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Arabian Hotel Investment Conference Official Daily Newspaper 4 May 2008
www.breakingtravelnews.com OFFICIAL DAILY NEWSPAPER
Jonathan Worsley talks to BTN page12-13
Gulf aviation - bucking a big trend page24-26
BTN interviews Gerald Lawless page28-29
AHIC unlocks the Indian enigma Releasing India’s potential was the hot topic of the first day of the 4th Arabian Hotel Investment Conference (AHIC) in Dubai. The country’s hospitality industry is poised for explosive growth that experts predict will mirror the Middle East’s booming travel and tourism market. Martyn Lewis CBE, Veteran Newsbroadcaster & Former BBC News Presenter chaired The Summit on India yesterday
Dubai UAE Opening the inaugural India Summit, veteran TV anchorman Martyn Lewis remarked on its poignant timing: this weekend Northern India has experienced widespread rioting as a backlash against the government’s failure to address basic infrastructure, most notably electricity and water shortages. Martyn Lewis said the crucial point for delegates rested on the government’s pledge to provide “power for all” by 2012, weighed against analyst predictions that it will struggle to keep up with the insatiable demand for electricity of India’s burgeoning middle class. “Therein lie’s the dilemma for India over the next four to six years,” he said. A panel of distinguished experts added further insight into India’s growing pains, debating whether
the country was at a tipping point ahead of unprecedented investment opportunities. Keynote speaker and chief bull was economics guru Surjit Bhalla. He said that despite the collapse of the U.S. subprime market and banking crises, the rise of the Indian and Chinese economies would collectively offset any global recession.
over 40% today, accompanied by the creation of an overwhelming purchasing power.
highlighted other obstacles as the shortage of skilled labour and an over-supply of real estate.
“This middle class demands changes in policies and structure, and only then do governments react and make reforms. It’s not a bird, it’s not a plane, it’s the Indian middle class,” he added.
Away from the forum, the 4th AHIC teed off in style at The Montgomerie Championship Golf Course, with some hard drives, short putts and even the occasional birdie. The overall winner of the golf competition was Malcolm Kerr of Mövenpick Hotels & Resorts.
He said: “Once upon a time, when the U.S. sneezed the world caught pneumonia. However history is unlikely to repeat itself because the world is now a significantly different place. The difference is China and India – they collectively contribute to 20% of global GDP compared to 9% just ten years ago.”
Recent figures support this optimism with room rates in the major metropolitan centres rising nearly 40% year on year while global names such as Shangri-La, Four Seasons, Marriott and Hilton having all announced major expansion plans for India.
The driving force behind the current economic miracle in India, as well as China, is the middle class, he continued. This has grown from 2% in 1980 to
Abhjiit “Beej” Das, Managing Director of Molinaro Koger, took a more bearish tack, arguing that falls in US stock markets still reverberate in India. He
Then at sundown the Madinat Jumeirah transformed into a sumptuous banquet of fine international cuisine fused with local Arabian dishes. The accompanying cocktails were equally sophisticated. Let’s hope their after-effects won’t stymie what promises to be another day of intense debate.
INSIDE: World Travel Awards Grand Tour 2008 “Celebrating 15 Years of Excellence”
Turn to Page 33
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24-26
Gulf aviation – bucking a big trend
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BTN Special Interview Gerald Lawless, Executive Chairman, Jumeirah Group
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Fairmont to manage Makkah hotel
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BTN Special Interview Trevor Ward, Managing Director, W Hospitality Group
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World Travel Awards Grand Tour 2008 “Celebrating 15 Years of Excellence”
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What new features does Durban bring to world tourism, and how is it going to achieve them?
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Sydney – the city of celebrations
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Shanghai – driving the China boom
For editorial: alex.lewis@breakingtravelnews.com
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Go green-make money
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Europe Awards heading to Crete
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Brazil’s position in a globalised context
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Travel Excellence Guaranteed
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A Prospect for Greatness: Abu Dhabi
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Las Vegas: Bigger and Better than ever
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Turks & Caicos
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Naseem Javed on Global Perceptions of Islamic Products & Services
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ANTT backing the Abu Dhabi experience
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BTN Special Interview Chris Day, International Managing Director of Christie + Co
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Ras Al Khaimah unveils big plans for ATM
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IFA doubles worldwide presence
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BTN Special Interview Lyndall de Marco, Executive Director, International Tourism Partnership
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Dubai tourism chief sets tone for milestone summit
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Buzz bodes well for AHIC
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Turks & Caicos hosts landmark sustainability event
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Emaar unveils five star premium hotel brand
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Sub-prime crisis to squeeze hotel investment
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AHIC kicks into top gear on day one
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BTN Special Interview Jonathan Worsley, AHIC Co-Organiser and Chairman of The Bench
Being unique is the key to Dubai’s growth, says Dubai World Chairman
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Full steam ahead for Bawadi
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BTN Special Interview Selim El Zyr, President & CEO, Rotana Hotels
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BTN Special Interview Kirk Kinsell, President, EMEA, InterContinental Hotels Group
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BTN Special Interview Christopher Hartley, CEO of Shaza Hotels
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The Star Appeal of Nakheel
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Golf day starts AHIC with a bang
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Sustainability dominates WTTC Summit discussions
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Autumn Airbus launch for Emirates
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BTN Special Interview Nick Turner, Managing Director, Middle East, Group RCI
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Buzz bodes well for AHIC Iain Roebuck, Associate Director, Smallwood, Reynolds, Stewart, Stewart & Associates Pte and Kirk Kennedy, Executive Director Investment Promotion, Jamaica Trade & Invest
Last night Jumeriah treated delegates to a sumptuous opening reception at Fort Island, Madinat Jumeirah. An energised vibe at the first of three key social events suggests that business will be booming throughout the conference. Michel Fahmi Karam, Al-Hokair & Sons Group for Leisure & Tourism and Russell Sharpe, Director of Acquisitions, Premier Inn Hotels
Rebecca Davies-Jones and Chris Nisbet, Chairman Albany Group
Richard Garland, Richmond International, Mrs. Maria Garland and Abdul Aziz AlKhouri, Aldar Properties PJSC
Graham Cooke, President, World Travel Awards and Jonathan Worsley, AHIC Coorganiser & Chairman, The Bench
Ron Carlton, Vice President, Hilton & Hyland and Apo Demirtas, Chief Sales & Marketing Officer, Jumeirah Group
Raju Shahani, Executive Consultant, Langham Hotels and Vijay Thacker, Director, Horwath HTL
Dinis Madaleno Rodrigues, President, Fashion Hotels, Ruta Siliute, Fashion Hotels, Fulvia Fontanot, General Manager, Depa Room and Fouad Moubayed, Med First
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Naoyuki Maekawa, Assistant Director, Invest Japan Business Support Centre, Tracey Sawyer, Igloo Design Group and Bob Henry, Founder & Principal, Robert D. Henry
Fadi E. Salamoun, Business Development, Flamingo Hotel Management, Louise Carne, Action Impact and Fadi Mazkour, General Manager, Golden Tulip Hotels
Leslie Stronach, Resort Executive Chef, Madinat Jumeirah
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Emaar unveils five star premium hotel brand Emaar Hospitality Group has revealed plans to launch and operate its own five star premium global brand of world-class hotels and resorts under the brand name, The Address Hotels & Resorts. Aiming to redefine the hospitality experience, Emaar’s global hotel brand will roll out later this year with the opening of The Address flagship hotels in Downtown Burj Dubai and another property in Dubai Marina.
The Address will progressively operate four brand extensions offering 'exceptional and distinct experiences within the Resort, Retreat, Urban and Business categories' through properties in all markets where Emaar has a geographic footprint. The Address will also complement the existing hospitality offerings from Emaar Hospitality Group currently managed by other operators.
The Address, Dubai Mall; and The Address, Dubai Marina, Emaar Hospitality Group plans to unveil more properties in key cities and tourist destinations in the Middle East and North Africa region, the Indian Subcontinent, Asia, Europe and America within the next ten years. At these potential locations, Emaar already has a significant footprint through mixed-use developments in central and strategic locales.
Unveiling the brand, Mr Mohamed Ali Alabbar, Chairman, Emaar Properties PJSC, said: “The Address will be one of the prime drivers in our global expansion strategy in the hospitality & leisure business. Hospitality is one of the fastestgrowing sectors in the world, especially in the Middle East region, and creating a new brand to operate our hotels and resorts globally is a key component of our business integration strategy.”
Mr Marc Dardenne, Chief Executive Officer, Emaar Hospitality Group LLC, explained: “The Address is positioned as a premium hospitality brand with a focus on service excellence, quality product and contemporary design. The Address Hotels & Resorts will be set apart not only by their location but also in the total character and service standards, where we adopt a ‘one size fits one’ approach. This creates a shift from feature focused hotels to benefit focused hotels that will assure our guests a refreshingly different experience.”
He added: “The Address has been conceptualised following in-depth research in the hospitality business. Over the last several months, we have put together a team of world-class professionals drawn from across the world to build The Address brand, which will deliver an exceptional guest experience. The Address is our tribute to the global hospitality sector, in which a commitment to service makes the true difference.” Following the launch of The Address, Downtown Burj Dubai;
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Creating a distinct positioning with the brand philosophy of ‘Where Life Happens’, The Address properties will target corporate, leisure and group travellers – particularly the international jetsetters and global high achievers who value personalised luxury. “Properties such as The Address, Downtown Burj Dubai will be particularly appealing to corporate and business travellers, while The Address, Dubai Marina will cater
for leisure guests. In every aspect of The Address Hotels & Resorts, there will be distinct product differentials which give them a ‘more than a hotel’ identity,” added Mr Dardenne. To operate The Address Hotels & Resorts, Emaar Hospitality Group has recruited professionals, who have been trained on the brand’s core attributes to assure the complete guest experience. “Dubai’s hospitality sector is growing exponentially with all parameters indicating sustained growth in the coming years. With The Address, we will further support the rich hospitality offering in Dubai of Emaar Hospitality Group,” said Mr Dardenne. More than 100 professionals have joined The Address team already with larger recruitment plans. “With several experienced hoteliers and hospitality professionals on board, The Address is all set to deliver a new across-the-board hospitality experience. Following extensive training, we have created a smart roster of hospitality offerings in The Address projects including several first-of-its-kind dining concepts,” said Mr Richard W. Riley, Managing Director, Emaar Hotels Management LLC. Conceptualised to highlight the brand’s core attributes of
Marc Dardenne, Chief Executive Officer, Emaar Hospitality Group LLC
assuring an engaging, dynamic, social, localised, passionate and stimulating experience to guests, the brand identity of The Address is elegantly etched in shades of black and white. Elegant simplicity is the character of The Address, which will assure guests a different lifestyle experience. The Address Hotels & Resorts will leverage on the lifestyle attractions around the properties, thus offering new experiences for customers in convenient proximity. For local residents, Emaar’s hotels will offer some of the finest food & beverage options and leisure outlets including spa and fitness facilities. Emaar will add more hotels and resorts under The Address banner as the brand develops. The addition of The Address completes Emaar Hospitality Group’s portfolio as a full-service hospitality company. With total assets of development value US$1 billion (AED 3.67 billion), Emaar Hospitality Group owns and manages a diversified portfolio of hospitality assets such as hotels, serviced residences, golf resorts, polo and equestrian club, recreation clubs, and the Dubai Marina Yacht Club and Marinas. Emaar’s expansion to hospitality & leisure is in line with its Vision 2010 to become one of the most valuable companies in the world.
www.emaar.com
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AHIC kicks into top gear on day one Delegates converged on the Madinat Jumeirah on Day 1 of the Arabian Hotel Investment Conference and were greeted by an impressive array of display stands from all the major players in the industry. The India Summit was a great success and provided the perfect introduction to what all hope will be a very productive event.
“It’s exciting, it’s our second year, it’s a great conference” Omar Bibi Marketing Director, IFA Hotels and Resorts.
Loay Mahmoud Ibrahim Helles, Assist. Executive – Sales Admin and Hamdan Al Neaimi, Sales Manager Assistant, Bawadi
“First time here in Dubai, first time at AHIC and I’m very happy about that”
Alisdair and Rich Sales, B
Laercio Roberto Lemos de Souza – General Coordinator for Investment Promotion, Ministry of Tourism, Brasil
“It’s exciting, it’s our second year, it’s a great conference” Omar Bibi Marketing Director, IFA Hotels and Resorts.
“AHIC – it’s a very, very important base for us because of our growth continuing in this part of the world”
Jonatha and Mar
Craig Senior, Regional Director Sales & Marketing, The Rezidor Hotel Group
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Helmut Knipp, Senior VP Development, Langham Hotels International
“Every year the event gets larger and larger and more successful for all of us” Ivor McBurney, VP Development, Middle East, Hilton
Adrian Smith, Senior Manager – Client Services, TDIC
Alisdair Maclean, Partner, Davis Langdon and Richard English, Senior VP Residential Sales, Baha Mar Resorts
Jonathan Worsley, Chairman The Bench and Martyn Lewis CBE, News Presenter
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Surjit S. Bhala, Chairman & Managing Director, Oxus Investments speaking at the India Summit yesterday
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Jonathan Worsley, co-organiser of the Arabian Hotel Investment Conference (AHIC) and Chairman of The Bench Jonathan Worsley is one of the organisers and founders of the International Hotel Investment Forum and responsible for launching and co-organising the Arabian Hotel Investment Conference and the Russia & CIS Hotel Investment Conference. Jonathan sits as an advisor to the World Travel & Tourism Council which represents many of the leading companies operating worldwide in the travel and tourism industry.
BTN caught up with Jonathan to find out more about the hard work and planning required for a successful AHIC event. BTN: What is the inspiration behind this year’s theme “Ever Increasing Circles? JW: The theme was selected by the AHIC Advisory Board and inspired by the vision and boldness of industry leaders in the Middle East who have created one of the fastest growing economies in the world today. The conference is set to reflect on the influence and impact that this growth has had, and will continue to have, on the region and the rest of the world. BTN: What’s new for this year’s AHIC? What do you see as the biggest improvements? JW: We learn each year how to
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improve AHIC but the 2008 edition has plenty of new speakers and some fabulous topics as proposed by our Advisory Board. I’m also excited about the India Summit which is a first for AHIC. With only 90,000 rooms, India is set for explosive growth to catch-up to the rest of the world. BTN: Which speakers are you looking forward to hearing most? JW: There are so many speakers with great stories to tell including Nakheel’s Manfred Ursprunger plans for the QE2 and HRH Prince Sultan’s Bin Salman Bin Abdulaziz Al-Saud’s plans for tourism in Saudi Arabia. I’m also looking forward to hearing HE Mohamed Ali Alabbar’s Q&A session with John Defterios of CNN following his Leadership Award. Our keynote speaker, Lewis Gordon Pugh, is a must
attend event and will speak on Leadership, Survival and the Environment at our closing lunch. BTN: What’s the biggest challenge in organising such an event? JW: I have a wonderful job as everyone enjoys being part of this event and MEED are brilliant partners. I suppose the most difficult part of being an organiser is ensuring we represent the industry with topical sessions and take a leadership role in addressing issues of the day such as the environment, education and sustainable development. BTN: How does AHIC tie in with your role at The Be nch? JW: The Bench is an online real-time benchmarking company comparing occupancy, rate and revPAR performance for hotels
Deloitte’s benchmarking practice and Smith Travel Research, to form STR Global. Conferences are a separate side of this business, taking a role in leading hotel investment events from Berlin to the recently launched conference in Moscow and, of course, here in Dubai. BTN: Describe a typical working day in the week before AHIC? JW: Making sure all the moderators have contacted their panellists despite reminders since January and then being asked to write this article! BTN: What did you gain and learn from last week’s WTTC Global Travel & Tourism Summit? JW: I thought Professor Dr Kjell Nordström’s presentation was fascinating.
I suppose the most difficult part of being an organiser is ensuring we represent the industry with topical sessions and take a leadership role in addressing issues of the day such as the environment, education and sustainable development.
around the world. We started in 2001 with four hotels in Stockholm and now have in excess of 4,000 hotels contributing daily figures. We have recently exchanged contracts to merge with
He informed delegates that the world is changing with the meltdown of the family and using Sweden as an example, 64% of households are single and this rises to 70-88% in cities. This is happening
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everywhere. In 20 years, 70% of humanity will live in cities creating massive social issues and of course opportunities. It was also interesting to hear our Patron, HH Sheikh Ahmed Bin Saeed Al Maktoum, speak of his plans for Emirates Airline. A staggering success story and what a visionary to acquire 55 A380’s when the industry is in crisis in many parts of the world. BTN: Why is Dubai such a good place to host AHIC? JW: Dubai is a great place to host AHIC because the landscape is constantly changing. We always seek out new venues for our receptions such as The World in 2005 to The Palace overlooking the Burj Dubai and the dinner and
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light show at Jumana - Secret of the Desert this year. BTN: What sets AHIC apart from other events? JW: The hotel industry is a great industry to be a part of and AHIC is participating in one of the most vibrant and dynamic regions in the world. You can’t beat that!
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Jonathan Worsley giving the opening address yesterday at the India Summit
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The Star Appeal of Nakheel The development of Dubai is proving the architectural miracle of the 21st century, spearheaded by some of the most eagerlyanticipated developments in history, most notably The World and Palm Trilogy.
