Palestine Economic Policy Research Institute
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2 Palestine Economic Policy Research Institute Development of Tourism Sector in East Jerusalem Mohammad Halayka Saro Nakashian Enas Atari Dahadha 2016
3 The Palestine Economic Policy Research Institute (MAS) Founded in Jerusalem in 1994 as an independent, non-profit institution to contribute to the policy-making process by conducting economic and social policy research. MAS is governed by a Board of Trustees consisting of prominent academics, businessmen and distinguished personalities from Palestine and the Arab Countries. Mission MAS is dedicated to producing sound and innovative policy research, relevant to economic and social development in Palestine, with the aim of assisting policy-makers and fostering public participation in the formulation of economic and social policies. Strategic Objectives Prtig wedgebased picy fruati by cductig ecic ad scia picy research i accrdace with the expressed pririties ad eeds f decisiaers Evauatig ecic ad scia picies ad their ipact at differet eves fr crrecti ad review f existig picies Providing a forum for free, open and democratic public debate among all stakeholders on the socio-economic policy-making process. Disseminating up-to-date socio-economic information and research results. Providing technical support and expert advice to PNA bodies, the private sector, and NGOs to enhance their engagement and participation in policy formulation. Strengthening economic and social policy research capabilities and resources in Palestine. Board of Trustees Samir Hulileh (Chairman), Ghassan Khatib (Deputy Chairman), Magda Salem (Treasurer), Luay Shabaneh (Secretary), Ismail El-Zabri, Jawad Naji, Jihad Al Wazir, Lana Abu Hijleh, Sabri Saidam, Nafez Husseini, Khaled Osaily, Mohammad Nasr, Bassim S. Khoury, Nabeel Kassis (Director General of the Institute - ex officio member) Copyright 2016 Palestine Economic Policy Research Institute (MAS) P.O. Box 19111, Jerusalem and P.O. Box 2426, Ramallah Tel: /4, Fax: , info@mas.ps Web Site:
4 Palestine Economic Policy Research Institute Development of Tourism Sector in East Jerusalem Mohammad Halayka Saro Nakashian Enas Atari Dahadha 2016
5 Tourism Development in East Jerusalem Senior Researchers: Mohammad Halayka Saro Nakashian Enas Atari Dahadha Assistant Researcher: Ali Jabarin This study was funded by The Islamic Development Bank (IDB) Al-Aqsa Fund Palestine Economic Policy Research Institute (MAS) Jerusalem and Ramallah ISBN
6 Foreword The interest of the Palestine Economic Policy Research Institute (MAS) in exploring the potentials of Palestinian tourism goes back to the early years of the Institute. MAS published its first study on this topic in 1997, followed by another one in Recently, we endeavored to explore the socio-economic needs of East Jerusalem and the research that is needed to help boost its economy and alleviate the dire economic and social situation of the city. The findings were not unexpected: namely, that tourism remains the sector with the highest impact on the economy and the living standards of Palestinians in East Jerusalem in general and in the Old City in particular. Thus, the present study is a renewed attempt to identify challenges, define targets, and suggest policies and interventions to be implemented by the various stakeholders in order to revive the sector and boost its role to the established potential in this unique city. The study relies on extensive fieldwork and derives its conclusions from a close examination of the needs of the actors in all sub-sectors. If this study is to serve its purpose, Palestinian decision-makers including those in the private tourism industry should take on the identified interventions and use them to the extent which they deem appropriate as guidelines in their business plans. The limitations imposed by the Israeli occupation are well-known, be they through the illegal annexation of the city and the extension of Israeli law over it, or through the total control of tourists entry into all touristic destinations in Palestine and East Jerusalem in specific. The challenges to expanding the tourism sector under the prevailing conditions are enormous, but so is the creativity of Palestinian entrepreneurs. On behalf of MAS, I would like to thank the authors of this study as well as to extend our gratitude to the Islamic Development Bank/Al-Aqsa Fund for allocating funds to this study from a grant from the Arab Monetary Fund. Nabeel Kassis, PhD Director General i
7 ii
8 ABSTRACT Vast research has been conducted on tourism internationally, yet not much effort has been dedicated to studying tourism in Palestine. Despite the occupation, foreign tourists have not stopped visiting Jerusalem, the main tourist attraction in Palestine. In order to fill in a specific gap in the research, the present study focused on finding new, alternative methods for enriching the tourist experience which Palestine offers from a marketing perspective. The methodology used included both a qualitative analysis of semi-structured, in-depth interviews with stakeholders from the tourism sector and a quantitative analysis of an opinion survey on tourists. Based on the literature review and the collected data, a SWOT (strengths, weaknesses, opportunities, and threats) analysis was conducted; market segments were identified; and, accordingly, new product offerings were recommended to enhance the experience of tourists as well as pilgrims. The proposed new product development will offer a complete tourist experience a visit not only to a place of religious importance but also with a historic, spiritual, and entertaining value as suggested by the new branding and positioning strategy for East Jerusalem. The recommended strategy is expected to have a great impact on the economic and cultural situation if supported by the tourism sector and the relevant governing bodies. 1
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