Tourism role in economic development [Archives:2005/875/Business & Economy]

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September 8 2005

Mahyoub Al-Kamaly
Despite growth of tourist revenues in the past years, nevertheless the contribution of tourism sector to the Yemeni economy is still low if compared to its huge potentials. The sector's contribution did not exceed 20% of the gross domestic product and around 30% of total value of exports, after excluding oil exports. Nonetheless, the importance of the tourist sector emerges also through the job opportunities that it provides and in creating a balance in income between different regions, especially that the areas to where tourists go, could benefit economically and standard of individual income would rise.

Following issuance of the investment law, tourist investments began to grow steadily forming around 18% of total licensed projects and generating 15% of job opportunities. There are still big opportunities for investment in tourism. Studies indicate the availability of projects opportunities in all regions of the country. Such opportunities include the building of 4 and 5-star hotels, renovation of old palaces for lodging, in addition to tourist parks and sea clubs. There are also investment opportunities in tourist health retreats.

Under the general tendency of the state, statements reveal there is private sector interest in tourist field I the areas where there are essential services. But some investors complain from administrative routine and corruption spread inside institutions concerned with granting licenses. The Yemeni president has recently given directives for founding a unified mechanism for dealing with this aspect by investors and ordered cancellation of duality in dealing with investments and the necessity of heading for investment in productive areas. Yemeni legislations affirm that government establishments have to implement a number of basic services projects related to tourist activity such as roads and airports and to protect seashores, in addition to projects of electricity, and water. The aim is to encourage the Yemeni or the Arab investor or foreign companies for building projects. The government's tourist development plan keeps pace with the private sector activity in tourist investments. It includes conducting tourist survey besides establishment of hotel and tourist institute and implementation of a program for training and rehabilitation. Under growth of tourist activity, job opportunities provided by tourism sector increase, in addition to indirect job opportunities created by tourist sector particularly in the commercial and services activity.

In order to overcome negative regional and international factors and effects on tourism movement towards Yemen, the country needs tourist promotional campaigns to be launched by various government bodies, agencies of the private sector, especially in major tourist markets that export tourists to Yemen. European countries have occupied the first place in this regard by a rate between 50 to 68% of tourists coming to Yemen, especially Germany, France, Italy, and Britain.

Specialists in this field view that Yemen needs tourist promotion in the following areas:

– Cultural tourism showing interest in history, civilization, historical places, architectural art, in addition to habits and traditions, folkloric arts and handicrafts. These constituents are available in the areas of Sana'a, Adamou valley, Mareb, Hajjah, Beit al-Faqieh, Aden cisterns, Shibam (Kawkaban).

– Seashore tourism that could be founded in many areas of Yemen coasts such as Salif, Khawkha, al-Malik valley, al-Ghadeer shore, Abyan shore, Socotra island, Ras Omran, Bir Ali and al-Ghail Gulf and others.

– Mountain tourism as Yemen is known for the height of its mountains and purity of its air. In addition, some of these mountains are covered with green clad and pure and clear water springs flow from them. The most famous of those mountains are Prophet Shuaib Mountain, mountains of Reema and Utmah, Sabr Mountain, Radafan Mountain, Mahweet and Taweelah Mountains.

– Therapeutic tourism which is available in areas of mineral waters frequented by many people for many decades, especially in the areas of Huwaimi, Lahj, Tibalah, Hadramout, Hot bath, south-east Hudeidah, Damt bath, Ibb, eastern al-Dais, Hadramout, Hamam Ali, Thamar and many other areas.

– Desert tourism (hunting). This type of tourism, that witnesses much interest in other countries, can be developed in areas of Ramlat al-Sabaatein, Mareb, Old Shabwa, Ataq and Seiyoun.

If tourist promotion for those vital tourist areas scores success, revenues of tourist sector would have positive return on the Yemeni economy and would participate in solving the problem of unemployment as well as providing the state budgets with hard currencies for which the country needs in developmental and services fields.
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