Travel Trade Monthly, July 2011

Middle East and North Africa Edition

July 2011, Issue 21

LONG HAUL: BRAZIL As one of the world’s burgeoning BRIC economies, industry insiders expect Brazil’s tourism sector to grow steadily. Its strengthening economy, ecotourism potential and forthcoming hosting of global sporting events are attracting visitors and investment.

A flourishing religious tourism market and steady growth in business travel have helped Saudi Arabia to become a forte in the Arab world.

Large scale expansion in the travel and tourism market means the Kingdom’s economic performance and creation of jobs may help to revive the region after widespread unrest.

18 EXCLUSIVE: SHORT HAUL TRAVEL Due to growth in global mobilisation, as well as to expanding businesses, incessant travel has become a requisite. However, amid the harsh economic times and ongoing unrest in some countries of the MENA region, both corporate and leisure travellers have been triggered to rethink their plans and opt for closer and safer destinations. The short-haul market has a long way to go and is predicted to further flourish in the Middle East.

In This Issue

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MARKET UPDATE INVESTIGATION: Virtual Exhibitions VISIT: Saudi Arabia EXPLORE: Greece ONSITE: Indonesia TOUR: Germany TRAVEL TALK TRAVEL CHANNELS LONG HAUL: Brazil EXCLUSIVE: Short Haul Travel WHO’S MOVED RENDEZVOUS NEWS & EVENTS JULY 2011

ISSUE 21

2 3 6 9 12 14 16 17 18 20 22 23 24

VISIT: Saudi Arabia

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TRAVEL TRADE WEEKLY Managing Editor Mary Kammitsi mary@traveltradeweekly.travel Journalists Rita Kasziba Duncan MacRae Marianna Keen Design & Layout Elina Pericleous Sales & Marketing Dimitris Thomaidis Maria Demetriadou Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +357 22 820888 Fax: +357 22 318958 Website www.traveltradeweekly.travel Emails info@traveltradeweekly.travel editorial@traveltradeweekly.travel sales@traveltradeweekly.travel Printed in Cyprus Cyprint Plc P.O. Box 58300 CY-3732, Limassol, Cyprus Tel: +35725720035 Fax: +35725720123 Email: info@cyprint.com.cy

Dubai Airport Freezone Seals MoU with Dubai Chamber The Dubai Airport Freezone and the Dubai Chamber of Commerce and Industry (DCCI) signed a Memorandum of Understanding (MoU) aiming to better serve the business community through intensified cooperation.

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he agreement is to improve institutional performance and the sharing of expertise through cooperation in the field based on comparative competitiveness.

Mohammed Al Zarouni, director general, Dubai Airport Freezone, commented on the partnership.

“The key objective of signing the MoU is to enhance our partnership with various government departments and to further improve the corporate performance as per the international standards. Dubai has already adopted the best practices in corporate governance with excellent records in transparency and credibility which are essential factors in the world of business. Right from the date of its inception 15 years ago, the Freezone is working closely with many foreign companies and international investors, who appreciated its immeasurable adherence to quality and excellence.”

Al Zarouni pointed out the cooperation’s positive impact on both parties, while H.E. Hamad Buamim, director general, DCCI, described it as a major step towards strengthening the already existing ties between the entities. He emphasised the importance of the institutional excellence, which, according to

Dubai Airport Free Zone HeadOffice

Buamim, reflects the organisation’s commitment in benchmarking and developing its operational performance in line with its objectives.

A main endeavor of DCCI is to strengthen the foundations of excellence by investing in the competencies and skills of the staff, to achieve both internal and external customer satisfaction.

“This MoU clearly defines the areas of cooperation including the sharing of practical experience, information and best practices between Dubai Chamber and Dubai Airport Freezone, which will ultimately serve our common objectives of serving Dubai’s economy and its business community,” added Buamim.

IHG Sells Hotel Indigo San Diego MENA Exchange Rates Accurate as of 29/6/2011 Currencies shown in red are fixed against the US Dollar COUNTRY UAE (AED) Egypt (EGP) Saudi Arabia (SAR) Lebanon (LBP) Bahrain (BHD) Jordan ( JOD) Syria (SYP) Kuwait (KWD) Qatar (QAR) Oman (OMR) Tunisia (TND) Morocco (MAD) Iran (IRR) Yemen (YER) Algeria (DZD) Libya (LYD)

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CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar

1USD= 3.67 5.97 3.75 1,514.5 0.37 0.71 47.40 0.27 3.64 0.38 1.37 7.86 10,671.5 213,25 72.43 1.21

InterContinental Hotels Group (IHG) has sold Hotel Indigo San Diego to Chesapeake for USD55.5 million. IHG will continue to manage the property under a long-term management agreement.

The transaction marks another step in IHG’s strategy of growing its management and franchise businesses and reducing capital intensity, noted Richard Solomons, incoming chief executive, current chief financial officer and head of commercial development, IHG. “The sale of Hotel Indigo San Diego is another great example of our asset light strategy and brand building in action. We built Hotel Indigo using IHG’s own capital in 2009 to drive growth of this branded-boutique hotel brand across the Americas and accelerate international expansion.”

James Francis, president and CEO, Chesapeake Lodging Trust, commented on the sale.

“We are extremely pleased to acquire San Diego’s first LEED-certified hotel and our first Hotel Indigo property. IHG has a superb track record in lodging and from the launch in 2004 has quickly established Hotel Indigo as a premier brand. We are very excited to be developing a long-term relationship with IHG and look forward to working with them on this high quality hotel, as well as future opportunities.”

Since 2003, IHG has released USD5.7 billion of capital through the sale of 187 properties and the divestment of equity stakes. The company has also returned almost USD6 billion to shareholders. IHG currently operates 12 owned hotels with the IHG New York Barclay on the market. The number of IHG’s Hotel Indigo properties globally accounts for 45 including 14 in Europe and six in Asia.

JULY 2011

- Exhibitions

Exhibitions Become Virtually Crucial The global financial crisis in 2009 has changed the way businesses in the tourism sector engage with colleagues and customers.

Travel Trade Monthly reports on how the true value of virtual events is being realised, bringing people together in the face of slashed budgets.

Duncan MacRae writes

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he success of this year’s Arabian Travel Market (ATM) held n Dubai on May 2-5, not only highlighted the strength of the regional travel sector, but also the popularity of travel and tourism exhibitions.

Despite unrest in parts of the Middle East and the fragile economic recovery in other parts of the world, ATM participant numbers for this year were up more than 10 percent year-on-year at 24,300, increasing from 21,900 in 2010. More than 2,200 companies exhibited at the event, proving that vast numbers of those working in the industry feel that visiting and participating in such events is essential.

Mark Walsh, group exhibition director, Reed Travel Exhibitions, ATM, commented that the show and similar exhibitions are effective

barometers for the health of the travel and tourism sector.

“Notwithstanding our hugely popular seminar and conference programme, dedicated cruise and medical pavilions, the numbers and feedback comments echo the underlying confidence throughout the industry and the wave of optimism going forward.”

Over the years, however, a number of exhibitions have been moving online and the number of virtual events have more than doubled in the past three years.

The global recession has certainly helped virtual events to blossom, as many companies have had to cut their budgets for hosting, visiting or exhibiting at industry events.

Virtual events are extremely cost effective to run.

With free or cheap technologies available, a travel

and tourism exhibition can be held online at low cost and can reach audiences from further around the globe.

Highly Interactive Businesses can also record, reproduce or re-run portions of the event, potentially providing a greater return on investment (ROI) than standard exhibitions.

Virtual exhibitions are also highly interactive enabling visitors to converse with more people during the event. An attendee can even visit the show from the comfort of there own home, or a beach or mountain top.

Peter Lilley, executive director, Middle East & North Africa Travel Association (MENATA), indicates that virtual exhibitions have become an important tool for travel and tourism businesses.

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- Exhibitions “Virtual travel exhibitions have undoubtedly grown in popularity in order to cut costs. They are much cheaper to organise. There is an argument that real-life tourism exhibitions are not as essential as they used to be. In the old days the only way you could pick up a lot of tourism literature was by physically attending an exhibition. Now, a lot of that information is available online.”

Fiji’s tourism authority, Tourism Fiji, has had to look towards virtual events in order to market the destination around the world.

The nation, made up of 322 islands in the South Pacific Ocean, is about 1,300 miles northeast of New Zealand, with its closest neighbour being Tonga 22 miles to the east.

The fact that the country is so isolated and not easily accesible led to Tourism Fiji becoming one of the first tourism boards to embrace virtual technology.

Josefa Tuamoto, CEO, Tourism Fiji, noted that that the company was keen to utilise new technology as part of their ever-evolving marketing efforts.

“We were the first country to do a stand-alone virtual trade show, not a part of another group show. It thus gave us an advantage and helped agents take notice of our efforts. For a smaller country like ours, with limited manpower and financial resources, a virtual show does replace the former weekly roadshow visits to numerous markets. From that standpoint, it makes sense in the overall marketing mix,” added Tuamoto.

Fiji’s online events have proved to be exceedingly popular, as it has been able to reach out to more than 40 US states, Canada, Europe and South America.

One of the most recent shows to make its debut on the virtual scene was UltratravelVirtual, hosted on June 29.

The event boasted stands, brochures and product experts who were available to meet and interact live online and show the latest travel experiences they had to offer the consumer. Luxury hotel brands including One&Only, Raffles, Fairmont and destinations like Dubai, Thailand and the Bahamas participated.

Visitors to the show could win prizes, hear the thoughts of seasoned luxury travellers like Eddie Jordan, founder and owner of Jordan Grand Prix, from the comfort of a personal computer, laptop or iPad, according to Nick Perry, chairman, UltraTravel.

“A virtual travel event where the consumer can explore, ask questions, interact, find inspiration and answers to questions and even book a holiday could be the future for how we find information for our leisure travel.”

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Dubai-based luxury hotel chain, Jumeirah Group, has been a regular exhibitor at shows around the globe since it was founded in 1997.

Christian Pertl, vice president sales and marketing, Dubai, Jumeirah Group, noted that the company is eager to discover which type of exhibitions provide it with the best ROI. “Usually a trade show is an ideal platform for interacting with clients and an opportunity to drive brand awareness and engagement. At Jumeirah Group, we participate regularly in key exhibitions around the world and, at the moment, we are also conducting analysis on the return on investment.”

