Jordan Hotels profit drops amid regional conflict

Jordan Hotels and Tourism Company reported a 23 percent decline in net profit for the second quarter of 2024 as a result of revenue decline amid conflict in Gaza.

The company’s profit stood at JD247,123 ($348,703) in the April to June period compared with JD320,035 a year ago, Reuters reported, citing an Arabic disclosure on the Jordan stock exchange.

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Operating revenue fell 5 percent to JD3.9 million from JD4.1 million in the same period last year.

Tourism revenue was $2.6 billion in the first five months of 2024, down 6.5 percent on the same period last year, according to the central bank data. Visitor numbers were also down 10 percent during the period.

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Since the start of the conflict in Gaza, the number of European and North American visitors to Petra, the historical site that is the kingdom’s prime tourism attraction, has fallen steeply. This drop has been partially offset by an increase in visitors from the Gulf and trips by Jordanian expatriates.

However, the country’s GDP grew 2 percent year on year in the first quarter of 2024 despite regional geopolitical challenges, the state-run Jordan News Agency (Petra) reported.