
A woman places coins inside a red wallet in Germany. (dpa)
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World Bank: Global Economy Shows Resilience Amid Historic Trade, Policy Uncertainty

A woman places coins inside a red wallet in Germany. (dpa)
A woman places coins inside a red wallet in Germany. (dpa)

The global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, according to the World Bank’s latest Global Economic Prospects report. Global growth is projected to remain broadly steady over the next two years, easing to 2.6% in 2026 before rising to 2.7% in 2027, an upward revision from the June forecast.

The resilience reflects better-than-expected growth, especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026. Even so, if these forecasts hold, the 2020s are on track to be the weakest decade for global growth since the 1960s. The sluggish pace is widening the gap in living standards across the world, the report finds: at the end of 2025, nearly all advanced economies enjoyed per capita incomes exceeding their 2019 levels, but about one in four developing economies had lower per capita incomes.

In 2025, growth was supported by a surge in trade ahead of policy changes and swift readjustments in global supply chains. These boosts are expected to fade in 2026 as trade and domestic demand soften. However, the easing global financial conditions and fiscal expansion in several large economies should help cushion the slowdown, according to the report. Global inflation is projected to edge down to 2.6% in 2026, reflecting softer labor markets and lower energy prices. Growth is expected to pick up in 2027 as trade flows adjust and policy uncertainty diminishes.

“With each passing year, the global economy has become less capable of generating growth and seemingly more resilient to policy uncertainty,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. “But economic dynamism and resilience cannot diverge for long without fracturing public finance and credit markets.”

“Over the coming years, the world economy is set to grow slower than it did in the troubled 1990s, while carrying record levels of public and private debt. To avert stagnation and joblessness, governments in emerging and advanced economies must aggressively liberalize private investment and trade, rein in public consumption, and invest in new technologies and education.”

In 2026, growth in developing economies is expected to slow to 4% from 4.2% in 2025 before edging up to 4.1% in 2027 as trade tensions ease, commodity prices stabilize, financial conditions improve, and investment flows strengthen. Growth is projected to be higher in low-income countries, reaching an average of 5.6% over 2026-27, buoyed by firming domestic demand, recovering exports, and moderating inflation. However, this will not be sufficient to narrow the income gap between developing and advanced economies.

Per capita income growth in developing economies is projected to be 3% in 2026 - about a percentage point below its 2000-2019 average. At this pace, per capita income in developing economies is expected to be only 12% of the level in advanced economies.

These trends could intensify the job-creation challenge confronting developing economies, where 1.2 billion young people will reach working age over the next decade. Overcoming the jobs challenge will require a comprehensive policy effort centered on three pillars.

The first is strengthening physical, digital, and human capital to raise productivity and employability. The second is improving the business environment by enhancing policy credibility and regulatory certainty so firms can expand. The third is mobilizing private capital at scale to support investment. Together, these measures can help shift job creation toward more productive and formal employment, supporting income growth and poverty alleviation.

In addition, developing economies need to bolster their fiscal sustainability, which has been eroded in recent years by overlapping shocks, growing development needs, and rising debt-servicing costs. A special-focus chapter of the report provides a comprehensive analysis of the use of fiscal rules by developing economies, which set clear limits on government borrowing and spending to help manage public finances. These rules are generally linked to stronger growth, higher private investment, more stable financial sectors, and a greater capacity to cope with external shocks.

“With public debt in emerging and developing economies at its highest level in more than half a century, restoring fiscal credibility has become an urgent priority,” said M. Ayhan Kose, the World Bank Group’s Deputy Chief Economist and Director of the Prospects Group.

“Well-designed fiscal rules can help governments stabilize debt, rebuild policy buffers, and respond more effectively to shocks. But rules alone are not enough: credibility, enforcement, and political commitment ultimately determine whether fiscal rules deliver stability and growth.”

More than half of developing economies now have at least one fiscal rule in place. These can include limits on fiscal deficits, public debt, government expenditures, or revenue collection. Developing economies that adopt fiscal rules typically see their budget balance improve by 1.4 percentage points of GDP after five years, once interest payments and the ups and downs of the business cycle are accounted for.

Use of fiscal rules also increases by 9 percentage points the likelihood of a multi-year improvement in budget balances. However, the medium- and long-term benefits of fiscal rules depend heavily on the strength of institutions, the economic context in which the rules are introduced, and how the rules are designed, the report finds.


Saudi Industry Minister Discusses Automotive Manufacturing Cooperation with China's BYD

The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
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Saudi Industry Minister Discusses Automotive Manufacturing Cooperation with China's BYD

The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held talks in Riyadh on Tuesday with Chinese company BYD Founder and Chairman Wang Chuanfu to discuss cooperation in automotive manufacturing and the transfer of advanced vehicle technologies to the Kingdom.

They explored ways to strengthen industrial cooperation and expand promising investment opportunities to localize the automotive industry in the Kingdom, with particular focus on electric vehicle manufacturing to meet growing domestic demand and reinforce Saudi Arabia’s position as a leading regional and global hub for automotive production.

Discussions tackled the incentives and enablers offered to investors in high-value industries, including the automotive sector, as well as the Kingdom’s significant investments in electric vehicle charging infrastructure.

The meeting highlighted the objectives of the comprehensive strategy for the mining and mineral industries, which emphasizes support for the electric vehicle ecosystem and the development of local supply chains for battery manufacturing and advanced materials.

These efforts help in localizing the automotive industry and advancing the goals of Saudi Vision 2030 to diversify the national economy.