Travel agents and tour operators around the Middle East and North Africa have enjoyed taking advantage of online events but there remains a strong preference for standard exhibitions.

Human Aspect Anooshirvan Honari, head of GashtTour Inbound Tours, GashtTour, logs on to online exhibitions from his base in Iran but he feels that is it important to make the effort to attend standard travel and tourism exhibitions.

“I travel to four or five exhibitions each year, such as ITB Berlin, Beijing China, ITB Singapore, Moscow and Hong Kong. Our web manager and I visit virtual travel and tourism exhibitions because it is important for us to upgrade out relationships with other agencies.”

Anooshirvan feels that standard exhibitions will still be favoured by travel agents, at least in Iran, for the foreseeable future.

“Both types of exhibitions are important for us but we prefer face-to-face discussion. It will depend how the virtual exhibition market develops in Iran.

Virtual exhibitions haven’t really developed in Iran yet so we prefer normal exhibitions.”

Syrian-based Shamra Travel also prefers standard exhibitions, attending at least two events each

year. Mohammad Fadi Saflo, owner and manager, Shamra Travel, explained that these are an important way of keeping in touch with other companies around the world.

“We prefer standard exhibitions because there is a human aspect about the company that you are dealing with.”

MENATA’s Lilley feels that virtual exhibitions will continue to be a vital addition to travel and tourism companies’ marketing plans but standard exhibitions will not diminish in popularity.

“I don’t think virtual events will ever completely replace ‘real life’ tourism exhibitions because there is no substitute for face-to-face human contact. You cannot form the same sort of relationship online, particularly at the start of a working relationship.

Comments made by exhibitors following this year’s ATM seem to back this up.

Rebecca Wilson, director, ESP International, found the numerous networking opportunities provided by the event invaluable.

“The power of networking is crucial, and certainly within the travel and hospitality industry there’s no better way to develop lasting relationships than through face-to-face interaction.”

Although Tourism Fiji embraced virtual shows, Tuamoto commented that it is determined not to abandon the personal approach. “We are focusing our manpower and resources in key industry trade shows and major markets. A virtual show will not replace the people-to-people contact of a live presentation. And for a country like Fiji, the hallmark of which is the genuine warmth and friendliness of its people and representatives, those factors cannot be replaced online. In this day and age, it has to be a mix of the two approaches.”

Pertl, of Jumeirah Group, agrees, concluding: “In the future, successful shows will be the ones that are able to guarantee quality face time with quality customers.” n JULY 2011

- Saudi Arabia

Diversification, Development and Drive A flourishing religious tourism market and steady growth in business travel have helped Saudi Arabia to become a forte in the Arab world. Large scale expansion in the travel and tourism market means the Kingdom’s economic performance and creation of jobs may help to revive the region after widespread unrest. Travel Trade Monthly looks at Saudi Arabia’s travel and tourism vision for the future.

Marianna Keen writes

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he leading oil exporter has benefited from continual infrastructure developments, including an improved air transport network and construction of numerous accommodation options. The development of six mega cities – Medina, Hail, Tabuk, Jizan, Ras Az Zour and Rabigh – will move the Kingdom’s economy away from a focus on oil as well as attract investment and drive business tourism.

Saudi Arabia is growing at a fast pace and the Euromonitor Travel and Tourism Global Overview report, released on May 25, tipped it to have one of the largest compound annual growth rates in the world, with a 12.3 percent rise in arrivals over 2010-2015, which will result in an additional 9.3 million visitors to the country.

During this year, 48 hotels with more than 14,000 rooms valued at USD7.3 billion are set to open in Saudi Arabia, according to the Saudi Commission for Tourism and Antiquities (SCTA). With growth driven mainly by religious tourism to Mecca and Medina, completion of the Jabal Omar Development in Mecca is anxiously anticipated.

Construction of the multi-use project has been split into two phases, including development of numerous hotels and residential apartments and retail services. The project, scheduled to be completed this year has been allegedly delayed due to the global economic recession.

Despite some delays, Citi Investment Research and Analysis revealed that GCC countries that were unaffected by turmoil in the MENA region include the UAE, Qatar, Saudi Arabia and Kuwait, all showing some measure of growth in tourism. In addition to a rise in religious tourism, Saudi Arabia is likely to experience consistent growth in inbound tourism between 2010 and 2015, according to research. The first Hotel and Hospitality Show Saudi Arabia, to be held on November 12-14, at the Jeddah Centre for Forums and Events, is anticipated to highlight the strength of the country’s industry.

The holy cities are anticipated to be popular over Ramadan, although arrivals from areas that have undergone unrest are expected to come in low numbers. A total of 3.8 million travellers visited 6

Masjid Al Nabawi, Madinah

Mecca for Haj or Umrah in 2010. Even in the face of rules that limit a country's quota of Haj visas to one per cent of the total Muslim population in the country, hotels in Mecca have been known to run at full capacity during high season.

In response to rising demand, the government relaxed Umrah and Haj visas in 2009. In 2010, the Ministry of Haj increased the number of Ramadan visas for foreign pilgrims by 16 percent. Without further easing of visa restrictions in line with hotel openings, however, supply of accommodation will exceed the number of visitors to the holy cities.

Certainly, competition is currently increasing, while standards have risen.

The requirement of hotels to market through officially licensed tour operators and the fact that demand previously far outstripped supply, pushed prices of accommodation up and quality down. As a consequence, government legislation cut the number of tour operators and rising competition has forced hotel chains to improve standards. Prince Khaled, chairman of the Central Haj Committee, urged institutions to provide the best possible services to pilgrims, while all hotels in the city have been re-classified and are evaluated every year to check that they are still of high quality.

Hotel developments Major hotel chains now have a presence in the Kingdom, with plans for expansion having

Saudi Arabia in Brief Capital: Riyadh Currency: Saudi Riyal (SAR) Language: Arabic boomed. The number of accommodation options continues to rise, as does the addition of resorts and convention centres, allowing for all tourist sectors to be catered for.

Marriott International announced a long term agreement with Jabal Omar Development, which will see the hotel chain operate three hotels in Mecca. The hotels will open in two phases, beginning in 2014, with the deluxe Makkah Marriott Hotel set to be the first. The JW Marriott Hotel Makkah and the Courtyard by Marriott will open approximately a year later.

Following the trend, Accor also plans to expand its portfolio to meet demand, providing 1,412 new job opportunities for Saudi nationals in the next five years. It will open three new hotels by the end of 2012 and has signed management contracts for a further two. Golden Tulip will add two hotels to its portfolio in Saudi Arabia, with the addition of Tulip Inn Makkah and Golden Tulip Dar Al Khalil, informed Amine Moukarzel, senior vice president and managing director, Golden Tulip hotels, Suites, Resorts MENA. “We doubled our portfolio from six hotels in 2008 to 12 in 2011. By 2015 I see we will have JULY 2011

- Saudi Arabia 14 hotels in Saudi.” Meanwhile, Starwood Hotels & Resorts, which currently operates 10 hotels in the Kingdom, announced that the Sheraton Madinah Hotel and Four Points by Sheraton Madinah are both scheduled to open in the fourth quarter of 2012.

Hilton Worldwide is set to triple the number of hotels it has in the Kingdom, following the signing of six new properties in the holy city of Mecca. On May 22 the company announced the signing of a management agreement with Dar Al Bayan Real Estate Development Co. for the first Hilton Hotels & Resorts property in Al Jubail, Saudi Arabia, scheduled to open in the first quarter of 2014.

Throughout the Kingdom, the company estimates it will hire 9,000 team members.

Some delays have been experienced in hotel development, although constraints are apparently being overcome. Development of Swiss-Belhotel Sharma Resort and Spa has regained ground after recent setbacks, informed Thomas van Vliet, vice president operations and development, SwissBelhotel International. “Last year we faced some delays in the construction phase of this resort, however, since the beginning of the year the developers have increased the speed of the construction process and it now looks like phase one, with 28 units and general facilities, will open by mid 2012, and phase two, with an additional 28 units, will open by mid 2013.”

Van Vliet, who will attend the Hotel and Hospitality Show Saudi Arabia in November, communicated a positive picture of the industry’s potential in the country. “In short to medium term, Saudi Arabia is still expected to show continuous, considerable economic growth, linked to enormous infrastructure projects funded by the government and ongoing development of primary and secondary industries. Passenger arrival figures linked to religious tourism also contribute to the increase, as does the demand for domestic non-religious tourism in ‘resort destinations’.”

Swiss-Belhotel International is currently in the process of negotiations with various developers for projects in Jeddah, Riyadh, Mecca and Medina, as well as some secondary cities, which van Vliet suggests, currently provide a lack of international standard hotel accommodation. In line with new openings, Swiss-Belhotel has its own training and recruitment programmes.

Generation of employment will be a pivotal outcome of the Kingdom’s advancement, with 2.3 billion jobs estimated to be created in the hospitality industry over the next decade, according to SCTA. This amounts to good news for the Arab world in general, since estimates suggest that more than a JULY 2011

quarter of the Arab world’s population of 365 million is under 29 years of age and jobless. The United Nations Development Programme (UNDP) has also indicated that 80 million new jobs will need to be created by 2015 just to meet with current market needs.

Mövenpick is set to provide 400 jobs in the next few years, predominantly in Riyadh. This transpires from the chain’s expansion in Saudi Arabia, highlighted Toufic Tamim, vice president sales and marketing, Middle East.

“The latest developments planned are the launching of our spectacular new resort, Mövenpick Beach Resort Al Khobar, which is opening this summer, and a 445-room business hotel in Riyadh, due to open in 2013.”

Other hotels are also currently in the pipeline, with local companies also exploiting opportunities. Saudi-based Al-Hokair Group for Tourism and Development has announced the opening of the SAR120 million (USD32 million) Dammam Business Park Novotel Hotel, which expects to cover all markets. Business tourism is clearly on the rise in the Kingdom, and accommodation is increasingly servicing alternate needs. Khaled Yamak, group director of

communications and business development, Fairmont, pointed out that outside Mecca 80-90 percent of business is corporate, while in Mecca, it is 80-90 percent religious.

A significant portion of new hotel openings planned in Saudi Arabia are catered towards the religious tourism market, and future strategies still see this as a prime expanding market.

