Impossible to find a hotel room in Damascus. “The city is crowded”exclaims a taxi while zigzagging between the traveling carts of fruit and vegetables which clutter the streets of the capital. Certainly, these “tourists” are, in the majority, Syrians returning from exile. “But I do a little more shopping”he notes. Especially since we also come across more and more “real” tourists.
“Before the fall of the regime, our clients were Russian and Iranian”laughs the owner of Beit Ak Bik, a hotel in the old Christian quarter of Damascus, which is sold out. Among these newcomers, Andrew and his wife. This English couple disembarked on one of the first flights of the Qatar Airways company which has been serving Damascus since January 7, after thirteen years of absence. “We didn’t want to miss this moment, when an almost forbidden country opens up to foreigners”says the thirty-year-old who lives in the Gulf.
Tourism, second source of foreign currency before 2011
Their return is experienced as a breath of fresh air: the country’s economy is bloodless, after almost fifteen years of war. Tourism, which represented the second source of foreign currency behind oil revenues before 2011, is one of the rare sectors capable of providing the dollars that the country needs to secure its wheat imports in particular. On their own, these inflows of money will not be enough to rebuild the country, but they contribute to the economic recovery plan that the transitional government is implementing. “Syrians must see the benefits of regime change, not only in terms of political freedoms, but also in their daily lives”notes Jihad Yazigi, editor-in-chief of the economic newsletter The Syria Report.
The drop in food prices, largely linked to the end of widespread bribery by the former administration, is a first positive signal. However, it is Washington’s decision on January 6 to lift sanctions on transactions with Syrian government institutions for six months that has the most implications. This measure allows “friendly countries” of Syria to help consolidate the new regime without fear of repercussions.
Their aid focuses primarily on infrastructure: Turkey has announced the sending of two floating power plants, capable of producing up to 800 MW, while Saudi Arabia has promised to supplement the approximately 50,000 barrels of oil that Iran provided the former tyrant every day. For its part, Jordan is working to restore the high voltage lines which linked it to Syria before the war. The Syrian state only delivers one hour of power per day on average in the capital. By March, eight hours will be available, promised the Minister of Energy.
Recovery through consumption
This support relates secondly to salaries, in particular those of the civil service which represents around a third of the country’s assets: the government has decided on a 400% increase by the end of February in order to increase them from 25 dollars (€24.40) on average to more than a hundred. Estimated at 1.5 billion dollars per year (1.46 billion euros), the cost of this increase must be partly borne by Qatar. “Any economic recovery requires in part the revival of consumption. The increase in wages contributes to this »recalls Jihad Yazigi, who believes that the country will experience a “significant growth” This year.
“However, only the complete lifting sanctions will be able to rebuild the country on a large scale”he adds. Unlike Idlib, a northern city from which the new authorities draw inspiration, Damascus and Aleppo have an industrial tradition, which requires investment. From this point of view, the introduction of a unified customs tariff on January 12 was well received by the capital’s business community. “The opening to Turkey is already leading to the proliferation of Turkish products. It is a danger for what remains of the Syrian industrial fabric, even if it could also allow the arrival of tourists”he concludes.
