AAPI Monthly Newsletters

AAPI Newsletter: May 2023

June 01, 2023

By Abraham Accords Peace Institute

In the first week of May 2023, Morocco hosted two important conferences: the “Women Connect to Innovate Conference” in Marrakech and the “International Exhibition of Agriculture” (SIAM) in Meknes. The Marrakech conference brought together women leaders from Israel and a host of Arab and African countries to create new personal and business connections. SIAM in Meknes witnessed the participation of ten Israeli ag-tech companies, as well as of Israeli Minister of Economy and Industry Nir Barkat, who inaugurated the Israeli pavilion. Following the conference, Minister Barkat announced plans to open an economic mission in Morocco in the coming months.
 
Beyond the conferences, Abu Dhabi and Manama hosted celebrations of Israel’s Independence Day; the Moroccan Parliament announced the formation of a Moroccan-Israeli Friendship Group; and Israeli Foreign Minister Eli Cohen discussed with Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani ways of broadening Bahrain-Israel relations to achieve common interests.

 
 

Abraham Accords In Depth:
Insights from AAPI Partner: HVS London
“Easier Visas Lead to Tourism Growth and Increased GDP”


This month, we highlight a study conducted by AAPI partner HVS, whose findings demonstrate that eased visa requirements between Israel and Abraham Accords countries would boost tourism and GDP while benefiting all involved countries.
 
Executive Summary:

The Abraham Accords (AA) opened the door to warm peace and full relations between Israel and several of its Arab neighbours. An analysis conducted by HVS London, in partnership with the Abraham Accords Peace Institute (AAPI), indicates that improved visa procedures would expand the movement of tourists among AA member nations, resulting in economic growth and stronger people-to-people ties. The reduction in barriers to increased tourism is an integral component in enabling regional trade and economic partnerships, as discussed in AAPI’s paper on a regional Free Trade Area.
 
While hundreds of thousands of Israelis have visited Accords member countries, relatively few citizens of these countries have visited Israel since the signing of the historic peace agreements. There are several factors contributing to the relatively small number of such visits. This paper examines one of these factors - the visa process and requirements for travellers from Abraham Accords and other Middle Eastern countries wishing to visit Israel. It provides recommendations, including the implementation of an eVisa policy, which can lead to an increase in Abraham Accords visitors to Israel, thereby helping to realize the great potential of the tourism sector for contributing to mutually-beneficial cooperation and peace.
 
In general, countries which have a more traveller friendly policy regarding entry visas benefit from expanded tourist growth, which has a positive effect on their GDP.
 
Visa restrictions are a policy instrument that governments use to monitor, control and limit the cross-border flow of people. These restrictions impose a burden on those subjected to them and allow the country imposing the restriction to pre-screen individuals before they arrive at its border. Visa restrictions are considered the ‘first line of defence’ against the entry of ‘risky’ travellers, who are seen as potentially posing a threat to the security, stability or resources of a country.
 
The introduction of a visa restriction by a destination country for citizens from a particular origin country can deter tourism inflows. Studies undertaken by Neumayer (2006, 2010 and 2011) and Bertoli & Fernández‐Huertas (2012) show the effect of visa restrictions on a country’s tourism levels. Neumayer (2010) observed that countries with visa restrictions reduce on average the bilateral flow of tourists by around 60%. Further studies on this topic show that countries with visa restrictions reduce on average the bilateral flow of exports and foreign direct investment by about 25%, and the bilateral flow of immigrants by around 40% (Bertoli & Fernández‐Huertas, 2012).
 
Visa restrictions, therefore, serve as a mechanism employed by many countries to regulate the entry of foreign travellers. These restrictions, while intended to maintain security and control over immigration, can have a profound impact on the tourism industry. The process of obtaining a visa often entails significant costs, bureaucratic procedures, and delays, thereby presenting a substantial hurdle for potential tourists.
 
The main challenge for now remains finding the proper balance between easing visa restrictions and national security considerations. Currently, the visa status for travel between Israel and other Abraham Accords countries remains diverse, with UAE – Israel establishing a reciprocated visa exemption agreement, Bahrain – Israel having visa exemption limited to non-ordinary passports, and Morocco – Israel having a non-reciprocated eVisa facility for Israelis traveling to Morocco. Israel remains without an eVisa scheme for Abraham Accords countries or other nations.  Further details on the visa relationships between each nation are provided in the full report.
 
Looking at case studies of recent visa waiver agreements between Israel and Georgia (2014), Taiwan (2011), Ukraine (2011), Belarus (2015) and Serbia (2010), there exists evidence of immediate growth of tourism arrivals spread across multiple years. While these growth periods have not been sustained over the long term in most cases, other factors like expenditure on market development and a lack of dedicated growth plans could have played a role in the stagnation of arrivals from these markets. Despite this stagnation, visa waiver agreements saw compound annual growth rates between 4.5% and 20.0% for different markets over a two to eight year period. These case studies provide instances supporting the expansion of visa waiver agreements in Israel.
 