“We anticipate that Saudi Arabia will experience significant growth in religious tourism over the coming five years, due to the expansion of the grounds surrounding the holy mosques of Mecca and Medina and the added infrastructure being built around the religious sites, including the expansion of King Abdul Aziz International Airport in Jeddah and the important railway project linking the holy cities of Mecca and Medina via Jeddah. In addition, relaxation of the visa process during Umrah season is significantly contributing to the increase in religious tourism,” elaborated Tamim.

Since the workings of the hotels industry altered in the holy cities, Yamak highlighted the increased recognition to respond to customer needs. “Hotels were taking pilgrims for granted we communicate with our target; our main target is the GCC nationals.”

Passenger arrival figures linked to religious tourism also contribute to the increase, as does the demand for domestic non-religious tourism in ‘resort destinations 7

- Saudi Arabia He points out that capacity is easily filled in peak season, although attracting visitors in low season is more competitive.

Tourism Strategy The SCTA banned all additional service charges by hotels and furnished apartments to boost tourism in the country, with those failing to comply with the decision set to face stiff penalties, including closure of the facility. The commission is also in the process of organising a variety of programmes and activities to entice Saudis, as well as GCC citizens, to the Kingdom.

Saudi Arabia has shown a consistently good business environment in terms of regulatory framework, information and communications technology (ICT) infrastructure, and price competitiveness, according to the Travel and Tourism Competitiveness Report 2011, released by the World Economic Forum on March 6, which is anticipated to further increase tourism.

Emphasising the impact that rising religious tourists has had on the hospitality sector, the Makkah Chamber of Commerce and Industry recently issued a license for the construction of 500 hotels near the Grand Mosque in Mecca.

Mecca and Medina are integral to Saudi Arabia's new drive to boost tourist numbers, particularly those of GCC nationals, whom do not have to go through the arduous process of securing a visa to the Kingdom. Relaxation of visa restrictions for other nationals, are also raising visitor numbers.

The SCTA also recognises cooperation between the Kingdom and other nations as pivotal to the industry’s growth. Shaikha Mai bint Mohammed Al Khalifa, the Iranian Minister of Culture, conducted a visit to Saudi Arabia on May 21 during which she held talks with several officials related to joint cooperation between the two sides. In addition, and a week later, a number of prominent Saudi public officials representing various Saudi provinces made an official visit to Greece to explore its experience in the field of urban heritage. Raising recognition of Saudi’s cultural and heritage importance is a key focus of the SCTA. H. E. Saleh Al Ghamdi, Saudi ambassador to Greece, suggested that Greece is a leading country in this field.

Another area in which the nation needs to improve is in green issues, highlighted the Building Sustainability Conference held in Riyadh on June 5. There is a need for more smart buildings that provide a centralised environment for efficient facilities management whilst having effective safety and security measures, suggested Buddy Watters, general manager for controls, Al Salem Johnson Controls.

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Air and Rail Travel Airlines from across the world fly to Saudi Arabia and muslims travel from far and wide to fulfill the Haj or Umrah pilgrimage and tourists and Saudi nationals demand frequent and efficient services.

Codeshare agreements have helped to extend the appeal of Saudi Arabia to travellers, and have also offered a more seamless travel experience. Paolo De Renzis, regional commercial manager Middle East, British Airways, highlighted the significance of such cooperation. “In addition to our own services, we started a codeshare agreement with our partner Iberia. This close working relationship has brought the Middle East to the doorstop of Iberia’s travellers. Iberia has added its code to British Airways flights to Riyadh, Jeddah, Bahrain, Doha, Abu Dhabi, Dubai, Kuwait and Muscat.”

British Airways announced on June 3 that passenger numbers to the Middle East and Africa region saw a 12.1 percent increase in May, and this success is expected to continue. The airline plans to increase its capacity in the Middle East via larger aircraft and, or an increase in services, commented De Renzis. “The winter schedule will see an increase in Riyadh services from five to six per week,” he added.

Also contributing to Saudi Arabia’s airline network, the US and the Kingdom signed an open skies agreement on April 18, aimed at strengthening and expanding trade and tourism links between the

In short to medium term, Saudi Arabia is still expected to show continuous, considerable economic growth regions. Expansion of King Abdul Aziz International Airport (KAIA) in Jeddah, expected to be complete in 2035, will also improve connections. Work has begun on the project, which aims to increase the airport's capacity from 15 million passengers per year to 30 million passengers per year in its initial completion.

According to Zawya, the project is estimated to cost USD11.3 billion, with the first phase of the expansion involving the overhaul and construction of two passenger terminals and the construction of a general aviation terminal. The area outside the airport building will be set aside for implementing investment projects, such as hotels, hospitals, recreation centres, aircraft maintenance facilities and light aviation industries.

Riyadh

A railway line will connect the airport with Mecca and Medina via Jeddah. As well as making trips by pilgrims easier, this will contribute to linking Saudi population centres with industrial zones and the new economic cities. The Haramain High Speed Rail project, scheduled for completion at the end of 2012, represents one of the most important transport projects in the expansion program of the Saudi railway network.

Airlines flying to KAIA, whose passengers will benefit from the developments, include flydubai, Jazeera Airways, Air India, Egyptair, British Airways, Lufthansa, Emirates, Air France and Saudi Arabian Airlines, among others. Saudi Arabian Airlines has completed privatisation of its catering and cargo sectors, while privatisation of the stateowned carrier’s ground services, the airline’s aviation academy and maintenance units, initially scheduled for completion in 2010, will be next.

Huge scale tourism development and industrial expansion appears set to expand Saudi Arabia’s travel and tourism industry with the quickening trend in new hotel openings across the Kingdom looking virtually unstoppable. Protests within the Kingdom since the start of the Arab spring of revolts have so far been minimal and developments have been modestly affected thus far by unrest across the region. Efforts from the SCTA including a focus on raising the profile of heritage sites and improving international cooperation, look set to increase visitor numbers and increase profits. Improved transport networks along with huge investments have established a strengthening economy for the Kingdom and creation of jobs via the travel and tourism industry offers prospects to the entire Arab world. n JULY 2011

- Greece

Prospects of Reincarnation as a Tourism God The land of mesmerising myths and deities, with a legacy of great philosophers has been brought to its knees, with blame for the economic crisis spanning from domestic corruption to the lifestyle of Greeks themselves. The country’s tourism focus is changing, with revival of heritage to entice visitors seen as a promising road to recovery. Travel Trade Monthly explores the tourism industry in Greece and its potential to bring prosperity.

Marianna Keen writes

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year after receiving rescue loans worth EUR110 billion (USD158.6 billion), austerityplagued Greece is struggling to stave off economic collapse.

With debts of approximately EUR340 billion (USD488.7 billion), it is turning to its cultural heritage and natural beauty to rebrand its tourism strategy and attract a different target market, recognising that the sector has for too long relied on the out-dated combination of tour operators and mass cheap travel.

Whether Greece’s fiscal recovery will come from reregulation of debt or from a further bail out from the Eurozone, it will likely have an impact on the tourism industry, including global perceptions of the country. Mistaken entry to the Eurozone and Germany’s unwillingness to bail Greece out again have been attacked, while rumours of the country exiting the Eurozone will also have an impact on recovery. The move would cause a major increase in economic difficulty for Greece in the short term, yet it could help it gain control over its currency and manipulate it to its advantage in the long term. Greece, however, has denied such considerations.

Today, both leisure and business travellers are more and more educated and demanding Efforts from the Government have instead concentrated on a revived strategy for the country, involving steps to facilitate foreign investment in the tourism sector that, like others, has lacked competitiveness and been accused of being afflicted by corruption. Landing, takeoff and stopover fees for all aircraft have been waived to entice travellers, in all airports except Athens, from April until the end of the year. Despite pledges to ease visa restrictions for some nationals, though, citizens from the MENA region on a normal passport currently require a visa to travel to Greece.

George Papandreou, prime minister of Greece, has suggested the country should aim to become one JULY 2011

Akropolis, Athens

of the 10 best destinations in the world via the current reinvigorated strategy; however, austerity measures are restrictive, hotels and tour operators have needed to adapt to the economic crisis by implementing strategies to entice visitors.

Hotels Across Greece, from Athens to Thessaloniki, to its numerous islands, hotels have been affected by the country’s fiscal downturn and bailout process, albeit to differing degrees.

Hilton Athens was the first hotel in the capital to launch a cultural package, which offers free tickets to six of the most important Greek museums.

Tina Toribaba, communications manager of the hotel, recounted the scheme’s success.

“Compared to last year, the bookings through this package have tripled, which shows that people really appreciate such initiatives. Today, both leisure and business travellers are more and more educated and demanding. They are not just looking for bed and breakfast but for a hotel that is able to offer them a total experience.”

Increasing numbers of hotels and institutions are identifying the changes in the industry which have occurred over the years, and are reacting during these pressing times.

Displacement of tourism because of unrest in the Middle East has attracted some travellers to Greece, suggests Toribaba, however, the economic crisis is clearly felt. “Hilton Athens has adjusted to the current economic crisis by providing more competitive rates, seasonal offers and packages which offer added value to both

Greece in Brief Capital: Athens Currency: Euro (EUR) Language: Greek leisure and business travellers.” Toribaba indicated that the visitor numbers over Easter were the same as those in 2010. Though the hotel has made efforts to attract more of the Middle East market by being represented in tourism fairs across the region, including the Arabian Travel Market (ATM).

The number of guests from the Middle East has increased in Sheraton Rhodes Resort, commented Igor Buercher, general manager of the property. “Business from the Middle East is registering a significant increase, particularly from Israel, Lebanon and Turkey (more than 20 percent of business in 2010 came from the Middle East region). New, important cooperations with the key players of these markets have been signed this year.”

Reports have suggested that the Aegean islands are receiving a healthier visitor quota than cities on the mainland.

According to the Greece Tourism Report Q2 2011, hotels in the Athens region recorded relatively low occupancy rates of 61 percent in the period January to October 2010. They also reported an 11 percent decline in revenues and a 4.4 percent fall in room occupancy rates in the month of October, compared with the same month in 2009.

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- Greece Popular Ionian islands, like Zakynthos, reported a 200 percent increase in the number of visitors over Easter, according to Thomas Cook, which attributed the rise to displacement of tourism.

