Sana’a, Yemen, May 13, 2010—IFC,
a member of the World Bank Group, signed an agreement with Yemen’s government
and its private investment arm, Shibam Holding, to strengthen Yemen’s
tourism sector by helping improve tourism regulations and supporting increased
investment that will create jobs and expand the country’s economy.
IFC will help Yemen’s Ministry of Tourism
develop tourism regulations to attract investments, clarify the different
roles and responsibilities of government regulatory agencies, and ensure
that international social and environmental sustainability guidelines are
met.
IFC will also work with the newly-established
Yemen Tourism Development Company (YTDC) on attracting sector investment
while investing in pilot projects. YTDC was created in partnership between
the Yemen Tourism Promotion Board and Shibam Holding.
Shaun Mann, IFC’s Senior Investment
Policy Officer for Tourism, said, “Yemen’s tourism sector has outstanding
potential. The country has an unexplored, pristine coastline and mountains
as well as a unique architectural heritage. An improved policy framework
will help attract investment, create jobs, and improve the country’s economy.”
Saad Sabrah, Chairman and CEO of Shibam
Holding, said, “This initiative aims to consolidate under one corporate
umbrella all government-owned assets which are geared towards serving the
tourism sector, and to ensure that these assets are developed and marketed
to strategic investors who will work with YTDC and help in implementing
the country’s national tourism strategy.”
Drawing on experience from supporting
tourism in countries including Sierra Leone and Mozambique, IFC will help
Yemen attract investment into desirable destinations, such as the Red Sea
Islands or Socotra, that will build local supply chains, and create direct
and indirect jobs.
Tourism is becoming increasingly important
for Yemen’s economic growth as its revenue from oil declines. Tourism
currently generates only about $50 million of new investments, and about
3,000 new jobs annually. Most investments in Yemen’s tourism sector are
in small projects, with large-scale investments hampered by unclear regulation,
insufficient assessments, and little knowledge about investment opportunities.
IFC’s work in the tourism sector will
be financed through a three-year program supported by the United Kingdom’s
Department for International Development (DFID) and implemented by the
Investment Climate Services of the World Bank Group, in collaboration with
Yemen’s government and the private sector
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
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