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
TT

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.



IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
TT

IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo

An unexpectedly sturdy world economy is likely to shrug off President Donald Trump's protectionist trade policies this year, thanks partly to a surge of investment in artificial intelligence in North America and Asia, the International Monetary Fund said in a report out Monday.

The 191-nation lending organization expects that global growth will come in at 3.3% this year, same as in 2025 but up from the 3.1% it had forecast for 2026 back in October, The Associated Press reported.

The world economy "continues to show notable resilience despite significant US-led trade disruptions and heightened uncertainty,'' IMF chief economist Pierre-Olivier Gourinchas and his colleague Tobias Adrian wrote in a blog post accompanying the latest update to the fund's World Economic Outlook.

The US economy, benefiting from the strongest pace of technology investment since 2001, is forecast to expand 2.4% this year, an upgrade on the fund's October forecast and on expected 2025 growth — both 2.1%.

China — the world's second-largest economy — is forecast to see 4.5% growth, an improvement on the 4.2% the IMF had predicted October, partly because a trade truce with the United States has reduced American tariffs on Chinese exports.

India, which has supplanted China as the world's fastest-growing major economy, is expected to see growth decelerate from 7.3% last year (when it was juiced by an unexpectedly strong second half) to a still-healthy 6.4% in 2026.


France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
TT

France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri

France on Monday welcomed a ceasefire between the Syrian government and Kurdish-led forces and stressed it remained loyal to the latter who spearheaded the battle against the ISIS group.

"France is faithful to its allies," the foreign ministry said, urging all sides to respect the ceasefire deal, which will also see the Kurdish administration and forces integrate into the state after months of stalled negotiations.


Lucid in 2026: 'Made in Saudi Arabia' Label Goes Global

Mark Winterhoff, interim CEO of Lucid (Company) 
Mark Winterhoff, interim CEO of Lucid (Company) 
TT

Lucid in 2026: 'Made in Saudi Arabia' Label Goes Global

Mark Winterhoff, interim CEO of Lucid (Company) 
Mark Winterhoff, interim CEO of Lucid (Company) 

Saudi Arabia is positioning itself as a global launchpad for Lucid, the electric-vehicle manufacturer, not merely as a consumer market, but as a manufacturing and export hub serving markets worldwide.

Speaking from Riyadh during his participation in the Future Minerals Forum, Mark Winterhoff, interim chief executive officer of Lucid — whose largest shareholder is Saudi Arabia’s Public Investment Fund (PIF) — outlined the company’s next phase, which focuses on disciplined expansion, resilient supply chains, and a strategic shift from ultra-luxury vehicles toward a broader consumer segment.

In remarks to Asharq Al-Awsat, Winterhoff described the forum as a critical platform for the electric-vehicle industry, given its heavy reliance on minerals and rare earth elements, particularly those used in magnets. He praised Saudi Arabia’s leadership in this area, noting its direct impact on multiple industrial sectors. Winterhoff oversees the execution of Lucid’s strategy and leads teams responsible for product design, engineering, and manufacturing efficiency.

Saudi Arabia as an Export Base

Winterhoff said Lucid’s Saudi factory - the company’s first manufacturing facility outside the United States - was designed from the outset as a major export platform, not solely to meet domestic demand.

Under current plans, only 13 to 15 percent of production will be allocated to Gulf Cooperation Council (GCC) markets, with the majority destined for export. He confirmed that Lucid remains on track to begin production at the facility by the end of this year, specifically in December.

In January 2025, Lucid joined the “Made in Saudi Arabia” program, enabling it to use the national manufacturing label on vehicles produced locally. The company is the first automotive original equipment manufacturer (OEM) to receive the designation, reflecting Saudi Arabia’s push to localize advanced industries, deepen partnerships with global manufacturers, and establish itself as a hub for electric-vehicle production and exports.

Strong Growth Momentum

Winterhoff said Lucid posted strong growth in both production and deliveries in 2025. Annual production more than doubled, while deliveries rose 55 percent year-on-year. The fourth quarter recorded particularly strong results in the United States and the Middle East, especially Saudi Arabia.

He noted that Lucid was the only electric-vehicle manufacturer in the US to report higher deliveries in the fourth quarter of 2025, at a time when many competitors saw sharp declines.

According to company figures, Lucid produced about 18,378 vehicles in 2025, up 104 percent from 2024, while deliveries reached 15,841 vehicles. In the fourth quarter alone, production climbed to 8,412 vehicles — up 116 percent from the previous quarter — while deliveries rose 31 percent to 5,345 vehicles.

While Lucid currently operates in the luxury segment, its most significant strategic shift involves developing a mid-size vehicle priced at around $50,000. Winterhoff said this model, aimed at a much wider consumer base, will form the backbone of production at the Saudi plant and enable the facility to reach its targeted maximum capacity.

Supply Chain Challenges and Outlook

Winterhoff identified supply chains - particularly for minerals, rare earth elements, and semiconductors - as ongoing challenges for the industry. He said Lucid faced repeated difficulties over the past year in sourcing magnets and securing stable semiconductor supplies. Forums such as the Future Minerals Forum, he added, are part of the solution, helping build a more stable and sustainable resource ecosystem.

Looking ahead, Winterhoff expressed confidence in Lucid’s trajectory. The company currently leads US electric-vehicle sales in the luxury sedan segment and ranks third when internal combustion vehicles are included. With the launch of its mid-priced model, Lucid expects higher production volumes and, in 2026, plans to enter the autonomous robotaxi market, an emerging sector it views as a key source of future growth.