Buercher suggests that Rhodes responded quickly to changes in the market. “In 2009, there was a decline in arrival numbers in Rhodes, but it quickly recovered due to the efforts of the destination and the hotels. We can see changes in the visitor markets, but this is mainly due to the emergence of new markets and flight accessibility.”

Explaining the destination’s success, Buercher added: “For a destination like Rhodes, we package these features [heritage and natural beauty] along with the sun and beach factor, the variety of attractions of the island, ancient Kamiros, etc. which represent a competitive advantage for us.”

The hotel also underwent an extensive EUR15 million (USD21.6 million) renovation project which was completed this year.

Business from the Middle East is registering a significant increase Air Travel Other factors which have encouraged travel to Greece are a rise in low cost flights, a rise in routes to the destination as well as increased domestic flights. This is likely to amplify since landing, takeoff and stopover fees for all aircraft were waived from April.

Olympic Airlines has re-introduced flights from Athens to Corfu and from Thessaloniki to Heraklion, Chania, Rhodes and Mitilini to this years summer schedule, in response to a downturn in domestic travel, reported Sotiris Constantinou, press officer of the airline. “The general economic downturn prior to and following the bailout process has indeed significantly affected traffic demand, primarily, however, in the domestic sector. The economic recovery of other countries from the 2008 crisis has boosted international demand to Greece, Zakynthos

10

although not enough to fully compensate for the decrease in domestic travel.”

Andreas Andreadis, head of Greek Tourism Enterprises (SETE), indicated that overall revenues for the industry are expected to rise. “If there are no surprises – as the publicity Greece is getting (about the debt crisis) is not helping – we expect a rise in revenues near 10 percent.”

Domestic tourism is expected to decrease this year, since increasing insecurity of Greek citizens over their finances are expected to greatly limit domestic tourism, despite an expected recovery in incoming tourism.

Unemployment, as a result of stringent austerity measures, recently topped an unprecedented 15.9 from 12.1 percent in February 2010, figures from the Hellenic Statistical Authority (ELSTAT) show.

Germany and the UK are the top-ranked countries for travel to Greece with Olympic Airlines, while Sheraton Rhodes Resort reported that visits from France and Germany have registered the strongest increase over the past two years. “Since the beginning of this year, the number of low cost flights increased with a positive impact on sales, particularly in shoulder seasons when the frequency of charter flights is still low; as an example, Ryanair opened new routes from Italy, UK, Lithuania and Belgium,” commented Buercher.

The introduction of further low cost flights from the MENA region may help to boost visitor arrivals from that part of the world, as would the closure of new agreements with key players from the region. The lifting of visa restrictions means that many more travellers from neighboring Turkey, Russia, China and India are expected.

“The recent turmoil in Arab countries has affected Olympic Airlines so far in terms of its Athens-Cairo service, although the traffic levels have now stabilised.” added Constantinou.

Pushing for Recovery Arrivals are evidently up but revenues are showing a disproportionate increase due to special offers that hoteliers have been forced to offer to attract tourists. Efforts for tourism to become the engine of the economy may well lead to long-term success.

According to Reuters, the tourism sector accounts for about 16 percent of GDP and employs roughly a fifth of the country's 4.26 million workforce. The need for self sufficiency and for Greeks to change their attitudes has been suggested as a requirement for the country’s recovery, along with diversification of the tourism industry. This is anticipated to lead to

Santorini Island

further employment and economic recovery.

The reputation of the country is also important, and Papandreou suggested that the reputation of Greece is strengthened when the wealth of monuments is displayed and when it is associated with myth, history, tradition, Greek produce and Greek cuisine.

Greece is ranked 21st in Europe and 29th overall, according to the Travel and Tourism Competitiveness Report 2011 released by the World Economic Forum on March 6, representing a fall of five positions since the last assessment. The country benefits from rich cultural resources (ranked 25th), excellent health and hygiene (ranked 20th), and a top-notch tourism infrastructure (ranked fifth), according to the report. In addition, there is a strong national affinity for tourism compared with many other European countries (ranked 26th).

With continued improvements, the country is set to climb back up the ranking and could even achieve its goals of becoming a top tourism destination. Negative aspects, which may explain the decline in rankings, include a weaker policy environment and increased concerns about safety and security, as well as a lower prioritisation of travel and tourism within the country.

Greece is recognised as a leading country with regard to heritage, and if it can succeed in making this a prime focus in enticing more tourism, along with responding to other highlighted concerns including social unease and improving cooperation with other nations and diversified markets, it can only improve its economic and civil status. n JULY 2011

- Indonesia

The Country of a Thousand Islands and Faces As home of a large Muslim population, Indonesia proves to be one of the most convenient, yet exotic destinations for Arab travellers. The tropical country boasts abundant attractions and tremendous investment opportunities despite remaining widespead poverty in the country.

Rita Kasziba writes

I

ndonesia prides itself on being one of the world’s largest archipelagos comprising of more than 17,000 tropical islands of which many remain uninhabited and even unnamed. The republic consists of distinct ethnic, linguistic and religious groups with a total population of nearly 215 million, 86.1 percent of it professing itself as Muslim. Indonesia’s diverse culture, vivid colours and inexhaustible offerings turned the country into a bucket-list destination.

According to the Ministry of Culture and Tourism, in 2010 tourist arrivals increased by 10.74 percent to 7,002,944 million from 6,323,730 in 2009.

In terms of generating markets, Australians recorded the highest growth of 35.65 percent (730,941 arrivals), while the Middle Eastern region also showed significant increased interest with the number of Saudi visitors growing by 33.33 percent (68,878) followed by the UAE with 30.48 percent (4.906). Yet, despite the Middle East’s convenient proximity, Indonesia has not yet fully utilised this eminent market.

Sapta Nirwardar, director general of tourism marketing, Ministry of Culture and Tourism, pinpointed the Middle East as a key growth area.

“Even though visitor numbers from the UAE are still relatively low when compared with other markets, we believe that through further ongoing cooperation between both the public and private sectors of Indonesia and the UAE, visitors from the emirates and other parts of the region will continue to increase year to year.”

Promotional Activities The world’s fourth most populous country strives to tap into the Arab world with a range of promotional campaigns.

“Having participated in Arabian Travel Market (ATM) and other large-scale regional events, we now expect to see increasing growth in tourist arrivals from the Middle East. The government of Indonesia is well aware of the importance of this region to its tourism industry, a fact also highlighted by our appointment of a Visit Indonesia Tourism Officer in Dubai from 2008.

We work collaboratively with governments of the 12

Raja Empat Island Group

region, particularly the UAE, to promote Indonesia’s culture and tourism, through a range of activities including on-line promotion, sponsorship, media releases and other ongoing efforts,” added Nirwandar.

Tourism is crucial to Indonesia, where, in 2010, an estimated 13.3 percent of the population lived below the poverty line and the unemployment rate reached 7.1 percent. According to the United Nations’ ‘World Population Prospects’ report, the country’s population is likely to grow to around 254 million by 2020 and 288 million by 2050, and tourism could become the prime source of employment if Indonesia is to obtain a place among the top 10 countries in terms of economy, in the next 10 years.

In 2010, foreign tourists’ total spend contributed an estimated USD7.6 billion to the country’s economy, the largest of Southeast Asia, representing a 20.63 percent year-on-year increase, according to the Central Statistics Agency.

A recent report of the World Travel and Tourism Council (WTTC) suggests that this year the tourism industry will contribute an estimated USD26 billion to the GDP, some 3.2 percent of the total, with industry-related and driven sectors contributing around 9.1 percent. Tourism undoubtedly holds the potential to become one of the fastest growing industries of Indonesia, with a forecast 5.8 percent annual increase of GDP and economic impact along with a six percent annual growth in investments, predicted by the WTTC.

Indonesia in Brief Capital: Jakarta Currency: Rupiah (IDR) Language: Indonesian Therefore, the Ministry of Culture and Tourism set ambitious targets for this year and aims to attract 7.7 million foreign tourists.

Indonesian authorities place confidence in reaching higher results, driven by the global economic growth and a significant number of industry leading MICE events, which reached 600 this year. The industry is clearly right on its way to capitalising its potential with all sectors moving forward and, besides building on the country’s natural sources and traditional attractions, tapping into niche segments.

Tourism bodies predict continuous growth with an estimated 9.4 percent year-on-year increase, as the total number of visitors is expected to reach 8.8 million by 2015.

Following the ‘Visit Indonesia 2010’ marketing campaign, the country now promotes itself under the ‘Wonderful Indonesia’ slogan. Jero Wacik, minister of culture and tourism, believes that this branding, alluding to the unity of various elements of the country, including its people, culture, nature and investment opportunities, will generate a stronger echo.

“We expect each tourist will spend around USD1,100 and with an optimistic target of 7.7 JULY 2011

- Indonesia million arrivals, we will get USD8.3 billion.”

The extended promotional campaigns occur with an outbreak of infrastructural investments and development of public transportation.

Firmansyah Rahim, director general, Tourism Destination Development, announced plans to widen runways at a number of airports to accommodate larger aircrafts and further facilitate the anticipated influx of visitors.

Among the thousand faces of Indonesia, one needs to be changed: the image of the country’s security conditions. Following the initial terror attack in Bali in 2002, a series of travel warnings were issued by a number of countries worldwide.

Many of them still raise concerns about travelling to Indonesia and advise to monitor the situation of the country closely before departure.

Airlines Garuda Indonesia, the national carrier, operates services to several destinations in the Middle East, including Dammam, Dubai, Jeddah and Riyadh, while the Southeast Asian country has easy access with Emirates, Etihad Airways and Kuwaiti Airways, operating flights to the capital city of Jakarta.

Hotels According to the local hotel and restaurant industry association (PHRI), a total of 13 hotel openings are expected solely in Jakarta in the next year. Besides a selection of renowned brand local parties Santika and Sahid, plan to build some 40 hotels across the country within the next two years.

Accor, the largest operator of hotels in the country, plans to further expand its Indonesian portfolio with 10 openings this year and another five new properties in 2012, which will bring the number of Accor hotels across Indonesia to 55, with 9,500 rooms.

Michael Issenberg, chairman and chief operating officer Asia Pacific, Accor, commented on the expansion.

Pullmann Bali Legian Nirwana Hotel

JULY 2011

“Indonesia with its strong economy and strengthening domestic travel volumes, offers significant opportunity for development. We are placing an emphasis on the mid and economy sectors for our development in Indonesia, ensuring sustained network expansion which is in line with the growth in domestic and intra-Asia travel demand. As this demand grows, so will the average rates of hotels, where the prospects for the price sensitive segments will strengthen.”

