ZaraAnnual-English2016

OVERVIEW
Welcome to the 23rd Annual Meeting for the ordinary general
assembly of the shareholders of Zara Investment (Holding) Company.
Despite the continuing regional political turmoil and
the global economic volatility, the tourism sector in
Jordan was able to weather these obstacles, which
positively impacted our company’s year-end results.
Consolidated operating revenues declined only by
2% in 2016 to reach JD 69.8 million compared with
JD 71.2 million in 2015. Consolidated net operating
revenues increased to reach JD 19.3 million, up by
10% over 2015. Consolidated net profit increased
by 264% to reach JD 2.7 million compared with a
net loss of JD 1.6 million for 2015. The 2% decrease
in revenues was triggered by a 2% decrease in the
combined average room rate (ARR) from JD 111 in
2015 to JD 109, compensated by an increase of 6%
in the overall occupancy, which reached a combined
rate of 52% for all of Zara hotels compared with 49%
in 2015.
Jordan’s economic growth has been subdued as
spillovers from regional instability take a toll with
unemployment reaching a recent high. In 2016, GDP
growth rate remained flat at 2.3% per The World Bank
(October 2016). Macroeconomic performance is
expected to be satisfactory. Growth is forecasted at
2.7% in 2017, increasing to 3.1% in 2018.
growth projection of 2%-5% in international tourist
arrivals in the Middle East, arrivals in Jordan increased
in 2016 by 3%.
Our outlook remains positive for 2017. We will work
towards continuing to set the benchmark in the
way we welcome and serve our guests and the
world around us. To achieve this, we will continue
to reengineer and improve our business models
and structures to ensure excellence through better
management of operations.
Consolidated net profit
increased by
264% to reach
JD 2.7 million
The tourism sector, whose contribution accounts for
around 13% of GDP and 7% of gross value added,
maintained its position. In line with UNWTO 2016
10