"A Tale of Promise and Pandemic: The Rise and Fall of the Interpretation Centre in the Era of COVID-19"

The Need

The tourism sector in East Jerusalem has faced significant challenges due to Israeli measures that have created an imbalance between the western and eastern sides of the city. While Jerusalem attracted approximately 2.8 million international visitors in 2017 (according to the Israeli Bureau of Statistics, accounting for 78% of the total 3.6 million international tourists), it is evident that the majority of tourist revenue goes to the West Side of Jerusalem. More than 88% of the revenue tourists generate is directed towards the western part of the city.

Additionally, Palestinian Inbound Tour Operators have observed that few East Jerusalem hoteliers have been able to capitalise on their proximity to the Old City as a major attraction, often neglecting the lower quality of service in their restaurants and the subpar standards of their rooms compared to similarly rated hotels on the West Side. With convenient transportation options and nearby hotel alternatives, East Jerusalem struggles to entice tourists based solely on location. Another challenge East Jerusalem faces is tourism seasonality, as it seeks to develop strategies to transform it into a year-round destination.

Despite these challenges, East Jerusalem possesses a wealth of historical and cultural assets, offering tourists a unique and authentic Palestinian experience. Some large hoteliers have recently made substantial investments in their properties, enhancing the quality of services through renovated modern-style rooms and improved restaurant offerings. However, more focused marketing campaigns are needed to leverage these improvements as a key differentiator.

East Jerusalem must move beyond relying solely on price and location to remain viable and competitive. It is crucial to address the overall situation by offering higher-quality services and boutique products that showcase attractive and authentic Palestinian hospitality. The development of East Jerusalem into a prominent Palestinian Cultural Quarter should be championed by local organisations with the donor community's support. By leveraging the area's rich heritage and fostering a welcoming atmosphere, East Jerusalem can create a distinctive identity within the tourism landscape and create sustainable economic opportunities for the local community.

The Solution

The Interpretation Project emerges as a transformative initiative in light of the immense potential to position East Jerusalem as a prominent landmark in religious tourism. Situated at the heart of the Old City in Jerusalem, this interactive information centre is meticulously designed to provide visitors with a profound understanding of the selected competencies intricately linked to the indigenous community of Jerusalem. Through a captivating array of interactive exhibits, the Interpretation Project weaves a narrative that unveils the city's rich tapestry of historical, religious, and cultural diversity.

Far from being a conventional information centre, the Interpretation Project represents a bold endeavour to engage visitors deeply and meaningfully. It goes beyond surface-level exploration, delving into the depths, layers, and complexities that define Jerusalem's unique character. The Interpretation Project aims to foster a profound connection and appreciation for its main identities and competencies by immersing visitors in the city's captivating story.

Each exhibit within the Interpretation Project is carefully curated to convey a specific aspect of Jerusalem's heritage. From the ancient sites that witness centuries of history to the sacred traditions interwoven into the fabric of daily life, the centre invites visitors to embark on a transformative journey of discovery. Through innovative and interactive displays, visitors can explore the intricate intertwining of different historical periods, religions, and cultures, gaining a deeper appreciation for Jerusalem's complexities and diversity.

The Interpretation Project's mission goes beyond merely imparting information; it strives to create an immersive experience that stimulates all the senses. The centre aims to transport visitors back in time by leveraging cutting-edge technology and creative storytelling techniques, allowing them to witness the city's pivotal moments and figures firsthand. The Interpretation Project brings history to life through a harmonious blend of visual, auditory, and tactile elements, fostering a profound emotional connection and a sense of shared heritage.

Moreover, the Interpretation Project recognises the immense potential of religious tourism in East Jerusalem. The city's sacred sites hold deep significance for multiple faiths, making it a magnet for pilgrims and spiritual seekers worldwide. By showcasing Jerusalem's religious diversity and highlighting its central role in the global religious landscape, the Interpretation Project seeks to position East Jerusalem as a powerful magnet for religious tourism.

Through a meticulous selection of exhibits, the Interpretation Project aims to create an inclusive space that respects and honours all religious traditions while fostering mutual understanding and dialogue. It strives to provide a platform for interfaith engagement, where visitors can better appreciate the shared spiritual heritage that unites humanity.

The Planning

OXFAM and Bethlehem University entrusted me with the crucial task of developing a comprehensive strategic plan for the Interpretation Centre. This encompassed formulating the Center's Vision, Mission, Objectives, and Generic and Specific Center Strategies and establishing an effective Organizational Structure. Additionally, I was responsible for crafting a detailed three-year Strategic Business Plan, which included financial planning and valuation.