Accor has recently enhanced its Indonesian portfolio with the addition of Pullman Bali Legian Nirwana, marking the upscale hotel brand’s debut in the country.

The hotel further strengthens Accor’s leading position in the market, noted Gerard Guillouet, vice president, Accor, Malaysia, Singapore and Indonesia.

Visitors from the emirates and other parts of the region will continue to increase year on year “Accor is the largest international operator of hotels in Indonesia and now has comprehensive brand presence on the island of Bali with hotels covering all segments and with six hotels operating.”

Other expanding brands include Fairmont, which is poised to enhance its Indonesian portfolio with a new 380-room luxury hotel in the capital city’s business district. Chris Cahill, president, Fairmont Hotels & Resorts, commented on the new hotel, due to open in 2014.

“The addition of Jakarta will further strengthen our growing presence in Asia Pacific. Our developments in China, including the re-opening of the landmark Peace Hotel in Shanghai, together with our existing hotels in destinations including Singapore, allow us to extend our luxury brand to both guests and home owners.”

Borobudur, Java

Courtyard by Marriott has recently debuted in Indonesia with the opening of the brand’s 900th hotel in the renowned Nusa Dua resort area in Bali.

Janis Milham, vice president and global brand manager, Courtyard by Marriott, elaborated on the 250-room property.

“We are very excited about entering into the Indonesian market. Global expansion is very important to Courtyard as 25 percent of our pipeline is outside of the US. We have experienced significant growth in Asia recently, where we are serving both business and leisure travellers.”

The fascinating island of Bali attracts a range of international investors and hotel chains. The high-end hotel sector is expected to further boom in the island with a spate of new properties opening, including Starwood’s 237-room W Retreat & Spa Bali at Seminyak this year, while Banyan Tree, InterContinental, The Ritz-Carlton and Kempinski are all set to expand in the upcoming years.

The developments are expected to further fuel the growth of the country’s tourism industry and the luxury sector in particular, which prides itself on its unrivalled offerings at affordable prices, in comparison with its Southeast Asian competitors.

Visa To optimise the arrivals of tourists from the Middle East the easing of visa conditions is crucial. According to the Ministry of Culture and Tourism, in the first three months of the year more than 40,000 visitors arrived from the region and the number is expected to reach as high as 150,000 by the end of the year, therefore Indonesia is planning to remove some barriers.

Besides expanding flight services between the regions, the country will provide visas on arrival.

The tight tourist visa regulations, introduced in 2004, were lifted for several countries in the last years and Indonesia currently allows visa-free entry to the citizens of 12 countries, including Morocco. n 13

- Germany

Germany’s Tourism Success Prompts Investment In May this year, Germany announced record-breaking international visitor numbers, and extremely strong growth within its tourism industry is expected over the next decade. Travel Trade Monthly looks at how the nation is making the most of its tourism boom.

Dunan MacRae writes

T

he visitor figures for 2010 released by the German Federal Statistical Office earlier this year were impressive. They showed that overnight stays in the country by visitors from abroad totalled 60.3 million for 2010. Visitors from other European countries accounted for more than 76 percent of all overnight stays (from outside of Germany) and, overall, upwards trends were recorded in both holiday and business travel.

This year, large numbers of visitors from all over the world are again expected to travel to Germany for major international events such as the FIFA Women’s World Cup 2011 and the celebrations surrounding the 125th anniversary of the motor car. Beyond this, the German National Tourist Board’s (GNTB) theme for this year, ‘Health and wellness travel in Germany’, is tapping into the huge demand in this segment and positioning it within its international marketing activities.

The country has now set its sights even higher, estimating that by 2020 the figures for overnight stays could be as high as 80 million, according to Pedra Hedorfer, CEO, GNTB. “Provided the market continues to perform well and with our targeted, customer focused marketing to build upon, it is realistic to predict that overnight stays by visitors from abroad will pass the 80 million mark in the next ten years.”

Anje Roeding-Boudier, director of marketing and sales for Gulf Countries, National Tourist Office, believes the country is nowhere near achieving its full potential with regards to tourism.

“This is not yet the real peak of an upward trend Munich

14

Reichstag , Berlin

that is predicted to rise. We are, therefore, talking of a concrete perspective for Germany to earn a permanent position among the world’s most popular tourist destinations.”

Successful Tourism Toga Hospitality is one company that has reaped the benefits from the increasing number of visitors, and Carol Douglas, director of operations for Europe, Toga Hospitality, finds it easy to pinpoint the reason for Germany’s tourism sector’s success.

The culture is vibrant, the people are friendly and the cities ooze everything that is on the cutting edge of cool “Visitor numbers to Germany grow due to one simple fact – it is a fantastic place to visit. The culture is vibrant, the people are friendly and the cities ooze everything that is on the cutting edge of cool.

Position in Europe makes it easily accessible to northern hemisphere travellers and many Australians have added Germany to their ‘must visit’ lists when planning European tours.”

Toga Hospitality currently owns and operates for Adina Apartment Hotels in Germany and Douglas noted that the country remains a key focus for the company’s European expansion.

“Toga Hospitality was one of the first Australianowned hotel groups to venture into the European

Germany in Brief Captial: Berlin Currency: Euro (EUR) Language: German market. We seized the moment in Germany four years ago, recognising the potential growth for tourism. Following the opening of the first Adina Apartment Hotels in Berlin (2007) and Frankfurt (2008), December 2010 saw Toga open another 128-room key Adina Apartment Hotel, this time in Hamburg.”

Finally in March this year, Toga opened Adina Apartment Hotel Berlin Hackescher Markt.

“While we look at all opportunities, we are currently targeting key cities within Germany including Munich, Stuttgart and Dusseldorf,” Douglas added.

Other hotel chains (have had their own reasons for investing in Germany), including Scandic Apartments and Pestana Hotels & Apartments.

Scandic Apartments has a property in Berlin that, in 2008, became the first German hotel to gain the EU Ecolabel, meaning it adhered to stringent EU environmental criteria. The company has since targeted the opening of another hotel in Hamburg, which it hopes will be ready to receive guests later this year.

Simply put, Linda Deppe, sales and marketing executive, Scandic Berlin, commented that investing in the new property came due to an increased level of travel industry requests.

Frank Fiskers, president and CEO of Scandic, noted that the Hamburg hotel will be an important JULY 2011

- Germany step in the company’s development in Germany.

“It’s incredibly exciting to drive Scandic’s international expansion. We’re receiving more and more enquiries about new hotel projects and after Eastern Europe and the Nordic region, Germany is a priority market. Hamburg is particularly interesting, with its location and positive development in recent years. It’s a city that many Scandinavians and Eastern Europeans visit, not least thanks to popular trade fairs, a major port and unbeatable shopping.”

Pestana Hotels & Resorts has one hotel in Berlin and is considering moving into Munich and Hamburg. Germany has been developing consistently over the years, according to José Roquette, board member in charge of new development, Pestana Group.

“This is based upon a strong internal market and demand, and it has also developed as both a MICE and leisure destination.”

Investment Value for money is the key component for success, as well as the fact that it is an unknown destination for most international travellers, Roquette added. “Germany has market consistency and the investment cost is reasonable, compared to other destinations.

Time has proved the Germans were right.”

Choice Hotels Europe is keeping an open mind as far as further investment in Germany is concerned. At present, it operates 39 hotels under four different brands, Comfort, Quality, Clarion and Clarion Collection.

Gordon von Godin, director of sales, Choice Hotels Europe, feels that Germany offers sound investment opportunities for hotel chains.

“Germany is the top country with the biggest exports worldwide after China. So the outbound business in corporate travelling brings incremental business into our branded hotels worldwide. In the long term, Germany as a country for travelling will perform higher than the average in Europe, because the industry is more resistant compared to other European countries. With the German National Tourism Board as the advertisement association, all suppliers are working hard for the good reputation of Germany.”

All these hotel chains are keen to see continued investment in the German tourism sector, and Roquette, of Pestana Hotels & Resorts, feels there is more scope for promotion.

“I think we could have more aggressive investment in promotion. A number of cities, such as Berlin, are still unknown to many international travellers.”

JULY 2011

Neuschwanstein castle, Bavaria

Choice Hotel’s von Godin has been impressed by the efforts of the German National Tourist Board in marketing the country globally.

“It is embarking on plenty of marketing and sales activities abroad in a bid to bring business into Germany. That is mixed with workshops in different key cities abroad and at GTM. With several other activities, Germany is being shown in the right light.”

We could have more aggressive investment in promotion. A number of cities, such as Berlin, are still unknown to many international travellers Douglas, of Toga Hospitality, agrees, adding that it welcomes further substantial investment in the German tourism industry.

“This investment is being channelled into markets across the world to grow and develop the tourism sector in Germany. Adina Apartment Hotels work closely with the German National Tourist Board and key associates, helping to promote the brand.”

Roeding-Boudier commented that the GNTO has been working hard to encourage more travellers to visit Germany from the GCC region.

“We extensively focus on the Arabian Gulf market, and we are very satisfied with the results showing that Germany is the second most visited country in Europe by GCC nationals.”

In 2010 almost one million overnight stays were recorded for this group. The figures referring to the GCC nationals in the period from January to

December 2010 indicate an impressive increase of 0.2 million overnight stays for the same period as compared to the figures of 2009 when this number estimation stood at approximately 0.77 million.

Choice Hotels’ von Godin commented that Germany has a lot of scope to develop tourism from Middle Eastern and North African visitors.

“The share of guests from North Africa and the Middle East at our properties is lower than one percent. This is because the rates in Germany for hotels are low compared to other European countries, and travellers especially from Middle East are looking for four- and five-star hotels. The Middle East and North Africa is, and will be, important for Germany’s tourism industry, though.

This being the case, Roeding-Boudier, confirmed that the GNTO will continue to do all it can to promote the country in the Gulf region.

“The almost one million overnight stays of GCC nationals in the period from January to December 2010 point to an outstanding increase of 26.4 percent compared to the figures of 2009.

