COVID-19 leaves Spain’s interior a tourist desert

A tourist walks around The Mezquita in Cordoba after the national lockdown put in place to fight the coronavirus pandemic was lifted In Spain. (AFP)
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Updated 13 July 2020
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COVID-19 leaves Spain’s interior a tourist desert

  • In Grenada and Toledo, revenue drops more than 50 percent for restaurants

CORDOBA: The Santos Bar, across from Cordoba’s celebrated mosque, would normally be groaning with tourists tucking into its trademark Spanish tortillas.

But with the coronavirus pandemic, “everything’s dead,” the owner says.

The Mezquita, an eighth-century mosque later turned into a cathedral, is the most visited site in the Andalusian town in southern Spain.

But since it reopened at the end of May, only 16,000 people have set foot in the UNESCO World Heritage site considered one of the most accomplished works of Moorish architecture — the number of visitors it would normally receive in a week.

“It will take months to make that up,” said church spokesman Jose Juan Jimenez Gueto, although money set aside in previous years means staff have been kept busy with restoration projects.

Nearby restaurants, hotels and shops are not so lucky, and many are closed. At the Santos Bar, only owner Jesus Maldonado is working.

Business is “a quarter of normal,” he said. 

His 10 employees are all on a state-backed furlough scheme.

The plunge in tourism, a sector that accounts for 12 percent of Spain’s economy, will be felt like a body blow.

While the country’s beaches are its biggest draw, cities in the interior like Cordoba also attract tourists with their cultural sites.

And it’s places like Grenada, Toledo, and Segovia .that are bearing the brunt, according to Spain’s national hotel association, with revenue drops greater than 50 percent for restaurants and bars in their historic city centers.




A tourist visits the Alhambra in Granada on the day it reopened to the public after three months of closure. (AFP)

In Andalusia, hotel occupancy is at an average of just 25 percent, a good 10 percentage points lower than in establishments along the coast, said Francisco de la Torre, head of the region’s hotel association.

He worries that Andalusian eateries will eventually have to shed up to a third of their staff.

In Spain, the world’s No. 2 tourist destination behind France, spending by foreign tourists plunged by 62 percent in the first five months of the year compared with the same period in 2019.

In Ronda, the mountaintop city perched above a gorge known for its stone bridge, Maria Lara Galindo has worked as a guide for Asian tourists for the past decade.

“For those serving Spanish tourists there is now some activity, but Asian tourists — nothing,” she said.

While Japanese and South Korean tourists may now visit the European Union again, Galindo doesn’t expect them to return before next summer, and thinks they will be more likely to travel individually than in groups.

Galindo is one of half-a-million independent workers in Spain’s tourism industry, whose federation fears that up to 100,000 people could lose their jobs.

In Seville, foreign tourists are nearly nonexistent and even Spanish tourists few and far between.

Reports of new outbreaks are keeping people from going out, added Celia Ferrero, vice president of the Association of Independent Workers.

“Spending is still under shock from the coronavirus and it will stay that way until there is a solution,” she said.

Jordi Reines, who works as a nurse in Barcelona, canceled a trip to Portugal to spend his time off in Andalusia.

“We didn’t even think about making a trip abroad,” said Reines’ girlfriend Noemi Garcia.

Jose Romero, who owns a stand selling drinks and ice cream alongside the city’s central Spain Square, said sales are just a tenth of what they were last year.

“This year is a washout, people aren’t confident enough to travel,” he said.

The dozen souvenir shops near him are still shuttered.

“Uncertainty and fear are slowing everything down,” said Isabel Diaz, who is reopening her family’s fan shop after a four-month closure — something they weren’t even forced to do during Spain’s civil war in 1936-1939.


March data reveals slight dip in Dubai’s inflation

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March data reveals slight dip in Dubai’s inflation

RIYADH: Dubai’s inflation witnessed a slight decrease in March, dropping to 3.34 percent compared to 3.36 percent in February, according to official data.

The decline in inflation is attributed to lower prices of specific goods and services, notably in the food and transportation sectors.

Dubai’s Consumer Price Index rose to 110.77 points in March, compared to 110.50 points in the previous month, due to the rise in prices of key expenditure groups and services, including insurance and financial services by 8.67 percent, housing, water, electricity, gas, and fuel by 6.34 percent, and education by 3.62 percent.

However, despite the overall decrease in annual inflation, some sectors experienced price hikes. These areas included transportation, which witnessed a 1.75 percent increase, and housing, water, electricity, gas, and fuel, which saw a 0.58 percent increase.

Speaking to Arab News, economist and policy adviser Mahmoud Khairy highlighted that inflation affects sectors differently based on various factors such as economic structure and market dynamics.