While these cases pertain to Israel, the biggest study of the impact of visa waivers on regional cooperation remains the formation of the Schengen zone, which improved trade, economic ties and tourism between participating countries as well as internationally. Multiple studies have taken the Schengen case study in the view of replication across stable regions around the globe.
 
Although the benefits of a relaxed visa policy are evident, studies have also highlighted possible negative effects on national security, population sentiments and stability (Artal-Tur, Pallardo-Lopez & Requena-Silvente, 2013; Beenstock, Felsenstein & Rubin, 2015). While the UAE – Israel normalization has led to Israel becoming a top 20 source market for Dubai in 2022, and its 8th largest source market for the first quarter of 2023 (Department of Economy and Tourism, 2023), opposition to Israel and normalization remains among parts of the populations of Abraham Accords countries. Such opposition creates national security considerations for Israel in determining its visa policy. A full review of the range of policies indicates that the most practical lever to improve tourism could be the adoption of an eVisa policy between all member nations. This decision can potentially account for national security considerations while improving tourism, without not adding pressure to the existing consular services infrastructure.
 
While eVisa policies, as noted, already exist in some bilateral relations (Bahrain and Morocco extending the opportunity to apply for eVisas to Israeli citizens), significant growth could be activated by an Israeli decision to reciprocate the facility to Bahrain and Morocco immediately, while planning to extend it to other nations in the region and around the globe. A robust eVisa program can improve Israel’s attractiveness to potential international travelers, as well as the country’s global destination ranking.
 

Read Full HVS Report Here

 

April 2023 Visitor Numbers: (Source: Israel Central Bureau of Statistics)

  • 200 Moroccan citizens visited Israel in April 2023, constituting no change from April 2022. 1,400 Moroccan citizens have visited Israel so far this year, a 100% increase from the first four months of 2022.
  • 4,300 Egyptian citizens visited Israel in April 2023, constituting a 22.86% increase from April 2022. 4,700 Egyptian citizens have visited Israel so far this year, a 23.68% increase from the first four months of 2022.
  • 1,100 Jordanian citizens visited Israel in April 2023, constituting a 57.14% increase from April 2022. 5,000 Jordanian citizens have visited Israel so far this year, a 93.31% increase from the first four months of 2022.
 
 

April 2023 Trade Numbers: (Source: Israel Central Bureau of Statistics)

  • Trade between Israel and the United Arab Emirates reached $208 million in April 2023, constituting an 8.81% decrease in trade from April 2022. For the first four months of 2023, bilateral trade was $990.6 million, constituting a 39.44% increase in trade from the first four months of 2022.
  • Trade between Israel and Bahrain reached $800,000 in April 2023, constituting a 20% decrease in trade from April 2022. For the first four months of 2023, bilateral trade was $4.8 million, constituting a 60% increase in trade from the first four months of 2022.
  • Trade between Israel and Morocco reached $3.8 million in April 2023, constituting a 15.56% decrease in trade from April 2022. For the first four months of 2023, bilateral trade was $28.8 million, constituting a 150.43% increase in trade from the first four months of 2022.
  • Trade between Israel and Egypt reached $14.4 million in April 2023, constituting a 36.84% decrease in trade from April 2022. For the first four months of 2023, bilateral trade was $110.2 million, constituting a 5.96% increase in trade from the first four months of 2022.
  • Trade between Israel and Jordan reached $39 million in April 2023, constituting a 14.85% decrease in trade from April 2022. For the first four months of 2023, bilateral trade was $172.4 million, constituting a 0.64% increase in trade from the first four months of 2022.
 
Spotlight: 2022 Imports to Israel

Recently released data from the Israel Central Bureau of Statistics highlights changes in imports of goods by country of origin and country of purchase to Israel over the past five years. The data shows large increases in imports to Israel from Abraham Accords countries since the signing of the Accords, visualized in the below charts.
 
 

Notable Developments in May 2023:
Below you can find a timeline of notable Abraham Accords-related events that occurred in the month of May 2023:
 
May 2-4: 100 female business leaders from countries including Israel, Bahrain, Benin, Egypt, Jordan, Kenya, Morocco, Nigeria, South Africa, Sudan, United Arab Emirates, and the United States gathered in Morocco for the “Women Connect to Innovate” Conference. Co-organized by Israel’s Start-Up Nation Central and Morocco’s Consensus Public Relations, the conference brought together women leaders to create new business connections and highlight the role of women in innovation and prosperity in the region.
 
May 2-7: For the first time, Israel participated in the International Exhibition of Agriculture (SIAM) in Meknes, Morocco. Representatives from ten Israeli companies attended the exhibition, as well as Israeli Minister of Economy and Industry Nir Barkat.
 