Yet, following the official forecasts, GNTB even expects the number of tourists to reach 2.3 million by 2020. Therefore, the GNTO will continue to develop new initiatives focusing on this region which constitutes one of the keymarkets for the German tourism industry. The visitors coming from this region continue to be particularly attracted by the excellent shopping opportunities offered by the German cities as well as their specialised medical centres. Highclass services, family-packages and immersion in the natural beauty of the country are other aspects highly appreciated by Arabian Gulf tourists who especially flock to Germany every summer.” n 15

Michael Marshall

Toufic Tamim

Vice president of sales and marketing, Millennium & Copthorne Middle East

Vice president sales and marketing Middle East, Mövenpick Hotels & Resorts

“Several of our hotels already attract a significant number of guests from Saudi Arabia. With many more hotels being added this year around the region, we would like the Saudi market to get to know our entire portfolio and make Millennium & Copthorne their hotel group of choice. Our brands all offer quality, comfort and value in every class, and we are certain our fantastic summer offers will resonate with travellers from Saudi Arabia.”

"The upcoming Mövenpick Beach Resort Al Khobar will have natural synergies with the Mövenpick Hotel Al Khobar, and all of our brand training programmes are already in place and being delivered. The understanding and delivery of our company’s values and core behaviours are what make us different from other hotels, and we ensure that all employees are given the time and attention to become passionate about their work.”

Michael Marshall

We would like the Saudi market to get to know our entire portfolio and make Millennium & Copthorne their hotel group of choice

The understanding and delivery of our company’s values and core behaviours are what make us different from other hotels Toufic Tamim

Travel Talk is your space – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel

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JULY 2011

Cruise Tourism Riding on the Crest of a Wave The cruise industry has been facing a number of challenges of late but those in the business are working hard to keep it afloat.

T

he global recession, rising fuel prices, as well as unrest in parts of the Middle East and North Africa, could have been the death of the region’s cruise industry, but through diversified strategies it has managed to survive. A number of cruise lines have been faced with a great challenge and have had to alter their itineraries due to safety concerns.

Costa Cruises, Azamara Club Cruises and Crystal Cruises temporarily opted to bypass Bahrain on Middle Eastern cruises this year, for example. A number of cruise lines also temporarily cancelled port calls to Tunisia and Egypt.

Despite this, the international cruise industry remains positive and optimistic. At the 2011 Cruise Shipping Miami conference, CEOs of major cruise companies even went as far as to say there was still potential for the sector to grow in the remainder of the year.

Already, new cruise ships are expected to be unveiled, including Disney Cruise Line’s third ship, Disney Dream.

The Cruise Lines International Association has also predicted that about 16 million people will go on a cruise vacation this year, up 6.6 percent from 2010.

A total of 73 percent of these holidaymakers are expected to set off from the US, with the remaining 27 percent embarking on trips from ports scattered around the globe.

In 2010, Royal Caribbean Cruises, the world’s largest global cruise line, announced a significant increase in bookings from the Middle East for its three global brands – Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. From January until July 2010 the guest volume from the Middle East increased by 63 percent compared to the same period of 2009.

The average duration of cruises taken by regional guests was nine nights, and the most popular destinations were the Mediterranean and Caribbean, with a higher then normal interest in cruises throughout the Middle East.

Lakshmi Durai, executive director, Royal Caribbean, Celebrity & Azamara Club Cruises Middle East, was thrilled with the tremendous growth of the cruise market in the Middle East and its continued potential.

“With the support of our travel agent partners, JULY 2011

targeted marketing and PR initiatives for the introduction of our first ship Brilliance of the Seas, to the region in January, we’ve put a spotlight on the joy of cruising. All Middle East markets performed well, with the UAE and Lebanon doubling their guest bookings and new ships like Oasis of the Seas, the biggest cruise ship of the world, and Celebrity Cruises’ Solstice Class, proving to be very popular.”

The UK and Germany are rapidly developing as source markets for cruise lines, while Eastern Europe is fast becoming a key market.

Dubai Cruise Terminal, operated by global marine terminal operator, DP World, was recently voted the Middle East’s leading cruise port for the fourth consecutive year.

While delighted with the achievement, Mohammed Al Muallem, senior vice president and managing director, DP World, UAE Region, believes it should spur the region, to keep

Oasis of the Seas

improving cruise facilities and services.

“Winning this coveted award for the fourth time in a row reaffirms our belief that the Dubai Cruise Terminal is developing in the right direction as a significant contributor to the growth of Dubai’s tourism sector. It will encourage DP World, UAE Region to further raise the level of excellence as a cruise terminal operator.” n

All Middle East markets performed well, with UAE and Lebanon doubling their guest bookings and new ships ... proving to be very popular

17

- Brazil

Brazil in Race to Prepare for Sports Days As one of the world’s burgeoning BRIC economies, industry insiders expect Brazil’s tourism sector to grow steadily. Its strengthening economy, ecotourism potential and forthcoming hosting of global sporting events are attracting visitors and investment, as Travel Trade Monthly discovers.

Dunan MacRae writes Rio de Janeiro

B

razil’s travel and tourism industry has enjoyed considerable success over the past decade and the country’s rise in tourist numbers shows no sign of slowing down.

The amount of money these tourists are spending during their holidays is also on the up.

According to data from the Central Bank of Brazil, the expenditure of foreign tourists recorded in April this year showed an increase of 17.3 percent over the same period in 2010, topping USD540 million. The numbers indicate healthy growth and robust development within the tourism industry.

Brazil is now the seventh largest economy in the world, according to a Price Water Coopers forecast and will become the fourth largest within the next few years. The weakening of the US Dollar and the emergence of a wealthier middle-class has helped Brazil to become a significant global player and it is clear that tourism is also playing a major role.

Increasing popularity in ecotourism, as well as the prospect of Brazil hosting both the football World Cup and the Olympics, should be a further boost to the country’s economic development and its tourism sector in particular.

Companies, such as Emirates, are keen to continue investment in the Brazilian tourism industry, according to Rula Tadros, public relations controller, Emirates Group, who expects tourism demand to surge significantly within the next decade.

“The signs for growth within Brazil’s tourism industry are extremely strong, especially with the country hosting two iconic sporting events – the 18

FIFA World Cup in 2014 and the Olympic Games in 2016.”

The airline began its operations to Brazil in 2007, with a frequency of six flights per week to Sao Paulo. Less than a year later, it went daily. Due to strong customer demand, Emirates has announced that from January 2012 it will also launch a daily flight to Rio de Janeiro, with an extension to Buenos Aires, thus opening more gateways to South America from the Middle East.

One of the country’s largest hotel groups, Brazil Hospitality Group (BHG), manages 35 hotels in Brazil, of which it owns 21.

Strong Internal Demand BHG, too, believes the outlook for Brazilian tourism is hugely positive, according to Pieter van Voorst Vader, CEO, BHG. “Brazil’s tourism industry, in regards to foreign travellers, will continue to naturally increase in the coming years. New airline companies are starting up operations to and from our main cities, enabling travellers from all over the world to have better access to our country. Besides the foreign tourists, we have great expectations in the internal demand of our industry. The major airline operator in Brazil reached 23 percent growth in 2010 compared to 2009, and its demand in the quarter one this year versus quarter one in 2010 grew 16.9 percent. As long as the GDP continues to increase between two percent and four percent, we expect our business to continue to grow considerably in the coming years,” van Voorst Vader added.

BHG has set out a three-stage plan for its own development within the country, in preparation

Brazil in Brief Capital: Brasília Currency: Real (BRL) Language: Portuguese

The signs for growth within Brazil’s tourism industry are also extremely strong, especially with the country hosting two iconic sporting events for the hosting of the World Cup and Olympics.

Its expansion will involve acquisitions, administration of third party hotels and the development of 40 hotels in 30 cities throughout the country.

The company has already kicked on with its development with the acquisition of a hotel in Sao Conrado, and it is awaiting a court ruling regarding the acquisition of another hotel at Copacabana Beach, both properties in Rio de Janeiro.

“Besides the instant impact in the specific periods of the World Cup and Olympic Games, studies show that cities and countries that host great sporting events tend to have a higher tourism demand after them. It happened in Germany and we expect that it can also occur here. We are not targeting the specific events as a guideline for our investments but we are investing based on the long term attractiveness of the segment and local demand. We are looking JULY 2011

- Brazil at cities which show economic growth and in which the current hotel installed capacity is limited,” said van Voorst Vader.

Hyatt is another hotel group looking to invest in Brazil ahead of the global sporting events. It currently operates one hotel in the country, Grand Hyatt Sao Paulo, which opened in August 2002. It recently announced plans to develop another property the Grand Hyatt Rio de Janeiro.

Pat McCudden, senior vice president, real estate and development for Latin America, Caribbean, and Mexico, Hyatt Hotels & Resorts, explained that the company feels it is important to be represented in such important destinations.

“Rio de Janeiro is the second largest city in Brazil and a strong international destination, making it an important market for both business and leisure travellers. Expanding our presence in Brazil is a critical component in our international expansion strategy.”

The Brazilian Tourism Board has set a goal of receiving up to 600,000 visitors during the World Cup 2014 and 380,000 during the 2016 Olympic Games, Rodrigo González, communications executive, Brazil Tourism Board, explained.

“By 2020, we expect to double the number of international tourists compared to 2010 and increase by 204 percent the inflow of foreign exchange.”

The country is largely banking on ecotourism to help it reach these impressive figures and it certainly has the natural resources in place to achieve this, according to González.

“Brazil is undeniably a ‘green country’ because of the Amazon, Pantanal and Atlantic Forest. Tourists interested in ecotourism and adventure can enjoy hundreds of trips from north to south Brazil.”

Aware of these natural riches, the Brazil Tourism Board spends significant time and effort promoting Brazil to international tourists who want to stay in touch with nature and adventure.

Ecotourism is, therefore, a central part of the tourism industry in Brazil and an industry that Rio de Janeiro

has been strengthened, qualified and become more professional every year in order to be even more competitive.

“From the standpoint of development, the country has an obligation to set an example and thus sustainable tourism practices are receiving support from the federal government to strengthen small communities and stimulate the preservationist spirit,” González noted.

With visitor numbers expected to keep rising, it will be essential that the country is well prepared to receive them but tourism sector workers agree that there are many challenges to be faced and much work to be done.

A total of 14 of Brazil’s 20 largest airports are already operating over capacity and Brazil’s airports have been the government’s major concern in the run-up to hosting the World Cup and Olympics.

