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.



Riyadh to Host Global Logistics, Supply Chain Forums in November

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)
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Riyadh to Host Global Logistics, Supply Chain Forums in November

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)

Under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, Saudi Arabia will host the second editions of the Global Logistics Forum (GLF) and the UNCTAD Global Supply Chain Forum (GSCF) in Riyadh from November 29 to December 1, reported the Saudi Press Agency on Tuesday.

The GLF, organized by the Saudi Ministry of Transport and Logistic Services, and the GSCF, hosted in partnership with the United Nations and the Saudi Ports Authority, form a pivotal international platform bringing together global leaders, decision-makers, and experts in transport, supply chains, and international trade.

Aligning with Saudi Vision 2030, the GLF aims to solidify the Kingdom's position as a global logistics hub connecting continents while driving innovation, global connectivity, and sustainable supply chains.

The Ministry of Transport and Logistic Services stressed that the co-located forums will serve as a premier launchpad for strategic initiatives and international partnerships, inviting global specialists to participate.

The inaugural 2024 GLF in Riyadh drew over 13,000 attendees, 140 speakers, and 80 exhibitors from more than 30 countries, resulting in 67 agreements valued at over SAR16 billion ($4.3 billion).


Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)
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Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)

Saudi Arabia’s auto market is moving toward greater discipline and competition as the Ministry of Commerce steps up oversight of dealers, seeking to strengthen consumer protection and improve compliance with after-sales service requirements.

The ministry announced it had suspended an auto dealership, barred it from importing vehicles and fined it SAR 8.12 million ($2.1 million) after recording 175 violations. These included failure to provide spare parts and replacement vehicles to customers during maintenance, as well as other breaches involving consumer rights, the Commercial Agencies Law and its implementing regulations.

The ministry investigated the violations, contacted affected consumers and followed up to ensure they received their rights and due compensation, including replacement vehicles.

It also summoned the manufacturer, oversaw corrective measures and recall campaigns, and began transferring the brand to another dealer after verifying its readiness and ability to provide the necessary services.

Mohammed Al-Farraj, chief asset management officer at Arbah Capital, told Asharq Al-Awsat that Saudi Arabia’s large auto market and sustained demand make it one of the region’s most attractive, supported by population and economic growth, expansion of the non-oil economy and mega-projects, and growth in tourism and logistics.

The availability and variety of financing options play a key role in supporting demand, particularly because cars are a necessity for a large segment of the population rather than a luxury, Al-Farraj noted.

Market performance is influenced by vehicle prices, financing costs, income levels and supply, as well as competition among brands and the quality of after-sales services.

Al-Farraj described the ministry’s tougher oversight as a positive step toward protecting consumers and improving market discipline, stressing that a dealer’s obligations do not end with a sale but extend to warranties, maintenance, spare parts and replacement vehicles when needed.

Stronger after-sales compliance should bolster market confidence and gradually shift competition toward quality and reliability rather than price alone.

Al-Farraj expects intensifying competition to push dealers to focus more on the value offered throughout vehicle ownership, including total cost of ownership and customer service.


Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
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Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s appeal extends beyond rising foreign investment and expanding mega-projects to the banking sector, where institutions see the economic transformation driven by Vision 2030 as an opportunity to establish a long-term presence in one of the region’s fastest-growing markets.

Bank of Jordan Group’s entry into the Kingdom reflects growing interest among regional financial institutions in tapping the country’s expanding investment cycle.

The group opened its first branch in Riyadh on Monday, launching its financial and banking operations in Saudi Arabia. The move underscores the Kingdom’s ability to attract not only capital, but also financial institutions seeking to finance the next phase of investment.

Mega-projects, private sector expansion and growing foreign and domestic investment are creating significant opportunities for banks to provide financing solutions and services to companies and investors. At the same time, Saudi Arabia is seeking to deepen the financial sector’s role as a driver of growth and economic diversification.

Saleh Hammad, general manager of Bank of Jordan Group, told Asharq Al-Awsat that the bank’s strategy is based on a clear view of the economic transformations reshaping Saudi Arabia and the wider region.

The group has pursued carefully considered regional expansion, focusing on markets with sustainable economic fundamentals and strategic importance, with Saudi Arabia at the forefront.

Hammad said the Kingdom is undergoing an unprecedented economic transformation under Vision 2030, fueled by investment growth, private-sector expansion and the development of its financial and banking environment.

Establishing a presence in one of the region’s leading financial and economic hubs strengthens Bank of Jordan’s position as a regional institution capable of supporting trade, development and investment opportunities, he noted.

Hammad also highlighted Saudi Arabia’s strong banking system and evolving regulatory environment, supported by the Saudi Central Bank, as key advantages that enhance the group’s position while creating added value for clients and investors.