Even before its scheduled opening in 2010, The World is attracting worldwide media speculation as to which celebrities have bought in on the 300 plots, which are collectively shaped to form a world map. Brad Pitt and Angelina Jolie are rumoured to have bought Ethiopia, Tommy Lee and Pamela Anderson the
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islands of Greece, and the Beckhams are supposedly adding to their Dubai property portfolio (they already have a villa on the nearby Palm Jumeirah). Nakheel is the developer of both The World and The Palm Trilogy, along with a host of other developments including
Sultan Ahmed Bin Sulayem, Chairman of Dubai World and Chief Executive of the Nakheel
The Jumeirah Gardens, The Waterfront, Jumeirah Village and Ibn Battuta Mall. It’s no wonder it is one of the world’s busiest property developers, and the driving force in making Dubai the fastest growing city in the world. Nakheel is developing an iconic portfolio of innovative
landmark projects in Dubai, and now in key markets around the globe, across a range of sectors – residential, commercial, hotels, retail and leisure. Its projects are conservatively estimated to be worth US$80 billion. Upon completion its waterfront projects will have added more than 1,000km of shoreline to
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Sulayem, World and the
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Dubai’s coastline. In January, Nakheel laid the final stone on the breakwater of The World, completing a four-year project to create the infrastructure for one of the most intriguing real estate projects in history. The stone was the last of 34 million tons of rock that makes a 27km breakwater surrounding the islands and with the overall infrastructure in place, and a sea-transport system to take visitors from island to island, the next phase involves handing over islands to developers for construction and building of individual networks. These are certainly unprecedented times in the history of Dubai. Since work began in 2001, Nakheel has been breaking numerous records across the board. Its diverse portfolio is best known for the staggering assembly of reclaimed islands steadily rising out of the Arabian Sea. The Waterfront is set to be a city in itself, twice the size of Hong Kong and comparable in residential capacity and economic viability. The transformation will see 1.4 billion square feet of empty desert and sea become an international community for an estimated population of 1.5 million. The Waterfront is strategically located close to Jebel Ali Port and Dubai World Central Airport. The Palm Jumeirah, though the smallest complex, kick started the entire coastal enterprise. Completed in 2006, the site already hosts unprecedented standards in retail, accommodation and entertainment, with its first inhabitants preparing to move in imminently. Its Golden Mile
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is a site of international decadence featuring Mövenpick, Fairmont, Radisson SAS, Hilton, Metropolitan, Shangri La, One & Only, Trump International Hotel & Tower, and Atlantis hotels. As the second in the Palm Trilogy, The Palm Jebel Ali promises to set new standards in luxury tourism and retail. Notably the circumference of world-class hotels and water homes, built on stilts, spell out a poem written by His Highness Sheikh Mohammed bin Rashid al Maktoum. The final addition to The Palm realm is the largest and most ambitious, The Palm Deira, started in November 2004. As well as public and private beaches, a dazzling marina, 8,000 villas with shopping malls and other luxury amenities, this development intends to increase the value of the Deira Coast by opening access and trade to the waterfront communities. These are just the current main attractions, 12 more sites of commercial and tourist paradise are located along the coast. Nakheel was founded in 1990 as part of HH Sheikh AhmedBin Rashid Al Maktoum’s commitment to securing Dubai as a titan of world tourism and commerce. Nakheel operates as part of Dubai World, which manages business and project portfolios for the Government of Dubai, and is largely responsible for Dubai’s rapid economic growth at home and abroad. Chairman of Dubai World and Chief Executive of the Nakheel portfolio is Sultan Ahmed Bin Sulayem, respected as one of
Dubai’s leading businessmen. Sultan Ahmed Bin Sulayem is credited with Dubai World’s successes in the Property Development & Hospitality, Transport & Logistics, Maritime, Financial Services, Multi Commodities and Retail sectors. He is praised for the leadership and foresightedness that led to a number of high profile international deals, paving the way for development in the Middle East. In this international spirit Sultan Ahmed Bin Sulayem also contributes to a variety of educational and humanitarian programmes. He is involved in the Clinton Global Initiatives and is also a longstanding panelist and speaker at the World Economic Forum, Switzerland where he was elected “Global Leader for Tomorrow”. Chairman of Dubai World and Chief Executive of the Nakheel portfolio is Sultan Ahmed Bin Sulayem, commonly respected as one of Dubai’s leading businessmen. Sultan Ahmed Bin Sulayem is credited with Dubai World’s successes in the Property Development & Hospitality, Transport & Logistics, Maritime, Financial Services, Multi Commodities and Retail sectors. He is praised for the leadership and foresightedness that led to a number of high profile international deals, paving the way for development in the Middle East. In this international spirit Sultan Ahmed Bin Sulayem also contributes to a variety of educational and humanitarian programmes. He is involved in the Clinton Global Initiatives
and is also a longstanding panelist and speaker at the World Economic Forum, Switzerland where he was elected “Global Leader for Tomorrow”. Nakheel is breaking new ground in keeping its promise to “ensure environmental preservation and sustainability”. Nakheel’s expert Environment Team is setting up new initiatives for monitoring the local and regional waters. New research and projects are constantly overseen with the aid of a catalogue of national and international consultants. One such partnership is the United Nations University International Network on Water, Environment and Health Department (UNUINWEH) established in January 2007. More recently Nakheel has pledged to invest AED500 million over three years in sustainability initiative, Blue Communities, launched in 2008 under the supervision of HH Sheikh Mohammed Bin Rashid Al Maktoum. The initiative plans to raise awareness of coastal development issues, incorporating nongovernment organisations and other stakeholders into the scheme. Blue Communities is a call to action on sustainable development, construction, management and responsible governance of coastal communities around the world. In the contentious issue of reclaimed land, Nakheel is determinedly measuring up to global scrutiny and displaying expertise in coastal living.
www.nakheel.com
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Golf day starts AHIC with a bang The AHIC Golf Competition was a great success at The Montgomerie Championship Golf Course yesterday, with some big drives and the occasional miss-hit on show. Nine four-balls went off following a shotgun start and everyone (we think) enjoyed their active start to the AHIC experience.
Robert Webster tees off
Overall Winner (score 38) Malcolm Kerr, Vice President .. Development, Asia Pacific, Movenpick Hotels & Resorts Longest Drive Michael Sagild, Chief Operating Officer, Minor International
Nearest to the pin Brett Archibold, Senior Vice President Business Development, Group RCI
Hans Nagl, Director, ABA - Invest in Austria; Kenneth Hatton, Lawyer, Sonnenschein Nath & Rosenthal putting; Amr Salem, Lead, Real Estate & Hospitality, Cisco Middle East
Clive Hillier, CEO, Vision Hospitality Asset Management with a nice shot
Michael Sagild, Chief Operating Officer, Minor International gets out of trouble!
Peter Malone, Managing Director, Madison Mayfair; Peter Henley, Vice President, Morgan Stanley; Clive Hiller, CEO, Vision Hospitality Asset Management; Michael Sagild, Chief Operating Officer, Minor International
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Brett Archibald, Senior Vice President Business Development, Group RCI chips out of the bunker
David Hughes, Chairman & Executive Director, Crown Project Services; Robert Webster Managing Director, Hodges Ward Elliott; Karim Kassam, Executive Director, Cheslea Group; Tim Luckhurst, Director, The Royal Bank of Scotland
Amr Salem, Lead, Real Estate & Hospitality, Cisco Middle East; Angus MacCormick, Counsel, King & Spalding International; Hans Nagl, Director, ABA - Invest in Austria; Kenneth Hatton, Lawyer, Sonnenschein Nath & Rosenthal
Michael Sagild, Chief Operating Officer, Minor International- putting watched by Peter Malone, Managing Director, Madison Mayfair; Clive Hiller, CEO, Vision Hospitality Asset Management
Tim Clark, Business Development Director, GuestInvest, on 18th Green
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Sustainability dominates WTTC Summit discussions Sustainability is the most important challenge facing the travel and tourism industry, and its leaders must strive harder to incorporate environmental protection policies in their future plans. That was the overriding message at the 8th WTTC Global Travel & Tourism Summit in Dubai, 20-22 April 2008. Over 1,100 delegates from 75 countries enjoyed two days of thought-provoking debate and presentations, highlighted by a special inauguration ceremony attended by its patron, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, UAE and Ruler of Dubai. President of the WTTC, Geoffrey Kent, welcomed His Highness Sheikh Mohammed bin Rashid Al Maktoum at what many agreed had been the most successful and influential WTTC Summit in its eightyear history.
Geoffrey Kent, Chairman & CEO of Abercrombie and Kent and Chairman of WTTC and HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and the Ruler of Dubai
Many exchanges of ideas throughout the Summit were dominated by how the
Wang Ping, Chairman of Chamber of Tourism All – China Federation of Industry Commerce, Graham Cooke, President of World Travel Awards, Peter Wong Man Kong , Muk Man - Vice President of Chamber of Tourism All – China Federation of Industry Commerce
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decision-makers gathered could shape and lead the way towards more sustainable
travel. The other main topic was how best the travel industry should weather the
JW Marriott Jr., Chairman & CEO, Marriott International, Inc.; HE Khalid bin Sulayem, Director General, DTCM & Geoffrey Kent, Chairman & CEO of Abercrombie and Kent and Chairman of WTTC
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storm clouds of a global economic slowdown.
Executive Officer of Marriott International.
In his address to His Highness Sheikh Mohammed, Mr. Kent said: “Undoubtedly, there will be challenges in the short term due to the US economic slowdown, the stock markets’ volatility, higher fuel costs and concerns about climate change. However, the continued strong expansion in emerging countries – both as tourism destinations and as an increasing source of international visitors – means that the industry’s growth prospects remain bright into the medium term.”
There was also time for delegates to enjoy the sites and ambience that have transformed Dubai into a hub of international tourism. The welcome dinner, held at the Jumeirah Beach Hotel, was set against the incredible backdrop of the Burj Al Arab glistening against a clear sky. Delegates enjoyed an evening of sumptuous hospitality to mark the start of the conference. The following night they headed on a magical mystery tour into the desert for an evening of traditional Arabian hospitality.
The decision to host the summit in Dubai was both fitting and well-timed, its transformation in a few short years into one of the world’s most incredible tourist destinations mirroring the meteoric rise of the travel and tourism industry into one of the world’s most important industries. Delegates were absorbed by an inspiring line-up of keynote speakers, including HE Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Tourism Authority, Marilyn Carlson Nelson, Chairman & Chief Executive Officer of Carlson and J Willard Marriott, Chairman Chief
Back in the Round, the entertainment continued the following morning with a keynote speech from Dr Kjell Nordström, Associate Professor at Stockholm School of Economics. However the highlight of Day Two followed with the appearance of His Highness Sheikh Ahmed bin Saeed Al Maktoum. Speaking afterwards exclusively to Breaking Travel News, the official newspaper of WTTC Global Travel & Tourism Summit, he said: “I’m delighted with how the Summit has gone. I have also had some excellent feedback about how Dubai is developing.”
Abdulshakoor Hussain Tahlak, Chief Manager International, National Bank of Dubai & Graham Cooke, President of World Travel Awards
Dr. Claudio A. Silvestri, President & CEO, Premier Resorts & Hotels; Graham Cooke, President of World Travel Awards; Jean – Claude Baumgarten, President of WTTC & Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces
Jean – Claude Baumgarten, President of WTTC
www.wttc.travel
Breaking Travel News, the official newspaper of the 8th WTTC Global Travel & Tourism Summit in Dubai, 20-22 April 2008 Christelle and Sarmad Zok, CEO of Kingdom Hotel Investments, Graham Cooke, President of World Travel Awards & Manon Han, Executive Vice President, World Travel Awards
www.breakingtravelnews.com
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Autumn Airbus launch for Emirates
Emirates’ Airbus A380s will spread their wings to some of the furthest points on the airline’s network – New York, London Heathrow, Sydney and Auckland.
This autumn will herald a new dawn in long-haul travel as the Airbus A380 makes its debut in the Middle East. Emirates are first out the blocks, rolling out the first of its order for 58 superjumbos on 1st October 2008. This will operate non-stop from Dubai to New York, and promises passengers an unrivalled travel experience.
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The launch is set to prove a major milestone for Emirates as it takes the first step in becoming the world’s largest operator of the super-jumbo, which is the largest passenger airliner ever to take to the skies. This will be shortly followed by non-stop services on the A380 from Dubai to London Heathrow on 1st December 2008, and SydneyAuckland on 1st February 2009. The aircraft on these routes will offer 489 seats – 14 in First Class, 76 in business and 399 in economy.
Vice Chairman of Emirates Airline, said: “We’re hoping to receive the first A380 in August, and start flying to New York in October, then we’ll be rolling out about one per month.”
Speaking to Breaking Travel News at the WTTC Global Travel & Tourism Summit, Maurice Flannagan, Executive
As the world’s largest and most advanced passenger aircraft, the Airbus A380 is set to have a resounding
With a route network that currently spans over 90 destinations in 62 countries, Emirates will launch services to Cape Town on 30th March 2009, and has also announced services to Kozhikode (Calicut) from 1st July.
impact on Middle Eastern aviation, with 70 orders from this region, out of a total of 192 worldwide. Etihad Airways, national carrier of the United Arab Emirates, has four on order already. Speculation is also mounting for a repeat order, following an announcement that it plans to order between 50 and 100 jetliners this summer. This comes on the back of Etihad’s recordbreaking first quarter results, showing a 40% increase in passenger loads year-onyear. It is also seeking to expand its network in the Middle East and to nations including India in a bid to
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compete with regional giants Emirates Airlines and Qatar Airways. Francis Ebner, Director General for Etihad’s operations in France, said “We will order 50 planes this summer for delivery in 2013.” He added afterwards that the total order could rise to 100 aircraft including all three categories. Etihad said last year it was evaluating the A350 against the Boeing 787. An order of 50 planes in this category would be worth around $10 billion. Habib Fekih, President of Airbus Middle East, said: “In www.airbus.com Habib Fekih, President, Airbus Middle East
less than five years Etihad has attained a reputation as one of the most respected and fastest growing airlines in the world. With our modern and very efficient aircraft family we are proud to be Etihad’s partner in its strong growth strategy and rapidly expanding network.” Doha-based Qatar Airways also has four A380s on order. This comes as part of more than 200 brand new aircraft worth over US$30 billion due for roll-out over the next few years as the catalyst to open up new routes worldwide.
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SPECIAL INTERVIEW
Nick Turner, Managing Director, Middle East, Group RCI Nick Turner is the Managing Director of RCI Middle East, a member of Wyndham Worldwide. Since he took up the post in October 2006, Nick has grown the RCI Middle East business into a team supporting over 60 mixed-use resorts in the region with a team of 30 RCI product and advisory professionals.
RCI Middle East business aims to provide governments, developers, investors and hotel groups with shared ownership advice, product development and customer services, delivering full turn key solutions and driving premium returns. Fractional ownership has grown into a new multi-billion dollar industry in the Middle East, with Nick one of its key players. He moderates Session 2, Day 2, looking at the business case for fractional ownership in the region. Breaking Travel News caught up with him to find out what brings him to AHIC: BTN: What sort of year has it been for your business? NT: It’s been a remarkable one as the recent Dubai timeshare legislation has recently been approved, which RCI has been co-developing over the last four years. We have seen a significant uplift in interest from regional and international real estate developers and hotel management companies considering incorporating timeshare/vacation owners, fractionals and furnished residential units into their mixed-use projects.
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BTN: What and where are the new markets for your business? NT: Without question 2008 is the year for timeshare, vacation ownership and luxurious fractionals due to the recent legislation. RCI believes that such consumer propositions will keep the Dubai visitor appeal strong in the future years of a potential global slowdown. BTN: How do you propose to meet the challenges of the current global downtown? NT: At present there are very few indications that the global slowdown has any significant effect on tourism related real estate in the Middle East. We are encouraging developers to consider spreading the risk of their projects by including a range of asset classes. BTN: What brings you to AHIC? NT: RCI will be running a dedicated timeshare/vacation ownership workshop in order to provide investors, developers and hoteliers with the basic facts and potential future revenue projections for shared ownership models in the region. Recent North Course research suggests that these new shared-ownership models could potentially support over US$1.2 million
worth of future annual sales. BTN: What sets AHIC apart from other events in your business calendar? NT: In our view AHIC is one of the few opportunities annually for RCI senior executives to meet with their peer groups in real estate and hotelier companies to discuss new opportunities in this exacting and developing region.
BTN: What provisions are you making in your business for green development? NT: As a service provider and advisory group, the RCI Middle East team are working with developers to ensure that sustainability is one of their top three considerations when planning future projects.
www.grouprci.com
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Gulf aviation - bucking a big trend The last month has seen six airlines go bust while news breaks on a major US airline merger. Soaring fuel prices and the credit squeeze threaten to put even more carriers out of business. And yet, within the same period, Emirates has reported its 20th consecutive year of net profit, and both Qatar Airways and Etihad have announced a big expansion in India. So what’s the secret of success for Middle Eastern carriers and can they escape the global downturn?
But first to the casualties. The South African-based airline Nationwide, which operated four return flights a week between Gatwick and Johannesburg, was forced to stop flights last week as its cash-flow had become “critical”. The collapse follows that of two more high profile longhaul airlines operating out of London airports. Oasis flew from Gatwick to Hong Kong and Eos flew to New York from Stansted. Both companies basically ran out of money as a result of fuel prices, a factor that was difficult to predict when setting up shop. Three US airlines did go out of business in April, although these were not necessarily due to the fuel prices but as the price of a barrel of oil continues to rise, more airlines will face an uphill struggle.
His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group
This week another businessonly airline Silverjet, found an investor to pump $25 million into the struggling group. Interestingly that help came from the Middle East. Shares in the airline climbed 26 percent after Silverjet said it had signed a memorandum of understanding with an unnamed investor from the United Arab Emirates. The company said up to a further $75 million had also been pledged under the deal. Last year there were three business-only airlines flying out of London on the wave of a genuinely exciting new business model. Eos and rival Maxjet are gone. Can Silverjet survive? Perhaps, at least, they have been wise in seeking
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their escape route from Gulf sources. Certainly the US is not the place to look for assistance. The American aviation industry is stuttering through a period of consolidation. US Airways began the process when it tied up with America West and they are involved again, with United a possible partner. The big news last month was the proposed merger between Delta and Northwest that has begun to chart a course through the legislative process. Meanwhile, Continental Airlines was tipped to merge with United Airlines, but ruled out a merger earlier this week. And finally, British Airways admitted it is “exploring opportunities for co-operation with American Airlines and Continental Airlines.” This comes on the back of a new fuel surcharge hike from the UK carrier. So whilst both the establishment and the debutants of the industry are struggling, a remarkable expansion continues in the Middle East. This week the Emirates Group reported its 20th consecutive year of net profit, notching a new profit record despite “soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year.” Group net profits increased 54.1 per cent to AED 5.3 billion (US$ 1.45 billion) for the financial year ended 31st March 2008, on revenues of AED 41.2 billion ($ 11.2 billion)
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boom in the Middle East, especially the thriving travel industry of tourism and commerce”, Sheikh Ahmed said. Emirates is not immune from the issue of fuel costs and it remained the top expenditure for the 4th year running. However the airline’s fuel risk management programme continued to reap rewards, saving the company AED 888 million ($242 million) in 200708. In total, the fuel risk management has saved in excess of AED 3.7 billion ($1 billion) since the financial year 2000-01.
Akbar Al Baker, Chief Executive Officer, Qatar Airways
compared to the previous year’s AED 31.1 billion ($ 8.5 billion). The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.
previous year. The business itself has diversified with the successful expansion of Dnata’s international ground handling operations to 17 airports in seven countries.
The numbers are very impressive but what’s the story behind them?
His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group spoke about the results and clearly remains optimistic.