A report released by the Brazilian government earlier this year suggested that renovation work on 10 of the 13 airports that will be used during the World Cup will not be completed on time.

Brazil's total infrastructure investments for the

We need the government to invest or initiate partnerships with private investors for the development of the country’s infrastructure.

The airport situation is downright absurd World Cup will reach nearly USD20 billion, including about three billion on airports.

Van Voorst Vader, of BHG, feels that far more needs to be done in order to make the necessary improvements to infrastructure.

“We need the government to invest or initiate partnerships with private investors for the development of the country´s infrastructure. The airport situation is downright absurd. More specifically to the industry, the government needs to introduce better fiscal and tax breaks to help the development of new hotels.”

Improved Infrastructure Emirates has at least been pleased to see that such infrastructure developments have already started to be carried out in preparation for the upcoming sporting events, Tadros explained.

“The Brazilian government has already taken steps to build the infrastructure to support this.”

González, of Brazil Tourism Board, believes the improvements have already been significant.

JULY 2011

The Amazon

“We will have the chance to show Brazil’s best qualities to the world and build a legacy of infrastructure, safety and urban mobility that will be enjoyed in the future by the country’s inhabitants and visitors. Much has been made in this regard to prepare the country for these events. There are dozens of new spaces, centres and improvements in Rio de Janeiro (the Olympics’ host) and among the other World Cup host cities. Millions of dollars are being invested in the renovation or construction of stadiums and improving the country's main airports. The hotel chains have also been prepared, increasing the number of beds and getting new chains interested in the opportunities of the next decade.”

For those who are uninterested in sports and ecotourism, the country has plenty more to offer, as Tadros explained.

“The momentum in economic development, combined with its highly desirable tourist attractions, has sparked the curiosity of the public and Brazil now ranks on the must-do list of many travellers.”

Van Voorst Vader concurred, describing Brazil as a great country to visit.

“Due to the dimension of our country, the influence of the colonisation period and the melting pot of cultural diversity, Brazil offers many flavours in the same trip. You can spend time in the shopping centres, museums and theatres in Sao Paulo, visit the beaches in Rio de Janeiro and Salvador, or enjoy an ecological experience in the Amazon. We have a diversity of possibilities for the tourist to enjoy a great vacation.” n 19

- Short Haul Travel

Short distance - long way to go Due to growth in global mobilisation, as well as to expanding businesses, incessant travel has become a requisite. However, amid the harsh economic times and ongoing unrest in some countries of the MENA region, both corporate and leisure travellers have been triggered to re-think their plans and opt for closer and safer destinations. The short-haul market has a long way to go and is predicted to further flourish in the Middle East.

Rita Kasziba writes

D

espite world-wide financial difficulty, people still travel for both business and for pleasure.

They have however become more cautious and prefer short-haul trips that can offer greater value for their money. Amid the current conditions of nearby destinations, intra-regional and domestic travel are likely to remain robust in the upcoming years. Short haul business-class flights have declined significantly, though, due to soaring fuel prices and increasing airport fees, leaving business travellers with fewer options.

YouGov Siraj, a research and consulting organisation, carried out a survey in the UAE during October and November 2010, with the participation of 299 business and 338 leisure travellers. The results proved that both sectors, adapting to the economic climate, decided to book cheaper flights. They chose low-cost carriers (LCC) for short-haul flying for both business purposes (64 percent in 2010 and 48 percent in 2009) and for leisure purposes (67 percent in 2010 and 61 percent in 2009). Based on the answers, the report also indicated that two-thirds of leisure travellers and three-in-five business travellers are likely to travel even more on LCCs this year. Driven by cost and value, nearly all UAE-based travellers, flying for leisure purposes and a considerable majority of business travellers, primarily flew in economy class in 2010.

The rise of the value-for-money solutions and interest in short routes, are well reflected in the success of LCCs operating in the region.

In 2010, Air Arabia experienced a significant growth of 10 percent in passenger volume compared to 2009, serving 4.45 million travellers, noted Housam Raydan, corporate communications manager, Air Arabia.

“As a low-cost carrier, Air Arabia only offers short-haul flights and this is in line with the global LCC model and is central to our own focus, including our keen attention to operational efficiency. Our load factors are extremely strong. In 2010, it reached 83 percent, an increase of three percent compared to 80 percent reported for the full-year 2009.”

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The airline operates on a rapidly expanding network in the region.

“We currently serve 65 routes from three hubs, which include the UAE, Morocco and Egypt. We now reach across the Middle East, North Africa and South Asia region, and into Europe from Morocco,” added Raydan.

Intra-regional travel will never stop, it will decline for a while and then will bloom again, even stronger than before The region’s tourism industry has undoubtedly witnessed a slump due to the ongoing political unrest in some countries. The intra-regional travel, however, is likely to revive without longlasting effect.

“I agree that political unrest is impacting tourism to some of the traditional regional holiday destinations, however, when you consider the breadth of the market we serve, there are plenty of other choices for passengers – including packages to various destinations across Asia and Levant,” concluded Raydan.

Lebanon has long been one of the most favoured destinations among Arab travellers, who enjoy both winter and summer time holidays in the country. Mona Fares, director of promotion, Ministry of Tourism Lebanon, expressed the mutual hope that the current turmoil will not hold travellers back from visiting Lebanon and other countries within the region.

“Intra-regional travel will surely be affected by the recent political unrest in some of the countries in the region, and the ministry of tourism in Lebanon is aware of this matter.

Therefore, we are in the process of making a special package deal with Lebanese tour operators for visitors from Jordan and the Arab countries that used to come to Lebanon by land.

They can now come by airplane and so facilitate their journey to Lebanon. Intra-regional travel will never stop, it will decline for a while and then will bloom again, even stronger than before.”

Due to the pleasant climate that Lebanon is blessed with and its abundant attractions and events, the country attracts a compelling number of visitors from the region.

“Lebanon’s success as a tourist destination resides in the enormous variety of attractions it has to offer.

The country has a diverse tourism product during the four seasons of the year offering, among other attractions, beaches, skiing, nature and an attractive JULY 2011

- Short Haul Travel night-life. Lebanon has witnessed a considerable growth in the tourism industry in 2010 and as for the Arab countries we have an increase of visitors that reached 894,724 compared with 785,986 visitors in 2009.”

In the past few years, Egypt proved to be the most preferred short-haul destination for the Arab travellers, due to its current status, however, Egypt is likely to suffer a significant loss and misplace its long hold position among the most favoured destinations. At the same time, amid all the turmoil in the region, Jordan retains its image as a safe hotspot for the summer holiday season, although travel agencies were also affected by the turmoil.

The ongoing political instability might have a longterm impact in Jordan’s tourism, particularly in intra-regional travel, noted Homam Hasanat, sales and marketing manager, Jordan Artist Tours.

“We have been heavily affected by the happenings in our neighbouring countries, thus most of our tours have been cancelled or postponed. While the average length of the tours was between five and nine days, it declined to three to six days recently. While group’s requirements remained perpetual, individual travellers tend to opt for value for money options, regardless of the quality.”

Saving Money Another Jordan based agency, Al Jazeerah Travel & Tourism, has experienced the same changes, said Fadia Tarakhan, incoming manager.

“At the moment, four to five-day-long trips are the most popular. In terms of destination, inbound travellers opt for Amman and Petra, while our outbound clients show great interest in discovering Istanbul and Sharm El Sheikh. Many of our customers prefer short-haul trips to save money on travel and enjoy more activities.”

Due to the current situation, however, the agency and Jordan have suffered significant losses, but Tarakhan believes that the region’s tourism industry, and short-haul travel in particular, will soon recover.

Samer Costantine, UAE-based sales manager, Cosmos Tours, agreed that travellers might choose short-haul destinations with the comfort of enjoying more frills.

“When travellers opt for short-haul vacations, they often prefer luxurious accommodation with high quality services and they also enjoy more activities and shopping. However, it obviously depends on the purpose of the destination, the budget, the destination, as well as the country of origin. Based on my experience short-haul trips are more popular in the region. During the summer period, Lebanon and Egypt proved to JULY 2011

be especially popular destinations. However, due to the ongoing unrest in some countries, even more tourists have chosen Dubai as one of the safest and most popular cities in the region.”

Having a holiday or a short break has become a mandatory part of the lifestyle in the region and Cyprus has established a great reputation among Arab travellers. According to the Cyprus Tourism Organisation (CTO), Lebanese arrivals to Cyprus grew 34 percent in 2010 with 20,664 visitors compared to 15,431 in 2009.

The ideal connectivity and the welcoming hospitality, along with the slightly different culture in Cyprus, have positioned the island as a favoured destination for Arab travellers when taking shorter trips.

Vassilis Theocharides, director, CTO, Middle East and Arabian Gulf Office, Dubai, commented on Cyprus being an ideal short haul option for Arab travellers.

“Our main source market from the Middle East is Lebanon followed by the UAE, Egypt, Iran and

Jordan. We carried out a survey in 2009 and the results showed that the main trigger reasons that people decide to travel to our destination are our pristine beaches, the nature and the fact that Cyprus is a short haul destination from the region.”

The country has also noticed a marked increase in incentive trips from the Middle East and a steadily growing trend for ‘marriage tourism’ from Lebanon. As Cyprus has not been affected by the nearby turmoil in some countries, Theocharides is confident about the future.

“Intra-regional travel will continue where it left off, there is no argument to say that the trends will cease. Travel is extremely seasonal, affected by current trends and outside factors. Cyprus, which remains stable, will continue to be a chosen destination.”

While industry experts agree that the ongoing political unrest in some countries of the region has an impact on tourism, they predict fast recovery, propelling the region’s tourism into another flourishing era. n

Travel is extremely seasonal affected by current trends and outside factors 21

Mark Pey Mark Pey has been appointed as country manager of Oman for Lufthansa German Airlines and Swiss International Air Lines.

