Travel Trade Monthly June 2011 Issue by T.T.W. Travel Trade Weekly LTD

Middle East and North Africa Edition

June 2011, Issue 20

INVESTIGATION: FUTURE TOURISM Technology is constantly evolving and with it, industries continue to evolve too. Be it through social media, sustainability technology or robotic hotel receptionists, technology will dramatically change the future face of tourism.

Despite unrest across the MENA region, Jordan is making progress in marketing the country as still safe to visit, albeit full of thrilling and precarious adventure activities. Jordan’s mesmerising landscape and numerous attractions have pulled in a mix of domestic, regional and long haul visitors and it strives to improve its status further.

3 EXPLORE: SYRIA Syria’s hodgepodge of cultures, religions, sects and traditions, as well as its colourful and anguished history with countless remaining historical sites, have attracted worldwide visitors. Nevertheless, an identity struggle has persisted and a current plight for democracy has shifted the country into disarray. Today’s Syria is a fascinating place, albeit unstable, with potential to revive its languished image through developing its faltering travel and tourism industry.

In This Issue MARKET UPDATE INVESTIGATION: Future Tourism VISIT: Jordan EXPLORE: Syria ONSITE: Sri Lanka TRAVEL TALK TRAVEL CHANNELS TOUR: UK LONG HAUL: LA EXCLUSIVE: Religious Travel WHO’S MOVED RENDEZVOUS NEWS & EVENTS JUNE 2011

ISSUE 20

10 2 3 4 10 14 16 17 18 20 21 22 23 24

VISIT: Jordan

www.traveltradeweekly.travel

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 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

IHG: Increasing Profits InterContinental Hotels Group (IHG) has recorded significant growth in profits in the first quarter (Q1) ending March 31.

he Group’s revenue totalled USD396 million, representing an increase of nine percent over the same period in 2010. The operating profit rose 35 percent and accounted for USD112 million, compared with USD83 million in Q1 2010. Andrew Cosslett, CEO, IHG, elaborated on the compelling performance. “We delivered a strong set of results in the first quarter. Global revenue per available room (RevPAR) grew 6.9 percent, with 18.8 percent growth in Greater China and 8.4 percent in the US. Underlying revenue growth of six percent was converted to 23 percent operating profit growth, reflecting good use of our scale and the eﬃciency of our business model. “We remain confident about the outlook for the rest of the year. Demand for our brands continues to strengthen from both guests and hotel owners. This is driving our performance and reinforcing our industry leading pipeline. We are well positioned to take advantage of the gathering rate momentum we now see around the world.”

In terms of regions, EMEA continued to deliver positive figures, with 1,425 rooms (eight hotels) signed in the first three months of the year. RevPAR increased by 4.2 percent in all EMEA nations excluding Egypt (10 hotels) and Bahrain (two hotels), where the turmoil resulted in cogent declines. In Saudi Arabia, RevPAR rose 7.5 percent and in the UAE it increased by 2.4 percent. Revenue reached USD95 million, representing an increase of six percent, while operating profit grew 10 percent to USD23 million.

Demand for our brands continues to strengthen from both guests and hotel owners Cosslett closed the announcement by handing over his position to his successor. “My time with IHG comes to a close on June 30. I now hand over the reins to Richard Solomons, confident that he and the excellent team we have in place will lead IHG to a bright future.”.

Jazeera Airways: Record Performance

MENA Exchange Rates Accurate as of 25/5/2011 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)

