German tourist arrivals in Tunisia fell 65 per cent to 350,000 in 2002. This sharp decline was attributed to a terrorist attack on a Jewish shrine in Djerba early in April last year. Some 21 people were killed, including 14 German tourists.

European tourist arrivals were down 19.4 per cent overall to 2.9 million. The decline out of Germany is of particular concern as they tend to spend more money in Tunisia than other Europeans. In 2001, 1 million German tourists visited the North African country, or 18.5 per cent of its 2001 5.4 million visitor total, while German spending accounted for more than 38 per cent of total receipts.

The total number of tourists dropped by 6.7 per cent last year to 5.04 million as the number of arrivals from Libya, Algeria, Morocco and Mauritania rose to offset most of the decline in European tourists. However, tourists from neighbouring Maghreb states spent less than European visitors and their increased number did not fill the gap.

Tourism is Tunisia`s main foreign currency earner, accounting for about 17 per cent of its total hard currency revenue, and its second largest employer after the labour-intensive agriculture sector. But total tourism receipts in 2002 shrank 13.5 per cent to Dinars 2.02 billion (US$1.54 billion).

The Minister of Tourism expects the total number of tourists to increase to 5.4 million this year if a possible US-led war on Iraq does not break out before the summer peak tourism season. Tourism authorities have stepped up a promotional campaign to attract back German tourists and increase tourist flows from other countries, including wealthy Arabs from the rich Gulf region.