Based in Muscat, Pey will be responsible for administration, sales and marketing operations

of the two airlines across the market. Prior to moving to Oman, he worked as duty station manager for Swiss at Zürich Airport. Pey, whose career spans over 15 years, has previously held a number of managerial positions including

Jareer Massarweh

Haitham Mattar Haitham Mattar has been appointed as regional vice president of sales for the Middle East and Africa, Eastern Europe, Turkey and Russia, Hilton Worldwide. Based in Dubai, he will lead the company’s sales teams across the region and oversee the sales operations of more than 80 properties. Matter has solid expertise and extensive understanding of the hospitality industry, with 23 years of regional and international experience. Previously he worked in the US, Lebanon and the UAE. Most recently he was with InterContinental Hotels Group (IHG), for a decade where he held a number of roles, including area general manager and commercial director for Lebanon and the near East countries.

executive business sales representing Swiss, Austrian Airlines and British Midland International. Pey defined Oman as a highly potential market for both outbound and inbound travel for the airlines.

Jareer Massarweh has been appointed by Kempinski Hotels Jordan as cluster communication and marketing director.

Massarweh graduated from Oxford Brookes University in the UK in hospitality management and also holds Swiss and US diplomas in hospitality management from Hotel Institute Montreux, Switzerland. Using his wealth of talent and experience, he will be responsible for the effective communication of Kempinski’s core values and key massages to both the local and global community.

Haitham Mattar

Ernst Mayer

Ernst Mayer 22

Ernst Mayer has been appointed as general manager for Jumeirah Dhevanafushi, Maldives.

Mayer brings 35 years of hospitality experience to his new role, of which he spent over 20 years in senior positions at InterContinental Hotels Group (IHG) in China and Hong Kong. At the age of 33 he was promoted to general manager for Holiday Inn Guilin in China, and became Asia’s youngest general manager. He also held food and beverage operation positions in South Africa, and served as general manager for Crowne Plaza Salzburg, Austria. Most recently he worked as owner and proprietor of his own property, Point Hotel Anif, in Austria. In his new role he will spearhead the operation of the recently opened Jumeirah Dhevanafushi, the company’s first resort in the Maldives.

Gordon Wilson

Gordon Wilson Gordon Wilson has been promoted to president and CEO at Travelport. In the last five years he led Travelport’s GDS, the firm’s most strategic and largest business, and has served as deputy CEO since 2010. Wilson, who will also join the company’s board of directors, has solid industry, commercial and operational expertise. Jeff Clarke, former president and CEO will continue to work as executive chairman, in charge of strategic investments, mergers, acquisitions and corporate developments.

JULY 2011

Q & A with Roger Kacou Tourists are continually attracted to the unique culture, sights and wildlife of Africa, and the continent remains a popular destination for hotel chain expansion. Roger Kacou, senior vice president Africa, Mövenpick Hotels & Resorts, informs Travel Trade Monthly of the company’s new properties, developments and strategy, following its resilience to challenges in the region.

Travel Trade Monthly: Which countries in Africa do you consider to offer the most strategic opportunities for Mövenpick’s expansion?

Roger Kacou: Africa is a huge continent with

who seek to explore the magic of Africa.

Mövenpick Resort Arusha will be the newest hotel in the city, which will give us a clear competitive advantage.

encouraging economic and tourism growth and the beauty of it is the diversity it has to offer and the different opportunities it provides at different times.

Africa is an important growth market for us and we are keen to ensure our fair share of the continent. We are currently present in Egypt, Tunisia, Morocco, Tanzania, Mauritius and Ghana and we are exploring opportunities in several countries including South Africa, Nigeria, Kenya, Rwanda, Sudan and Ivory Coast.

Travel Trade Monthly: In addition to the Mövenpick Resort Abu Soma, what properties are currently under construction in Egypt and what do you forecast for the country’s future? What effect, if any, has widespread political unrest had on progress?

Roger Kacou: We have a long history in Egypt

Travel Trade Monthly: Development plans for properties in Ghana, the Red Sea in Egypt and Tanzania have been announced.

Could you elaborate on the decision to open properties in these places?

Roger Kacou: Ghana is one of the leading business hubs in West Africa and there is still more demand than supply in the city. We saw this as a great opportunity for us to set our footprint in this emerging business destination.

Mövenpick Ambassador Hotel Accra, with its location downtown in the central business district, close to government ministries and major financial institutions, is the perfect base for both business and leisure travellers.

We have seen great resilience following similar challenges We have been present in Egypt since 1976 and we have continued to expand in this developing market to currently reach 10 hotels, resorts and Nile cruises. The Mövenpick Resort Abu Soma is currently under construction and stretches along the beautiful Red Sea coast, with plans to open in 2012.

In East Africa, Tanzania, we plan to open a 252room Mövenpick Resort Arusha. The new hotel lies at the foot of Mount Meru, on 100 acres of mature farmland in Usa River, between Arusha city and Kilimanjaro International Airport. The hotel has an ideal location for leisure travellers JULY 2011

and have seen great resilience following similar challenges. Despite the current slow cycle we are working closely with our hotel owners on several renovation programs that are currently underway in Mövenpick properties in Egypt between Cairo, the Red Sea and Upper Egypt.

In Cairo, construction works are underway in Mövenpick Resort Cairo Pyramids to build an adjoining extension, offering an additional 134 new rooms when completed in the fourth quarter of 2012.

Another Cairo favourite, Mövenpick Hotel & Casino Cairo-Media City, underwent major refurbishment in several areas of the hotel a few months ago, including the lobby, the rooms and most outlets. The hotel also now includes Casino Vegas, which is the first casino in the sixth of October area.

On the Red Sea, Mövenpick Resort & Spa ElGouna is set to complete its multi-phase renovations program by the end of this year. The first phase saw the completion of the hotel's main dining outlet, the Palavrion Restaurant. The restaurant was totally revamped, creating a 'new fresh look'. Renovated rooms were meticulously done in phases to ensure minimum inconvenience for guests during their stay. Last April, 307 rooms were refurbished. This year, an additional 63 rooms will be completed mid year, followed by 54 rooms towards the end of the year.

Still on the Red Sea, the renovation master plan of Mövenpick Al-Quseir is set to start this October.

In upper Egypt, an extension of Mövenpick Resort Aswan will bring an additional 177 rooms by the end of 2012. Aswan has long been a Mecca for tourists from all around the world, due to its unique and rich cultural heritage. Today its

Roger Kacou

therapeutic and healing power is attracting new segments to the area. Developing a medical segment is a smart business decision to diversify the tourism products on offer. With the opening of Magdy Yacoub's Heart Centre, Aswan now has a clear edge in this segment.

Travel Trade Monthly: Which of your properties do you consider to be the most environmentally sustainable, including in energy and water consumption?

Roger Kacou: One of our values has always been to conduct business in a responsible and caring way. We focus on energy saving practices, waste management, emissions reduction and environmentally sustainable principles. Our hotels and resorts have won several sustainability awards including Mövenpick resorts in El Gouna, Taba and Quseir.

Travel Trade Monthly: Which properties offer the best opportunities for eco-travel, including exploring Africa’s nature and wildlife?

Roger Kacou: When we talk about wildlife, then the best example will be Mövenpick Royal Palm Hotel in Dar es Salaam, Tanzania. There is much to explore in this land of wonders, including some of the most beautiful sandy beaches of East Africa, Kilimanjaro – the highest permanently snow-capped free standing mountain in Africa – and the exotic islands of Zanzibar. An unparalleled diversity of fauna and flora can be seen in the finest game sanctuaries in the world. n 23

World’s First Smurf Village to be Settled in Abu Dhabi The smurfs are heading to the UAE as a main attraction of this year’s ‘Summer in Abu Dhabi’ line-up, held at Abu Dhabi National Exhibition Centre (ADNEC) between June 30 and July 30.

The world’s first ‘Smurf Village’, a mini-world dedicated to the tiny blue fictional creatures created by Belgian cartoonist, Pierre Peyo Culliford, houses 12 separate districts with peculiar activity areas for children. The spacious 42m-by-24m area of hall 11 includes among other attractions, Papa Smurf ’s story corner, Smurfette’s land of beauty, a Smurf fun park, a promenade and a number of mushroom houses where the youngest visitors can meet and play with their favourite smurfs.

Faisal Al Sheikh, events manager, Abu Dhabi Tourism Authority (ADTA), the organiser of the programme, commented on the world’s first blue village of its kind.

“Part of the smurf legend is that outsiders cannot find their village except when shown the way by a smurf; thankfully ‘Summer in Abu Dhabi’ has solved this problem. The Smurf Village component is what we believe is our most exciting ADNEC activation yet. There really is something for everyone – young and old.”

The attraction forms part of the ‘warm up’ for the loveable characters’ return to the screens with the international premiere of ‘The Smurfs’ movie on July 29.

The Smurf Village component is what we believe is our most exciting ADNEC activation yet. There really is something for everyone – young and old

Sports and Events Tourism Exchange Cape Town, South Africa, July 27 - 29, 2011 (www.sportsandevents.co.za) An event that focuses on South Africa’s facilities and services for all top level international events and the exchange between sports tourism and the events industry.

Besides the keynote spectacle, this year’s festival offers a range of other enchantments including the all-new ‘Adventure World’ with ‘telematch’style activities, ‘Career World’ where kids can try their hand at one of the 12 dream jobs, and ‘Show World’, which hosts enthralling programmes with favoured fictional characters. n

Cityscape Dubai Dubai, UAE, September 26-29, 2011 (www.cityscape.ae) A B2B networking exhibition and conference for emerging real estate markets globally.

China Incentive, Business Travel and Meetings Exhibition Beijing, China, August 30-September 1, 2011 (www.cibtm.com) A leading event for the meetings, incentives, business travel and events industry in China and Asia.

Kazakhstan International Tourism Exhibition Astana, Kazakhstan, September 27-29, 2011 www.leisure.kz The eighth Kazakhstan International Tourism Exhibition in Astana caters for both the B2B and B2C markets and features a vibrant mix of inbound and outbound destinations.

PATA Travel Mart New Delhi, India, September 6-9, 2011 (www.pata.org) Asia Pacific’s premier travel trade show with networking and contracting opportunities.

CIS Travel Market St. Petersburg, Russia, October 12-14, 2011 (www.restec.ru) An event focusing on the CIS countries with airlines, tour operators, travel agencies, accommodation providers and tourist associations

Top Resa, International French Travel Market Paris, France, September 20-23, 2011 (www.iftm.fr) An international travel and tourism trade fair for networking, doing business, innovating and keeping abreast of market developments.

ITB Asia Suntec, Singapore, October 19-21, 2011 (www.itb-asia.com) An event where international exhibitors, Asia Pacific’s leading companies and emerging enterprises meet top buyers.

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JULY 2011