Ammon News - Jordanian Car Rental Offices Owners Association President Marwan Akoubeh has warned against approving the new licensing system for car rental companies and offices, saying it would drive 66% of operating firms into bankruptcy and threaten more than 2,000 direct jobs.

Akoubeh said the proposed amendments would bring nothing but destruction to the sector, explaining that the new system raises the minimum capital requirement from JD100,000 to JD500,000 — a level he said existing office owners cannot meet, particularly amid declining tourist numbers and mounting financial pressures.

He added that the required bank guarantee would increase from JD2,000 to JD15,000 under the new regulations.

According to Akoubeh, a government-commissioned study costing JD250,000 concluded that the sector is already saturated. However, the proposed system would allow the licensing of additional tourist car rental offices, contradicting the findings of the study itself.

The draft regulations would also increase the minimum number of vehicles per office from 10 to 15, despite market saturation — a move Akoubeh said would burden 66 percent of offices and push many toward closure.

208 offices are currently operating in the sector, collectively owning around 12,000 vehicles and employing more than 2,000 direct workers, in addition to thousands of indirect employees, he noted, explaining that more than half of these offices could shut down if the system is approved.

Akoubeh said 66% of existing offices own fewer than 15 tourist vehicles, meaning they would struggle to comply with the new requirements.

He stressed that the impact would extend beyond rental offices to maintenance centers, parking facilities and other businesses linked to the tourist car rental sector.

The sector has been suffering for more than five years due to the COVID-19 pandemic and subsequent regional developments that led to a downturn in tourism and overall economic slowdown, he indicated.

Akoubeh added that during a recent meeting, the Minister of Transport had pledged to support and sustain the sector, but the proposed system, he said, would instead eliminate it entirely after years of hardship.

He questioned whose interests are served by adopting such decisions and regulations.