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ANIMA PUBLICATION
    16 May 2008 Foreign direct investment into MEDA in 2007: the switch  
   
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SECTOR PERSPECTIVES - SERVICES
Tourism
The tourist sector represents an essential part of the GDP of the Mediterranean countries. The massive boom in the phenomenon has only been over the past fifty or so years. Except in 1982 (-0,4 %) and in 2002 (following the 11 September 2001 suicide bombings), the number of tourists has continued to increase.
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Among the tourists who flood into the MEDA countries, two out of every three are Europeans, who in the large majority visit the Maghreb (70 %). The Americans concentrate mainly on Israel, Turkey, Jordan, Morocco and Egypt. As for tourists coming from the Middle East, their choice often goes to Egypt, the Lebanon and Jordan.
Sun, cultural wealth, the hospitality of the inhabitants… So many common points for these countries. On the other hand, the distribution of visitors, as the forms of tourism, varies greatly. Each of the MEDA countries experiences a peak of several months, not always at the same time, which avoids too great a competition. In the same way, the offers diverge. If Tunisia is a seaside destination, Morocco, Jordan or Israel shine thanks to their cultural offer, whereas Egypt, the Lebanon and Turkey play both segments. Certain countries the likes of Algeria or Syria possess a largely under-exploited potential. Globally, the MEDA region welcomes almost 35 million international tourists per year, or 50% of France welcome performance, which shows that important development perspectives are still existing.

Other advantages include the abundance of natural resources and the proximity of the European market. Furthermore, several MEDA countries have managed to surf on the cultural wave of cultural tourism, sea water therapy, discovery (camel trekking, hiking trails etc…). Eco-tourism has some very good days ahead of it, in the same way as the reception of elderly people (residences with medical assistance). The needs for the renovation or the creation of hotel infrastructures are very large.
 
Country focus

The Algerian government has introduced a strategy for the expansion of tourism for the period 2001-2010. The objective is to encourage investments and especially those coming from abroad. The government has several arms at its disposal: an attractive fiscal regime, the definition of ZETs (tourist extension zones) and the promotional work for the tourist product that it has undertaken. The Algerian coasts receive millions of tourists every year. However, this influx is thwarted by the lack of reception infrastructures. This is undoubtedly a market to be exploited.

Tourism, the driving force of the Cypriot economy: the economy of Cyprus is heavily dependent on tourism. The island wants to receive 4 million visitors per annum by year 2010. To help it meet this challenge, it has a number of assets: its geographical situation, its climate, its architectural and archaeological heritage. Further, in 1998, the Cypriot government defined a tourist policy aiming to ensure the healthy and sustainable development of the sector. In the programme, the construction of golf courses, theme parks, casinos, double the number of beds in bed and breakfast facilities… Foreign investors may thus have a role to play.

In Egypt, foreign businesses may take an interest in several sectors: Public Works, for certain investors who seek high quality standards, may turn towards Western firms. Not forgetting the infrastructures (water treatment, drains, electrical installations, transport). Finally, financial investments, for the privatisation of the sector will no doubt offer interesting opportunities.

The main challenge for those responsible for Moroccan tourism is to adapt the infrastructure to the demand. Indeed, 80 % of the visitors seek to stay in beach resorts whereas nearly two thirds of hotel capacity is to found in other regions. Certain weaknesses have been identified as penalising for the development of the sector: land, fiscal regime, finance, professional training. Morocco has undertaken an ambitious policy in an attempt to remedy this situation. The objective: in the next ten years to go from the 39th to one of the top twenty most popular destinations in the world.

Tourism gives a living to one Tunisian out of six: if the country has incontestably the image of a low cost destination, it dreams precisely of throwing this image off. For that, it would like to diversify its offer. A challenge that doubtless foreign investors can help in meeting.

The Syrian government would like tourism to bring important foreign investments. Despite its strong potential, the country has not been able to pass the bar of three million visitors per annum, including businessmen. Everything, or almost everything remains to be done…

In Lebanon, the World Bank has just granted a loan of 31.5 million US dollars for a project entitled « Cultural heritage and urban development». The objective: reanimate and promote certain historic centres and archaeological sites.

The slogan chosen by the Turkish Tourist Office «The better you know it, the more you like it » is beginning to bear fruit. Among the assets of the country, its climate, the wealth of its history, as well as the variety of its infrastructures.

Malta, the destination to ally discovery and relaxation, became in May 2004 the smallest member State of the European Union. One more reason to attract tourist investors to the island, for quality projects rather than volume.
 
International tourist volume and revenue

Country International Tourist Arrivals International (US$m, 2002) Tourism Receipts
(US$m, 2002)
Algeria 998 133
Cyprus (2000) - 1,894
Egypt 4,906 3,764
Israel (2000) - 3,100
Jordan 1,622 786
Lebanon 956 956
Malta (2001) 1,180 683
Morocco 4,193 2,152
Palestinian A. (2000) - 155
Syria 2,809 1,366
Tunisia 5,064 1,422
Turkey 12,782 9,010
MEDA-12 34,510 25,421
World 2002 703,600 474,000

Source: WTO
 
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