Tourism is Jordan’s largest productive sector and the second largest in foreign exchange earnings, surpassed only by worker remittances. It is also an important employer of Jordanians and is an industry whose growth is labor-intensive. Additionally, no sector diffuses economic benefits throughout the country as tourism does, due to the movement of economic activity by tourists in the various governorates.

The tourism economy can be simply defined as the demand for goods and services purchased by domestic and international tourists. Impact on the economy from international tourists arises from the process whereby tourism expenditure enters the economy by means of payment for goods and services required by visitors, thus becoming income and profit for those operating in the tourism sector. Those individuals and companies who are the recipients of this expenditure will spend the money they receive on purchasing goods and services, thereby providing income and profit for another group of individuals and companies. This group will, in turn, also spend the money they receive, and this process goes on with each successive round of income and expenditure adding to the overall level of economic activity.

To help increase the benfit of tourism on the economy and help in expanding the pie, better investment returns are important to attract investors. This happens when:

1. More funds are invested in promoting Jordan

2. Distortions on costs are eliminated by granting tourism the full rights of an export industry and its benefits.

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