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

1USD= 3.67 5.95 3.75 1,509 0.37 0.71 47.40 0.28 3.64 0.38 1.40 8.02 10,598 214.33 72.23 1.22

Jazeera Airways Group has announced record results for the first three months of the year, making the period the group’s third consecutive profitable quarter. The group recorded a net profit of KWD1.1 million (USD4 million), up from a net loss of KWD4.5 million (USD16.4 million) in the same period of 2010. The term represents another profitable quarter after the record breaking Q3 (USD16 million) and Q4 (USD7.3 million) 2010, and the best Q1 since the inception of the company’s Turn-Around Plan in 2005. Operating revenues rose by 22.6 percent over Q1 2010 and reached KWD11.6 million (USD41.5 million), while the operating profit accounted for KWD1.8 million (USD6.6 million), compared with an operating loss of KWD3.4 million (USD12 million) in 2010. Marwan Boodai, chairman, Jazeera Airways Group, elaborated on the performance in the light of ongoing turmoil. “We are very pleased with our record first quarter results, which demonstrate Jazeera Airways’ success in mitigating the impact of the political unrest seen in the Middle East in the last quarter. We were able to secure this success because of the flexibility we enjoy within Jazeera Airways Group, between our aircraft leasing business, which has assets deployed across the Middle East, and our commercial airline business that serves 18 destinations across the Middle East. Combined, they have not only shielded the group’s performance from these events, but they have also put the company on a winning streak for three straight quarters.” Boodai projects strong results for the rest of the year. “Our outlook for the second half of the year remains unchanged, however we have upgraded our Q2 outlook from ‘slow’ to ‘mild’ as we welcome the inclusion of Cairo into our network, starting from May 18. We remain focused on making every quarter of 2011 a profitable quarter.” JUNE 2011

- Future Tourism

Future Tourism Unveiled Technology is constantly evolving and with it, industries continue to evolve too. Be it through social media, sustainability technology or robotic hotel receptionists, technology will dramatically change the future face of tourism, as Travel Trade Monthly discovers. Duncan MacRae writes

t may sound like something from a science fiction B movie, but robotic hotel staﬀ members already exist. Perhaps it should not be so surprising. Over the decades, humans have embraced technology in so many ways in order to improve the quality of their lives. The tourism industry is certainly not unique in this respect. Dimitrios Buhalis, president, International Federation for IT and Travel and Tourism (IFITT), has been monitoring the developments over the years. “Since 1980, information communication technologies (ICTs) have been transforming tourism globally, creating applications and solutions often termed as eTourism.” Social media and mobile technology, for example, are fairly recent innovations that will have a huge impact on tourism. Holiday tips from friends worldwide, interactive bookings and mobile travel guides at destinations will become the norm in the coming years, according to experts at the World Travel Monitor. The dramatic success of smart phones, such as the iPhone and Blackberry, in recent years has created exciting new opportunities for the travel industry. As many as 40 percent of international travellers own a smart phone with internet and e-mail access, and more than 40 percent of them already use their devices to get destination information. About 34 percent of business travellers and 26 percent of leisure travellers use them to make changes during their trips too, according to the latest World Travel Trends Report. Car rental company, Avis has already made a move to mobile technology and Anthony Ainsworth, commercial director, Avis, reveals there are more technological advancements for the company in the pipeline. “Following the successful launch of the Avis iPhone application in August 2010, we are currently looking into further forms of mobile technology that will enable our customers to book Avis car hire on the move. An update to the existing iPhone application will be included in these developments.” Social networking Both mobile apps and social media are very important to Avis, as they increase the number JUNE 2011

of ways customers can interact with the brand. “Avis has been at the forefront of social media integration within the travel industry,” explained Ainsworth. “We were one of the first companies to launch a blog, now more than five years old, and our Twitter feed has one of the largest number of followers of all UK Car rental companies.” Avis is not alone in embracing social networks. Jumeirah Group has launched a successful Facebook room reservation tool and has rolled out a similar booking tool for its restaurants. Floor Bleeker, vice president of IT, Jumeirah Group, notes that the company is attempting to connect its guests to local culture through technology. “The recently opened Jumeirah Himalayas Hotel in Shanghai is the first hotel to have Destination Explorer, an in-house developed application that will help our guests to explore Jumeirah-curated local experiences straight from a touch-enabled device like Surface, Touch TV or tablet. We will soon launch Destination Explorer, as well as a Jumeirah app, in other locations as well.” The hotel group has also focused on implementing centralised enterprise platforms and global infrastructure to support those platforms. This includes systems such as CRM, financials, procurement, Human Resource Management Systems (HRMS) and business intelligence. “We are currently working on a few exciting guest-facing projects as well. Through a partnership with our local telecom provider, we are implementing Telepresence in five countries,” Bleeker explains. “This highly advanced form of teleconferencing will give our guests the sense of being in the same room even if they are actually on diﬀerent continents.” The list of available technologies of which travel and tourism companies can take advantage is vast. RFID, sensor integrated environments, LED lighting, prefabricated buildings, nanomaterials and plastic electronics are just the tip of the iceberg. Sustainable tourism Avis now claims to be a carbon neutral company and is committed to updating its fleet of vehicles to reduce the amount of CO2 emissions produced, according to Ainsworth. “In recent years we have worked hard to provide

