The hit to tourism in the region from the COVID-19 pandemic finally appears to be over. Receipts and arrivals are now back to, or even above, seasonal norms in almost all countries. This will be welcome news for Saudi Arabia as the annual Hajj pilgrimage gets underway. An anticipated 2.5mn are set to visit the Kingdom, more than double the 2022 figure. Elsewhere, the return of tourists will provide those economies suffering balance of payment strains (Egypt, Jordan, and Morocco) with crucial hard currency receipts. Tunisia is an exception to this regional story. Arrivals remain below pre-pandemic levels and ongoing political turmoil may deter tourists. This cements our view that the dinar could experience a disorderly adjustment and exacerbate the risk of a sovereign default.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services