The Effects of the Global Financial Crisis on the Tourism Sector (Analytical study: Jordan)

Abstract

Despite of the remarkable prosperity witnessed by the Jordanian tourism sector since early 2004, and growing the contribution in the national economy, but the negative effects of the global financial crisis which broke out in the second half of 2008 and gripped on the global economy, has affected this sector and others sectors. And the implications of the crisis began on the tourism sector to emerge since December 2008, where the number of the arrivals tourists to Jordan dropped in that month by to 15% compared to the same month of 2007.

This study aimed to highlight and analyze repercussions of the global financial crisis on the tourism sector in Jordan, through clarify the nature of the current crisis, and select the channels their impact on the tourism sector, as well as discuss the foundations of the ways to help the sector out of the crisis.

The study concluded to the significant effect of each of the median income & relative prices on tourism demand, while not find significant evidence of the impact of the exchange rate, and confirmed by the results on a high elasticity of demand for tourism relative prices.

The study predictions pointed out to the decrease rate of the influx of tourists to Jordan, from all countries in the world and finally the study provided ??a number of recommendations for policy-makers regarding the demand and supply beside me, and the role of government in helping the tourism sector to exit from the crisis.

Keywords: (UNWTO) The United Nations World Tourism Organization, (JIB) Jordan Investment Board, (GDP) Gross Domestic Product, (JTB) Jordan Tourism Board, (CBJ) Central Bank of Jordan, Tourism Sector