Robot receptionist

our customers with greener options including the launch of Avis Eco, a fleet of Diesel-only Volkswagen Golf Bluemotions, and the addition of the Mercedes BlueEfficiency E-Class to the Avis Select Series fleet. “Technology is going to continue to be vital to the future of travel, from the development of alternative fuels for aircraft, through to continuing to develop communication tools to help customers have a better experience with the brands that they use. Robots will have their part to play too, having already demonstrated their abilities in mobility, voice recognition and speech skills in Sheraton Grande Tokyo Bay Hotel as far back as 2006. Robots will be supporting a number of functions in the hospitality industry in the future,” Buhalis explains. “These may be housecleaning tasks, serving or providing special services. To the degree that interactivity with robots is developing, we will see more robots serving us. Also, in countries where hotels have a lack of professionals, robots can be a solution to provide the service that is needed but personal service by friendly staff is always preferable.” It is unlikely that robots are going to take over the tourism industry anytime soon, though. The main reason Jumeirah has such a large number of returning guests is down to its staff, according to Bleeker. “Technology is not going to replace them. Technology will help our colleagues to focus even more on the excellent guest services that we are known for.” n 3

- Jordan

The Drive for Eco-adventure and Wellbeing Despite unrest across the MENA region, Jordan is making progress in marketing the country as still safe to visit, albeit full of thrilling and precarious adventure activities. Jordan’s mesmerising landscape and numerous attractions have pulled in a mix of domestic, regional and long haul visitors and it strives to improve its status further. Travel Trade Monthly assesses Jordan’s tourism industry and its revived strategy towards becoming a prime destination of choice. Marianna Keen writes

ordan, a wondrous mix of mountains, woodlands and expansive desert, with remnants of ancient civilizations, is teeming with opportunities for exploration. It was ranked as eighth out of 16 countries in the MENA region for its travel and tourism competitiveness in the Travel and Tourism Competitiveness Report 2011, released on March 6 by the World Economic Forum (WEF). However, feeling the country warrants much more recognition as a premier place to visit, the Jordan Tourism Board ( JTB) is taking fresh initiatives to encourage tourism to both Jordan’s cities and its expansive natural landscape. With biosphere reserves across Jordan promoting solutions for the conservation of biodiversity with its sustainable use, the country looks likely to continue its trend for environmentally responsible tourism. Endorsements and oﬀerings of eco-tourism have been widened, including adrenaline filled sports, while the extensive array of luxury resorts and hotels across the country are making moves to improve their sustainability. The city of Aqaba, which is yet to fully capitalise on its potential as a tourism destination, is hoped to follow suit with initiatives of sustainability and conservation. Haifa Abu Ghazaleh, minister of tourism, Jordan, has a strategy for Jordan’s travel and tourism industry which seeks further opportunities in

eco-tourism as well as other popular areas, including medical and domestic tourism. The Jordan Rift Valley lures visitors not only for its dramatic beauty and historic resonance but also for the medicinal value of the Dead Sea’s mineral enriched mud. The tourism industry continually pushes to capitalise on this market with its toprated wellness resorts. In addition, while many travellers visit Jordan for popular attractions such as Petra and Wadi Rum, the country is rich with historical and religious sites. According to JTB, visitors to religious sites have registered an increase in 2010. With so many leisure sectors being catered for, as well as countless options for business and MICE markets, Jordan looks set to strengthen its tourism industry as soon as normality resumes in the region’s market overall.

