Government announces strategic plan on tourism in Kuwait
Tourism is considered as an important source of national revenue and a potential investment sector. Kuwait’s neighboring countries have already made substantial progress in tapping this source. Although serious efforts are being made by the Department of Tourism Affairs of Kuwait’s Ministry of Information, the country is yet to make its mark on the regional tourism map.
Kuwait’s Tourism Affairs Department has set its objectives and plans for development of the tourism sector. The implementation of the plans would be commenced with the support and participation of both public and private sectors.
A long-term National Tourism Master Plan would be prepared in co-operation with the United Nations Development Program (UNDP) under the supervision of World Tourism Organization (WTO). The international consultancy firm Deloitte & Touché is already working on the master plan and its first phase is expected to be ready by end of October 2003.
Kuwaitis express love for their country through songs
Kuwaiti people’s emotions towards their country have taken a drastic change following the August 1990 Iraqi invasion of Kuwait with poets and artists expressing their love in the most beautiful way, music.
Prior to August 2, 1990, most patriotic songs and poems represented the country’s love towards the people and the bond among them.
A good example is a poem by the late Dr. Abdulla Al-Utaiby when he said “Kuwait, the desert rose, Kuwait, you are a man’s journey, the laughter of destiny, the joy of spring and rain”.
The patriotic songs took a shift after the invasion where people’s fear over the loss of their country the dominated feeling, similar to a child’s love to his mother.
The state of fear and stress that have been haunting Kuwaiti people will ease within the next 10 years since the source of danger is no longer in power.
According to a leading Kuwaiti Psychiatrist, the expression through patriotic songs is a natural feeling to empty people’s inner feelings after suffering such great tragedy. These songs express people’s bond and love for their country especially when their country provides them safety, equality, prosperity and democracy and they would even give up their lives not to loose such blessings.
Work-friendly Labor Law referred to Cabinet
The Ministry of Social Affairs and Labour has referred to the Council of Ministers a bill comprising major amendments on the Labour Law required from Kuwait to join the WTO, in line with social and economic developments seen by the Kuwaiti society, says a senior Ministry official.
A team of experts from the International Labour Organisation (ILO) had made several recommendations to the Kuwaiti government on the existing sponsorship system and proposed alternatives.
The recommendations by the team put into consideration Kuwait economic and social development and the impact of the sponsorship system on sponsors and workers on the basis of international laws and agreements on human rights. The Ministry earlier said a new draft labour law, which was submitted to the Council of Ministers, introduces many incentives to expatriate workers in the private sector.
Economic Recovery becoming more widespread.
In the recent Economic and Financial Review, the National Bank of Kuwait notes that with the war in Iraq over and stability returning to the region, an already promising picture of Kuwaiti economy looks better than ever. The growth potentials are substantial as Iraq rebuilds and promises to play an important role in the economy of the region in the coming years. For Kuwait, this not only means increased trade and investment opportunities, but more importantly increased prospects for internal growth in an era of increased regional stability.
This year has already proved to be very positive as the price of oil remained strong and the local equity market surged on strong investor confidence. Private sector activity that was already showing strong signs of recovery in 2002, benefited from increased demand for logistical supplies and support services by the coalition forces. However, these positive indicators can conceal the real challenges that lie ahead. For Kuwait’s economy to make the most of the improved conditions, a bold attitude must be embraced to deepen the steps towards economic reforms that have been studied in great detail.
Even before the optimism born of the overthrow of Saddam’s regime in Iraq, Kuwait was already benefiting from an improved economic environment. Driving the growth in economic activity has been an expansionary fiscal policy, which has boosted both current and capital spending over the last two years.
Economic activity recovered in 2002 as gross domestic product (GDP) grew by 2.3% to US $ 35.45 billion despite a drop in value added from crude oil production. Traditional private sector activities including wholesale and retail trade, real estate and business services, formed an important part of this pick-up, though the public sector continued to be an important driver as well. Overall, the growth in non-oil GDP accelerated to 6.2 per cent raising its share of the total to 55 per cent.
Oil GDP shrank mildly despite higher oil prices as Kuwait reduced its crude oil production in line with the cuts in the OPEC quota. It is expected that the sector’s output should be even higher this year barring a sharp drop in refining margins as it operated below its original capacity during most of last year.
Kuwaiti crude averaged $ 23.6 per barrel in 2002. The price rose further during the first quarter of 2003, averaging $ 28.5 as war in Iraq appeared more likely before weakening in the months after the war. Kuwait’s crude oil production recorded its highest levels in years once the war broke out and during the following weeks as the authorities pushed production to 2.4 million barrels per day, which is near to the country’s sustainable production capacity.
Per-capita GNP fell by 7.2 per cent on the back of a drop in investment income from abroad and fast growth in the population. However, per capita consumption continued to grow at its 5-year average.
Government plans modern port in Bubiyan.
The Government authorities are examining the feasibility of constructing a modern port on the Bubiyan Island, taking into account the increasing potential for import-export activities in the northern Gulf. Kuwait Consultancy and Investment Company and the Booz Allen Hamilton Company had carried out a joint study in this regard. The scope for a modern harbor in that region is quite impressive in the changed political atmosphere. The existing facilities are not sufficient to meet the growth experienced in the trade and commercial activities.
The development of the Bubiyan Island and the northern region would largely help Kuwait as well as its neighboring countries, especially with the re-opening of Iraqi markets for international commerce.
The Director of the Kuwait Consultancy and Investment Company indicated that the expansions currently underway at the existing Kuwaiti ports would augment their capacities to some extent. Nevertheless, more development projects were still needed, particularly in view of the strategic location of Kuwaiti ports that make them a convenient transit point for the consignments heading for Iraq.
The cost of the Bubiyan Project is estimated to be $ 850 Million and the construction is planned in five phases, stretched over a period of 16 years.
According to financial studies, the proposed port would attract revenues equivalent to nine per cent of the original cost, which is reasonable for the time being for such ventures. The earnings could reach up to 14 per cent once the initial hurdles were removed. Such relatively handsome returns could encourage the Kuwaiti Government to explore more major projects and allocate funds for them.
