ZaraAnnual-English2011

Board of Directors’ Report Annual Report 2011
Overview
The Hill of the Citadel (Jabal al-Qal’a) in the middle of Amman was occupied as early as the Neolithic period, and fortified during
the Bronze Age (1800 BC), and is the site of ancient Rabbath-Ammon. The name “Amman” comes from “Rabbath Ammon,” or “Great
City of the Ammonites,” who settled in the region some time after 1200 BC. 10 minutes away from the Grand Hyatt Amman Hotel
and Hotel InterContinental Jordan.
Welcome to Zara Investment Holding’s 18th annual meeting for the ordinary general assembly of the shareholders.
The year 2011 proved to be a most challenging year for the economy of Jordan due to the political upheaval that took
the whole Middle East region by storm. After reporting a streak of high growth rates averaging 8% between 2003 and 2008,
in 2011 for the third year in a row and in line with the regional and international trend the economy of Jordan witnessed a
slow Gross Domestic Product (GDP) growth of 2.5%, lower than the 3.5%witnessed in 2010. The slowdown comes as Jordan
experiences the repercussions of the regional political turmoil as well as the deterioration in the global financial conditions
coupled with the debt crisis in the Euro zone. The contraction of the economy exacerbated already acute challenges faced
by Jordan such as cutting the budget deficit and public debt, boosting employment opportunities, and stimulating the
investment environment.
Tourism was inevitably scathed by all the adverse developments taking place region-wide rendering 2011 one of the
most trying years witnessed by this sector in recent history. This was evidenced by the drop in the number of visitors by 20%
amounting to 6.6 million visitors compared with 8.2 million visitors in 2010. The drop in the number of visitors was evident
in major tourism sites such as Petra where the drop in visitors reached 32%. Tourism receipts, one of the main contributors
to GDP, also dropped by 16% to JD 2.03 billion compared to JD 2.4 billion in 2010.
The government of Jordan has placed economic and political reform as its top priority for 2012. With Jordan’s firm
commitment to focusing on economic growth, its economic prospects look set to continue moving, albeit slowly, into
positive territory in 2012.
Hotel industry key indicators for 2011 compared to 2010:
Year 2011 Year 2010 Variance %
Number of visitor tourists 3,815,991 4,557,024 -16.3%
Tourism income (Million JD) 2,026 2,423 -16.4%
Average length of stay (Night) 4.5 4.5 -
Number of classified hotels 208 208 -
Number of hotel rooms 17,107 17,058 0.3%
Number of beds 31,987 32,014 -0.1%
Number of employees 41,749 42,041 -0.7%
Source: Ministry of Tourism and Antiquities
5-star hotel key indicators for 2011 compared to 2010:
Year 2011 Year 2010 Variance %
Number of five-star hotels 28 28 -
Number of five-star hotel rooms 7,119 7,083 0.5%
Number of hotel rooms owned by Zara Investment Holding Co. Ltd 2,131 2,131 -
Rooms owned by Zara - % of total 30% 30% -
Source: Ministry of Tourism and Antiquities
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