We are stressing on promoting Jordan as a stand-alone destination where we have a lot to oﬀer 4

Jordan in Brief Capital: Ammam Currency: Jordanian Dinar ( JOD) Language: Arabic Hotels Hotels in Jordan have reported an impact on occupancy from instability across the Middle East. The blow spans the entire market. However, a belief that Jordan is safe from huge scale political and social unrest, along with a strong focus on procuring tourism, has led to an air of optimism, albeit with a dose of caution. Gregoire Salamin, general manager, InterContinental Hotel Jordan, commented that business is volatile. “We estimate that occupancy in Jordan has been aﬀected by 20 percent. Expectations for the rest of the year are cautious.” Visitor markets for the hotel include Europe, America and the GCC. Salamin noted that a huge portion of business is being lost due to the trend for package bookings. Tours to Jordan are booked in combination with Egypt, Syria and Lebanon, and due to political protests and security concerns in these countries, entire packages are being cancelled. Naji Alia, CEO, Belle Vue Hotels Middle East, commented on the extent of cancellations. “50 percent of bookings [to Belle Vue Hotel, Ammam] have been cancelled by travel agents.” Alexander Bieber, general manager, Sheraton Ammam and area manager, Jordan, emphasised that protests in Tunisia alone had no eﬀect on JUNE 2011

- Jordan Amman Rotana Hotel

Coral Sadeen

energy saving bulbs, installation of motion detectors to control lights, eradication of polystyrene use and influencing suppliers to use fewer pesticides on their products. In collaboration with a local company, Entity Green, the hotel also piloted a recycling business in Jordan, but that impacts have been measurable since the events in Egypt on January 25. He also suggested that misleading media coverage is partially to blame for negative perceptions of Jordan’s current situation. “Especially during February and March, small demonstrations received – unfortunately – disproportionate media coverage.” Hakam Barakat, general manager, Toledo Hotel, displayed confidence in Jordan’s security. “The situation in Jordan remains stable and personally I believe it will remain as such.” However, in spite of the circumstances in Jordan, the situation in close by regions is displacing travellers elsewhere. Barakat reported that occupancy at Toledo Hotel has dropped 25-35 percent compared with the same period in 2010. In an effort to adapt to the current threat to the industry and minimise the effect on revenue, the hotel is exploring new channels and intensifying marketing efforts. It also has a strong sustainability scheme and was reportedly the first independently operated hotel in the Middle East to receive the Green Key certificate, qualified this February. InterContinental Jordan has also started the Green Key certification process. In 2010, the hotel’s Premium Wing was equipped with a grey water system to recycle soft water and energy and water saving devices were installed. Sheraton Ammam has also incorporated many green initiatives, including fitting LEDs or JUNE 2011

programme that has been rolled out across Jordan. In 2008, researchers at Hashemite University featured an article in Energy Conversion and Management, which indicated that more than 75 percent of hotels were not using solar water heaters. Since then, the adoption of solar energy has spread. In 2009, the Jordan Valley Marriott Resort & Spa completed the installation of 275 solar panels, enabling the resort to oﬃcially switch to solar panel energy. Some hotels are attempting to bring about awareness from guests as well as influence their behavior. Meg Evans, country director of sales and marketing, Marriott hotels, Jordan, enthused that the group is asking guests to help it in its green plight by not replacing towels and linen on a daily basis. Hotels are considering the eﬀects their actions have on the environment in a number of ways. Evason Ma’in Hot Springs & Six Senses Spa, has initiated a project that will facilitate it to access new markets and widen recognition of Jordan’s pristine wilderness. Alaa Al Arfah, director of sales and marketing, Evason Ma’in Hot Springs, gave details.