According to Emirates they have been successful in growing customer demand through a very strategic expansion of its business operations. This expansion has taken place across six continents. Growth has been supported by continued investment in the latest technology, products and customer service while keeping a tight rein on costs. 21.2 million passengers flew with Emirates in the latest financial year, 3.7 million more than in the
www.breakingtravelnews.com
“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins. Emirates is fortunate to be located in Dubai at the centre of the new Silk Road between East and West. I believe the threat of an economic downturn will be offset for Emirates by the
Sheikh Ahmed concluded: “The Group’s excellent performance this year is very satisfactory. As with previous years, we do not intend to rest on our laurels. We plan to secure our future growth by investing in the latest technology and products, so that we can continue to provide our customers with the high quality experience that they have come to expect from us.” So careful management, particularly on the issue of fuel is clearly underpinning success. But geography and the rapid development of all types of industry both in the Middle East and its near neighbours is clearly a crucial factor. You only have to look at the recent accomplishments of Qatar Airways and Etihad to realise that when it comes to strategic investment in expanding markets Emirates is not a one off. Two weeks ago Qatar Airways announced plans to operate
scheduled flights to the southwest Indian coastal city of Kozhikode – the airline’s third gateway in the state of Kerala. The airline already serves Cochin and Trivandrum in Kerala and a further six cities across India. With a current capacity of 51 flights a week spread across Delhi, Mumbai, Chennai, Ahmedabad, Cochin, Trivandrum, Nagpur and Hyderabad, Qatar Airways operates an extensive network of services throughout the country. The addition of Kozhikode, its ninth destination in India, takes the airline’s frequency into the country up to 58 flights a week. Qatar Airways Chief Executive Officer Akbar Al Baker revealed that the latest route announcement reinforced the airline’s commitment to expand its ‘award-winning’ service across India. “India today is by far the largest single market for Qatar Airways with a network of eight, and, soon nine cities served non-stop from Doha,” he said. “An economic powerhouse rapidly developing its infrastructure across all industries, India is enjoying tremendous growth. Aviation is just one of the key sectors benefiting from such development and Qatar Airways is delighted to be part of this economic growth facilitating travel to and from India. “During 2007 alone Qatar Airways launched three new
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James Hogan, Chief Executive Officer, Etihad Airways
routes to India. Our new services to Kozhikode will only strengthen our position in this highly important market.” India has important business and tourism ties with the development of the Middle East and Etihad has also been quick to exploit the opportunities it presents. The company is planning to add new routes to four cities in India - Kozhikode, Chennai, Jaipur and Kolkata by 2009. Like Emirates, Etihad Airways has been enjoying recordbreaking figures with it’s best ever Q1 and on track to achieve its 2008 target of carrying six million passengers. The Abu Dhabi-based airline carried 1.4 million passengers during the first three months of 2008, compared to one million for the same period in
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2007, an increase of 40 per cent. The airline achieved average seat factors of 75 per cent across its network of 45 destinations during the first quarter of 2008, which covers the months of January, February and March. James Hogan, Etihad Airways’ Chief Executive, gave some hint as to the basis of Etihad’s more recent success when he revealed, “The performance of the premium cabins has certainly been one of the most pleasing features of quarter one. These figures provide positive evidence that the continued investment we are placing during 2008 upon improving the products and services we offer our premium customers is paying dividends.” It seems that whatever the
underlying geographical, economic and legislative advantages that the Middle Eastern airline industry may hold, these companies are building profits by focusing on the development of their product and making sharp deals. The financing for one of Etihad’s Airbus A340-600 aircraft recently earned them the Airfinance Journal’s ‘Middle East Deal of the Year’ award. The deal, worth USD $148 million, involved an innovative French tax lease, the first of its kind for Etihad Airways. It was also the first time that three French banks had worked together on a French lease for a Middle East airline. Alongside the development of the product comes the development of the brand and here too we see the Gulf
industry making smart branding decisions. Etihad is the emerging airline in the region and is working harder than ever in this area. To mark Etihad’s recent sponsorships of the Scuderia Ferrari F1 team and the Abu Dhabi Etihad Airways F1 Grand Prix, which comes to the UAE capital next year, the airline will display a life-size replica of a Formula 1 racing car on its stand throughout the upcoming Arabian Travel Market. Times are changing fast in the global aviation industry and with an increasing pressure on resources the competition is already fierce and unforgiving. Aviation will face some of its biggest challenges over the coming years and judging by present performance you wouldn’t bet against a positive outcome for these Gulf carriers.
www.breakingtravelnews.com
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SPECIAL INTERVIEW
Gerald Lawless, Executive Chairman, Jumeirah Group In 1997, Gerald joined Jumeirah in Dubai as Managing Director. His remit was to develop a hospitality portfolio that would deliver a completely different experience. Jumeirah Beach Hotel, Wild Wadi Water Park, and Burj Al Arab quickly set the standard for the regional and international growth to follow.
resorts into key gateway or letterhead cities and aspirational resort destinations worldwide.
Gerald Lawless, Executive Chairman of the Jumeirah Group
In January 2007, Gerald was appointed Executive Chairman of the Jumeirah Group and continues to lead its ambitious growth to become the most distinctive and innovative hospitality group in the world. This ambition is expressed by the brand as ‘Jumeirah – STAY DIFFERENT’. Gerald will be interviewed this morning at AHIC as a part of the ‘Straight Talk with Leaders from the Industry’ session. BTN caught up with Gerald to try and find out the sort of things we can expect to hear: BTN: What sort of year has it been for your business? GL: 2007 was yet another great year for the Jumeirah Group. In addition to currently operating luxury five-star hotels in three of the world’s most exciting cities – Dubai, London and New York – we are well on track to grow our portfolio of luxury hotels and
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Other key milestones for 2007 included the completion of our US$ 90 million refurbishment programme at Jumeirah Essex House, which culminated in the opening of South Gate restaurant overlooking Central Park in New York; the launch of six “luxury suites” in Jumeirah Carlton Tower in London, as well as the creation of The Taste Department, our Branded Restaurants division. The outlook for 2008 is bright as well, as we are eagerly anticipating the opening of Jumeirah HanTang Xintiandi in Shanghai later this year; it will be Jumeirah’s first hotel in China and our flagship property in the Asia Pacific region. And we are launching Jumeirah Living, our luxury brand of serviced residences, with the very first luxury Jumeirah Living property, the World Trade Centre Residence, opening in July this year. In addition, we have several fivestar properties under development, including five in Dubai and others in Abu Dhabi, Doha, Phuket, Mallorca and London. BTN: How do you propose to
meet the challenges of the current global down turn? GL: Actually, we currently feel little effect of the credit crunch, for a variety of reasons. A lot of our guests staying in our Dubai properties come from Europe and the UK; because of the strength of the GBP and Euro against the USD – which the UAE Dirham is pegged to – our guests enjoy great value for their money. So we do not see a reduction in visitors; actually, forward bookings are increasing compared to the same period last year. Jumeirah Essex House in New York also benefits from the low US dollar, whether they come from Europe or Asia, or are American tourists travelling within their own country. The hotel was also under a major refurbishment programme in the past two years; now that it is all completed, we do see a large increase in bookings and revenues for the hotel. Interestingly, our two hotels in London are also doing really well, in spite of the strong UK pound. The many properties that are in the pipeline are secure and going forward, and we see a lot interest from potential owners who would like Jumeirah to manage one of their new properties. So our strategy is to keep doing what
we do best: being a worldclass international hotel and hospitality management company. BTN: Sustainability was the key issue at last week’s WTTC Global Travel & Tourism Summit – what provisions are you making in your business for green development? GL: Yes, during the Annual Summit of the WTTC we took a hard look at the way the hospitality industry affects the environment. I also believe that we should establish mechanisms to respect the communities where new developments are underway. We also need to get the message across that travel is good for mankind and beneficial economically and socially. There is also a strong need to look at sustainability from a number of other angles, including what tourism and hospitality organisations can do for local employment in the destinations they develop and operate. Jumeirah Group consistently benchmarks its operations against best practices within the luxury hospitality industry and is committed to conducting business in a responsible and transparent manner to create a positive, balanced and sustained impact economically, socially
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SPECIAL INTERVIEW and environmentally. As an equal opportunity employer, Jumeirah is strongly committed to Emiratisation, to providing equal employment opportunities for both men and women, and to integrating individuals with special needs into the workforce by providing them with adequate career opportunities. The Group steadfastly protects and promotes, within its sphere of influence, fundamental human rights as defined by the UN and ILO and respects the socio-cultural authenticity of the host communities in which it operates. Jumeirah continually seeks to reduce any adverse impact on the environment resulting from its activities by adopting environmentally-credible business practices and innovative technologies. From the “Green Procurement Programme” to reducing
waste, re-using and recycling wherever applicable, to the Madinat Jumeirah Turtle Rehabilitation programme in collaboration with the Wildlife Protection Office, Jumeirah is committed to continuous environmental improvement and the protection of the precious and fragile planet. Each of Jumeirah’s hotels and resorts are empowered and encouraged to initiate relationships with local organisations to promote CSR initiatives and build strong, long-lasting positive relationships with the local communities in which they operate. Jumeirah has CSR affiliations with a number of organisations such as the DTCM’s Environmental Taskforce, the ‘Save the Children’ Foundation, and The Dubai Centre for Special Needs and the Make a Wish Foundation. These organisations have been
selected due to their likeminded approach to implementing CSR programs that bring economic, social and environmental benefits and their innovative approaches and application of best practice. Just as Sustainable Development is a process rather than an end goal, at Jumeirah we are committed to the ongoing development and implementation of CSR practices within the Group’s operations. BTN: What and where are the new markets for your business? GL: At Jumeirah, we are looking at new markets in Asia Pacific – and China and Japan in particular. We are also very interested in emerging markets such as Brazil, India and Mexico. Of course, each time Emirates Airlines launch a direct flight to a new destination we see an immediate impact in the number of guests coming from that part of the world who get to discover our Dubai hotels and resorts. On the development front, we will continue to look for opportunities in Asia, Central and South America, the Caribbean, Europe and the Middle East. In the Asia Pacific region we are targeting key gateway cities such as Beijing, Shanghai, Tokyo and Sydney as well as some of the world’s most successful and idyllic resort destinations including Fiji, the Maldives, Seychelles, Bali and Phuket. The Indian market looks very promising as well. We are also determined to enter info
other traditionally strong hotel markets such as Paris and Frankfurt. BTN: Why are you coming to AHIC and what do you hope to achieve here? GL: We have been a key sponsor of the Arabian Hospitality Investment Conference for the past three years. We feel that our involvement is a reflection of the fact that we are the leading hotel brand in the region. We are a proud Dubai-based international company, the majority of our current portfolio is located in Dubai and the Middle East will continue to be a very important market for our growth strategy going forward. Participating in forums such as AHIC in our home market is vital for us to support inbound travel to Dubai and other key destinations in this region. BTN: Specifically, what sets AHIC apart from other events in your business calendar? GL: We attend a number of hotel and hospitality investment conferences every year around the world. It is important to attend and be involved in these strategic forums to speak with potential owners and investors, to promote the brand and the journey of growth we are on and also to listen and speak with thought-leaders in our industry when it comes to trends, opportunities and challenges when it comes to investment and hotel development.
www.jumeirah.com Burj Al Arab, voted World's Leading Hotel in the 2007 World Travel Awards
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Fairmont to manage Makkah hotel
Fairmont Hotels & Resorts has announced a new hotel in Makkah, Saudi Arabia, overlooking the Holy Mosque and scheduled to open this autumn. William Fatt, CEO of Fairmont Raffles Hotels International
The hotel is the focal point of the iconic Abraj Al Bait Complex, which is part of the King Abdul Aziz Endowment Project whose mandate is to upgrade the precincts of the Two Holy Mosques. The complex includes seven towers with a total floor space equal to 15.6 million square feet and adjacent to the Masjid al Haram, the holiest site in Islam. The property joins Fairmont’s worldwide collection of iconic luxury hotels, and is the seventh addition to the company’s Middle East and Africa portfolio. The Makkah Clock Royal Tower, a Fairmont Hotel will be among the world’s tallest towers with 76 stories reaching 577 meters high. Its unique and distinctive features will ensure a landmark presence, including a 40-meter clock, visible from 17 kilometres away and more than five times larger than Big Ben in London. The Makkah Clock will announce daily prayers to the Muslim world and the Lunar Observation Centre and Islamic Museum will serve to protect the heritage for future generations. Housing 1,005 guestrooms and suites, the hotel will feature Fairmont Gold, the company’s exclusive “hotel within a hotel”, and numerous dining outlets. Elegantly designed and offering top service, the property will welcome pilgrims and guests
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with a variety of leisure and business facilities, including conference and banquet facilities that will accommodate over 1,500 attendees. The hotel’s 76 elevators will provide comfortable transfers during high occupancy periods and calls to prayer. The project is being developed by Saudi Binladin Company (“SBC”), one of the largest development and construction firms in the Arab world. SBC has directed projects in the Holy City including the Abraj Al Bait Makkah project and has been responsible for overseeing the expansion of the Holy Mosques in Makkah and Al Madina, as well as recent safety modifications to Al Jamaraat (the Hajj pilgrimage route). “We are proud to continue being involved in the development of the Holy Sites for the welfare of the pilgrims and visitors from all over the Islamic world,” commented SBC’s Chairman. “We are very pleased that Fairmont will manage this remarkable hotel given the brand’s century of experience in operating large, complex properties around the world.” Fairmont’s parent company, Fairmont Raffles Hotels International, is majority owned by Kingdom Holding Company. Kingdom, chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, is one of the
world’s most successful and diversified business organisations, highly respected in the field of investments and recognised as an elite player internationally and in the Arabian Gulf region. “We are honoured to have been entrusted with the management of this extraordinary hotel project, which is the culmination of our long-term partnership with Kingdom and its relationship with SBC,” said William Fatt, CEO of Fairmont Raffles Hotels International. “We are delighted to be working with SBC, renowned for their extensive efforts in transforming and developing the region.” Additional Fairmont locations in the Middle East and Africa include The Fairmont Dubai, Fairmont Towers, Heliopolis, Fairmont Heliopolis, Fairmont Zanzibar, Fairmont Mara Safari Club and Fairmont Norfolk, Nairobi. Future developments include Fairmont Mount Kenya Safari Club (2008), Fairmont Nile City, Cairo (2008); Fairmont Palm Island, Dubai (2009); Fairmont Zimbali, South Africa (2010); a Fairmont hotel at the Marina City Development in Abu Dhabi (2011) and Fairmont Kingdom of Sheba, Dubai (2011). www.fairmont.com
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SPECIAL INTERVIEW
Trevor Ward, Managing Director of W Hospitality Group Trevor Ward, Managing Director of W Hospitality Group, is regarded as one of the foremost experts on the hotel industry in sub-Saharan Africa, and is moderating Session 10 at AHIC, “Africa – Shining a Light on the Dark Continent”.
With the global downtown squeezing the purses of the traditional Withinvestment the global downtown hotel squeezing purses of the territories the of Europe and traditional hotel investment North America, the territories of Europe and North smart money is turning America, the smart money is to turning the emerging markets to the emerging formarkets futurefor growth. future growth.
In his day job, Trevor is provides advisory services to clients in developing countries, ranging from investment appraisals to asset management. Since 2003 has been based in Nigeria, the continent’s largest oil and gas producer, advising clients there and throughout sub-Saharan Africa. BTN: What sort of year has it been for your business? TW: It has been a tremendous year – I focus exclusively on the
hotel industry in sub-Saharan Africa, where there are excellent opportunities for investors. BTN: How do you propose to meet the challenges of the current global downtown? TW: Whilst I may regret saying this (!), Africa is largely unaffected by what’s happening elsewhere. The banks in Africa seem to be unexposed to the sub-prime problems. BTN: What and where are the new markets for your business? TW: We are busiest in the oilproducing countries of West Africa, and in the main tourism countries in the east, particularly Tanzania/Zanzibar.
BTN: Why are you coming to AHIC and what do you hope to achieve here? TW: There’s tremendous interest from Middle East investors in Africa’s hospitality industry – Dubai World on their own have committed to investments totalling US$1.5 billion. I am on a mission to promote the opportunities in Africa to the delegates. BTN: Specifically, what sets AHIC apart from other events in your business calendar? TW: It’s one of the major worldwide hospitality investment conferences which is relevant to Africa, due to the interest that Middle East investors are showing in the continent.
www.w-hospitalitygroup.com
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Grand Tour 2008
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www.worldtravelawards.com
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“World Travel Awards – Celebrating 15 Years of Excellence” Africa Awards Ceremony Durban, South Africa 12th May Australasia Awards Ceremony Sydney, Australia 10th June Asia & Indian Ocean Awards Ceremony Shanghai, China 18th June Green Awards Ceremony Poprad, Slovakia 20th September Europe Awards Ceremony Crete, Greece 3rd October South America Awards Ceremony Rio de Janeiro, Brazil 21st October World Travel Awards Gala Reception London, England 9th November
Graham Cooke & Mr. Awadh Seghayer Al Ketbi, DTCM Executive Director Conventions and Heritage Division
Middle East Awards Ceremony Abu Dhabi, UAE 27th November North America Awards Ceremony Las Vegas, USA 3rd December World & Caribbean Gala Ceremony Turks & Caicos Islands 12th December
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www.worldtravelawards.com
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Etihad Airways celebrate their win - Graham Cooke, Chairman of World Travel Awards, Reigning Miss World, Tatana Kucharova, Dr Sheikh Ahmed bin Saif Al Nahyan (Chairman of Etihad Airways), James Hogan (CEO of Etihad Airways), Sari Vahakoski (Director Markets CESE & MEA, Amadeus) and Chris Noth
World Travel Awards is the most prestigious, comprehensive and sought after awards programme in the global travel and tourism industry. Established in 1993 to acknowledge and celebrate excellence in all sectors of the industry, World Travel Awards are recognised as the hallmark of excellence, with the winners setting the benchmark to which all others aspire. The Wall Street Journal recently heralded the World Travel Awards as the "travel industry's equivalent to the Oscars". World Travel Awards is proud
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of its impartial nature and the comprehensive process of its voting programme. Votes are cast by an audience of 167,000 travel agents and tourism professionals from 198 participating countries. Voted for by industry peers, this level of accountability makes winning an award the greatest form of recognition in the travel business. Attended by the industry’s key decision makers and figure heads, Word Travel Awards brings together all corners of the globe and all areas of travel and tourism to celebrate both individual success and the collective achievements of the industry.
The Word Travel Awards attracts an unprecedented amount of both trade and consumer media coverage spearheaded by BBC World – our global media partner – whose coverage spans a global audience of over 274 million. In recognition of “15 Years of Excellence”, World Travel Awards has expanded its portfolio by adding a Grand Tour of Regional Awards to recognise winners in their own territory.
