Yemen’s Economy Loses YR 9 Billion [Archives:2001/45/Front Page]

November 5 2001

It is certain that the terrorist attacks against Washington and New York on September 11 caused massive damage to the world economy. 411 countries have been hit by the infamy. Yemen is no exception; official sources in the Ministry of Tourism and Environment disclosed that the continuing effects of these attacks have strongly affected the tourist sector in the country. Reservations for around 60,000 tourists expected to visit Yemen during the period of September until December have been called off, making activities of tourist hotels go down to 10% only. Around 20,000 persons working in this area are now jobless. Around 2500 cars working in this sector have stopped. Over 200 handicrafts shops are not functioning.
The flights of Yemenia decreased 50%. Sources at the Ministry of Tourism said they are now looking for alternatives, such as the opportunity to have tourists from Southeast Asian countries, as well as encouraging domestic tourism. The oil sector of Yemen was also affected because of the remarkable decrease in the oil price to $19 per barrel. Yemen’s revenue from oil constitutes 90% of the total national income.
Economists put the total damage to the economy due to the recent events at YR 9 billion. President Saleh previously said Yemen had lost over YR500 million. Therefore, economists believe the government should undertake a new policy to account for ongoing events.