“The most prominent and immediate effect of inflation is on consumption, potentially reducing consumers’ purchasing power and altering spending patterns,” he said.

Khairy also emphasized the sensitivity of the housing and real estate markets to inflationary changes in the Gulf Cooperation Council region. 

“Construction costs and property values may increase which will put extra burden on financing needs,” he added.

In addition to the decrease in inflation, food and beverage prices in Dubai in March decreased by 0.36 percent, along with drops in furniture prices by 0.06 percent and information and communication by 0.02 percent. 

The cost of restaurants and hotels also decreased by 2.15 percent, while prices of insurance and financial services lowered by only 0.08 percent.

In neighboring Saudi Arabia, inflation also fell in March, registering a rate of 1.6 percent compared to 1.8 percent the previous month. 

Shifts in the food and beverage sector primarily drove the decline.

Khairy explained that inflation expectations influence consumer behavior, similar to preparing for a weather forecast.

“When people expect prices to rise, they often rush to buy things sooner to avoid paying more later,” he said.

Investors closely monitor inflation, tweaking portfolios based on their predictions. Similarly, policymakers and central banks rely on inflation expectations to steer the economy, akin to checking weather forecasts for planning. 

Earlier last week, IMF chief Kristalina Georgieva remarked on the importance of central bankers meticulously adjusting their interest rate reduction strategies in response to incoming data. 

Regarding challenges and opportunities for GCC economies, Khairy noted the reliance on oil revenues, currency pegs to the US dollar, and geopolitical tensions in the Middle East as factors influencing inflation and economic stability.

“Disruptions to global supply chains due to geopolitical tensions or trade disputes can lead to supply shortages and price increases, contributing to inflationary pressures,” he said.

The World Bank said in a report that “GCC countries are small open economies with high dependence on international trade which makes them vulnerable to global shocks in addition to domestic ones.” 

Khairy also emphasized the importance of economic diversification efforts and strategic infrastructure investments to mitigate the impact of external shocks on inflation and promote overall financial stability in the region.

He concluded that higher inflation poses challenges for government budgets and financing.

“As prices increase, governments face a higher fiscal deficit to achieve just the same level of consumption and investment. On the other hand, inflation is always associated with higher interest rates which increases the cost of financing for government debt,” he said.


Madinah airport claims top spot in Middle East regional ranking 

Updated 9 min 28 sec ago
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Madinah airport claims top spot in Middle East regional ranking 

RIYADH: Saudi Arabia’s Prince Mohammad bin Abdulaziz International Airport in Madinah has been awarded the title of the best regional airbase in the Middle East for 2024. 

The recognition was announced during the Skytrax World Airport Awards, held at the Passenger Terminal EXPO in Frankfurt. 

Meanwhile, Qatar’s Hamad International Airport claimed the title of the world’s best aviation hub for the year, while Singapore Changi Airport, previously named the airport of the year in 2023 and a winner on 12 occasions in the past, secured the second position in the global ranking. 

Changi Airport also earned recognition as the top airbase in Asia and for delivering the world’s best immigration services, as per Skytrax. 

Meanwhile, Seoul Incheon Airport, advancing to third place in the global survey rankings, was awarded the title of the world’s most family-friendly terminal for 2024. 


Egypt’s foreign debt increases by $3.5bn, official figures show 

Updated 48 min 39 sec ago
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Egypt’s foreign debt increases by $3.5bn, official figures show 

RIYADH: Egypt’s foreign debt increased by $3.5 billion in the fourth quarter of 2023, reaching a total of $168 billion, as reported by the nation’s planning ministry.  

This marks a climb from the $164.5 billion recorded at the end of September, representing 42.4 percent of the nation’s gross domestic product. Notably, 81 percent of this debt is categorized as long-term. 

This uptick in foreign borrowing is part of a broader trend over the last decade, during which Egypt has significantly increased its external debt, investing heavily in state-driven projects.  

This financial strategy was underscored last month by an $8 billion economic support package secured from the International Monetary Fund. 

Amid these monetary maneuvers, Egypt’s Finance Minister Mohamed Maait recently projected that the country’s GDP would grow by 2.8 percent in the fiscal year ending in June 2024, with expectations of an acceleration to 4.2 percent in the following year.  

These figures are closely aligned with the IMF’s more conservative forecast of 3 percent GDP growth for the calendar year 2024, indicating optimism about Egypt’s economic trajectory despite its growing debt burden. 

Earlier in April, Maait highlighted that despite the harsh impacts of global and regional economic crises, Egypt has seen financial indicators surpass budget estimates and targets over the past nine months of the fiscal year 2023-2024.  

The minister noted that this success reflects the international recognition of the North African country’s economy for achieving better-than-expected performance metrics.   