Regional Awards will be staged in each key geographic region, culminating in the World Travel Awards Gala Reception in London on the eve of World Travel Market and the Gala Ceremony in Turks & Caicos in December. In addition, the growing importance of sustainability is recognised in the launch of the inaugural Green Awards taking place in Poprad, Slovakia and excellence and innovation within the online travel industry will be celebrated at the Online Travel Awards in Bangalore, India.
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What new features does Durban bring to world tourism, and how is it going to achieve them?
Durban, South Africa’s busy port city, is a town of natural beauty and enviable weather, enough assets to attract a wealth of visitors. But Durban Tourism is working hard to promote and develop its organised attractions as much as its coastal splendour. With an ever increasing focus on cultural, sporting and trade events this part of the ‘Zulu Kingdom’ is implementing marketing strategies that will realise Durban as a prime destination for leisure, event and business tourism. In developing these key areas the KwaZulu Natal tourist managers are committed to feeding the income back into the local economy and rural heritage.
The city has ample capacity for the visitors it’s coming to expect, with the highest hotel occupancy in KwaZulu Natal and a growing average of 12 million domestic and one million international tourists per year. Events like the unique Durban Beach Festival, attracting 1.5 million people and the regularly hosted Indaba, Africa’s foremost tourism trade show, are contributing to Durban’s efforts in securing a renowned brand; representing authentic African heritage, corporate diversity and exclusive world attractions. Indaba attracted more than 12,000 participants last year. However during this year’s
event, May 2008, Durban’s showpiece International Convention Centre (ICC) will host the globally prestigious World Travel Awards (WTA). The ceremony will be the first of the WTA 2008 Grand Tour and it seems fitting to combine it with the continent’s biggest travel tradeshow. The initiative to stage the “the Oscars of the travel industry” during Indaba was proposed by the ICC team itself, “The ICC Durban, its staff and stakeholders, are elated by this coup as the event is one of the most illustrious awards events in the industry,” said Miller Matola, Chief Executive Officer of the ICC. “The ICC Durban has yet again
demonstrated its influence by securing such an event. This is not just a coup for Durban but for South Africa and Africa as a continent. We feel honoured to be kicking off the WTA 2008 Grand Tour.” The WTA Committee in London have confirmed that some 500 guests will be attending the Africa Awards, many of whom are VIPs of the travel industry. The prestigious event also promises to bring global exposure to South Africa overall. Moeketsi Mosola Chief Executive Officer of SA Tourism confirms this saying, “South Africa is already well on its way to being a world class tourism and events destination. Many South
African tourism businesses have been nominated and have won a World Travel Award in the recent past. We are confident that we will rank highly in this year’s global awards.” The significance extends as the world watches South Africa with keen interest ahead of the 2010 FIFA World Cup. As a host city during the tournament Durban can expect a massive influx of international visitors, an opportunity to position itself as a key African destination. Durban Tourism recognises its potential to benefit from the continued growth in world tourism, and intends to do this through long-term
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This is not just a coup for Durban but for South Africa and Africa as a continent. We feel honoured to be kicking off the WTA 2008 Grand Tour.” Miller Matola, CEO of ICC Durban developments of ‘event tourism’. Last year events contributed R1,447 billion to the local economy, with sporting and cultural activities bringing the city R58 million in direct publicity and marketing. There is an average of 20 business, sport and entertainment events per month, and each one is used as a catalyst for tourism development. The local economy is already seeing the benefits of Durban’s event attractions, something that the tourist managers are confident in securing through their longterm approach to increased length of visitor stay and increased visitor spending
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opportunities, now also aimed at the newly marketable disadvantaged areas of the municipality, which are seeing increased levels of investment. In addition to regenerating the urban areas through visitor spending, the tourist sector is committed to investing the revenue into the rural heritage areas just north of Durban. These areas, also open to tourists as part of Zulu Heritage and Cultural Trail tours, have been promised large investments of money. Operating naturebased tourism in order to fund sustainable development of the rural and heritage environments is a major aspect of Durban’s tourism enterprises.
Durban proudly sees itself as a figurehead for new development in South Africa. Its original initiatives in tourism are setting examples in ways to feed the local economy and social wellbeing whilst positioning itself as a recognised destination for commercial and entertainment travel. Partnership with the World Travel Awards is a prime example of Durban’s promoters making crucial steps to elevate this vibrant city to global distinction.
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Africa Awards Ceremony 12th May ICC Durban Durban, South Africa
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Sydney – the city of celebrations
Sydney’s laid-back outdoor lifestyle and physical allure make it one of the world’s easiest and most pleasant cities to visit. The people who live there are a friendly, energetic bunch with a tell-it-like-it-is approach to life.
Sydney is Australia’s truly global city. It has a sense of style, a love of sport and some really exuberant celebrations for New Year’s Eve and Australia Day. In Sydney there’s so much you shouldn’t miss. You can catch the perfect wave at Bondi beach then dine waterside in the historic Rocks precinct, by the beach at Balmoral or on the wharf at Woolloomooloo Wharf. You could climb to the very top of Sydney Harbour Bridge’s huge, over-arching span then catch the Manly Ferry at sunset. From the natural world, why not see the native fruit bats and 30 hectares of themed gardens in the Royal Botanic Gardens on a guided Aboriginal heritage tour or learn about Australia’s unique
animals at Taronga Zoo or at Sydney Wildlife World. Culture cannot be neglected, so be inspired by a magical performance at the Sydney Opera House or be enthralled by one of the best Aboriginal art collections in the world at the Art Gallery of New South Wales. All of Sydney’s attributes lie within easy reach of the city centre. Sydney’s harbour is its natural playground, the dominant factor in so much of what the city has to offer. The city has a wide-ranging cultural life, dynamic food scene and vibrant cityscape of outstanding contemporary and colonial architecture. Iconic beaches and five major national parks deliver unforgettable experiences.
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It will be an honour for The Observatory Hotel Sydney to host the next Australasian regional awards ceremony in June. Like the World Travel Awards, we are also commemorating our 15th year anniversary and we can’t think of a better way to celebrate.�
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Australasia Awards Ceremony 10th June The Observatory Hotel Sydney, Australia
Patrick Griffen, Regional Marketing Director, Orient-Express Hotels, Australia
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Shanghai - driving the China boom
Tourism in China is a booming industry and it has become one of the fastest growing sectors for China's economy. It is estimated that, by 2020, China could be the world’s No.1 tourism destination and the fourth-largest nation of tourists.
China is forever linked to its ancient civilisation, friendly people, and many of the world’s most revered treasures, such as The Great Wall, Terra-Cotta Warriors & Horses and the Yangtze River. One of the countries key attractions are its major cities, and Shanghai is developing very quickly, the leading light of China's recent economic growth. Shanghai has a history dating back 700 years, and was once the financial centre of the Far East. Since the reforms that began in the 1990s, great changes have taken place in the city and the municipal government is
working towards building Shanghai into a modern metropolis and into a world economic, financial, trading and shipping centre by 2020. Like everything in this region, Shanghai is changing fast and in recent years a number of new buildings and attractions have been added to the city. These include the Oriental Pearl TV Tower; Shanghai Museum; Shanghai Library; Shanghai Stadium; Shanghai Grand Theatre; Shanghai Circus City; Shanghai Science & Technology Museum; Shanghai City-Planning Exhibition Hall and Jin Mao Tower. They have literally
changed the face of Shanghai. The city has many colourful festivities, like the Shanghai Tourism Festival and Shanghai China International Art Festival and these have attracted an increasing number of tourists from home and overseas. Shanghai's tourist infrastructure is getting more and more accomplished. There are more than 300 starrated hotels with over 50,000 rooms. Shanghai is an ideal "paradise for shoppers". It has flourishing commercial streets and shopping areas like the famous Nanjing Road
Pedestrian Mall; Huaihai Road; Sichuan Bei Road; Yuyuan Commercial and Tourist Area; the Ever Bright Commercial City; Xujiahui Commercial City and Zhangyang Road Commercial City in Pudong. Shanghai is also a paradise for gourmets. There are over a thousand restaurants serving the 16 different styles of food in China, such as the Beijing, Sichuan, Guangdong, Yangzhou and Fujian. There are also Western restaurants serving French, Russian, Italian, English, German, Japanese and Indian food, and also Muslim and vegetarian food.
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In 2002 Shanghai succeeded in winning the bid to host the World Expo 2010. World Expo 2010 is the occasion for China to “bring the world home, and for the world to feel at home in China.” By dedicating a 5.28square-meter area at the core of the city to exhibitions, events and forums on the Expo theme, "Better City, Better Life," Shanghai is hoping to build a powerful and lasting pilot example of sustainable and harmonious urban living. Asia Luxury Travel Market is the region’s only event exclusively for the luxury travel industry, and will be held in Shanghai from June 16-19,
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2008, at the Shanghai Exhibition Centre. This follows the resounding success of its inaugural event in June 2007. Most of the world’s top sellers of luxury travel who attended the three-day invitation-only gathering in 2007, have already signed-up for ALTM 2008 and another 1,000 sq metres of exhibition space has been added to fulfil demand. Organised like a private club, the unique invitation-only event showcases leading luxury travel suppliers to fully hosted VIP travel buyers. ALTM now intends to double the number of hosted buyers attending the event in 2008. Unlike any other trade show,
ALTM works on a unique prearranged appointment system, where all appointments between buyers and sellers are organised prior to the event. It has proved to be very successful.
Asia & Indian Ocean Awards Ceremony 18th June Shanghai, China
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Go green make money Affordable, luxurious and eco-friendly are three adjectives rarely used together at the same time. Yet all three apply to a remarkable water park in Slovakia. Geraldine Faulkner reports.
AquaCity in Poprad, Eastern Slovakia, uses geothermal energy as its primary energy source and produces almost zero emissions, planning to be virtually energy self-sufficient by the end of 2008.
and was being pumped into Poprad’s sewers.
Set in the foothills of the High Tatras Mountains, AquaCity sits above a vast underground lake of hot mineral water 1,200m below the surface. The water is naturally heated to a temperature of 49ºC and is believed to measure some 70km by 30km, and is up to 500m deep in parts.
Further investigation of the site, which used to house a municipal swimming pool and tennis courts (heated ironically by fossil fuels), gave Mr Telensky the idea to build an affordable luxury and sustainable spa resort/hotel/conference centre that would use hot water from the underground lake beneath it to supply it with all the heat and energy it needs, as well as bring economic prosperity to Poprad; a rundown industrial former communist town.
Thanks to this massive natural resource, the spa can rely on an inexhaustible supply of natural heat to provide all the water, heating and electricity that it needs for decades to come. Surprisingly, the potential of the huge underground geothermal lake was only realised in 2002 when millionaire property developer and entrepreneur, Czech-born Jan Telensky was taking his baby son for a walk in Poprad (his wife‘s home town). While pushing his son’s pram along some waste ground, he came across a large rusty pipe pouring out hot water. He was told that it was hot water from the earth that the town council saw no use for (in the early 1990s it had been drilling, hopefully in search of natural gas) and consequently the naturally heated water (emerging out of the ground at 50ºC) was seen as useless
Mr Telensky says he stumbled across two of the most precious resources; energy and water. And for free.
With this in mind, he negotiated a deal with a private investor and the city of Poprad where he would own 85% of the resort and the city council owns the remaining 15% before investing some £50 million into the construction of AquaCity. “His vision was to produce affordable green luxuries and plough the benefits back into the local community,” says Jan Profant, AquaCity’s Marketing Manager. “If he had to pay for coal and gas to heat and power the resort, the cost would be three times higher.” Today, the thermal water resort with its utilitarian design and high glass walls boasts two hotels, a 350-
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delegate conference centre, 14 geothermal swimming pools, including an Olympic sized 50m long pool; 15 saunas, steam rooms, hot tubs, whirlpools, a snow room (where it snows all year round) and a cryochamber. So how is this vast array of facilities fed? A system of heat exchangers harnesses the raw power produced by the mineral rich hot spa water that bubbles up from the earth under its own steam. Surprisingly the water, containing minerals rich in calcium, magnesium and sulphur flows without the need of man-made pumps at a rate of nearly 218,212 litres per hour. The original bore hole discovered by Mr Telensky some five years ago, sits today in splendid isolation in an incongruous shed 300m away from the water park surrounded by a high wire fence and security cameras. At the top of the bore hole is a valve that enables the maintenance team to control the flow; either manually via a giant wheel or remotely by computer from AquaCity. According to the resort’s maintenance manager, Antonin Hiuska, the flow is reduced in the summer and, obviously, increased in the winter. What process is used to filter the water? “The water is disinfected via an ultraviolet system,” explains Mr Hiuska. “The UV filters kill the live bacteria and
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the stainless steel lining in some of the pools help prevent corrosion.” Due to the mineral-rich water, corrosion is an on-going challenge to the maintenance team. As well as keeping an eye on the corrosive property of the mineral rich hot water, cleanliness is high on the agenda. Currently, all the water in the pools is cleaned once a day and twice a year the pools are completely emptied for a thorough going over. “All the water in the pools is returned to the nearby river where it goes back to the underground lake at a considerably lower temperature than when it first emerged from the bore hole,” adds Mr Profant. A second bore hole is being drilled 2,500m below the High Tatras Mountains. This is particularly significant since plans are well underway to expand AquaCity. The intention is to double the sauna centre, create an indoor tropical beach under biomes (similar to those used on the Eden Project), offer undercover activities such as water skiing as well as increase the number of pools to 38 and supply part of Poprad’s homes with hot water and heat. At the end of 2008, it is planned that three giant solar panels, each the size of a
tennis court, will be sited on the roof of the complex and three wind turbines less than a mile away. All in all, this is intended to ensure that AquaCity will eventually use no outside energy whatsoever.
me a business edge and because I think the environment is important. I believe that every businessman’s motto should be: ‘Go green - make money’,” he says emphatically.
What would be the scenario if the water park was not being fed its water, heat and power from the underground lake? Jan Telensky reckons that if the water park had used fossil fuels as its energy source, it would have generated around 50,000 tonnes of C02 each year.
Adapted from Geraldine Faulkener's article in Sustainable Solutions.
So does the Czech-born millionaire believe it’s all about ethics? “I use environmental technology because it gives
Green Awards Ceremony 20th September AquaCity Poprad, Slovakia
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Europe Awards heading to Crete Aldemar Hotels & Spa, one of the leading hotel chains in Greece, has declared 2008 as the Environmental year for the company with a number of actions, activities and synergies with non government organisations. Aldemar has incorporated the green way of thinking in its business strategy since its foundation, and has been transferring it to its employees via continuous training either on their daily work and tasks or through their active involvement. Aldemar embodies its environmental culture in its everyday practices. Whether it involves partnerships with environmental groups, or providing communications material raising awareness on environmental issues, the goal remains the same. It is about respecting the environment through a different enhanced way of life. Aldemar Group contributes to the environment and invest in it. This philosophy is expressed via its environmental program and policy. “Mare Verde” is Aldemar’s environmental program for the protection of nature and the improvement of life’s quality and also a commitment to the responsible management of energy, water, raw materials and all assets given by nature. The environmental policy is applied to all hotel units and comprises of actions and initiatives concerning:
• Energy saving: Every year, Aldemar invests in prevention maintenance programs for its facilities reducing energy loss at significant levels. • Responsible management of water reserves: Each hotel unit is equipped with biological wastewater treatment systems for the proper storing and biological cleaning of wastewater. • Responsible management of raw materials • Recycling: It is another important pillar proven by the annual recycling results of the hotel units, such as paper, glass, cooking oil, plastic, electronic equipment. • Blue Flag certificate: Maintenance of all hotels clean coasts • Creation of Aldemar farm and cultivation of dietary biological products • Support of Non Government Organisations (NGOs) with environmental actions:
Aldemar invests in the local communities it operates, by supporting local initiatives and responding to local needs. Reforestation forms an important area of action. In cooperation with NGOs and the public authorities, special campaigns are organised, aiming to restore the natural environment. 1) Environmental Protection Aldemar invests significantly in the creation of environmental awareness through sound corporate practices, and with its Mare Verde program develops targeted actions and initiatives focusing mainly on: Energy saving • 7,010 m2 of solar panels – one of the biggest solar fields in Europe • 85% of energy needs (hot water) is met by solar energy • 40% annual saving in electrical energy through the use of sea-water cooling for
the air conditioning system • 1,320,000 Euros total investment cost on solar collectors Water management • 2 biological treatment systems in each hotel • 35% annual saving in water consumption through the use of biologically treated water • 25 hectares of land are irrigated using biologically treated water Responsible management of raw materials • 25% of summer fruit and vegetable requirements are met by produce from Aldemar’s own organic farm • In 2007, it produced 30.000 litres of organic wine and 2.082 kgrs of organic olive oil Recycling 4,500 kgs of paper, 25,000 kgs of glass, 8,000 kgs of cooking oil, 345 kgs of batteries and 230 PC equipment.
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Support for environmental organisations Aldemar has been supporting the work of the Non Government Organisations and aims at contributing to their objectives on a long-term basis. Indicatively some of them are WWF Hellas, Mesogeios SOS (for the protection of the Mediterranean sea), Arcturos (the protection of bear and wolf in Northern Greece), Clean-up Greece, Green Globe, the Hellenic Society for the Protection of Nature, Clean up the Med, ArchelonSea Turtle Protection Society of Greece. Moreover, the Blue Flag distinction is one of “Mare Verde” main objective and aims at ensuring that the coastal region stays clean and is managed to advantage. In the past nine years, Aldemar’s beaches were awarded with the “Blue Flag” recognition for
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the quality and purity of the sea waters and coasts. 2) “Green Room” Initiative Aldemar also initiated an important project on a pilot phase. As a member of the Association of Greek Tourist Enterprises, and its Council of Idea & Action, Aldemar with the synergy of companies in the field of hotel, presented the Green Room in the context of XENIA exhibitions & conferences. The Green Room comprises of a number of technologies and products for energy saving. It is also divided into three parts, a living room, a bedroom and a bathroom with big glass surfaces among the corridors and graphics decoration. That attempt intended to raise awareness to visitors, guests and other companies
activating in the field of tourism and hotel. Mr. Alexandros Angelopoulos, Executive Director of Aldemar and Chairman of Council of Ideas & Action stated: “The creation of the Green Room, should excite us all. We have the power, the choice and the obligation to renew our contract with our planet”.
