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Middle East Tourism in the age of the Coronavirus

International travel is surely the antithesis of the kind of lockdowns that have dominated large parts of the globe over the past few months. Airports are empty, aircraft are grounded and across the Middle East iconic tourist locations, from the Pyramids to Petra are deserted. This is a sharp halt to the increasing trend of visitors to the region, indeed 2018 saw a 10% increase of visitors totalling up to 87 million arrivals bringing with them some $77bn in tourism receipts.
In the Middle East, Travel and Tourism represents 8.7 percent of the region’s Gross Domestic Product (GDP) and supports 5.4 million jobs. Today, however, the region is estimated to be losing almost $7bn a month due to Coronavirus crisis which is occurring simultaneously as a oil price war which is causing unprecedented shock for the economy.
Parts of the region are all to familiar with the fickle nature of tourism. Terrorist attacks like those on hotels in Jordan and Tunisia or famously at ancient sites in Luxor, Egypt have led to significant pauses in visitors coming and hardship for those or rely directly or indirectly on tourism for their livelihoods. Yet the trend towards increased global travel seemed unstoppable until COVID-19 came long, and one country losing out on tourists due to geopolitics would invariably mean another gaining.
For instance, the politics of the Syrian conflict meant that several years ago Russian tourists boycotted Turkey, which in turn led to Cyprus selling out all its hotel rooms over a summer. This time the negative impact is far more uniform. What is difference is the presence and impact of the virus between different countries and the policies that they are adopting in response. Iran’s numbers are worse than Egypt’s, some countries have banned all international flights, others are imposing strict entry tests and imposing periods of quarantine afterwards. Neither of these are particularly conducive to tourists wanting a short relaxing weeklong break.
Saudi Arabia has already stopped the entry of the huge and lucrative pilgrimage market. the cruise ship industry has suffered particularly badly after several deadly incidents where the virus ravaged those on board and country’s like Oman are banning them from their ports. Much of the region had benefited for the rise of tourists coming from China, which is likely to slow as the country undergoes its first serious economic crisis of a generation.
The critical difference between previous shocks to the region’s tourism trade and the challenge today is that the very fundamentals of global travel are being undermined by the virus. Major airlines are being bailed out by the state or threatening to go bust as the prospect of a vastly quieter global sky becomes more apparent. The virus likely found its way around the world on planes and the prospect of being trapped on a long-haul flight near a coughing fellow passenger is enough to significantly alter the decision-making behaviour of a would-be tourist.
Remember that tourism is at its heart supposed to be relaxing and fun. Those who are still using planes today talk of heat scanners in the airport, terrified passengers queuing and sitting far apart, mask wearing cabin crew and the prospect of COVID tests and detention upon arrival. This is hardly the stuff summer holidays are made of and will, when combined with a depressed global economy, mean that especially in the absence of a widely adopted vaccine, tourism will take longer to bounce back than many other industries.
This is a seriously negative outcome for people across a region where tourism was increasingly part of a diversification strategy away from oil and gas. Youth unemployment in the region was already the worst in the world and now faces a perfect storm or ‘black swan’ level of challenge in the combinations of crisis. Coronavirus restrictions to trade, the collapse in oil prices tourism will likely worsen the already high public and external debt vulnerabilities of many countries in the region warn the IMF.
Such damage to economies that were already not delivering for large chunks of the population will inevitably be exploited by extremist groups and those that argue for more radical realignment of the region’s politics. More than ever cooperation and collective solutions are needed across the region to respond to this level of challenge. Where there is hope in the face of the Coronavirus is that it will spurn many of the seemingly endemic political enmities of the region towards a singular focus on a problem that was never of its making but could be of its unmaking.
by : jamse danselow
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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