Algeria Takes New Measures to Boost Desert Tourism

View of snow in the Sahara, Ain Sefra, Algeria (File photo: Reuters)
View of snow in the Sahara, Ain Sefra, Algeria (File photo: Reuters)
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Algeria Takes New Measures to Boost Desert Tourism

View of snow in the Sahara, Ain Sefra, Algeria (File photo: Reuters)
View of snow in the Sahara, Ain Sefra, Algeria (File photo: Reuters)

Algeria seeks to attract foreign tourists through a series of measures that encourage desert tourism in the south of the country, following in the footsteps of Saudi Arabia, which opened its doors to foreign tourists for the first time in 2019.

Bloomberg news agency reported that Algeria is planning to ease access for international travelers, according to an Interior Ministry document.

The ministry's statement announced the approval of new arrangements for granting tourist visas to foreign tourists wishing to visit the south of the country in close coordination with the various ministerial sectors and relevant bodies.

Visitors may be issued tourist visas on arrival, allowing them to explore desolate landscapes and ancient monuments in the country as an alternative to the long and futile bureaucratic process before travel.

In this regard, it was decided to enable foreigners wishing to undertake tourist trips to the country's south through approved national tourism and travel agencies to benefit from the settlement visa directly upon arrival at the border crossings, especially in the southern states.

According to the ministry, the concerned foreign tourists benefit from a document handed over to them by their tourism agencies, allowing them to board various airlines' planes at the airports.

The tourists also benefit, directly upon their arrival, from settlement visas with a period corresponding to their organized visit.

The decision is effective now, although the tourism season, which locals and Algerians from abroad have largely dominated, typically covers the cooler months beginning in October.

However, Bloomberg noted that there's an issue as visitors will only be welcome in the south of the country covering the Sahara desert, meaning it will be harder to travel to the Mediterranean coastline, winter skiing in the Atlas mountains, or the ancient capital of Algiers.

Tourists must book through an approved travel agency operating in Algeria and will be accompanied by the police, according to the ministry's statement.

The Ministry of Interior stated that the accredited tourism agencies include all data related to the tourist visit program and the foreign tourists participating.

In addition, the local authorities of the concerned states are working to provide the necessary escorts for all the actors concerned to ensure the conduct of the programmed tours in the best conditions.

Bloomberg noted that the move represents a step change for a country that never sought to become a major travel destination like regional neighbors Morocco and Egypt.

While they were building new hotels and stepping up campaigns to draw mass-market tourism in the 1990s, Algeria was mired in a brutal civil war with Islamist militants, and subsequent rulers of the OPEC nation looked inward and relied on oil to bankroll the state.

The President of the National Association of Travel Agencies, Mohammed Amine Berredjem, said they were pleased with this decision, which would undoubtedly positively impact the tourism sector and the country.

The Algerian tourism sector contributes only 1.5 percent of the gross domestic product, compared to 14 percent in Tunisia.

Bloomberg added that Algeria is also lagging in terms of hotel infrastructure, with 127,000 beds at the end of 2020, compared to 230,903 in its eastern neighbor (Tunisia), a much smaller country.

More than a million Algerians cross the border every summer to spend their holidays in Tunisia, where the offers are more varied, and the prices are more reasonable.

Algeria's government is calling on foreign investors to finance and build tourist complexes, and a framework agreement has been signed between Qatar's Retaj Hotels and Hospitality and Algeria's state-owned HTT for the mobilization of funds. Retaj will also provide management services to HTT's 73 hotels.

Yet some are still determining if the transformation would be a smooth one.

"We hope for quick answers to requests of travel agencies," said Lamine Hamadi, director of tourism of the province of Djanet, the region most visited by tourists. "Long delays scare away tourists."



Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
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Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo

Oil prices fell more than 2% on Monday on signs of progress in talks between the US and Iran while investors remained concerned about economic headwinds from tariffs which could curb demand for fuel.

Brent crude futures slipped $1.51, or 2.2%, to $66.45 a barrel by 1115 GMT after closing up 3.2% on Thursday. US West Texas Intermediate crude was at $63.11 a barrel, down $1.57, or 2.4%, after settling up 3.54% in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday, Reuters reported.

"The US-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, group head of research at Onyx Capital Group. "The immediate implication would be that Iranian crude would not be off the market."

Markets also have lower liquidity due to the Easter holiday, which can exacerbate price moves, he added. In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran's foreign minister said, after discussions that a US official described as yielding "very good progress." The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.

Markets also came under stress on Monday, after US President Donald Trump last week made criticisms about the Federal Reserve. Gold prices rose to another record, with jitters rippling into energy markets due to concerns about demand, according to analysts.

"The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+," said IG Market Strategist Yeap Jun Rong. OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to increase output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas. A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50%. The US is the world's biggest oil consumer.

Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy.

"This week's series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften," IG's Yeap said, adding oil prices face resistance at the $70 level.