While food delivery and e-commerce startups boomed during the closing and attracted the attention of venture capital, they have moved away from companies operating in the travel and tourism industry.
Startups in this sector suffer from a lack of services provided to them as well as a lack of investment in venture capital. Since the beginning of the year, only four startups in the field of tourism and travel have managed to raise a total investment of $ 8.7 million, of which $ 6 million has been invested in an AirBNB rental platform Collect houses similar to Saudi Arabia.
Meanwhile, the travel startups in other parts of the world earned ten times as much at $ 87 million in the first week of September alone.
And it is a surprising paradox in the numbers that investor interest has started returning to these companies with the spread of vaccines, in the hope that travel traffic will someday return to 2019 levels.
Tourism accounts for 15% of GDP in Jordan, Egypt, Morocco and Tunisia, according to the Institute of International Finance (IIF), therefore a series of new initiatives aims to revitalize the business of startups operating in the travel and tourism sector.
VentureX, with headquarters in Jordan, for example, has launched industry-focused accelerators, including a partnership with the Jordan Tourism Board and a partnership with the General Authority for Small and Medium-sized Enterprises (Monsha’at) in Saudi Arabia.
For his part, VentureX managing partner Yousef Hamid Al-Din said in an interview with Al-Arabiya that his company is working to spread the importance of accelerators business on the economy and launched accelerators of business in Jordan and Saudi Arabia, through a 3-month program that includes the construction of the identity of the project and a series of axes and objectives Realism in the market and the ability to grow outside its geography.
He added that comparing the Arab region to others shows the size of the venture capital gap in general, pointing out that his company is trying to persuade workers and investors in the tourism sector to look to emerging companies as active partners in restoring the tourism business and that there should be a different agreement than before, and it is necessary to attract New investors. people can deal with the tourism sector.
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