Tunisia: Tourism Booming as Sector Reforms Announced

by | Aug 19, 2023 | Economic, Tunisia

Summary:

This week, the Minister for Tourism Moez Belhassine announced plans to evolve how Tunisia’s government manages the various agencies involved in the county’s tourism industry.

The plans announced by Belhassine include the establishment of a “higher council” that will play a coordinating role across government agencies. The Council existed prior until 2010 when it was dissolved. The plan also includes efforts to revise legislation to simplify the process for investing in tourism in Tunisia and to consolidate the way proceeds from tourism are collected and tracked.

The announcement follows China’s lifting of a COVID-19-related travel ban on its own citizens to over 70 countries, including Tunisia. The Chinese government authorized Chinese travel agencies to resume marketing and organizing tours to Tunisia among other locations.

Meanwhile, the tourism sector continues to perform exceptionally well in 2023 as the market recovers from the COVID-19 pandemic. The tourism ministry reported that hotel occupancy on Djerba island was nearly 100%, with French, Algerian, and domestic tourists being the primary clientele.

Outlook:  

As tourism continues to recover, Tunisia’s economy will likely benefit. However, the increase in revenues cannot overcome the budget shortfalls threatening the economy currently.

There is also an increased risk that the tourist experience could degrade as the country edges toward the peak of its capacity, lowering the potential for repeat visits in the future.

Plans to improve the management and coordination of tourism hold the potential for long-term growth that could help Tunisia capitalize on post-COVID-19 surge in travel. However, security for tourists will be essential to maintain growth in the sector in the midst of economic and political uncertainty.


 

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