VP of Jordan Hotel Association sounds alarm regarding rising number of hotel closures
Date
10/3/2024 4:37:22 AM
(MENAFN) Hussein Hilalat, vice president of the Jordan Hotel Association, has sounded the alarm regarding the rising number of hotel closures across Jordan. This troubling trend follows the loss of 50 hotel establishments in the Gaza Strip within the last year, a situation largely driven by a worsening recession in the hospitality industry that has been aggravated by ongoing violence initiated by occupying forces since October 7.
Before these recent shutdowns, Jordan had approximately 668 hotel establishments, with the latest closures representing around 7.5% of this total. The repercussions of Israeli military actions have been especially pronounced in the Petra region, where around 25 hotels have closed their doors. The capital city, Amman, has also been affected, with eight hotels shutting down, along with two in Madaba province and 15 across other governorates.
Hilalat pointed out the significant human impact of these closures, revealing that roughly 1,385 local employees have lost their jobs in various hotel sectors since hostilities began. In Amman alone, 712 workers were laid off, while the Dead Sea area witnessed about 302 job losses. Furthermore, the hospitality sector in Petra has seen 371 workers affected.
The occupancy rates for hotels over the past eight months have displayed alarming declines. Petra was hit the hardest, with occupancy rates plummeting by up to 77% compared to the same period last year. In Amman, there was a 16% drop in occupancy, while Dead Sea hotels experienced a 34% decline. Madaba saw a 53% reduction in hotel occupancy, and various other governorates reported an overall decrease of about 21%.
As the conflict continues to escalate, the Jordanian hospitality industry faces significant challenges. There is an urgent need for attention and solutions to address the profound effects of the ongoing violence and the economic downturn that has ensued.
MENAFN03102024000045015687ID1108742270
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.