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.



Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program
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Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco announced on Wednesday that its supply chain transformation program, iktva (In-Kingdom Total Value Add), has achieved its target of reaching 70% local content.

Building on this milestone, the company said that it plans to increase local content in its goods and services procurement to 75% by 2030.

Since its launch, the iktva program has contributed more than $280 billion to the Kingdom’s gross domestic product, reinforcing its role as a key driver of industrial development, economic diversification, and long-term financial resilience.

Through the localization of goods and services, the program has strengthened the resilience and reliability of Aramco’s supply chains, enhanced operational continuity, reduced supply chain vulnerabilities, and provided protection against global cost inflation - capabilities that proved critical during periods of disruption.

Aramco President and CEO Amin Nasser expressed pride in the scale of transformation achieved through iktva and its positive impact on the Kingdom’s economy, noting that the announcement represents a major milestone in the program’s journey and reflects a significant leap in Saudi Arabia’s industrial development, fully aligned with the Kingdom’s national vision.

“iktva is a core pillar of Aramco’s strategy to build a competitive national industrial ecosystem that supports the energy sector while enabling broader economic growth and creating thousands of job opportunities for Saudi nationals,” he stressed.

By localizing supply chains, the program ensures operational reliability and mitigates disruptions that may affect global supply chains, he added, noting that its cumulative impact over a decade demonstrates the sustained value it continues to generate.

Over the past decade, iktva has emerged as a leading example of supply-chain-driven economic transformation, converting Aramco’s project spending into domestic economic multipliers that have created jobs, improved productivity, stimulated exports, and strengthened supply chain resilience.

The program has identified more than 200 localization opportunities across 12 key sectors, representing an annual market value of $28 billion. These opportunities have translated into tangible investment outcomes, catalyzing more than 350 investments from 35 countries in new manufacturing facilities within the Kingdom, supported by approximately $9 billion in capital. These investments have enabled the local manufacture of 47 strategic products in Saudi Arabia for the first time.

iktva has also contributed to the creation of more than 200,000 direct and indirect jobs across the Kingdom, further strengthening the local industrial base and national capabilities. To support continued growth, the program organized eight regional supplier forums worldwide in 2025, in addition to its biennial forum. These events helped connect global investors, manufacturers, and suppliers with localization opportunities in Saudi Arabia.


AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
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AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo

Malaysian budget carrier AirAsia X on Wednesday unveiled plans to resume flights from Kuala Lumpur to London via a new hub in Bahrain, using the extended range of narrow-body jets to stitch fresh routes alongside established carriers.

The service, due to start in June, would make Bahrain AirAsia X's first hub outside Asia, placing it within reach of busy markets in Southeast Asia, the Middle East and Europe.

It also marks a ‌return to ‌the British capital more than a decade after the airline suspended ‌non-stop ⁠flights from Kuala Lumpur ⁠and retired its Airbus A340 jets.

Co-founder Tony Fernandes said Bahrain could become a regional gateway for underserved secondary cities across Asia, Africa and Europe.

"While ... of course London is a very emotional destination for many people in Southeast Asia, the real aim is to have a bunch of A321s flying maybe 15 times a day to Bahrain," he told Reuters in an interview.

"From Bahrain, you connect to Africa and Europe with a big emphasis ⁠on creating connectivity that doesn't exist."

The move follows Asia's ‌largest low-cost carrier completing its acquisition of the short-haul ‌aviation business from parent Capital A, bringing the group's seven airlines under one umbrella.

Fernandes, also CEO ‌of Capital A, stressed the importance of the Airbus A321XLR, an extra-long-range narrow-body aircraft ‌he said would let the airline replicate its Asian low-cost model on intercontinental routes.

"That aircraft enables me to start thinking we can do what we did in Asia to Europe and Africa," he said, citing potential secondary routes such as Penang to Cologne or Prague.

AirAsia plans to ‌redeploy its larger A330s to longer routes while building up the Bahrain hub, with possible African destinations including the Maghreb region, Egypt, ⁠Morocco, Tanzania and Kenya. ⁠A Bangkok-to-Europe route is also under consideration.

Fernandes played down direct competition with Gulf carriers such as Emirates and Qatar Airways, positioning AirAsia X as a budget option aimed at a different market.

"I'm all about stimulating a new market," he said. "We've got into our little playground (of) 3 billion people, most of them have not been to Europe."


Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
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Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)

The EU must "tear down the barriers" that prevent it from becoming a truly global economic giant, European Commission chief Ursula von der Leyen said Wednesday, ahead of leaders' talks on making the 27-nation bloc more competitive.

"Our companies need capital right now. So let's get it done this year," the commission president told EU lawmakers as she outlined key steps to bridging the gap with China and the United States.

"We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant," she said, calling the current system "fragmentation on steroids."

Reviving the moribund EU economy has taken on greater urgency in the face of geopolitical shocks, from US President Donald Trump's threats and tariffs upending the global trading to his push to seize Greenland from Denmark.

AFP said that Von der Leyen delivered her message before heading with EU leaders including France's Emmanuel Macron and Germany's Friedrich Merz to a gathering of industry executives in Antwerp, held on the eve of a summit on bolstering the bloc's economy.

A key issue identified by the EU is the fact that European companies face difficulties accessing capital to scale up, unlike their American counterparts.

To tackle this, Plan A would be to advance together as 27 states, von der Leyen said, but if they cannot reach agreement, the EU should consider "enhanced cooperation" between those countries that want to.

Von der Leyen said Europe should ramp up its competitiveness by "stepping up production" on the continent and "by expanding our network of reliable partners", pointing to the importance of signing trade agreements.

After recent deals with South American bloc Mercosur and India, she said more were on their way -- with Australia, Thailand, the Philippines and the United Arab Emirates.

One of the biggest -- and most debated -- proposals for boosting the EU's economy is to favor European firms over foreign rivals in "strategic" fields, which von der Leyen supports.

"In strategic sectors, European preference is a necessary instrument... that will contribute to strengthen Europe's own production base," she said -- while cautioning against a "one-size-fits-all" approach.

France has been spearheading the push, but some EU nations like Sweden are wary of veering into protectionism and warn Brussels against going too far.

The EU executive will also next month propose the 28th regime, also known as "EU Inc", a voluntary set of rules for businesses that would apply across the European Union and would not be linked to any particular country.

Brussels argues this would make it easier for companies to work across the EU, since the fragmented market is often blamed for why the economy is not better.

The commission is also engaged in a massive effort to cut red tape for firms, which complain EU rules make it harder to do business -- drawing accusations from critics that Brussels is watering down key legislation on climate in particular.