COVID-19 leaves Spain’s interior a tourist desert

A tourist walks around The Mezquita in Cordoba after the national lockdown put in place to fight the coronavirus pandemic was lifted In Spain. (AFP)
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Updated 13 July 2020
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COVID-19 leaves Spain’s interior a tourist desert

  • In Grenada and Toledo, revenue drops more than 50 percent for restaurants

CORDOBA: The Santos Bar, across from Cordoba’s celebrated mosque, would normally be groaning with tourists tucking into its trademark Spanish tortillas.

But with the coronavirus pandemic, “everything’s dead,” the owner says.

The Mezquita, an eighth-century mosque later turned into a cathedral, is the most visited site in the Andalusian town in southern Spain.

But since it reopened at the end of May, only 16,000 people have set foot in the UNESCO World Heritage site considered one of the most accomplished works of Moorish architecture — the number of visitors it would normally receive in a week.

“It will take months to make that up,” said church spokesman Jose Juan Jimenez Gueto, although money set aside in previous years means staff have been kept busy with restoration projects.

Nearby restaurants, hotels and shops are not so lucky, and many are closed. At the Santos Bar, only owner Jesus Maldonado is working.

Business is “a quarter of normal,” he said. 

His 10 employees are all on a state-backed furlough scheme.

The plunge in tourism, a sector that accounts for 12 percent of Spain’s economy, will be felt like a body blow.

While the country’s beaches are its biggest draw, cities in the interior like Cordoba also attract tourists with their cultural sites.

And it’s places like Grenada, Toledo, and Segovia .that are bearing the brunt, according to Spain’s national hotel association, with revenue drops greater than 50 percent for restaurants and bars in their historic city centers.




A tourist visits the Alhambra in Granada on the day it reopened to the public after three months of closure. (AFP)

In Andalusia, hotel occupancy is at an average of just 25 percent, a good 10 percentage points lower than in establishments along the coast, said Francisco de la Torre, head of the region’s hotel association.

He worries that Andalusian eateries will eventually have to shed up to a third of their staff.

In Spain, the world’s No. 2 tourist destination behind France, spending by foreign tourists plunged by 62 percent in the first five months of the year compared with the same period in 2019.

In Ronda, the mountaintop city perched above a gorge known for its stone bridge, Maria Lara Galindo has worked as a guide for Asian tourists for the past decade.

“For those serving Spanish tourists there is now some activity, but Asian tourists — nothing,” she said.

While Japanese and South Korean tourists may now visit the European Union again, Galindo doesn’t expect them to return before next summer, and thinks they will be more likely to travel individually than in groups.

Galindo is one of half-a-million independent workers in Spain’s tourism industry, whose federation fears that up to 100,000 people could lose their jobs.

In Seville, foreign tourists are nearly nonexistent and even Spanish tourists few and far between.

Reports of new outbreaks are keeping people from going out, added Celia Ferrero, vice president of the Association of Independent Workers.

“Spending is still under shock from the coronavirus and it will stay that way until there is a solution,” she said.

Jordi Reines, who works as a nurse in Barcelona, canceled a trip to Portugal to spend his time off in Andalusia.

“We didn’t even think about making a trip abroad,” said Reines’ girlfriend Noemi Garcia.

Jose Romero, who owns a stand selling drinks and ice cream alongside the city’s central Spain Square, said sales are just a tenth of what they were last year.

“This year is a washout, people aren’t confident enough to travel,” he said.

The dozen souvenir shops near him are still shuttered.

“Uncertainty and fear are slowing everything down,” said Isabel Diaz, who is reopening her family’s fan shop after a four-month closure — something they weren’t even forced to do during Spain’s civil war in 1936-1939.


Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT  

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Saudi Arabia’s real GDP rises by 1.3% in first quarter: GASTAT  

RIYADH: Saudi Arabia’s real gross domestic product saw a 1.3 percent rise in the first three months of this year compared to the previous quarter, official data showed. 

According to the General Authority for Statistics, this rise in real GDP was propelled by oil and non-oil activities which increased by 2.4 percent and 0.5 percent during the period, respectively.  

On the other hand, government activities in the Kingdom witnessed a decline of 1 percent in the first quarter of this year, compared to the last quarter of 2023.  

However, GASTAT revealed that Saudi Arabia’s real GDP decreased by 1.8 percent in the first quarter of 2024 compared to the same period of the preceding year.  

The authority attributed this decline to a drop in oil activities, which decreased by 10.8 percent year-on-year in the first quarter. The fall in oil exports stemmed from the Kingdom’s decision to curtail crude output, in line with an agreement by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+. 

In a bid to maintain market stability, Saudi Arabia decreased its oil output by 500,000 barrels per day in April 2023, a measure that has now been extended until December 2024.  

Meanwhile, non-oil activities in the Kingdom witnessed a 2.8 percent year-on-year increase in the first quarter, with government activities experiencing a growth of 2 percent during the same period.


