16 hours ago
Jordan: Airspace disruptions, regional escalation cloud summer outlook local businesses
AMMAN — As July and August draw near, businesses across Jordan are preparing for the country's traditionally busiest season. Sectors such as tourism, real estate and retail are hoping for a much-needed boost, driven by the return of Jordanian expatriates and an expected rise in summer spending.
Behind the seasonal optimism lies a more fragile economic reality. Ongoing regional tensions, mounting household financial pressure, and uncertainties surrounding air travel due to geopolitical developments are all clouding this year's outlook.
From hotel operators to retail managers, many business owners report early signs of promise, but caution that sustained growth would hinge on three key factors: regional stability, consumer confidence and uninterrupted flight operations.
'At this time of year, we usually count on expats and tourists,' said Maria Saed, who manages a jewellery shop in Amman. 'But local customers are much more cautious now. The rising cost of living has made people think twice before making any purchases, big or small.'
A similar sentiment is being echoed in the real estate and home decor markets. 'There's strong interest from returning Jordanians looking to refurbish or buy homes,' said Abeer Abed, a home decor specialist. 'But most are postponing major plans and focusing only on essentials.'
Despite economic concerns, Jordan's tourism sector continues to show signs of recovery. According to official data, tourism revenue in the first quarter of 2025 reached $2.4 billion, a 15 per cent increase compared with the same period last year. International arrivals also rose significantly. Yet experts warn that this momentum is vulnerable to external shocks, particularly airspace closures and flight disruptions linked to regional instability.
In response to these concerns, Chairman of the Civil Aviation Regulatory Commission Haitham Misto has recently assured that Jordan's airspace remains safe. 'The Kingdom's skies are secure for air traffic, with safety measures in place that meet both national and international aviation standards,' he said.
Still, June has seen a wave of air travel disruptions. Following missile attacks on US military bases in Qatar on June 23, several Gulf states, including Qatar, the UAE, Bahrain, and Kuwait, temporarily shut their airspace. The closures led to widespread flight cancellations, particularly affecting expatriates planning to visit Jordan.
'Uncertainty is our biggest challenge,' said Hala Abdulla, owner of a boutique in Amman. 'If expats aren't sure their flights will even land, they won't book. We saw cancellations from people who were simply afraid of sudden airspace closures.'
Abdulla said many of her customers had planned visits to attend weddings and family gatherings but have now postponed their travel plans.
To help the tourism industry cope with these developments, the Ministry of Tourism has launched a dedicated operations room to monitor conditions and respond to regional volatility. Government efforts also include enhanced airspace coordination, security readiness, and diplomatic engagement.
In downtown Amman, retailers are bracing for whatever the season may bring. 'There's a steady flow of people, and the atmosphere feels lively,' said Khaled Odeh, an employee at a local garment store. 'But things aren't fully back to normal yet—we're staying hopeful for better days.'
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