Europe Awards Ceremony 3rd October Aldemar Hotels & Spa Crete, Greece
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Brazil's position in a globalised context Written by Mario Garnero, CEO, Brasil Invest As one of the major emerging economies on the planet, Brazil is leaving behind its reputation as a "country of the future"; to actually become one of the leading players of the global market, whether denominated as one of the BRIC countries, as coined by Goldman Sachs, or any other name we Brazilians may create.
From an economic vantage point, Brazil is already benefiting from an ever increasingly interconnected economy. Some 50% to 60% of total exports are already being handled by multinational Brazilian trading companies. Furthermore, the management skills needed to train personnel for the business are also a vast and productive legacy that foreign trade left to Brazil. Other relevant contributing factors are the exchange of knowledge prompted by the universities brain exchange and by the products and technology imports this country currently receives, and exports. Before Brazil entered the global market, it lacked people equipped with the skills needed to take advantage of the opportunities; but today Brazil has an extraordinary diversity of brains and technologies.
Brazil's first giant step towards becoming more aligned with the world economy was the creation of Mercosur (The Southern Cone Common Market), which initially lifted trade barriers imposed on its neighbouring countries – Uruguay, Paraguay and Argentina. Notwithstanding, the opening of the Brazilian market to the world economy brought the clearly foreseeable problems inherent to any country that is not ready in terms of structure and technology to face foreign competition. Many domestic economic sectors suffered a hard blow and, unfortunately, many companies succumbed. But, with time, the Brazilian business community adjusted, and continues to adjust, to the new global market reality. Both large and small entrepreneurs realise that it is useless to complain. A lot of effort is required to compete in a globalised
Mario Garnero, CEO, Brasil Invest
market, but no matter how tough it may seem, it does pay off in the end. After undergoing an economic slowdown in 2003, when GDP rose a puny 1.1%, Brazil managed to get back on the sustainable growth track, and grew 5.2% in 2004, 3.1% in 2005, 3.7% in 2006 and 5.4% in 2007. These growth rates could have been even higher were it not for some age-old problems the country has had to deal with. From a social viewpoint, Brazil is still a country of extreme contrasts, in which one sees extremely wealthy areas and poverty-stricken areas side-by-side. But, then, does, any country lack contrast? Switzerland or Norway, perhaps. The problem here is not poverty itself, as poverty is intrinsic to the capitalist development model. What is unacceptable is to have a large majority of poor, while all the wealth remains in the hands of a few.
To situate Brazil in a world ranking, its current human development index stands at 0.800, placing it 70th among 177 countries – in the high human development group for the first time though. Nevertheless, there is a development model Brazil could follow in order to improve its economic and social position – the international insertion model followed by many economies. Brazil has all it takes to double its exports by 2010, from the current US$ 160 billion to little over US$ 300 billion. At this level, the Brazilian economy would consume between US$ 220 billion and US$ 250 billion in imports, resulting in a spectacular trade balance that would ensure Brazil's standing membership to the club of the world's wealthiest and most prosperous nations. Optimism? No: Merely a projection base on recent results achieved by the
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Brazilian private sector's export efforts. From 2001 to 2007, Brazil jumped from US$ 50 billion to US$ 150 billion in foreign market sales. Moreover, growth is sustained – roughly 60% of this result is due to sales and purchases among companies themselves – and furthermore, exponential. The numbers indicate that the trend will continue. Coupled with other important factors, the volume of exports has caused our economy to reach its current total of US$ 1.5 trillion, which makes it larger then Italy's, for example. An economy of this size need not indulge in wishful thinking; it needs to establish doubling its total exports as a real objective for its export agenda. However, Brazil's weight in the world today is still very small when compared to its
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potential, given that its foreign trade accounts for a mere 19% of GDP. It is pointless for Brazil to claim regional leadership, when its actions on the international market are out of step with this assertion. In relation to the Middle East, Brazil is half-way along to road to building successful trade relations with its countries. Brazil currently exports insignificant amounts to the region, but the region's population has a great potential to consume Brazilian products, especially those of the build and food sectors. One of our weaknesses is that we have not yet set up any distribution centre in the Middle East although some Brazilian companies are already operational in the area. Others will certainly follow suit since Brazilian and
Middle Eastern business interests seem more aligned then ever before. Over the last three decades Brazil has numbered amongst the world's 15 largest economies and has become a leading regional power both in political and economic terms. It has a vast and varied gamut of natural resources and boasts stateof-the-art technology in such sectors as bio fuel, oil drilling and aviation. In fact, a country of such geographic and economic proportions as Brazil cannot possibly remain content to play a minor role in the world.
conquer new markets. We must establish direct contacts with other major players in the world economy, be they located in the Americas, Africa, Asia, or in distant Oceania. The course to take is daring – daring to ensure Brazil's position as a leader among the nations of the world.
South America Awards Ceremony 21st October Rio de Janeiro Brazil
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Travel Excellence Guaranteed
World Travel Awards cordially invites you to celebrate the achievements of the travel industry in an evening of relaxed dining and networking on the eve of this years World Travel Market.
In the elegant surroundings of London’s Grosvenor House’s Great Room, you are invited to a night of cocktails, fine cuisine and conversation with an invited audience of the travel and tourism industry’s leading lights. The World Travel Awards Gala Reception will be a unique opportunity for the global travel trade to meet, network, and conduct business on the evening prior to World Travel Market in an informal and relaxed setting.
• Network with fellow Senior Industry Figureheads • Sample the finest cuisine from around the world • Enjoy cocktails and wines from award winning vineyards • Relax and socialise in exceptional style To register your attendance at this year’s most exclusive networking event please visit www.worldtravelawards.com /galareception
The Award bolsters London’s position as the number one city destination in the world and tops an incredible year for the UK capital.”
Great Room, Grosvenor House
James Bidwell, Chief Executive, Visit London, comments on winning Europe’s Leading Destination in the 2007 World Travel Awards
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London – the most popular city destination in the world
doing it with style and sophistication – because after all they are in London.
London is a city full of contrasts – it inspires, stimulates and mystifies at the same time. With its diverse attractions, fascinating history and endless opportunities for entertainment by day and night, the city is undoubtedly one of the greatest destinations the world has to offer. Whether visitors stop for afternoon tea in colorful Piccadilly Circus, take a regal stroll past Buckingham Palace or later in the evening enjoy a show at the famous Royal Albert Hall, whatever they decide to do, they will be
As the capital and largest urban area of England and the United Kingdom, London has become one of the most popular tourist destinations in the world which has increased over the years due to the city’s economic growth. London boasts various World Heritage Sites such as the Palace of Westminster, the Tower of London, the historic settlement of Greenwich and the Royal Botanic Gardens, Kew. It is one of the world’s leading business, financial and cultural centres and its influence in politics, education,
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entertainment, media, fashion and the arts all contribute to its status as a major global metropolis. London’s diverse population draws from a wide range of people, cultures and religions, and over 300 different languages are spoken within the city. It is an international transport hub, with five major international airports serving the area and a large port. It serves as the largest aviation hub in the world, and the multi-terminal Heathrow Airport carries more international passengers than any other airport in the world.
World Travel Awards’ Gala Reception 17:00-21:00 9th November 2008 Great Room, Grosvenor House, London
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A Prospect for Greatness: Abu Dhabi
60 years ago anyone standing on Abu Dhabi’s 1,300 metre Jebel Hafeet peak would have had to strain their eyes to see the glimmer of civilisation sparkling in the baking desert sun, just before the distant ocean. Back then the city of Abu Dhabi was merely a buffer-zone between the sea and the desert; a firm, but simple cross-roads settlement where the camel herding, date growing and pearl diving that had sustained the city’s economy for millennia still continued. No imagination outrageous enough could have foreseen that within six decades the mud huts and barasti palm fronds would be replaced with a grid of tower blocks and skyscrapers resembling a miniature Manhattan; that the traditional trades, so cherished by the families of Abu Dhabi city, would represent the staple for one of the fastest growing tourism enterprises in the world. The desert oasis of Abu Dhabi has blossomed in those 60
years, fuelled at first by oil revenue attained during the 60s and early 70s, but maintained by Arabian ingenuity and the vision of its first family, the ruling Al Nahyan. Lying on a T-shaped island that juts into the Persian Gulf, Abu Dhabi city is the capital and second most populated city in the United Arab Emirates (approx 900,000 population as of 2008). A mere hour and a half drive South from the city of Dubai, Abu Dhabi bursts with dazzling business-comeleisure facilities ranging from cutting-edge convention centres, luxurious hotels, spas, designer golf courses, theatres and very soon, some of the world’s most famous museums. Abu Dhabi was recently pinpointed in the Harvard Business Review, an influential American publication, as one of the four places to invest over the coming decades. In an April 2008 report entitled 'The Tourism Time Bomb', Paul F.
Nunes, an executive research fellow with the Accenture Institute for High Performance Business in Boston, and Mark Spelman, the London-based global managing director of Accenture’s strategy practices, wrote of the skyrocketing demand for travel, remarking, "With new centres of economic power emerging, companies should also establish themselves in rising metropolises such as Beijing, Rio de Janeiro, Moscow and Abu Dhabi, where prices on the prime real estate will surely climb as demand outpaces availability." A sure sign that just over the shimmering desert horizon more changes are waiting for one of the most exciting economic hubs in the UAE. The Abu Dhabi Emirate was recently selected as one of the top ten destinations in the world by expedia.co.uk, UK’s largest online travel agent. The Emirate is ranked among New Zealand, Argentina, China, Cape Verde, Alaska, Reykjavik,
Berlin, Boston and Liverpool as one of the Top Ten places to visit in 2008. Explaining the choice of Abu Dhabi as a leading global destination, expedia.co.uk wrote, “Few places can have undergone such fundamental change over the past 50 years as the emirate of Abu Dhabi. Today visitors can enjoy the beach, desert safari’s, variety enough to quench even the strongest thirst for retail therapy.” Abu Dhabi’s eclectic mix of sea, sun, sand and luxurious leisure facilities has emerged from a unique ethos and heritage, establishing the Emirate as one of the cultural hubs of the Middle East. Abu Dhabi city itself is home to a number of cultural institutions including the Cultural Foundation and the National Theatre. The Cultural Foundation itself houses the UAE Public Library and Cultural Centre. Various cultural societies such as the Abu Dhabi Classical Music Society have a strong and
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The World Travel Awards has become one of the most important awards in the travel industry and we feel very honoured to be part of it.� Selim El Zyr, President & CEO, Rotana Hotels visible following in the city. The recently launched Emirates Foundation makes grants in support of the arts, as well as to advance science and technology, education, environmental protection and social development. IPAF, the International Prize for Arabic Fiction, was launched in the capital in April 2007. On March 24 the Abu Dhabi Tourism Authority signed a Memorandum of Understanding (MoU) with the Abu Dhabi Chamber of Commerce and Industry (ADCCI) to facilitate the online completion of formalities for the issuance of new and renewal of existing licenses for the tourism-related activities in the Emirate of Abu Dhabi. The
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agreement was inked at the ADTA headquarters by ADTA Director General His Excellency Mubarak Hamad Al Muhairi and ADCCI Director General His Excellency Ahmed Hassan Al Mansouri. The egovernment initiative is in line with the ADTA's mission of developing the tourism industry in the emirate in partnership with its stakeholders while ensuring the highest quality standards. It is also in line with the ADTA's values of innovation, customer focus and leadership, ensuring the city stays ahead in world tourism activities. The next few years will see numerous development projects in and around Abu Dhabi, which include luxury
residential, resort communities and cultural acquisitions in the emirate’s coastal areas, shopping malls and hypermarkets and low, mid to high-income residential communities within the main island and the new selfcontained communities. Developments in neighbouring islands likewise engender the construction of several infrastructure projects, mainly bridges, to facilitate transportation and to encourage businesses and consumers to invest in these properties.
Middle East Awards Ceremony 27th November Emirates Palace Abu Dhabi
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Las Vegas: Bigger and Better than ever
Las Vegas is the “Entertainment Capital of the World” and it shows no signs of relinquishing it hold on the title. Visitation figures grew to 39.2 million in 2007, marking the fourth consecutive year Las Vegas has set a new visitation record.
Las Vegas also matched its highest occupancy level in history, reaching 90.4 percent for the year, tying its previous record set in 1996. The destination's average occupancy level now stands at 27 percentage points above the national average. Clark County's gaming revenue also broke the previously set record, rising 2.2 percent to $10.9 billion. "The strength of the Las Vegas brand continues,” said Rossi Ralenkotter, president and CEO, Las Vegas Convention and Visitors Authority.
when Governor Fred Balzar signed a bill that legalized gaming in Nevada. Since that day, Nevada, and especially Las Vegas, has become recognised worldwide as the premier gaming destination. From traditional card and dice games, to slot machines and race and sports book betting, the casino industry has flourished and evolved into an international phenomenon. The development of Las Vegas has stemmed from this and now, more than 75 years later, Nevada celebrates the very industry that has supported economic growth in the state.
It all began on March 19, 1931
But when you're not winning in
the casino you'll find that Las Vegas has a variety of mustsee attractions and entertainment options to keep you and the whole family occupied. From thrilling roller coasters to virtual-reality simulator rides and erupting volcanoes to wax museums, Las Vegas' attractions appeal to people of all ages, interests and budgets. Las Vegas' array of accommodations and amenities offer something for nearly every taste, including visitors seeking a luxurious experience, both in and out of the casino. In fact, in the last several years, Las Vegas has
established its place among the ranks of the world's most plush destinations. And it’s not just the hotels. Once known for its all-youcan-eat buffets and bargain shrimp cocktails, Las Vegas has transformed itself into a top culinary destination. Within a decade, Las Vegas has redefined the culinary and wine experience by offering the most comprehensive collection of celebrity chefs and world-class restaurants, more Master Sommeliers than any other city in the world and more wine sold per capita than in any other destination.
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Nightlife is Las Vegas and from elaborately themed nightclubs that stay open until dawn to the new wave of trendy, ultrachic lounges sweeping the Strip - visitors know when they step out in Las Vegas for the night, it will be an experience they won't forget. In daylight Las Vegas is no longer golf's best-kept secret. In fact, Las Vegas recently was named the top emerging golf destination in the world by the International Association of Golf Tour Operators. Today, more than 60 golf courses are available for play in Las Vegas throughout the year thanks to the area's inviting climate. Las Vegas offers challenging, yet
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beautifully sculpted courses developed by world-renowned designers including Jack Nicklaus, Tom Weiskopf, Billy Casper, Arnold Palmer and Pete Dye. One of the most fascinating aspects of Las Vegas is that it is a city that is constantly changing. It continues to be a dynamic construction market. Between now and 2012, approximately 46,000 new hotel and motel rooms are planned or already under construction. The excitement of continuous re-invention and
rapid growth has helped Las Vegas to achieve recordbreaking popularity. Plus, with more than $30 billion in projects under construction or in planning stages, it is safe to say that, in 2008, visitors will see and experience more in Las Vegas than ever before.
North America Awards Ceremony 3rd December Las Vegas, USA
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Turks & Caicos
Home to pristine beaches, breath taking hues from inviting waters and legendary diving, snorkeling and fishing, the Turks & Caicos Islands beckon to an undiscovered Caribbean. Just a short flight from the east coast of the US, the islands are a tropical classic, a throwback in time where relaxation is unavoidable and rejuvenation ensured. World class hotels, spas and restaurants await, as do their famous stretches of uncrowded beaches and vibrant coral reefs. On land or below the water, the unique serenity, hospitality and
beauty of the islands offer pure relaxation. The Turks & Caicos Islands consist of 40 islands and cays, eight of which are inhabited. The islands are located about 550 miles southeast of Miami, Florida, just below the Bahamas chain and just to the east of Cuba and the island of Hispaniola. Technically, the Turks & Caicos are located in the Atlantic Ocean, not the Caribbean Sea. Covering 193 square miles of the Atlantic Ocean, the islands have one of the longest coral reefs in the world, making it a premier
diving destination. The islands’ economy is mainly based on tourism, with more than 200,000 tourists annually. In addition to this the islands are also a major offshore financial centre. There is a small traditional fishing industry that continues throughout Turks & Caicos. One of the most valuable possessions of the islands are the white sandy beaches, which in total cover 230 miles and are complimented with crystal clear waters. The islands are relatively flat but depending on the island, the terrain can vary from sand
dunes to lush green vegetation. The inhabitants are known for their friendliness. Today, Turks & Caicos stands on the threshold of an exciting future boasting the fastest growing economy in the Caribbean coupled with strictly controlled development to protect the islands heritage as a pristine sanctuary for both local residents and tourists to enjoy.
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Turks & Caicos were delighted to host the event. The quality, beauty and tranquility of the islands complimented the already auspicious ceremony.� Mike Misick, Premier of the Turks & Caicos Islands
World & Caribbean Awards Ceremony 12th December Turks & Caicos
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Local information, places to eat, events and the best nightlife are just some of the things you will find at Dubai.city.mobi
World Mobi Limited +44 (0) 20 7925 0000 info@world.mobi www.worldmobi.co.uk +971 (0)4 301 7777
Call
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Naseem Javed on Global Perceptions of Islamic Products & Services Historically, successful mega revolutions always rely on the incubation of simple ideas, creating mass appeal and the hassle-free propagation of the concepts, leading eventually to worldwide acceptance. But today, with the occurrence of global-image shifts headed toward Asia, even the best of ideas become trapped.
Naseem Javed is a worldrenowned authority on corporate image and global branding. He founded ABC Namebank International over a quarter century ago, advising CEOs of Fortune 500 companies and other leading corporations on all matters of global naming. To date, he has created global name identities which receive a combined turnover of $40 billion per annum.
Naseem is an inspiring and dynamic speaker, whose talks are insightful and provocative. At AHIC he will be raising serious questions on the root causes of why Islamic countries do not have any respectable, globally-recognised local brands. He moderates Session 9 Day 2 (The Multi-Faceted Future of Islamic Hospitality). He shares his insights with BTN. As fast as hundreds of products and services based on Islamic values, from Halal foods to Islamic hotels, grow at a phenomenal rate, the global perception of their image positioning becomes an even more complex challenge.