Saudi Arabia, UAE supplied 85% of Japan’s crude oil in March

Updated 23 min 26 sec ago
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Saudi Arabia, UAE supplied 85% of Japan’s crude oil in March

  • Further 10% of Japan’s needs were from Arab sources including Kuwait, Qatar, Oman and the Neutral Zone

TOKYO: Saudi Arabia and the UAE provided 85 percent of Japan’s total crude oil needs in March, according to the Agency of Natural Resources and Energy of the nation’s Ministry of Economy, Trade and Industry.

A further 10 percent of Japan’s needs were from Arab sources including Kuwait, Qatar, Oman and the Neutral Zone. This means that the Arab region provided nearly 95 percent of Japan’s needs.

Crude oil represents about a third of Japan’s energy needs.

Japan imported 32.77 million barrels from the UAE, or 44.1 percent of total imports, in March. Saudi Arabia’s share amounted to 30.51 million barrels, or 41 percent of total imports.

During March, Japan imported 74.39 million barrels of oil, of which the Arab share was 94.7 percent, or 70.45 million barrels.

Kuwait provided 5.12 million barrels (6.9 percent) and Qatar 1.56 million barrels (2.1 percent). Japan imported 0.1 percent from Oman and 0.6 percent from the Neutral Zone.

With Japan’s ban on importing oil from Iran and Russia continuing in March, the rest of the country’s oil imports came from the US (4.1 percent), Central and South America (0.9 percent), and Oceania (0.3 percent).


Europe to launch chamber of commerce in Riyadh

Updated 01 May 2024
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Europe to launch chamber of commerce in Riyadh

RIYADH: The first European Chamber of Commerce in the Gulf region will open next week in Riyadh, the EU’s special representative for the Gulf region has told Arab News.

Luigi Di Maio said the new body would bring Saudi and European companies together to enhance trade and cooperation.

“We’ve worked very hard with the Ministry of Investment, your Ministry of Trade. The EU delegation in Riyadh did a great job. And now we are going to inaugurate this chamber,” Di Maio said.

“That is in order to bring closer our companies, Saudi companies and European companies, to take on both sides the new opportunities of the Vision 2030 program … of our new European Green Deal, Next Generation EU, and others.”

Saudi Arabia’s Vision 2030 reform program had transformed the global business community’s view of the Kingdom, Di Maio said. “The ambitions, especially economic ambitions, of Saudi Arabia are totally changing perceptions of the Kingdom around the world,” he said. “There is a business community that is more and more interested in these ambitions, in this vision, and in a new generation of dreamers in this country.”

There was a growing recognition of the Kingdom’s diplomatic and economic influence, Di Maio said. “Saudi Arabia is becoming more and more the point of reference because now it is implementing its vision for the region that is not just an economic ambition, but is a new policy and new initiatives in order to de-escalate, to make the region in peace and wind down on tensions like the tension that we are experiencing now.

“The partnership and the strategic partnership between the EU and GCC countries, in particular with countries like Saudi Arabia, is vital.”


Red Sea Global offers more than 50 leisure activities: top official

Updated 30 April 2024
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Red Sea Global offers more than 50 leisure activities: top official

RIYADH: Contrary to popular conception, sporting activities provided in the Red Sea and AMAALA are not just confined to water, but these destinations offer exciting leisure choices on land as well, said a top official. 

Speaking to Arab News at the Future Hospitality Summit, Oliver Wood, senior director of Destination Development at Red Sea Global, said the destination currently offers more than 50 activities for visitors. 

Wood said that RSG created three business entities last year — Galaxea, WAMA, and Akun. 

Galaxea provides diving experiences to visitors, while WAMA and Akun offer water activities and adventure sports respectively. 

“Galaxea is a coral that’s endemic to the Red Sea. It looks like, a kind of submarine galaxy that sits below a constellation and is beautiful. Then we created WAMA which is a way for water. And then we created Akun, which to us, is obviously ‘to be’ in the moment, start when you stand, breathe, leave everything behind,” said Wood. 

He added: “So, all three of these businesses work together to do something that will reduce the misconceived fact that we are just water. We are land as well. In fact, similar to our surroundings, our land was created by water. Fifty million years ago, the sea was 120 km inland and 200 m higher. So we’re finding dinosaur bones. We’ve got petroglyphs, we’ve got ancient trade routes.” 

According to Wood, some of the land activities offered in the Red Sea and AMAALA destinations include biking and hiking, with RSG recently delivering electric fat bikes for visitors. 

“So for us, it’s about taking you out hiking. It’s taking you biking, supercool Akun electric fat bikes that we just got delivered. So, you can go sand, and gravel wherever you want. It’s about climbing to the top of our mountains,” he added. 

The RSG executive also lauded the efforts of the Saudi Sailing Federation and the Saudi Water Sports and Diving Federation in promoting water sports in the Kingdom. 

