Ammon News - Jordan’s tourist car rental sector is currently experiencing one of its most challenging periods, as global reservation cancellations have reached 100% in recent weeks due to the regional situation, resulting in an almost complete halt in demand for tourist car rental services.

Industry representatives confirmed that tourist rental vehicles represent no more than 3% of the total number of vehicles operating on Jordanian roads, highlighting that while the sector is relatively small in size, it plays a significant economic and tourism role due to its direct connection to serving international visitors and supporting the tourism ecosystem.

They explained that rental companies have invested millions of dinars in modern fleets to meet tourism demand. However, the complete suspension of bookings has left a large number of vehicles idle while financial obligations continue to accumulate.

Companies continue to face major financial commitments including:
•Vehicle financing installments to banks and leasing companies
•Annual licensing fees
•Mandatory and comprehensive insurance costs
•Employee salaries
•Maintenance and operational expenses

Despite the sharp decline in revenues caused by the tourism slowdown.

Industry representatives also warned that many car rental companies may face bankruptcy in the coming period due to lack of liquidity and the absence of operating income to meet financial obligations, particularly as most companies depend on continuous cash flow to sustain operations.

They stressed that if the current situation continues without financial support measures or relief programs, several companies may be forced to exit the market, leading to job losses and further negative impacts on the tourism sector.

The sector is therefore calling for urgent support measures including:
•Restructuring loans for car rental companies
•Granting grace periods from banks and financial institutions
•Temporary relief from certain government fees
•Including the car rental sector within tourism support programs

They further noted that sector recovery will not be immediate even if conditions improve, as tourism markets typically require 6 to 12 months to regain traveler confidence after regional crises.

In conclusion, industry representatives emphasized that the tourist car rental sector has always been a key partner in supporting Jordan’s tourism industry, and that supporting it today will ensure its readiness to contribute to the recovery of tourism once stability returns to the region.

Saving car rental companies today is not only about protecting businesses, but about protecting a vital part of Jordan’s tourism infrastructure.