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It’s a chess game out there, and only the smart players who know all the precise moves will win, as most players are simply moving the pieces without knowing the rules. Welcome to the complex world of image positioning of commercial concepts, products and services arising from the Muslim countries. Today, it’s all about Image Leadership Mandate, the process of carving out a niche among the global opinion. Creating a globally-acceptable message, with built-in features so it becomes a selfpropagating cyclonic brand identity and an unstoppable force now demands special rules of engagement. This is not achieved by logo-centric and slogan-happy branding, or by simply attaching the word “Halal” or “Islamic” to a product. To nurture a revolutionary movement, the study of global image landscape is crucial. These complex issues are often perceived as accomplished using focus groups or traditional research methods, where case studies of some once-great western project only produces outdated results. Today, this subject demands a commanding knowledge of how mass communication and global media strategies are
managed and how fresh ideas are deployed. To create a world-class Image Leadership Mandate within any mega-project is to define, design and own a master blueprint and to possess the tools necessary to X-ray the global landscape during its implementation. For this very reason, there are no major globally-recognised brands to talk about that have arisen out of Muslim countries. So, who are the new champion nations on the global stage delivering the finest performances and altering the course of branded imagery of goods and services? Where are the Muslim countries on these issues? Where are the armies of brand new Muslim products to serve not only Muslim populations but also attract the global customers? Where are the old traditional nations now and what’s happening to their image today? The art of detection of these seismic tremors in advance, to pursue the balancing act for creating new imagery and rapid brandpositioning with world-class solutions has become a serious art. Today, it’s all about the knowledge gap, as this highlyspecialised level of expertise, delivered with loyalty to the master cause is absent from most of the high-profile conferences in Muslim countries, and is often missing from any agenda debating this issue. Unless these levels of competence are addressed and the current methodologies based on the old mediums challenged, the subject of image will simply linger in the dark.
Respondents are often not taking the bold steps to start altering the situation. The image blame game of the past must be replaced by massive training and grass-roots incubation of image and brandsavvy culture so that the nations become confident in knowing the art and start enjoying the benefit of its skilful application. There are series of such nationwide programmes already drafted that can alter the course under the right leadership. For nations seeking a sharper image on the global stage, they must band their exportable competencies and create the ambassadorial brands that can go out and touch the customers of the universe. But they must also play these games with great care and with a deeper understanding of icons under the established rules of engagement. For CEOs of major projects, take the Five Star Standard test (available online) and open a serious discussion backed by professional evaluations while looking at world-class solutions to this dilemma. Great concepts based on Islamic values will become the most powerful global issues in a very short time ahead, but to turn them into a globallysuccessful and highlyrespectable phenomenon, this game must be played with proper rules and it must incubate ideas that will help thousands of SME in Muslim countries along the way. A new revolution awaits.
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ANTT backing the Abu Dhabi experience the
Leading UAE tour operator, Arabian Nights for Travel and Tourism (ANTT) has outlined its ambition to help Abu Dhabi position itself as a holiday destination offering ‘the real Arabian experience to the repeat international traveller’.
Arabian Nights for Travel and Tourism is planning to deliver a unique brand of tour services, offering on inbound and outbound tourism. This includes catering group packages, transpiration and tours, airline ticketing, hotel bookings and so on. The company will also work at developing new market segments. The company’s initial offering is a partnership with the award-winning Abu Dhabi hotel, Emirates Palace, and Etihad Airways promoting a brand-new luxury package, Emirates Palace Tours. A sophisticated multi-lingual website has been developed specifically for this product (www.emiratespalacetours.com). A campaign in the Financial Times, The Banker and on BBC World will market this combination of first-class return flights on Etihad Airways to Abu Dhabi with a stay in the finest suites at the 7Star Emirates Palace. The packages include a Rolls Royce Phantom transfer to and from Abu Dhabi International Airport and breakfast, lunch and dinner for two at any one of the seven
With its year-round sunshine, pristine beaches and spectacular sand dunes Abu Dhabi can claim to offer an excellent destination for all types of traveller. However the ‘Emirates Palace Tours’ is certainly for the most discerning.
famous Signature Restaurants at the Emirates Palace, as well as daily spa treatments for two people at the worldrenowned Anantara Spa.
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Etihad Airways Diamond first class fuses oldworld hospitality with the best facilities in the air. Passengers enjoy personal attention all through thier flight plus more than six feet of space, a luxurious Mr A.M Smireen, Chairman of Arabian Nights Murad Saket, General Manager, Arabian Nights for Travel and Tourism environment, stateof-the-art in-flight entertainment and signature cuisines. World Travel Awards 2007, emphasising its stature as one of the most desirable Once the Rolls has effortlessly delivered locations and venues and a unique Palace guests through the magnificent gates of and Hotel offering to the world”. the Emirates Palace then they can embrace the boundless opulence of this The partnership brings together some enchanting landmark. Hans Olbertz of the key players from the regions describes the hotel as “a jewel among tourism industry. hotels, a symbol of exemplary luxury and hospitality excellence unmatched in Meanwhile, ANTT has a dedicated staff distinction and elegance.” who can work closely with corporate clients to plan events and deliver The package offers guests the chance to arrangements that cost-effectively enjoy one of the hotel’s finest suites. The achieve their objectives. Their corporate Khaleej Deluxe Suites for example offers unit comprises a team of professionals complete options for entertaining with a who understand corporate requirements separate lounge and a dining area, and are able to create and manage combined with truly spectacular 180innovative programmes and events. degree scenic sea views. The ambience of elegant grandeur is enhanced by ANTT is able to offer unique access to a “exquisite Spanish marble toppings, modern yet traditional capital city decorative chandeliers of textured unmatched in the Middle East with access Graniglia glass with a beige and gold finish, to free world-class facilities, vibrant and 100% silk embroidered fabrics”. cultural events, upscale shopping and sophisticated restaurants. ANTT is also Director of Sales and Marketing for planning to debut a traditional Arab desert Emirates Palace, Janet Abrahams, camp that will definitely add value to Abu comments on the hotel’s overall appeal: Dhabi as a destination, fulfilling a need for “The Emirates Palace has become a the ‘desert experience’. symbol and icon for the elite and leisure www.emiratespalacetours.com tourism, especially after winning - for the For further information on Arabian third year running – a host of prestigious Nights for Travel and Tourism, awards, including the World’s Leading email: murad.saket@arabiannights.ae Suite and Leading Conference Centre in
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SPECIAL INTERVIEW
Chris Day, International Managing Director of Christie + Co majority of companies with the words credit crunch dominating the headlines. The resulting investor apprehension has left many deals in a state of flux or even collapse. Despite this uncertainty, Christie + Co’s corporate hotel activity has continued to be robust and diverse. The appetite for good quality, well-located property is still strong, despite the current challenges, and we believe the latter half of 2008 will see investors regain their confidence and the flow of transactions will recommence with renewed vigour. BTN: How do you propose to meet the challenges of the current global downturn?
Chris Day joined Christie + Co in 1985 and was appointed Managing Director in 1993. Chris has overseen the successful expansion of Christie + Co into a truly international business, which provides specialist transactional and advisory services to the hospitality, leisure, care and retail sectors.
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Christie + Co operate 17 offices in the UK and 12 international offices. The company provides business intelligence on brokerage, valuation and consultancy projects in private, public and corporate markets. BTN checked in with Chris to find out what he hopes to achieve at AHIC and beyond. BTN: What sort of year has it been for your business? CD: The start of 2008 has been challenging for the
CD: Christie + Co provides an unrivalled range of transactional and professional services to hotel sector clients across the UK and throughout Europe. Our in-depth and high regarded expertise in brokerage, structuring and financing deals, valuations and rent reviews, investment guidance, feasibility studies and development advice places us in a perfect position to help clients face the current challenges. BTN: What and where are the new markets for your business? CD: Christie + Co’s international business continues to expand geographically in response to clients’ brokerage and advisory needs. We recently opened our 12th International
office in Helsinki, Finland, in order to strengthen our presence in Northern and Eastern Europe. Christie + Co is also keen to take its first steps into the Middle East, North Africa and Southern Asia. Although our experienced team has completed many advisory projects within these areas, we plan to open new offices to enhance our local knowledge and to help ensure that our customers continue to receive the best possible service. BTN: Why are you coming to AHIC and what do you hope to achieve here? CD: Christie + Co believe that Middle Eastern investors can take advantage of the current softening in European market conditions and we are visiting the AHIC to present a variety of hotel investment opportunities. We will also be pleased to offer our business intelligence to clients who could benefit from our renowned transactional and advisory services. BTN: Specifically, what sets AHIC apart from other events in your business calendar? CD: We see AHIC as the most important event of the year for those who are thinking about the future of hospitality in the Middle East. The conference gives Christie + Co the opportunity to interact with more than 1,000 industry leaders regarding one of the fastest growing hotel markets in the world.
www.christiecorporate.com
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Ras Al Khaimah unveils big plans for ATM
RAK Tourism has announced that it will showcase a number of exciting new developments in the emirate's tourism sector during its participation at this year’s Arabian Travel Market.
With nearly 24,000 expected visitors, market players and industry professionals from over 100 countries participating, this year's ATM serves as an excellent platform to promote Ras Al Khaimah as the newest tourism success story in the region with its enormous growth in tourist footfall and aggressive investments in tourism infrastructure and facilities. "We have achieved great success in placing Ras Al Khaimah on the global map, as shown by the emirate's robust annual growth rates in the tourism sector. Ras Al Khaimah is positioning itself as an authentic Arabian tourist attraction, providing visitors a unique mix of rich cultural heritage and state-of-the-art amenities that will make their RAK adventure a truly wonderful and relaxing experience," said Dr. Khater Massaad, CEO, Ras Al Khaimah Investment Authority (RAKIA) and Advisor to the Crown Prince and Deputy Ruler of Ras Al Khaimah. "RAK Tourism's participation at ATM 2008 will provide
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additional boost to our efforts to strengthen the emirate's reputation in the international tourism market, particularly in view of the excellent mileage the exhibition provides and the enormous networking potential it offers," added Dr. Massaad. Ras Al Khaimah has been enjoying a significant growth in the number of visitors, as 2007 statistics reveal an annual footfall of over 500,000. Within the next four years, experts project this figure to increase by a phenomenal 400 per cent, reaching over 2.5 million visitors annually by 2012, largely as a result of the emirate's continued heavy investments to harness its leisure, business and ecotourism potential. Hotels in Ras Al Khaimah have already benefited significantly from the excellent growth opportunities, collectively recording an average occupancy rate of up to 93 per cent as tourists are taking advantage of more competitive hotel rates in Ras Al Khaimah, which are up to 40 per cent lower than in other emirates.
Moreover, several key developments are expected to further consolidate the emirate's tourism industry, including premium hotels, major golf courses and other tourism-oriented properties that are due to be delivered in the market as early as 2009, as well as the RAK International Airport that has been undergoing a major upgrade to handle over 1.2 million passengers also by 2009. "Ras Al Khaimah is emerging fast as a major tourist destination and this will be the strategic message that will be echoed during our participation at ATM 2008. The Ras Al Khaimah government and its partners in the private sector have acted swiftly in response to the growing number of tourists, commissioning several new developments to enhance the emirate's tourism infrastructure and expand the amenities and facilities for both leisure and business travellers," said
Hilary McCormack, Manager, RAK Tourism. "Our participation at ATM 2008 will be of particular interest for tourism investors and market players as several new developments in the emirate will be showcased and launched at the event. We have prepared extensively to ensure a highly informative and stimulating presentation of the various business opportunities being offered by Ras Al Khaimah's dynamic tourism sector," added McCormack. RAK Tourism is also expected to offer an extensive exhibition of several tourism projects and developments of other Ras Al Khaimah-based organisations. Among the other entities that will be exhibiting at ATM 2008 under the umbrella of RAK Tourism are Al Hamra Fort Beach Resort, Khatt Springs Hotel and Spa, Al Hamra Golf, RAK Airways, RAK International Airport, Hilton Ras Al Khaimah & Hilton Beach Resort and Spa, and RAKEEN.
www.raktourism.com
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IFA doubles worldwide presence Kingdom of Sheba
Leading mixed-use developer, IFA Hotels & Resorts (IFA HR) has just released figures that show the company has extended their geographical boundaries and entered eight new markets around the world in just over two years, whilst continuing to nurture its existing interests in the Middle East.
Since November 2005, the company has expanded in Africa and the Indian Ocean region. They entered Namibia through a joint venture with Olthaver & List Group of Companies to redevelop four hotels. They acquired the beautiful island of Ste Anne in the Seychelles through a joint venture partnership with Indian Ocean Resorts to develop a luxurious 5 star Private Island Estate, Zilwa. In Asia, IFA HR entered Thailand by acquiring 24.9% of Thai real estate developer Raimon Land. YOTEL, the innovative capsule hotel concept with ambitions to change the hospitality industry, has brought IFA HR to the United Kingdom and the Netherlands through the development of YOTEL hotels in Heathrow, Gatwick and Schiphol Airports.
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Through the IFA HR’s Yacht Ownership Club, France and the Caribbean were also included, offering members some additional cruising zones. And finally, in North America, a deal was signed to develop a hotel in Central Manhattan with leading American real estate developer, Related. IFA HR listed on the Kuwait Stock Exchange in January 2006, with a market capitalisation of over US$ 1 billion. The company also listed on the South African JSE Limited (Johannesburg Stock Exchange) during 2006, with plans to list on other major exchanges in the near future. Patrick Smith, Vice President Asset Management IFA HR commented “Our aim is to establish an international network of premium holiday and branded residential destinations, with the
opportunity for external investors to share in these developments. This vision is being realised through our existing developments in the Middle East, Europe, Africa, Indian Ocean, Asia and now North America. We will continue to diversify our products in order to offer an exceptional collection of hospitality focused property and leisure businesses to our current and prospective customers.” IFA HR’s diverse product portfolio offers a collection of hospitality focused hotel, resort and residential developments designed to suit clients’ investment, residential, vacation or leisure needs at every life stage across these exotic destinations. IFA HR are not only widening their global reach but are continually pushing the boundaries of the hospitality and real estate
sector to offer investors and tourists access to world-class facilities. In the Middle East, the company was the first to introduce innovative business models such as 5-star branded hotel ownership products and Chris Day Private Residence Clubs (fractional ownership). Additionally, the IFA Yacht Ownership Club, the first yacht ownership club of its kind in the world, has helped to create a portfolio allowing investors and tourists the luxury of ‘Living à la carte’, a most distinguished menu of lifestyle experiences selected from the finest five star products and services around the world. With a proven track record of delivering integrated resorts with international hotel brands, IFA HR is one of the few global real estate developers that
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including London’s Savoy, The Fairmont San Francisco and the Fairmont Monte Carlo in offering warm and welcoming hospitality. The Fairmont Kingdom of Sheba will provide services throughout the resort, ensuring guests will enjoy the highest standards.
Werner Burger, President & CEO of IFA
have a demonstrated ability to sell, develop, and asset manage the full range of real estate vacation products to an international audience. Meanwhile on a slightly more domestic front IFA HR has officially started work on the Balqis residence part of the Kingdom of Sheba resort consisting of 300 residences comprising villas, town houses, penthouses and apartments on the curving breakwater of The Crescent of the Palm Jumeirah. Werner Burger, President & CEO of IFA HR helped break the ground on the project, which will see 141,500 square metres of prime land transformed into one of the Palm Jumeirah’s most luxurious resorts. Each residence promises to have an astounding sea facing view and will be equipped with its own private pool, landscaped garden and enclosed three-car garage. Residents will share a private beach club, a large gymnasium and residence meeting facilities. The Kingdom of Sheba resort is one of the largest projects on
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Dubai’s Palm Jumeirah, and the single largest resort that IFA Hotels & Resorts is developing. The resort is located on the crescent of the island and covers 141,500 sq. metres in a prime location, adjacent to the renowned Atlantis development. The whole Kingdom of Sheba resort will be managed by Fairmont Hotels & Resorts and will consist of five separate and unique elements, each strongly influenced by the values and symmetry of traditional Arab architecture – Residences, Hotel, Private Residence Club, Vacation Club and a Souq (Retail Plaza). The Fairmont Kingdom of Sheba, a hotel of 550 rooms, will feature extensive conference facilities and outdoor leisure amenities, including a private beach and pool complex, a sports club, children’s activity centre and a Willow Stream Spa. The luxury five-star property will join other Fairmont hotels, resorts and vacation ownership homes
Fairmont Heritage Place, Kingdom of Sheba (FHP) is a private residence club with 46 individual luxury duplex apartments with sea views, some of which have private terrace pools. This investment product is sold on a fractional basis, which entitles members an ownership interest in the property. Residents will have access to a private clubhouse, swimming pools and private beach access. FHP offers all the pleasures and rewards of owning a vacation property without the concerns of maintaining a traditional second home. As an added benefit, members can trade their FHP time with other Fairmont Heritage Place properties or Fairmont hotels worldwide. Kingdom of Sheba Vacation Club is the first purpose-built Vacation Club in Dubai and will offer 104 units, in two-, three-, four- and five-bedroom configurations. The advantage to participation in the Vacation Club is that all IFA HR properties become networked across the globe. Members can exchange their time with all other properties, for business or pleasure, from Portugal to Lebanon, South Africa to Tanzania. The Kingdom of Sheba’s Souq (Retail Plaza) will give visitors and residents access to myriad boutiques and restaurants. In
addition, a continuous walkway will not only link the hotel, residential and retail elements, but also all the other projects on the Palm Crescent. IFA HR has other interests on The Palm and December 2007 saw the handover of keys to Dubai’s first ever freehold residential buildings to be managed by an international hotel operator - The Palm Residence, located on the trunk of the iconic Palm Jumeirah. Patrick Smith stated at the time, “The Palm Residence is the first of our residential developments in Dubai to be delivered to our customers, a key milestone for our company. We are delighted to be partnering with Fairmont Hotels & Resorts, who have been appointed as the managers of the building and will be responsible for providing the highest of standards to our homeowners.” In Dubai, IFA HR have sold over 2,000 residential units and are developing a total of 3,000 keys on The Palm Jumeirah, with a value exceeding over US$ 2.5 billion. Welcoming the first of these homeowners was therefore a momentous occasion for the largest foreign investor on the island. With a choice of sea views, these deluxe shoreline apartments will have their own private health club, clubhouse, children’s playground, gardens and restaurant complex. Patrick Smith continued: “As the next year and a half will see us handing over more than 1,600 residential units in Dubai, this handover of The Palm Residence to our first customers represents the start of great things to come for our company.”
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Lyndall de Marco, Executive Director, International Tourism Partnership Lyndall De Marco is the Executive Director of the International Tourism Partnership (ITP) founded fifteen years ago by HRH The Prince of Wales.