I conducted a thorough Market Screening and Analysis to ensure the project's success. This involved assessing various factors such as identifying opportunities, evaluating key development and growth potentials, analysing market capacity, and assessing potential demand and supply dynamics. Furthermore, I conducted a comprehensive Competitive Forces Analysis to understand the market landscape and identify strategies to gain a competitive edge. I also researched future market trends to anticipate market growth and identified the appropriate price structure for the Center's services. Based on these insights, I developed a robust marketing plan to effectively promote the Interpretation Center and attract a diverse range of visitors.

In addition to the market analysis, I focused on formulating a detailed Operational and Management Plan. This involved developing a clear operational strategy and implementation plan to ensure the smooth transition of the Interpretation Centre into an effective business model. I carefully considered factors such as facility management, staffing requirements, and organisational structure to optimise operational efficiency. By providing recommendations on management practices and staffing, I aimed to establish a strong foundation for the Center's long-term success.

To address the financial aspects of the project, I prepared a comprehensive three-year financial plan. This involved developing an integrated financial model that considered various scenarios and conducted sensitivity analyses to assess the Center's financial viability under different circumstances.

I paid particular attention to cash flow assessment and planning, ensuring that the Interpretation Centre would have a sustainable cash flow position. By employing a cash waterfall approach, I efficiently allocated cash resources, ensuring the business's continuity beyond the initial grant funding. Furthermore, I conducted a detailed investment risk and return analysis, utilising metrics such as payback period, return on investment (ROI), internal rate of return (IRR), net present value (NPV), accounting rate of return (ARR), and economic value added (EVA).

By addressing market dynamics, optimising operational efficiency, and ensuring financial sustainability, the Interpretation Centre was poised to significantly impact the cultural and tourism services sector, offering unique and engaging experiences while driving economic growth and benefiting the local community.

The Falling

Unfortunately, despite the strong business mindset and comprehensive planning, the Interpretation Center project ultimately faced significant challenges due to the outbreak of the COVID-19 pandemic. The unprecedented global health crisis disrupted the tourism industry on a massive scale, leading to travel restrictions, lockdown measures, and a sharp decline in visitor numbers.

The pandemic brought about an abrupt and prolonged halt to international and domestic travel, severely impacting the tourism sector and causing financial strain for businesses worldwide. The Interpretation Centre, like many other tourism-related ventures, was not immune to these adverse effects. The sudden and unexpected pandemic made it difficult for the Centre to sustain its operations and generate sufficient revenue to cover expenses.

The restrictions imposed to contain the spread of the virus, including social distancing measures and limitations on public gatherings, directly affected the Centre's ability to attract visitors and offer its interactive exhibits and cultural experiences. The decline in tourism demand further exacerbated the financial challenges, as the Centre heavily relied on visitor admissions and associated services for revenue generation.

Despite initial optimism and comprehensive planning, the project could not withstand the severe economic impact of the pandemic. The sustainability and financial viability of the Interpretation Centre were greatly compromised, leading to difficult decisions and potential closure. The lack of footfall and revenue made it increasingly challenging to cover operational costs, maintain staff, and ensure the continued provision of high-quality services.

Acknowledging that the COVID-19 pandemic presented an unforeseen and exceptional circumstance that significantly affected the Interpretation Center's prospects is important. The global nature of the crisis and the resulting economic downturn made it difficult for businesses in the tourism sector to survive without significant external support or a robust financial buffer.

While the project's vision, mission, and strategic planning were commendable, the unforeseen impact of the pandemic highlighted the vulnerability of businesses, particularly in the tourism and cultural sectors. It serves as a reminder that even the most well-prepared ventures can face unexpected challenges beyond their control.

Moving forward, it is essential for businesses and organisations in the tourism industry to adapt and develop resilience strategies to navigate future crises effectively. This may involve diversifying revenue streams, exploring digital and virtual tourism experiences, fostering partnerships, and implementing flexible business models that can withstand unforeseen disruptions.

Though the Interpretation Center project did not survive the COVID-19 outbreak, it remains a testament to the importance of agile business planning, risk management, and adaptability in an ever-changing global landscape.

The lessons learned from this experience can inform future initiatives and contribute to the resilience of the tourism and cultural sectors in the face of adversity.