Amman, June 29 (Petra) --In light of escalating regional challenges, Jordan is stepping up efforts to protect its tourism industry from the fallout, activating a broad support plan aimed at safeguarding this vital sector and gradually reviving its momentum.

In a proactive move, the Cabinet on Saturday approved a decision for the government to cover interest payments on new loans extended to travel agencies and tourist hotels, excluding five-star properties, through local banks. The loans fall under the Central Bank of Jordan’s economic sector financing program and are subject to each bank’s lending criteria.

Industry stakeholders welcomed the decision, describing it as a much-needed intervention that not only eases financial strain but also strengthens the ability of businesses to maintain operations and retain skilled staff. The move is seen as a calculated response to the sector’s challenges, which have been compounded by ongoing instability in the region.

Speaking to the Jordan News Agency (Petra), tourism professionals noted that the government's support extends beyond mere financial relief. It serves as a strategic tool to preserve institutional know-how and talent, and to keep small and mid-sized operations afloat. They emphasized the importance of continuing such initiatives to help the sector recover and reassert its role as a cornerstone of Jordan’s economy.

Dr. Rafi' Al-Tahat, spokesperson for the Jordan Society of Tourism and Travel Agents, called the decision wise and timely. He said it will significantly ease the financial pressures on tourism offices, especially as regional turmoil has dampened outbound travel. The loans will enable businesses to cover payroll, preserve jobs, and meet social security obligations ensuring continued operations through tough times.

Tourism expert Dr. Ibrahim Al-Kurdi, from the Faculty of Tourism and Hotel Management at the University of Jordan’s Aqaba branch, described the move as a targeted boost for the sector’s most vulnerable players. By focusing on smaller establishments with limited crisis resilience, he said the government is helping prevent closures, protect diversity in the tourism landscape, and lay the groundwork for a gradual recovery.

He added that the policy will help rebuild confidence among investors and employees alike, and reflects a flexible, adaptive approach to policymaking. It signals the government’s recognition of tourism’s central role in the economy and its commitment to seeing it through this period of uncertainty.

Nabih Riyal, a member of the Jordan Inbound Tour Operators Association, praised the decision as timely and crucial, particularly for inbound tourism, which remains under pressure from both recent geopolitical events and lingering effects of the Gaza war and the COVID-19 pandemic. He stressed the importance of retaining experienced professionals and called for a long-term vision that ensures the sector’s resilience in future crises.

According to the Cabinet decision, eligible loans must be used exclusively to pay salaries or social security contributions for a three-month period. Repayment terms include a 24-month timeline with a six-month grace period, and the window to access this support remains open until the end of September.

//Petra// WH


29/06/2025 10:43:21