It is the tourism program of the charity organisation IBLF. Since its inception ITP has provided leadership to hotel and tourism companies on environmental issues, at the same time provided a noncompetitive platform for the sharing of ideas and the implementation of strategies that will benefit the industry Under her leadership the ITP has developed an array of practical tools and initiatives, including Sustainable Hotel Siting, Design and Construction guiding principles, a Sustainable performance operations tool, the going green initiative as well as cutting edge community investment strategies and programs. Many programs, such as the environmental benchmarking tool and environment management for hotels have significantly advanced the industry awareness and treatment of environmental issues. At this year’s AHIC Lyndall will be the moderator for Session 14: ‘Green Development and the Way Forward’ and BTN caught up with her to find out what her expectations are for the event. BTN: What sort of year has it been for The International Tourism Partnership? LD: We are celebrating our
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15th Anniversary this year and it has been busy, but fulfilling. This is the year when we give the industry innovative tools to help them build and operate sustainable hotels and the timing is right. Hotels are responding to the demand for a more responsible industry and we see it as our role to help them. We have had many prominent hotel operating and ownership companies step up and commit to ITP’s work on sustainability. I feel very confident that 2008/2009 will be the “year of the sustainable hotel”. BTN: Do you feel the challenges of the current global downtown may dilute the ‘drive for the responsible tourism’ as the bottom line takes hold? LD: I think it would have been an excuse last year but now, if a company is not integrating responsible practices into their business plan they will be left behind. It is now not acceptable to use the phrase “operating responsibly or building responsibly is too expensive” and Greenwashing is not an option. Global downturn or not – the issue will not go away. You simply have to find the resources otherwise it will definitely reflect negatively on your bottom line and your reputation.
BTN: Sustainability was the key issue at last week’s WTTC Global Travel & Tourism Summit – how can we keep it at the top of the agenda? LD: By ensuring that at every hotel investment conference the issue is addressed not only as a challenge but also to highlight the successes of those who have been part of the solution. More importantly stop treating sustainability as a “project or a trend.” It is a way of doing business! Unfortunately there are still some unbelievers who still treat sustainability as a marketing exercise. That is a short-term approach. The world is more aware and better educated on issues of the environment and sustainability. It has hit the boardroom, the shareholders meeting and the business traveller.
BTN: Why are you at AHIC and what do you hope to achieve here? LD: I have been coming since AHIC started. More importantly I am here because Jonathan has placed the subject of sustainability on the agenda each year. It is also in a region where there is huge growth. This makes it interesting. For me, responsible tourism in this region has to be a priority. BTN: Specifically, what sets AHIC apart from other events in your business calendar? LD: It is a user-friendly conference. The right amount of people, in a spacious and delightful venue. There is room for everyone to meet, greet or do business. I find it very relaxing.
www.tourismpartnership.org
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Dubai tourism chief sets tone for milestone summit HE Khalid bin Sulayem, Director General, Dubai Government Department of Tourism and Commerce Marketing, officially opened what became a truly landmark event at Madinat Jumeirah, Dubai a fortnight ago.
His Excellency was also quick to point his captive audience towards the projects which are still “unfolding across the desert landscape and coastal waters”. From The Palm Islands, The World and Dubai Waterfront to golf courses, theme parks, sports and spa facilities, as well as convention and exhibition centres and the world's largest airport at Jebel Ali, Dubai World Central. And the development will not stop there. His Excellency revealed that, “While the number of hotels in Dubai is set to rise to more than 500 by 2015, the growth in room numbers will vastly increase from nearly 47,000 now to over 125,000 by this date, including the world's biggest hotel in the Bawadi project.” So what about the effect of such unprecedented growth on the environment? “The development of sustainable tourism is our mission in achieving our goals. Green initiatives are being unveiled by the government to ensure eco-friendly development projects across the emirate, positioning Dubai as the first city in the region to adopt a green building strategy, as well as innovating new eco-developments.”
HE Khalid bin Sulayem, Director General, Dubai Government Department of Tourism and Commerce Marketing
The World Travel & Tourism Council’s 8th Global Travel and Tourism Summit fulfilled its stated ambition to outline the responsibilities the sector must exercise as its global influences increase. At it’s opening, HE Khalid bin Sulayem was invited by Jean-Claude Baumgarten, President and CEO, WTTC to “share with our audience features of the amazing destination that is our host for this Summit”. His Excellency began by explaining that, "Dubai's phenomenal success has vindicated travel and tourism as a vital sector for ensuring continuous growth, employment opportunities and
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trade expansion, while impacting positive change.” He continued, "Last year, Dubai received seven million hotel guests. Dubai hotel establishments registered 84 per cent occupancy, which is the highest in the world. Over 120 airlines serve Dubai International Airport, flying to more than 200 destinations. Nearly 34 million passengers used the airport in 2007, accounting for 27 per cent of the total air traffic in the Middle East and Africa."
So Dubai is looking to position itself at the forefront of this industry’s future and the opportunity to welcome some of the biggest players at both the WTTC Summit, and here at the Arabian Hotel Investment Conference, could not be better timed. HE Khalid bin Sulayem concluded, "The industry serves to inter-link the world and foster a greater understanding among us as global citizens. We are all aware that this potential places travel and tourism in a powerful position to influence opinion makers around the world. It is our privilege to welcome some of the industry bests to Dubai for the global summit that is set to redefine the profile of travel and tourism." www.dubaitourism.ae
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Turks & Caicos hosts landmark sustainability event
The event passed very successfully and included an important panel discussion, moderated by SecretaryGeneral and Chief Executive Officer of the CTO, Vincent Vanderpool-Wallace, which focused on the risks that coastal communities will face, including increased natural disasters and climate change, and the effects on their economies. The need for coral reef protection and preservation was also identified. The goal of the event was to provide recommendations and conclusions on how the region can implement sustainable tourism policies for the economic and social benefit of the Caribbean people. Ralph Higgs, Director of Tourism & Marketing for the Turks & Caicos Tourist Board commented, “As the saying goes, ‘actions speak louder than words’ – this has never been truer than now, when island nations must take action to care for their natural assets. From world class beaches to renowned coral reef systems, countries and communities are working together to sustain the Caribbean coast.” Another highlight was a keynote address by Dr. David Suzuki, world-renowned Canadian geneticist and environmental scientist who set a challenge to the more than 150 delegates who were present not to sacrifice the future for short-term economic gain.
The Tourist Board of the Turks & Caicos Islands has hosted the 10th Annual Caribbean Conference on Sustainable Tourism Development (STC-10) this week, attracting some of the world’s foremost authorities on conservation and sustainability.
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The event was held in Turks & Caicos at Beaches Turks & Caicos Resort & Spa (by Sandals), a Green Globe Certified Hotel. Turks & Caicos was quick to commend its local sponsors – Chevron, Salt Cay Resort & Golf and Wymara Turks & Caicos – for their
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amenities include an energy management system to turn off lights and reduce air conditioning consumption in unoccupied rooms, high efficiency air conditioning units that save approximately 40 percent of energy consumption, low voltage lighting, and pools heated by solar power. In addition to acting as sponsor of the STC10, Wymara is also a sponsor of the Bight Children’s Park
where its support helps sustain the dune and natural area while providing parkland and prime beachfront for children and families to enjoy. Higgs continued, “Our ‘Green Stars’ serve as local and international examples of how organisations of all sizes can contribute to preserving the environment with a strong commitment and careful planning.”
NEWS IN BRIEF dedication to maintaining the Islands’ natural environment. Beyond event sponsorship, these organisations, dubbed “Green Stars,” have implemented a variety of initiatives to protect and sustain the environment. Chevron Corporation was the main sponsor of STC-10, in harmony with the company’s pledge to give back to communities where it operates. Chevron believes in conservation as a plentiful form of new energy, and makes energy efficiency a constant priority from everyday actions like providing maintenance to keep equipment running smoothly to complex projects such as building power plants. At Chevron, conservation and energy efficiency are not only powerful tools for running business’s, they also save valuable resources and protect the environment by reducing greenhouse gas emissions. Salt Cay Resort & Golf, located on Salt Cay, identified as the first “Green Island” in Turks & Caicos, is also an STC-10 “Green Star” sponsor. During planning, construction, development and ongoing operations, Salt Cay will work closely with government entities and environmental
consultants to deliver sustainable tourism benefits and environmentally conscience processes. Salt Cay Resort & Golf will offer visitors a high-end experience based on integration of the existing community and resort guests, nurturing and enhancing the native ecosystems and minimising the impact of development, and a respect of heritage including the culture and history of the island community. Salt Cay Resort & Golf will be limited to two story ultra low density buildings, it will invest resources in renewable energy, and it will retain mangroves as an undisturbed ecotourism area – essential habitats for birds and other wildlife. After construction, there will be no vehicular traffic permitted. Wymara Turks & Caicos, a luxury condominium and hotel development in Grace Bay, has taken great strides to protect and sustain the local environment. Wymara displayed its commitment to the environment early on by removing vegetation from the property to be maintained at a nursery during construction and then re-introduced during landscaping. Wymara’s environmentally friendly
www.turksandcaicostourism.com
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Islands boosted by considered developments Turks & Caicos Islands is to welcome a series of developments including the grand openings of new upscale resorts, hotel property upgrades, the completion of a new marina and private airstrip. Turks & Caicos’ Third Turtle Club & Spa, a RockResort, began the season with a $3 million beach restoration in March, with the actual resort set to be complete in 2011. Next sees the completion of the Meridian Club’s property rejuvenation, and The Sporting Club at Ambergris Cay’s private airstrip launch – the longest in the Caribbean. The very first Nikki Beach Resort and Leeward Marina is to be unveiled, which will accommodate mega yachts for the first time in the destination’s history. And as the Islands heat up for summer there will be the opening of Seven Stars Resort on Grace Bay Beach, voted “World’s Leading Beach” for the past three years by World Travel Awards.
Film and music top the bill in Caribbean The Turks & Caicos Islands Tourist Board is looking forward to welcoming travellers to two top class cultural events this year. First up is the fifth annual Turks & Caicos Music and Cultural Festival (TCMCF), set to take place July 28th through August 4th, and later in the year is the 4th Annual Turks & Caicos International Film Festival (TCIFF), taking place Oct. 15 – 19, 2008 in Providenciales. TCMCF aims to bring the some of the world’s most popular artists to the Turks & Caicos Islands with Lionel Richie, LL Cool J and Anita Baker set to perform and October’s TCIFF, the “Cannes of the Caribbean,” promises to impress with oceanfront film screenings, unplugged acoustic concerts and exclusive island parties. Ralph Higgs, Director of Tourism & Marketing at the Turks & Caicos Tourist Board said, “We often hear that Turks & Caicos is the type of destination one only sees in the movies, and encourage individuals to embrace this opportunity to experience our paradise firsthand.”
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Sub-prime crisis to squeeze hotel investment
Financial uncertaintly will slow hotel transaction activity, according to the latest Hotel Investment Outlook 2008 published by Jones Lang LaSalle Hotels. The leading global hotel investment services firm says 2007 was a bumper year with US$113bn worth of hotels changing ownership, however the impact of the sub-prime crisis is tightening its grip both in the availability and the cost of debt.
Arthur de Haast, Global CEO of Jones Lang LaSalle Hotels
Global CEO of Jones Lang LaSalle Hotels, Arthur de Haast, said: “The outstanding level of transaction activity was of course bolstered by the record-breaking hotel transaction which saw Blackstone acquire Hilton for US$26bn. However, even if we exclude this single corporate transaction, we have still experienced 20% year on year growth, which is extraordinary given that 2006 was already a 67% increase on 2005, and this was a 61% increase on 2004.” Jones Lang LaSalle Hotels believes that changes in both the availability and cost of debt will slow transaction activity although it will have less of an impact than on
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other property sectors. De Haast continues: “Our research highlights a different dynamic at play within the hotel investment market when compared to other investments. The general M&A market is reported to have slowed down around 40% following the sub-prime crisis, whereas hotel transaction activity has slowed just 17% compared to the same period in 2006. ” As financial market uncertainty persists in 2008, hotel transaction activity will consequently slow. However, hotel activity is likely to rebound sooner and may indeed be impacted to a lesser degree. De Haast suggests:
“Hotels have been a favoured investment for less leveraged buyers such as Sovereign Wealth Funds, High Net Worth Individuals and Real Estate Investment Trusts, who we expect will take advantage of the changed market conditions”. Jones Lang LaSalle Hotels states that hotel investment activity will be limited by the reduced availability of assets for sale in several markets in 2008, especially as sellers adjust to new pricing levels. De Haast continues: “Yields had started to turn in some markets before the sub-prime crisis and realistically we had
anticipated this shift. The reduced level of liquidity will soften yields, especially in secondary markets, until the third quarter of 2008 when we expect the market to start to rebound”. Despite the economic fundamentals providing challenges for the sector, debt continues to be paid; private equity buyers continue to be active both as buyers and sellers; new sources of capital from China, India and Russia are helping to support transactions volumes and hotel brands are becoming a critical component in driving asset values.
www.joneslanglasallehotels.com
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Being unique is the key to Dubai’s growth, says Dubai World Chairman
His Excellency Sultan Ahmed Bin Sulayem, Chairman of Dubai World
Individuality is the key to Dubai’s growth in every sphere of activity, Mr. Sultan Ahmed bin Sulayem, Chairman of Dubai World, said in his keynote speech at the 8th Global Travel and Tourism Summit in Dubai.
Addressing the session on ‘The Industry is Smart and It’s Getting Smarter,” Mr. Bin Sulayem said that Dubai took exceptional initiatives that many regarded as “crazy” at
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the time, but later proved to be successful. He stressed the importance of being innovative and highlighted some of the
glorious success stories that Dubai came up with in its march towards becoming a great business and tourist destination. Mr. Bin Sulayem sited the example of Jebel Ali Port, which was once regarded as an unrealistic venture, but later proved the critics and analysis wrong by growing to become one of the biggest
and busiest container terminal ports in the world. The port is now one of the main pillars of Dubai’s economic development. Another successful initiative in the early 1990s, he noted, was the establishment of Dubai’s Department of Tourism and Commerce Marketing (DTCM), which formulated the comprehensive plan for the emirate’s travel and tourism development with a vision for the future.
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Dubai developed a fully integrated tourism offer by building a world class infrastructure – airports, airlines, ports and cruise terminals and hotels that are recognised the world-over. However, there is nothing to beat the concept of Dubai’s new waterfront projects as far as uniqueness is concerned, he told the summit, which included leaders and decision makers from the travel and tourism industry, senior government officials and other dignitaries. Referring to the brilliantly innovative projects such as The Palm Islands and The World launched by Nakheel, the urban development arm of Dubai World, Mr. Bin Sulayem told the summit about what began as a small idea in the late nineties to add a few extra kilometres to Dubai's shoreline, blossomed into one of the most astonishing achievements for the emirate. The idea was to increase Dubai’s beachfront to attract more tourists. The palm tree design was only incidental, Mr. Bin Sulayem recalled. What was more important was that 70 kilometres of new beach could be added to Dubai’s coastline. “Back then, everybody was investing in Dubai’s real estate sector, but the challenge for Nakheel, as an urban developer, was to develop something unique in the sea, different from what was generally on offer,” Mr. Bin Sulayem underlined. He spoke about the role of innovation in overcoming the environmental challenges that www.dubaiworld.ae
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were associated with the Palm project, making a reference to the positive impact the project eventually had on the marine life. He specifically talked about Nakheel’s most laudable initiative: the Blue Communities, and its long term aim to provide leadership in the development of sustainable coastal communities which will ultimately lead to guidelines on coastal development. He stressed the need for innovation to inspire ideas and technology to provide the answers to modern-day global challenges. It is technology that has enabled the creation of ‘wonders of the world’ like the Palm Jumeirah. He also referred to the development of Dubai’s airport and the launching of Emirates, the airline that offers top class luxury to travellers. The Chairman of Dubai World shed light on the ambitious plans to enhance Dubai’s luxury hotel industry and increase the number of hotel rooms to accommodate the growing number of visitors. Mr. Jean-Claude Baumgarten, President and Chief Executive Officer of World Travel and Tourism Council presented a memento to Mr. Bin Sulayem at the end of his keynote speech. The two-day summit, aimed at facilitating an open exchange of ideas among industry and government on the responsibilities that the travel and tourism sector should exercise as its global influence increases.
NEWS IN BRIEF
Dubai World companies share best practices
Korean companies look to invest
Development, project and technical managers, contracts and commercial managers, legal department heads, CEOs and CFOs from major Dubai World real estate business units have come together to share best practices and lessons learned in construction at a gathering organised by Group Internal Audit of Dubai World.
A high-level Korean delegation, comprising Senior Executives of Korean Technology Investment Corporation (KTIC), and CEOs of twelve leading Korean technology companies in the telecommunications and medical sectors, recently visited Dubai, expressing an interest to invest up to AED100 million in TechnoPark, the science and technology facilitator of Economic Zones World.
CEOs from Nakheel, Limitless DMCC, Dubai World’s lead master planners and developers, and the Managing Director of Trakhees – PCFC, the construction and development licensing authority, discussed their experiences in dealing with urban development projects on a massive scale, and the challenges faced by companies in world-class construction.
Dubai World to partner with Republic of Benin Dubai World has entered negotiations with the Government of Benin to develop large-scale tourist attractions in the West African country, including a 32 kilometre beachfront development, which will be masterplanned, as well as an international hotel in the capital city of Porto Novo. Dubai World chose Benin for major investments during the West African tour by Chairman Mr. Sultan Ahmed bin Sulayem and a team of senior officials from various group companies, including James Wilson, Chief Executive Officer of Dubai World Africa, the group’s investment arm in the continent. The Dubai World executive team met President of Benin H.E Boni Yayi and discussed potential business partnership opportunities.
TechnoPark is actively wooing global VC funds and technology companies following last month’s announcement of the $300 million Global Venture Capital Fund (KTIC Jasper Asia Gulf Horizons Fund) being set up in collaboration with Korean Technology Investment Corporation (KTIC) and Jasper Capital.
Dubai World to develop resort on Gorée Island Dubai World has signed an MOU with the Government of Senegal to develop a worldclass 5-star hotel and beach resort on Gorée Island, as well as a bird sanctuary and reserve north of Dakar and another game reserve close to the Senegalese capital. Agreements to this effect were signed in Dakar by HE Sultan Ahmed Bin Sulayem, Chairman of Dubai World, and HE Cheikh Hadjibou Soumare, the Prime Minister of Senegal, in the presence of Mr. Karim Wade, Special Advisor to the President of Senegal and Chairman of the National Agency of Organisation of Islamic Conference (ANOCI) .
