Visa requirements have been tightened at the Wadi Araba/Yitzhak Rabin border crossing connecting Aqaba to Eilat. As of January 2016, those using the crossing to enter Jordan will be required to apply for a visa two weeks in advance and pay a US$60 fee. Use of the crossing had previously been free of charge.
The border crossing is open to tourists and non-diplomats on the Israeli side seven days per week all year round, except for Yom Kippur and the first day of the Islamic New Year, 06:30-20:00 Sunday-Thursday, and 08:00-20:00 Friday-Saturday. On the Jordanian side, the crossing is open 06:30-21:00 Sunday-Thursday, and 08:00-20:00 Friday-Saturday.
For those using the crossing to access Jordan, the fees will be charged on top of the 101 shekels (US$26) fee for those departing Israel. Additional VIP, daily workers, and cargo fees apply.
The two countries’ other two land border crossings are Jordan River Crossing/Sheikh Hussein Bridge, 90km from Amman, and the Allenby/King Hussein Bridge, 57km from Amman.
Royal Jordanian airlines offers several flights per day between Aqaba and Amman, and both Arkia Israel Airlines and Royal Jordanian offer regular flights between Amman and Tel Aviv.
Multiple entry business visas for Israel and Jordan are still available.
Source: Israel Airports Authority
Tourism Decline and Stagnation to Continue
As a further disincentive to visit Jordan from Israel, we expect the fee to negatively affect travel and tourism in Jordan, particularly in reducing numbers of day trippers.
The Petra complex, under two hours’ drive from Aqaba, has already seen visitor numbers halve between 2010 and 2015, to reach only 400,000 last year. 10 of the 38 hotels situated in Petra’s neighbouring town Wadi Musa have shut, contributing to 1,500 job losses in the local tourism sector. Petra’s tourism chief commissioner has described the situation as a “crisis”.
Travel and tourism has historically been attractive to investors in Jordan, contributing to JOD435.7 million (US$614.1 million) in 2013, 7.2% of total investment. In the same year, the sector contributed 5.3% of total GDP, directly supported 67,000 jobs, 4.5% of total employment, and indirectly supported 268,000 jobs, 17.9% of total employment.
World Bank figures show a recent decline in visitor numbers to Jordan, from 8.2 million in 2010 to 5.4 million in 2013.
The persistence of regional instability and increasing costs, mean that characteristics of low growth and declining visitor numbers in the industry are likely to remain.
Source: World Travel & Tourism Council
Aqaba Diversified
While the impact will be felt in Petra, Wadi Rum, and the resort areas of Aqaba, the city itself is diversified beyond travel and tourism.
As Jordan’s only port, Aqaba is essential to Jordan’s economy. Recent recurrent issues with industrial action have been settled, and the area is open to investment. At the 2015 World Economic Forum, the Kingdom presented US$1.1 billion in investment projects in Aqaba, including customs yard development, port expansion, the Aqaba railway, development of Aqaba’s King Hussein International Airport, and the Aqaba Yacht Club. Investment is also currently being sought for a new oil pipeline connecting Iraq and Egypt.
In addition, Aqaba boasts an autonomous Special Economic Zone, granting foreign ownership, taxation and labour incentives. Investment into Aqaba has already reached US$20 billion, far ahead of the SEZ’s original target of US$6 billion by 2020.
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