May 3-4: Yeshiva University and the Mohammed bin Zayed University for Humanities in Abu Dhabi held a join conference on the interplay of Judaism and Islam at the Crossroads of Civilization Museum in Dubai. The conference also included a trip to the Abrahamic Family House in Abu Dhabi.
 
May 4: Israeli Minister of Economy and Industry Nir Barkat announced plans to open an economic mission in Morocco in the coming months, following his meeting with Morocco’s Industry Minister Ryad Mezzour during SIAM.
 
May 4: More than 600 guests gathered in an Abu Dhabi hotel for a first-ever celebration of Israel’s Independence Day in the UAE. During the event, Emirati singer Ahmed Alhosani and Israeli singer Nicole Raviv sang their countries’ national anthems together.
 
May 9: During Israeli Foreign Minister Eli Cohen’s meeting with Indian Prime Minister Narendra Modi in Delhi, the two discussed how India can play a role in advancing the Abraham Accords.
 
May 12-13: Israeli judokas won three medals at the international judo championship in Qatar.
 
May 14-16: Jerusalem Deputy Mayor Fleur Hassan-Nahoum visited Morocco to launch FemForward’s MENA program, an initiative that will bring together 23 women from Morocco and Israel to close the gap in tech industry management.
 
May 16: The Moroccan Parliament announced the formation of a Moroccan-Israeli Friendship Group, comprised of members of multiple Moroccan political parties.
 
May 16-18: Roughly 60 Chabad rabbis from more than 40 countries gathered in Morocco to strengthen “Jewish life, awareness, and practice in Muslim-majority countries, as well as those with relatively small Jewish populations,” while celebrating Jewish life in those regions.
 
May 16-25: Hadera, a city in northern Israel, hosted “Diyala,” an exhibition of Moroccan traditional items featuring more than 30 craftsmen from the School of Traditional Moroccan Jewish Arts.
 
May 17:  The US House Foreign Affairs Committee voted to advance the bipartisan Lawler-Torres bill to create a position of Special Envoy for the Abraham Accords.
 
May 17: Israeli Foreign Minister Eli Cohen hosted Kosovo’s Chief of Mission in Israel, Ines Demiri, for a flag-raising ceremony at the Foreign Ministry Headquarters, raising and honoring the flags of countries which moved their embassies to Jerusalem.
 
May 18: Israeli Foreign Ministry Director General Ronen Levi met in Washington DC with the leadership of the bipartisan US House Abraham Accords Caucus.
 
May 19: The Portuguese Parliament overwhelmingly passed a first-ever resolution in support of Israel, which included a call to advance the Abraham Accords.
 
May 19: Israeli start-up QD-SOL—a company seeking to combat climate change by developing green quantum hydrogen production technology—was awarded the prestigious Aviram Award in Marrakech, Morocco.
 
May 21: Israeli Foreign Minister Eli Cohen spoke with Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani, discussing regional developments and ways to continue strengthening bilateral relations and the Abraham Accords.
 
May 22: Israeli Prime Minister Benjamin Netanyahu and President Isaac Herzog received invitations from Emirati President Sheikh Mohamed bin Zayed Al Nahyan to attend the COP28 conference in Dubai, which will occur from November 30 to December 12.
 
May 22: The International University of Rabat and Israel Aerospace Industries signed an MOU in Rabat, Morocco, to create a center of excellence focused on aeronautics and artificial intelligence research.
 
May 24: Israeli Minister of Innovation, Science and Technology Ofir Akunis met with Bahraini Ambassador to Israel Khaled Al Jalahma to discuss strengthening the Abraham Accords through cooperation in hi-tech and space.
 
May 25: The Embassy of Azerbaijan to Israel hosted a first-ever event for Israel’s Independence Day event.
 
May 28: African Ambassadors in Israel, among them the Ambassadors of Chad, Egypt, and Morocco, hosted an event to celebrate the 60th anniversary of the African Union. Also attending was Israeli MFA Director General Ronen Levi.
 
May 28: Israeli Transport Minister Miri Regev arrived in Morocco on an official visit during which she announced that Israel will soon declare its position on Moroccan Sahara and signed a number of agreements with her Moroccan counterparts on transportation. These agreements provide for the reciprocal recognition of driving licenses, the development of direct maritime transport between the two countries, and trade facilitation in road safety and transport innovation.

May 31: The Israeli Embassy in Manama hosted an official Israeli Independence Day Celebration. 
 
May 31: European Parliament President Roberta Metsola announced the launch of the European Parliament Abraham Accords Network in the coming weeks.

May 31: Co-Chairs of the Abraham Accords Caucus in the Knesset, MK Dan Illouz and MK Michael Biton, met with the Moroccan Liaison in Israel, Abderrahim Beyyoudh.