“The Saudi Sailing Federation, Saudi Water Sports and Diving Federation, they’re bringing this sport to the forefront. So, together we’ve created this blueprint so that you have more Saudis in the water, more tourists that are going in the water,” he noted. 

Wood said that the availability of e-foils is one of the major attractions in the destination. 

“E-foils is a surfboard that’s electrified, has this fin in the middle that pushes you above the water, so you glide through it without any friction. That is one of the most popular things we do. It is really good fun,” said Wood. 

He added: “You can kayak through mangroves. And, then below the water is incredible. It’s one of the most well-preserved reefs in the world, and we’re very lucky to be working with KAUST on the scientific side.” 

According to Wood, Galaxea is not just a diving brand, but it will allow visitors to understand the beauty and value of nature. 

“There are lots of rare and endangered species beneath the water and it’s just incredible. It is a beautiful experience that allows you to reset your mind and just have a beautiful time in the Red Sea,” said the RSG official. 

He revealed that RSG brand Corallium, which is a marine life institute, will help travelers understand more about protecting, preserving, and supporting water ecosystems. 

Wood added that Corallium would also help divers communicate with experts in real-time, as they enjoy the beauty of the marine world. 

According to the RSG website, Corallium can host 650 people at one time, and guests will be able to walk underwater, snorkel with rare species, participate in lab tours as well as dive into the depths of the Red Sea in a submarine. 

“So as a diver, so you go snorkeling, you’re kind of shut off from it and experiencing it. Then you can speak to somebody afterward and understand.

 “We try and extend that a bit further. you actually get to go out in these experiences and dive with a full face mask, communicating in real-time, under the water with our team,” he noted. 

Wood also revealed that RSG has plans to create a scuba spa, where people can enjoy the silence in water. 

Talking about the multiple options available for travelers in the Red Sea, he said: “You can be in the middle of desert dunes, you can be out in granite mountains. You can even go down to volcanoes. We have incredible volcanic lava fields that sit close to us. And then you can be in the water. You can be in front of 600-year-old pillars of coral reef. You can go through caves into the water.” 

Wood also hinted that RSG is working toward offering Red Sea and AMAALA destinations to people who fall both in the luxury class and the middle range. 

“We’re trying to show generosity in the value that we offer everybody there. We’ve tried to not only benchmark globally but try and push it right down so it is accessible to everybody and so that everybody can come and really enjoy it,” said Wood. 

He added: “For me, it’s about building things around that enable people to come and get involved with it. So there are all sorts of things that we’re working on right now that will be revealed and are coming up.” 


BlackRock, PIF launch multi-asset investment management platform in Riyadh

Updated 30 April 2024
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BlackRock, PIF launch multi-asset investment management platform in Riyadh

  • First-of-its kind partnership aligns with PIF’s initiatives to drive further growth of the Saudi capital markets ecosystem, sector
  • It will be anchored by an initial investment mandate of up to $5bn from PIF

RIYADH: BlackRock Saudi Arabia and the Public Investment Fund signed a memorandum of understanding on Tuesday which entitles the former to establish a Riyadh-based multi-asset investment platform.
It will be anchored by an initial investment mandate of up to $5 billion from PIF, subject to the achievement of agreed milestones between the parties, said a media statement.
Both parties have expressed the intention to establish BlackRock Riyadh Investment Management, which will encompass investment strategies across a range of asset classes. It is expected to be managed by a Riyadh-based portfolio management team and supported by BlackRock’s global asset management platform.
Larry Fink, BlackRock’s CEO, said: “We are excited to build on the deep partnership we have developed with PIF over many years to launch this first-of-its-kind international investment management platform in Saudi Arabia.
“The continued growth of the Kingdom’s capital markets, and diversification of its financial sector, will contribute to future prosperity for its citizens, the competitiveness of its companies and the resilience of its economy.”
Saudi Arabia has become an increasingly attractive destination for international investment as Vision 2030 comes to life, according to Fink.
He added: “We are pleased to offer investors from around the world the opportunity to take part in this exciting, long-term opportunity.”
Yazeed Al-Humied, PIF’s deputy governor and head of MENA (Middle East and North Africa) Investments, said: “PIF’s relationship with BlackRock is well established and growing. This new landmark agreement represents a step forward in PIF’s work in making the Saudi investment and asset management market more internationally diverse and more dynamic.”
As Saudi Arabia continues to transform its economy, BRIM will seek to support foreign institutional investment into the Kingdom and further enhance the Saudi asset management industry, broadening local capital markets while driving investor diversification across asset classes, facilitating knowledge sharing and the development of Saudi-based asset management talent.
BRIM will be fully integrated with BlackRock’s investment capabilities and operating platform, benefiting from global market expertise.
The non-binding memorandum is subject to satisfying certain necessary conditions, regulatory approvals, and fulfilling specified milestones.