Travel & Tourism - Jordan

Jordan

Jordan is projected to witness a significant growth in revenue in the Travel & Tourism market, with the market expected to reach US$344.10m by 2024.
Furthermore, the market is projected to exhibit an annual growth rate of 3.71% from 2024 to 2029, resulting in a projected market volume of US$412.80m by 2029.
The Package Holidays market is the largest market in Jordan, with a projected market volume of US$181.10m in 2024.
By 2029, the number of users in the Package Holidays market is expected to reach 1,206.00k users.
The user penetration rate is projected to rise from 15.4% in 2024 to 18.5% by 2029, while the average revenue per user (ARPU) is expected to be US$196.50.
Moreover, by 2029, online sales are expected to contribute to 80% of the total revenue in the Travel & Tourism market in Jordan.
It is noteworthy that in a global comparison, United States is expected to generate the highest revenue, with a projected revenue of US$214bn in 2024.
Jordan's Travel & Tourism industry is booming due to its rich history, ancient landmarks, and stunning natural beauty.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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Analyst Opinion

The Travel & Tourism market in Jordan is experiencing a notable growth trajectory, driven by various factors that cater to the evolving preferences of travelers and the unique local circumstances in the country.

Customer preferences: Travelers in Jordan are increasingly seeking authentic and cultural experiences, opting for immersive encounters with the rich history and heritage of the region. The demand for experiential tourism, including visits to historical sites like Petra and Wadi Rum, has been on the rise as visitors look for meaningful interactions with the local culture. Additionally, there is a growing interest in eco-tourism and sustainable travel practices, reflecting a global trend towards responsible tourism.

Trends in the market: One of the prominent trends in the Travel & Tourism market in Jordan is the emphasis on adventure tourism. The country's diverse landscapes, ranging from deserts to the Dead Sea, offer a wide range of outdoor activities such as hiking, camping, and desert safaris, attracting adventure enthusiasts from around the world. Furthermore, the development of niche tourism segments like wellness retreats and culinary tours is gaining traction, providing visitors with unique and personalized experiences.

Local special circumstances: Jordan's strategic location in the Middle East, with easy access to key markets in the region, has positioned it as a hub for international tourism. The country's stability and safety, amidst the geopolitical dynamics of the region, have contributed to its appeal as a tourist destination. Moreover, the government's efforts to promote tourism through initiatives like visa facilitation and infrastructure development have bolstered the industry's growth.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Jordan is also influenced by macroeconomic factors such as currency exchange rates, global economic conditions, and political stability. Fluctuations in exchange rates can impact the affordability of travel for international visitors, while economic downturns in key source markets may affect overall tourist arrivals. The country's ability to maintain political stability and security is crucial for sustaining the positive momentum in the tourism sector.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.