Further emphasizing the economic strategies, Maait pointed out the significant improvements in non-tax revenues, which increased by 122.9 percent, and tax revenues, which surpassed 1 trillion Egyptian pounds ($20.6 billion), marking a growth of 41.2 percent annually.    

He noted these gains were achieved without imposing new burdens on citizens or investors, thanks to expanded mechanization intended to broaden the tax base and integrate the informal economy into the formal sector.    

Maait pointed out that the country’s ongoing effort to boost its economy is evident in the Ministry of Finance’s dialogues with over 2,000 investment institutions annually.    

The ministry’s Investor Relations Unit plays a crucial role in these engagements, maintaining open dialogue throughout the year and issuing monthly performance data.  

These documents provide foreign investors with precise, up-to-date economic data, including details about debt levels, deficits, and primary surpluses, the state-owned newspaper reported.   

They also offer a simplified guide on the various incentives, including tax advantages available to investors, aiming to alleviate any concerns and accurately address potential economic risks.   

Meanwhile, data released earlier this month by Egypt’s Central Agency for Public Mobilization and Statistics showed a slowdown in the country’s urban consumer price inflation rate to 33.1 percent in March from 36 percent in February.   

Additionally, month-on-month prices rose by 10 percent in the third month of 2024, down from an 11.4 percent increase in the previous period.  

This development follows the central bank’s announcement in early March of a 600 basis points hike in interest rates at an unscheduled meeting, along with a shift to an inflation-targeting regime, allowing the exchange rate to be determined by market forces.  


NEOM subsidiary Topian boosts Saudi food security drive with new Tadco partnership 

Updated 9 min 21 sec ago
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NEOM subsidiary Topian boosts Saudi food security drive with new Tadco partnership 

RIYADH: Saudi Arabia’s food security drive is set to receive a boost as NEOM subsidiary Topian has partnered with Tabuk Agricultural Development Co., also known as Tadco, to innovate fruit and vegetable production.  

A memorandum of understanding aimed at leveraging advanced agricultural technologies and practices to enhance domestic food production was signed. It includes setting up a hydroponic greenhouse facility at the company’s site in Tabuk, located in northwestern Saudi Arabia.  

Hydroponics is the method of cultivating plants without soil and utilizing minimal water resources.  

Hydroponic gardens, designed for space efficiency, can grow fruits, vegetables, and flowers in half the time of traditional agriculture, while using 90 percent less water. This will support the Kingdom’s efforts toward sustainable food production practices.  

Under the terms of the MoU, Topian will bring its expertise to the table, handling key responsibilities including the design, installation, and operation of the hydroponic greenhouse facility.   

Additionally, the NEOM subsidiary will oversee all aspects of greenhouse management, from production planning to workforce training and customer relations, as stated in a release on the Saudi Stock Exchange.  

The deal will see Tadco taking on a pivotal role in facilitating the project’s success by providing essential support and resources. 

This includes identifying and allocating suitable agricultural land for the greenhouse, establishing distribution channels for product off-take, and providing infrastructure and labor assistance to ensure seamless project execution. 

The partnership underscores Saudi Vision 2030’s aim to enhance food security through increased domestic production and sustainable agricultural practices.  

It shows the country’s commitment to greenhouse projects. In January 2021, for instance, Al-Jouf Agricultural Development Co. inaugurated the Kingdom’s largest greenhouse complex, spanning 12 hectares and employing advanced hydroponic technology. 

The Kingdom has also been promoting the adoption of water-efficient irrigation technologies to optimize water use in agriculture.  

In 2019, the Saudi Ministry of Environment, Water, and Agriculture announced plans to convert 1.2 million hectares of traditional flood irrigation to more efficient methods by 2030. 

Similarly, the National Water Strategy of Saudi Arabia focuses on improving water management practices for sustainable agricultural development. It emphasizes water conservation, recycling, and efficiency measures to address the Kingdom’s water scarcity challenges. 

Through initiatives like the hydroponic greenhouse facility outlined in the MoU, the nation is setting the pace for implementing water-efficient irrigation technologies and reducing agricultural water usage, thereby supporting the goals of the National Water Strategy. 


Saudi Arabia issues over 37k certificates of origin in March

Updated 18 April 2024
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Saudi Arabia issues over 37k certificates of origin in March

RIYADH: Saudi exporters were issued 37,188 certificates of origin in March by the Ministry of Industry and Mineral Resources, marking an annual increase of 0.5 percent.

The document confirms that the products are of national origin or have acquired that status. It is part of the ministry’s effort to support and facilitate the service for exporters in various sectors.

This initiative is part of the Kingdom’s goal under the Vision 2030 economic transformation plan to increase the share of non-oil exports to Saudi Arabia’s gross domestic product from 16 percent to 50 percent by the decade’s end.