ZaraAnnual-English2016

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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
NUMBER OF ROOMS IN FIVE-STAR HOTELS IN JORDAN NUMBER OF HOTEL ROOMS OWNED BY ZARA JORDAN 8,462 25% ZARA 2,131 HOTEL INDUSTRY KEY INDICATORS FOR 2016 COMPARED TO 2015 2016 2015 Variance% Number of overnight visitors 3,858,439 3,763,150 3% Tourism income (million JD) 2,871 2,886 -1% Average length of stay (night) 4.5 4.5 - Number of classified hotels 250 245 2% Number of hotel rooms 19,544 19,456 - Number of beds 36,504 36,111 1% Number of employees 50,476 49,096 3% Source: Ministry of Tourism and Antiquities 5-STAR HOTEL KEY INDICATORS FOR 2016 COMPARED TO 2015 2016 2015 Variance% Number of 5- star hotels 32 31 3% Number of 5- star hotel rooms 8,462 8,047 5% Number of hotel rooms owned by Zara Investment Holding Company 2,131 2,131 - Rooms owned by Zara - % of total 25% 26% 4% Source: Ministry of Tourism and Antiquities Annual Report 2016 11
Page 1 and 2: Zara Investment (Holding) Company P
Page 3 and 4: CONTENTS 4 7 10 14 Names of members
Page 5 and 6: Yassin Khalil “Mohammad Yassin”
Page 7 and 8: MESSAGE TO OUR SHAREHOLDERS Welcome
Page 9: On behalf of the board of directors
Page 13 and 14: Annual Report 2016 13
Page 15 and 16: 2.B SUBSIDIARIES SUBSIDIARY PAID UP
Page 17 and 18: DOB DEGREE GRAD. DATE PROFESSION ME
Page 19 and 20: NAME POSITION Professional Experien
Page 22 and 23: COMPANY’S COMPETITIVE POSITION LA
Page 24 and 25: 9.B NUMBER OF COMPANY EMPLOYEES AND
Page 26: #Sustainable_Tourism_Jo shaumari.ad
Page 29 and 30: JORDAN HOTELS AND TOURISM COMPANY,
Page 31 and 32: AMMAN TOURISM INVESTMENT COMPANY, O
Page 33 and 34: RED SEA HOTELS COMPANY, OWNER OF M
Page 35 and 36: 12. FINANCIAL IMPACT OF NON-RECURRI
Page 37 and 38: Mövenpick Resort & Spa Dead Sea An
Page 39 and 40: Annual Report 2016 39
Page 41 and 42: 16. AUDIT FEES PAID BY THE COMPANY
Page 43 and 44: NUMBER OF SHARES AS OF NUMBER OF SH
Page 45 and 46: 18.A REMUNERATIONS OF THE CHAIRMAN
Page 47 and 48: COMPANY’S CONTRIBUTION TOWARDS EN
Page 49 and 50: 22. CORPORATE GOVERNANCE The Compan
Page 51 and 52: OUR SOURCE OF BUSINESS %8 %35 %57 O
Page 53 and 54: General Assembly Annual Meeting 201
Page 55 and 56: INDEPENDENT AUDITOR’S REPORT To t
Page 57 and 58: · Identify and assess the risks of
Page 59 and 60: Notes 2016 2015 EQUITY AND LIABILIT
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ZARA INVESTMENT (HOLDING) COMPANY P
Page 63 and 64:
holders of the parent Cumulative ch
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Investing activities Notes 2016 201
Page 67 and 68:
liabilities of the subsidiary •De
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Fair value Fair value is the price
Page 71 and 72:
The carrying values of deferred inc
Page 73 and 74:
Machinery and equipment Furniture a
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Movements on projects in progress a
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8 Cumulative Change in Fair Value M
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As at 31 December, the aging of uni
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15 Long-Term Loans This item consis
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annual interest rate of 1.6% plus L
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19 Segment Information The primary
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2015 - Hotels Segment Other Segment
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22 Non-controlling Interests This i
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24 Basic and Diluted Earnings (Loss
Page 93 and 94:
Balances of related parties include
Page 95 and 96:
Oasis Hotels Co. LLC Zara Agricultu
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Oasis Hotels Co. LLC Zara Agricultu
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Credit risk Credit risk is the risk
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IFRS 15 Revenue from Contracts with
Page 103:
Board Declarations 1. The Board of
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ZaraAnnual-English2016

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