Tunisia Tourism Revival
The indebted Tunisian economy faces a wide range of challenges, but at the same time, it relies on many existing opportunities to overcome some of these challenges, given the existing factors that can maximize foreign currency income. The tourism industry, including tourism, is witnessing a season of , the desire to achieve a high level is increasing.
In addition to tourism, there is a widespread reliance on Tunisians for outbound travel, which typically increases during the summer months, when observers call for regulations and facilities to incentivize Tunisians abroad to invest their money in tourism. countries, including reducing the cost of transfers through Tunisian banks and adopting digital solutions.
This year, remittances from Tunisians working abroad—still below the actual potential of the Tunisian diaspora community, which numbers more than 2 million—are expected to rise to more than 12 billion dinars ($3.9 billion), while Tunisian diaspora Mohamed Mansouri, director general of the association, said the country was dealing with growing economic challenges.
Remittances from overseas workers will increase by 12% to 8.4 billion dinars ($2.7 billion) in 2022, according to the Central Bank of Tunisia.
According to data last month, Tunisia expects about 8.5 million tourists to visit the country this year, about 90% of the 9.4 million tourists in 2019 before the outbreak and a sharp increase from 6.4 million last year. “There are signs that it’s a good season, with bookings picking up,” Lotfi Mani said.
Optimism in tourism…but!
Tunisian economist Reda Al-Shakandali said in an exclusive statement to the Sky News Arab Economy website that the indicators point to optimism in the tourism sector, but many factors still play a role in one way or another. tourism. The impact of factors such as security and politics, and their impact on tourism must be weighed.
“Tourism is a volatile industry and is subject to certain conditions (..) because it is a fragile industry,” he noted, referring to the direct impact of political and security developments in the country on the industry, Any one of these factors will have a direct impact on tourism. Dampened optimistic expectations for the industry.
As such, the Tunisian economist argues that “there are other factors that have a significant impact on the provision of foreign exchange, perhaps more so than tourism, such as remittances sent abroad by Tunisians.”
However, he also pointed out that “the current indicators and based on the current data show that tourism is recovering sharply this summer.”
The vital tourism industry accounts for about 7 percent of Tunisia’s gross domestic product, but tourist numbers have fallen sharply during the coronavirus pandemic, adding pressure to an economy already in crisis.
According to the Central Bank of Tunisia, tourism revenue in Tunisia will surge by 83% to 4.2 billion dinars ($1.35 billion) in 2022.
Scandari pointed out in an interview with the Sky News Arab Economy website that Tunisia’s financial rescue has four main axes. In his personal opinion, the first is “phosphate”, on the grounds that “phosphate production must be restored to 2010 years before.” – 2011, and the sector was commanded by the national army in terms of safeguarding production and transportation.
The second topic concerns “Tunisians sending money abroad”. The third axis is related to the decline of the level of competitiveness of institutions operating domestically and in international markets, so facilities such as tax breaks must be provided so that they can diversify their exports. Finally, the axis is related to regulating parallel markets, given the amount of money circulating in them.
Foreign exchange reserve imports fell to 91 days from 123 days a year ago, and Fitch Ratings rated Tunisia’s sovereign debt at junk status, signaling concerns that Tunisia may default on foreign loans.
Tourist season
Furthermore, Tunisian author and analyst Nizar Jlidi said in an exclusive statement to the Sky News Arab Economy website that Tunisia is looking forward to taking advantage of the current summer tourist season because there are many different factors, These factors are evident in the number of bookings, with the security situation being a very important indicator of tourist arrivals in Tunisia.
According to the Central Bank of Tunisia, tourism revenues in the first five months of 2023 will be around 1.7 billion dinars ($550 million), a 57 percent increase over the same period last year.
In addition to the security situation, Jalidi also pointed to another factor related to the political situation. He said: “Despite what some media say, Tunisia is going through a period of political calm after the political arena has been cleaned up.” From the pollution site And create one crisis after another in many ways. This calm is reflected in the tourism industry and its goals.
The Tunisian economy will grow by 2.4% in 2022 and 4.3% in 2021, the highest growth rate since 2008.
Fitch estimates the budget deficit will fall from 6.9 percent of GDP last year to 5.8 percent this year and then to 4.5 percent next year, helped by lower subsidy costs due to lower global prices and economic stabilization. Income level. It also expects gross domestic product growth to slow to 1.4% in 2023 from 2.4% in 2022.
“Tunisia is heavily dependent on foreign tourism and Tunisians abroad, who can be an important source of hard currency and boost tourism in the country,” Guilidi added. to the level before 2011.
Tunisia, a country saddled with debt accounting for about 80 percent of gross domestic product, and whose government is suffering from a liquidity crisis, reached an expert-level agreement with the International Monetary Fund late last year to secure $1.9 billion in financing for a period of 48 months, but final deals from funds are still blocked due to political pressure and the government’s failure to push through needed austerity measures. Tunisia is currently preparing an alternative proposal.
Tunisia’s economy ministry had previously forecast economic growth to fall to 1.8% in 2023 and sought to cut this year’s budget deficit to 5.5% of GDP from 7.7% in 2022 through the implementation of an austerity programme. While the IMF cut Tunisia’s growth rate to 1.3 percent, it could rise to 1.9 percent next year.