ZaraAnnual-English2016

MESSAGE TO OUR
SHAREHOLDERS
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, which
was 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.
OPERATING
REVENUES
IN MILLIONS
2016
JD 69.8
2015
JD 71.2
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.
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
growth projection of 2%-5% in international tourist
arrivals in the Middle East, arrivals in Jordan increased
in 2016 by 3%.
In 2016, Zara continued to maintain its leading market
position and share of the 5-star room inventory in
Jordan. Zara also maintained its market leadership in
the number of persons employed in the hospitality
sector. Employment in the 5-star hotels segment in
Jordan reached 9,100 persons in 2016 of which Zara
employs approximately 24%; while employment in
the hospitality sector reached 50,496 in 2016 of which
Zara employs approximately 4%.
In 2016, we maintained our commitment to
upholding the highest standards in our operations
underpinned by the right culture, values, practices
and behaviors.
TOURISM
REVENUES
IN BILLIONS
2016
JD 2.87
2015
JD 2.89
Our hotels continued to be distinguished in 2016.
Hotel InterContinental Jordan, Mövenpick Resort
Petra and Mövenpick Resort & Spa Tala Bay Aqaba
were all ranked as number one in their respective
geographical areas in terms of revenue generation
and gross operating profits. Mövenpick Resort Petra
maintained an impressive leadership position by
achieving the best revenue, gross operating profit,
and average room rate in Petra. In addition, our hotels
continued to be recognized by leading online travel
sites and world renowned travel organizations as
some of the best hotels in the region and the world.
Hotel Intercontinental Jordan won “Trip Advisor
Travelers’ Choice Award”. For the third year in a row,
Mövenpick Resort & Spa Dead Sea won “Seal of
Excellence” by the “Seven Stars Luxury Hospitality and
Lifestyle Awards”. Mövenpick Resort & Spa Tala Bay
Aqaba won “World Travel Awards” as Jordan’s Leading
Resort.
Annual Report 2016 7