Tunisia’s Tourism Returns Drop by 64%

Concerns were voiced over the reopening of Tunisia’s borders to tourists. (Reuters)
Concerns were voiced over the reopening of Tunisia’s borders to tourists. (Reuters)
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Tunisia’s Tourism Returns Drop by 64%

Concerns were voiced over the reopening of Tunisia’s borders to tourists. (Reuters)
Concerns were voiced over the reopening of Tunisia’s borders to tourists. (Reuters)

Tunisia’s tourism returns have dropped by 64 percent to 1.9 billion dinars ($691 million) from early 2020 until December 10, compared to the same period in 2019.

According to the Tourism Ministry, returns had amounted to 5.3 billion dinars (about $1.9 billion) in 2019, according to the latest data published by the Central Bank of Tunisia (BCT).

This drop is mainly due to the decrease in the number of European tourists (especially French and German) during the summer season, greatly affecting the entire system associated with the tourism sector, including traditional industries, travel agencies, and car rental companies.

On June 27, Tunisia reopened its border and scheduled the full return of the tourism activity starting July. However, the rapid coronavirus outbreak in neighboring European countries and the start of a second wave of infections prevented any positive outcomes.

In this context, Tourism Minister Habib Ammar said tourism activities and traditional industries are in a state of complete paralysis after the rise in the number of COVID-19 infections.

Data from his ministry showed that the number of tourists arriving so far in Tunisia has fallen by 78 percent compared to the same period in 2019 and tourism revenues dropped by 64 percent.

In order to address this exceptional situation, the government approved a set of incentive measures aimed at preserving the institutions operating in tourism and traditional industries.

The government also decided to exempt travel agencies from contributing to the Development Fund for Competitiveness in Tourism.

It further approved to enable unemployed workers and tourist guides from a monthly grant of 200 Tunisian dinars (about $72.7).

The tourism ministry prepared a program to stimulate domestic tourism until late March 2021 to compensate for the severe shortfall in European tourism markets, in particular, and in tourists from the Maghreb region, especially Algeria and Libya.

Domestic tourism does not represent more than 10 percent of all tourism activities, yet the ministry is working to raise this rate to about 25 percent, saving a significant number of Tunisian tourist hotels from closing.



Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
TT

Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)

Oil prices ticked up on Thursday after Israel and Lebanon’s Hezbollah traded accusations that their ceasefire had been violated, and as Israeli tanks fired on south Lebanon.

OPEC+ also delayed by a few days a meeting likely to extend production cuts.

Brent crude futures edged up by 30 cents, or 0.4%, to $73.13 a barrel by 1741 GMT. US West Texas Intermediate crude futures were up 23 cents, 0.3%, at $68.93. Trading was thin because of the US Thanksgiving holiday, Reuters reported.
Israel's military said the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.
The deal, which took effect on Wednesday, was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.
The Middle East is one of the world's major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.
Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.
Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.
"It's highly unlikely they are going to announce an increase production at this meeting," said Rory Johnston, analyst at Commodity Context.
The group pumps about half the world's oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.
A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. "The only question is whether it's a one-month pushback, or three, or even longer."
Depressing prices slightly, US gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the US Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel.
Slowing fuel demand growth in top consumers China and the US has weighed on oil prices this year.