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2020-10-19

70% of tourism workers are unemployed.. and losses exceed $ 1.5 billion

Hamza Khalifa- Palestine Economy Portal.

The effects of Corona pandemic continue to cast a shadow over the economic sectors in Palestine, amid fears and warnings of a new wave with the approach of winter, which threatens to intensify the severity of the crisis that has plagued the Palestinian economy since the beginning of the year.

The tourism sector, being the most affected, made the largest growth and development during the past years. The number of tourists in 2018 reached a record of 3 million tourists, and the number continued to rise in 2019, reaching 3.5 million tourists.

In March 2020, tourism in Palestine completely stopped due to the pandemic, which resulted in losses amounting to approximately $ 1.15 billion, according to a joint statement by the Palestinian Central Bureau of Statistics and the Ministry of Tourism.

In an interview with "Palestine Economy Portal," Jamal Al-Nimr, Secretary of the Arab Hotel Association, said that the size of the loss exceeds the number announced. "Our estimates indicate losses of $ 1.5 billion, and may reach $ 2 billion by the end of the year."

He added: "The loss is not limited to hotels only, but includes tourism offices, tourist guides, restaurants, entertainment venues, antiques making crafts, the transportation sector and others, in addition to the losses of service providers to the tourism sector, including food, equipment, furniture, etc."

The importance of the sector, according to Al-Nimr, lies in the fact that it intersects with all economic sectors, and is the only sector that moves the commercial markets. Domestic tourism alone accounts for about 40% of the volume of tourism in Palestine, with spending around $ 1.2 billion annually in the Palestinian markets.

The Gaza Strip employs about 38,000 employees and workers in the West Bank and Gaza Strip, but as a result of the pandemic, the workforce in this sector has suffered great damage, which has been an additional loss for the tourism sector.

Al-Nimr explained that the sector now works at no more than 30% of its capacity, meaning that 70% of its workers have become unemployed or have turned to work in the Israeli market.

On the plans related to reviving the tourism sector, Al-Nimr said that there are plans presented to the government. He continued: "If things return to their previous era and the epidemic ends, the last sector to recover will be tourism, but it will definitely recover."

On the private sector's appeal to the government to save the tourism sector, Al-Nimr said that the government has not implemented anything on the ground, nor has it offered any serious proposals to save it.

He stressed that the sector needs real support from the government, in order to develop and save existing projects that have cost hundreds of millions of dollars and employ thousands. In addition, the sector requires support for its investors who stood against the pandemic during their losses. Finally, there should be tax reductions and other incentives, and the creation of easy loan programs with low interest and long-term repayment periods.

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