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Full steam ahead for Bawadi Dubai is architecturally the most exciting city in the world. From the world’s tallest hotel (the Burj al Arab) and the world’s tallest skyscraper (the Burj Dubai) to the world’s first underwater hotel (Hydropolis), this is a city pushing the very boundaries of what is architecturally achievable. In this city of superlatives, one of the most eagerlyanticipated projects is Bawadi, which will be the world’s largest hospitality and leisure development. Despite the enormity of the project, construction is on schedule. This February, road work was completed as part of the initial AED 4 billion infrastructure work. The 10km Al Qudra Road, which is now open to the public, has been widened to facilitate easier flow of traffic. Arif Mubarak said: “We are pleased that work on Bawadi is running on schedule. With the initial road work complete, we have moved into the next stage of the project’s first phase, which will include the installation of energy, water, and waste management systems. In addition, the design work for the master plan of the utilities (i.e. water, energy, and waste management systems) has also been completed.” His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, has also instructed Bawadi to have the biggest shopping area in the world. This will provide support to the tourism and hospitality
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industry, which, in return will play a major role in the diversification and development of Dubai’s economy, in line with Dubai’s strategic plan 2015. Over 40 million square feet, it will consist of shopping malls, boutique malls, street shopping and an underground shopping area connecting all Bawadi’s elements, making a gigantic shopping boulevard. His Excellency Mohammed Al Gergawi, Executive Chairman of Dubai Holding, said: “Bawadi will provide the largest shopping area in the world, linked to 31 hotels ranging from 3 to 5-star. It will represent a significant platform in the development of tourism in the emirate and will underline Dubai’s status as one of the world’s premier family destinations. Saeed Al Muntafiq, Executive Chairman of Tatweer, said: “The biggest shopping area in the world will considerably enhance our offering. It will, undoubtedly, accelerate our drive to develop a world-class hospitality and tourism project in Dubai and the region.” “Bawadi already has confirmed commitments from a number of renowned regional and international investors to develop world-
Holly Bolly Hotel and Resort, being built as part of the Bawadi hospitality and tourism boulevard
class unique hotels,” Al Muntafiq said. The unique line up of signature developments will play a key role in making the AED 100 billion mega project a milestone development. This will include a 5-star Ottoman Palace Hotel and Resort, modelled on the life and times of the 16th and 17th centuries. Replicating the Ottoman era, the resort will include inimitable hospitality offerings from speciality Turkish baths. Enhancing the exclusive thematic experience of the 600-room resort will be worldclass traditional performances mirroring the best of the period. Meanwhile the magic of Morocco will grace the AED 800 million Al Maghreb Resort and Spa to be developed by Al Ghurair Investment LLC as part of the Bawadi hospitality
and tourism boulevard. Arif Mubarak, CEO of Bawadi, said: “Al Maghreb Resort and Spa will further enhance the Bawadi experience in its reflection of authentic Moroccan heritage. The thematic development will be inspirational, and will exemplify the typical decorative style of Moroccan architecture. We expect the uniqueness of the Al Maghreb Resort and Spa to add to the UAE’s dimension as a multi cultural tourist haven.” The five-star Al Magreb Resort and Spa will comprise 800 rooms, a wide range of signature Moroccan restaurants, souvenir boutiques, and an exotic spa and bath. Traditional music and dance from the region will provide guests with an overall experience of a cool, tranquil retreat.
www.bawadi.ae
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SPECIAL INTERVIEW Arabic name that refers to an aromatic plant mentioned in the sayings of prophet in the Holy Quran, Rayhaan reflects our respect for the culture and beliefs of our guests and our dedication to fostering a new Arabia in today’s world.
Selim El Zyr – the BTN Interview Rotana Hotels was founded in 1992, by a partnership between two visionary thinkers; Nasser Al Nowais and Selim El Zyr, who were joined three years later by Nael Hashweh and Imad Elias. Operating as Rotana Hotels, they opened their first property in Abu Dhabi in 1993 and Rotana Hotels is today one of the leading hotel management companies within the Middle East. BTN caught up with Selim El Zyr, President & CEO of the company and asked him for a more detailed analysis of the growth plans for this fascinating company. BTN: What are the main hotel projects being launched by Rotana in UAE currently? What are your expansion plans across the region? SEZ: Rotana’s strategic aim is to have a property located in every key city in the Middle East and this goal is being steadily achieved through careful longterm planning and timely action. We currently have a portfolio of 62 properties in Dubai, Abu Dhabi, Sharjah, Qatar, Bahrain, Kuwait, Lebanon, Egypt, Amman, Oman and Syria. In addition, we have committed to have 25 Centro properties within the coming 5 years. Our priority is to have a property in the main cities in Saudi Arabia and in Cairo. We are currently negotiating several other projects but we are keen on taking the ones that would guarantee a healthy return to the owners and those would add value to our brand. But we welcome any other appropriate opportunity in the remaining Arab states. As long as we are able to manage our growth in an efficient way then we will take further properties as
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we are extremely cautious on expanding strategically and efficiently. BTN: You’ve recently introduced new branding for Rotana, as well as a new structure. Please tell us about the significance of the new branding and structure, particularly the goals and aspirations they convey? SEZ: Following 15 successful years of operation and as a result of the Rotana’s growth, it was essential for us to re-look at our brand structure to further expand our portfolio. The brand revitalisation builds on the company’s strong foundations of enduring friendship and genuine dedication to serve, whilst making a promise for the future. A promise that time spent with Rotana will be “Treasured Time”. The development of the brand builds on the existing equity of Rotana whilst setting in place the necessary tools with which to facilitate the company’s rapid growth. With a commitment to open over 62 properties by 2012, Rotana is set to continue to deliver on its promise to owners and partners, colleagues and guests. BTN: What is the new structure’s impact on Rotana’s current operations? Rotana is in the midst of vast expansion/growth plans – what role would the new branding and structure play? SEZ: Rotana’s brand revitalising was essential to ensure differentiation between the various products and this is
crucial taking into consideration our expansion. We have developed two new products, Arjaan by Rotana and Rayhaan Hotels & Resorts by Rotana, to complement our existing portfolio. Rotana’s brand equity will be used to endorse the latest additions to the brand and ensure they provide the award winning standards of hospitality excellence that is intrinsic to Rotana. The name Arjaan, the arm of the company formerly known as Rotana Suites, leads the mind to a place providing a memorable experience, perfectly reflecting the freedom the suites offer. First-class hotel apartments with a personal touch, Arjaan properties have been developed with both long-term guests and families in mind. Those staying longer than the average visitor will appreciate the particularly spacious accommodation, whilst families relish the promise of an environment which more closely resembles home. The stylish and fully equipped Arjaan by Rotana are designed with the objective of closing the gap between hotel room and home, making Arjaan a natural choice for guests seeking a smooth transition into a new city. In this ever changing world, some of our guests seek to reflect the values they hold in the accommodation they chose. Giving careful consideration to the diverse needs of our guests, we have introduced an alcoholfree option, Rayhaan, to Rotana’s hotel and resort portfolio. An
In addition to the launch of Arjaan and Rayhaan, Rotana has also shaped a new name and a new identity for the division formerly entitled Rotana Hotels, Suites & Resorts. Now operating under the name Rotana Hotels & Resorts and characterised by the excellence of its dining venues, the brand’s success is founded on its ability to attract some of the most renowned names in the restaurant world. Determined to increase the prestige of all its properties, the coming years will see many new hotels and resorts flying the Rotana flag ever higher. One of the other products encompassed within the organisation is Centro, which was launched in 2006. Delivering superior accommodation at an affordable price, it redefines the conventional concept of economical comfort. Working towards the opening of 25 Centro properties across the Middle East by 2014, the organisation hopes to meet the demands of a new generation of traveller, seeking finesse and functionality at reasonable rates. Young and fresh, Centro is a contemporary concept that is original in its presentation and dynamic in its offerings. As the name indicates, the Centro properties will be located at the heart of business and commercial districts in the major cities across the region. Providing unique living spaces in a contemporary environment, they provide amenities specifically geared to the needs of the travelling executive. Boasting rooms featuring the latest in technology and comfort, in addition to well equipped meeting rooms and business centres, Centro is destined to become synonymous with care and attention to detail.
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SPECIAL INTERVIEW BTN: From a marketing point of view – how important is an organisation’s brand/identity? SEZ: ‘At the core of all that we do is our character. In turn, our character is embodied in our brand.’ The heart, while something physical, is also representative of the emotions we feel. A brand too, transcends the merely physical. A brand is an emotional bond established over time between a product or service and the consumer as a result of a promise made and continuously kept. The value of this relationship, or the brand’s equity, is something which is built up over time. The life of a brand starts with creating a meaningful difference. This is a brand’s purpose, to be different from its competitors but always relevant to its consumer. The brand’s purpose, or the
brand idea, inspires and drives all communication. All brand communication, or brand signals, should be aligned with the brand idea in order to consistently build a relationship with the consumer. Just as with any friendship between two people, a brand must keep its promises to its audience. Over time this builds a brand with meaning and heart. BTN: Did the UAE or other regional countries reach the saturation point, or can we expect more expansion in hotel projects? SEZ: Tourism in the Middle East enjoyed an unprecedented boom in the previous 3 years. Hotels in the Gulf countries had significant increase in occupancy and average room rate. Hotels in the Levant are re-bouncing despite the challenges and the events that followed September 11 have encouraged regional tourism.
With additional entertainment and leisure facilities being developed, it will only continue to grow. The Middle East Travel & Tourism economy is expected to have accounted for 9.7% of GDP and to 4.6 Million jobs. It is expected to continue its healthy growth of 4.5 to 5% annually over the next 5 years. Travel and Tourism in the UAE is expected to have generated around USD $ 26353 Million in revenues accounting to approximately 12.1% of GDP and providing around 300.000 jobs. It is expected to grow at an average of 6.5% per annum.
Rotana Hotels currently has 6000 employees and by 2010 the company will be increasing it’s manning by 150%, which makes the approximate total number of employees 15,000. Rotana Hotels is looking at recruiting 8300 employees, out of which are 27 General Managers, 330 Department Heads, 390 Managers, 685 supervisors and 6600 employees. The traditional markets in emerging countries such as India are simply drying up because of the availability of jobs locally and global competition.
BTN: What are the main challenges for the hospitality and tourism sector in the region?
Another challenge is remaining up to speed with online technologies since we anticipate that up to 50% of our business will be generated online within the next 5 to 7 years.
SEZ: The main challenge is to find staff, as we will need about 15,000 team members over the next 5 years.
www.rotana.com
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SPECIAL INTERVIEW
Kirk Kinsell, President, Europe, Middle East & Africa (EMEA) of InterContinental Hotels Group From 1988 to 1995 Kirk served as Senior Vice President of Franchise for Holiday Inn Worldwide, a predecessor of InterContinental Hotels Group. He led the launch of Holiday Inn Express, Holiday Inn Select and Holiday Inn SunSpree Resorts brands. In 2003, Kirk led the launch of Hotel Indigo for the group. More recently, Kirk served as President and CEO of Micell Technologies Inc. Under Kirk’s leadership, Micell Technologies was recognised as the 2001 Entrepreneurial Company of the Year for North Carolina. Kirk holds a master’s in professional studies degree from the School of Hotel Administration, Cornell University, and a bachelor’s degree in economics from the University of California, San Diego. He also completed the Senior Executive Programme at the London Business School. Kirk serves on the board of the International Franchise Association.
His Excellency Sultan Ahmed Bin Sulayem, Chairman of Dubai World
Before taking up his position last September, he was Senior Vice President, Chief Development Officer, The Americas, responsible for unit growth across all brands and franchise, management contracts and real estate development.
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BTN: What sort of year has it been for your business? Annual RevPar figures for the EMEA region show the current level of growth is extremely strong, with IHG Middle East outperforming all other regions. For IHG MEA, business is increasing yearon-year across all markets. The Middle East and Africa region is becoming increasingly important as both a leisure and business destination. Access is easier each year, primarily driven by additional airline routes as
www.breakingtravelnews.com
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well as more competitive travel costs. BTN: What and where do you see as new markets? Our focus is on the UAE and Saudi Arabia where IHG is already a dominant player and where numerous demand drivers exist. Oman presents tremendous opportunities given its focus on cultural heritage and its unspoilt beauty. We see this market presenting a niche play for high end integrated resorts. Jordan and Egypt are seeing new types of traveller as the destinations become more accessible. BTN: What brings you to AHIC and what do you hope to achieve here? To grow IHG’s portfolio and sustain its significant contribution to the region’s travel and tourism market, it is vital that we meet regularly on a one-to-one basis with investors at events such as AHIC. It is an excellent opportunity to meet like-minded partners in a dedicated environment As one of the world’s largest hotel companies, IHG attends such events to ensure it is part of, and leads, discussion on industry trends and therefore contributes on driving the development of the region’s tourism market. BTN: What sets AHIC apart from other events in your business calendar? The Arabian Hotel Investment Conference is now a part of IHG’s regional marketing plan due to the growing importance of the MEA region on the tourism map and IHG’s leading position here. IHG currently has 76 properties and 18,617 rooms across four
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hotel brands in the MEA region and a further 11,000 rooms in the development pipeline.
Inn hotels in Europe which use 30% less materials and require 25% less energy to run on an ongoing basis.
BTN: How do you propose to meet the challenges of the current global downtown? Early trading figures in January and the first few weeks of February were good; however this was only six weeks of the year and has been distorted by the timing of holidays. External indicators suggest a slow down in economic growth in the US so we are keeping an eye on the horizon. We have a resilient business model where we generate the highest proportion of our revenues from franchising, and our management business has the lowest proportion of incentive fees.
InterContinental Thalasso Spa, Bora Bora features the world’s deepest underwater pipeline, feeding cold sea water to an eco-friendly airconditioning system, saving 90% of the hotel’s electricity consumption for airconditioning.
BTN: What provisions are you making in your business for green development? Although a relatively small contributor to the global environmental issue, the tourism industry – and IHG as one of the world’s leading hotel companies – has a responsibility to treat this subject very seriously and we are committed to respecting both the environment and the communities in which we operate. During 2008 we will be creating aligned targets and measures for the group, knowing we have done the groundwork to ensure we are concentrating on the areas where we can make a positive difference. Examples include: IHG has recently launched new design guidelines for the construction of new Holiday
InterContinental The Willard, Washington recently awarded a contract to Pepco Energy Services to supply renewable electricity, from wind power, to the hotel. We will replace over 250,000 light bulbs at 200 HMG hotels with energy efficient compact fluorescent lights, resulting in an annual reduction of almost 50 million pounds of CO2 emissions – equivalent to removing over 17,000 cars from the road. Rainforest Alliance Coffee – Coffee is one of the most consumed products in our hotels. In 2006, we approved a change in our coffee supply in the US, moving to higher quality produce from growers who work under the Rainforest Alliance umbrella. InterContinental, Crowne Plaza and Residence Suites Dubai Festival City properties have been fitted out with the latest in environmentallyefficient equipment and fixtures. Water conservation is a core element of the hotels’ role in the environmental effort and all toilets, showerheads, and faucets are specially designed to help
save water. An aggressive recycling programme is practiced at all three hotels. All team members recycle waste from the back of house and guestrooms, including daily newspapers, bottles and cans. Guests staying for more than one night have the option of participating in the water and air pollution prevention effort by having their sheets and towels replaced less frequently. Energy conservation programmes at the hotels receive similar consideration. One of the examples given by Tom Meyer, Area General Manager: “Modern construction materials withstand Dubai weather conditions easily, the InterContinental Hotels Group projects at Dubai Festival City properties are much heavier on air conditioning than hotels in other parts of the world and incorporate a system to slow down the velocity of the air entering the properties to increase the efficiency of the cooling facilities.” The true strength of InterContinental Hotels Group, Dubai Festival City’s environmental effort lies in the staff education programme. Before the hotels open, every employee participates in environmental information sessions and workshops to heighten their awareness of the environment. Informing the staff how committed all three hotel brands are to the environment will be a key factor in the continuation and improvement of hotels’ waste management and conservation efforts.
www.dubaiworld.ae
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SPECIAL INTERVIEW
Christopher Hartley, CEO of Shaza Hotels Christopher Hartley is CEO of Shaza Hotels. Launched in 2006, Shaza Hotels is the product of a partnership between Kempinski Hotels and Paris-based Guidance Financial Group. It aims to move away from the homogeny of big-name international hotel chains, and to reflect the lifestyle and heritage of the Middle East.
Before joining Shaza Hotels, he was Senior Vice President of Sales and Marketing with Kempinski, where he was responsible for a corporate sales and marketing team of nearly 50 people covering more than 50 hotels with revenues in excess of US$1 billion. Mr. Hartley joined Kempinski in 1996, where he started as Director of Marketing, working on the merger of Kempinski and Dusit Thani hotels. He is a graduate of London University, where he obtained his bachelor’s degree in French and German, and he holds a post-graduate degree in Hotel Management from Manchester University. He also holds an MBA from Reims Business School. BTN: What sort of year has it been for your business? CH: Our development plans are moving full-steam ahead and we are optimistic of the on-going strength of the region’s expanding tourism sector. Occupancy rates remain high and there is a clear demand for unique brands which are creating customised services that tailor to the needs of business and leisure travellers.
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BTN: Why are you coming to AHIC and what do you hope to achieve here? CH: AHIC is an excellent platform for us to network with like-minded investors and partners and to raise awareness regarding our aggressive development plans. This is Shaza’s second year at AHIC and we will be participating in a seminar on Shariah-compliant hotels, which we hope will help communicate our unique brand position in this increasingly competitive market. BTN: How do you propose to meet the challenges of the current global downturn? CH: We don’t believe that the region will be greatly affected by the downturn and we are not currently looking at opportunities in North America where it will likely be most affected. The economies of the Middle East are booming and have proved to be rather resilient against global uncertainties; we believe the region will continue to attract global investors looking for lucrative property investments. BTN: What and where are the new markets for your business?
CH: We are currently focused on the GCC and North Africa markets, which have so far responded very well to the concept of our brand. These markets have traditionally been loyal to products and services which reflect their values and culture and Shaza will be drawing upon unique elements of the region to bring its concept to life. We are also planning to launch a property in Geneva, Switzerland and will be looking at opportunities in South East Asia including Malaysia and Indonesia in the future. BTN: What sets AHIC apart from other events in your business calendar? CH: AHIC has always been a must-attend event for us and a great place to network and exchange knowledge about the thriving hotel investment industry. Property investment
is a vital part of the region’s thriving tourism industry and AHIC is a great forum to gather the key players who are helping shape the region’s evolving landscape. BTN: What provisions are you making in your business for green development? CH: Environmental sustainability is a key issue within the industry and Shaza is proud to be taking a proactive role in this area. It is critical that we minimise our impact on the environment during the construction and development of our hotels, which is why we have pledged to follow international LEED (Leadership in Energy and Environmental Design) guidelines. We are committed to adopting the highest global standards and are putting our words into action.
www.tourismpartnership.org
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