The present business trend tends to show a rather serious impact on leisure and tours activities with more than a 25 percent drop in volume projections for 2011 5

- Jordan “We are setting up a new project with the theme of ‘luxury camp in the middle of nature,’ which will give more exciting experiences to our guests in Wadi Rum and the Jordanian desert.” As seen across the country, the hotel has experienced a decrease in occupancy, predominantly European, Russian and GCC markets. Another resort hotel, Holiday Inn Dead Sea, has also registered a severe impact from unrest in the region. Jean Baptiste Pigeon, area general manager, Holiday Inn, Jordan elaborated on figures. “The present business trend tends to show a rather serious impact on leisure and tour activities with more than a 25 percent drop in volume projections for 2011.” The hotel’s occupancy has been balanced between local and regional business sources and international (predominantly European) visitors, though domestic tourism may well be boosted given that Syria was previously a top travel destination for Jordanians, with many now prompted to stay in Jordan. In the meantime the hotel continues to fulfill its Corporate Green Engage initiatives to further improve the hotel’s environmental responsibility and attractiveness to stakeholders. Marc Guenther, general manager, Kempinski

Hotel Aqaba, identified that since political turmoil in the region, slight demographic shifts are evident. He remarked that the hotel is constantly discovering new markets and opened a new spa in April. Meanwhile, Kempinski Hotel Ishtar has initiated a new programme oﬀering day use of its facilities. Golden Tulip, Airport Ammam is currently under full renovation, with work due to be completed by the end of July. Jurgen Ammerstorfer, general manager, DoubleTree by Hilton Aqaba, added to

With the increase in facilities in Jordan, such as the expansion of the airport and the number of hotel rooms, our market will become more attractive to individuals and businesses 6

approaches in the current conditions, saying that the hotel is creating promotions to stimulate and attract the local market. Rum Group hotels have revealed that even corporate business from diplomatic and United Nations (UN) clients has taken a drop, and as part of its strategy to adapt it is building an online booking system which is expected to be ready in June. Developments The latest development within the InterContinental Hotels Group in Jordan will be the addition of the Crowne Plaza Jordan Dead Sea set to open in late this year. A new Marriott hotel is expected to open on schedule in 2013 and Starwood Hotels and Resorts Worldwide plans to open the St. Regis Ammam, the first St. Regis hotel in Jordan, in 2014. Rotana will be managing two properties located in Abdali New Downtown, the new urban regeneration project in Ammam. Boulevard Arjaan by Rotana is scheduled to open in 2012 and Ammam Rotana Hotel is set to open by the end of 2012. Amal Harb, corporate vice president marketing, Rotana Hotels, commented on progress. “[Unrest] has caused a slight delay with projects across the region, however, we are going ahead with our plans.” Abdali New Downtown, positioned as the future business district of Ammam, will cover more than 1.7 million m2, with 55 percent of projects currently under construction in phase one. The first sectors of phase one are estimated to be open to the public by mid 2012, with the remaining sectors to be completed by the end of 2014. Abdali claims it will increase Ammam’s hotel capacity by more than 2200 rooms. In addition to Rotana, the first phase will include W Hotel, 400 luxury serviced apartments and many entertainment options. Aqaba, named Arab Tourism Capital 2011 by the Arab Tourism Ministers Council, is itself going through a significant amount of change. JUNE 2011

ferrariworldabudhabi.com Delivered by Aldar

IT’S YOUR TURN TO FEEL THE THRILL There’s no better way to describe the rush of 240km/hr to your clients, than to experience it. The region’s premiere entertainment centre has opened its doors with over 20 Ferrari inspired rides and attractions in the world’s largest indoor theme park. Any visit to the U. A.E. wouldn’t be complete without a day at Ferrari World Abu Dhabi. Email sales@farahleisure.com for more information

- Jordan The city provides several luxury brands including Kempinski and InterContinental, with Marriott soon to join them. Establishment of the Aqaba Special Economic Zone has helped to spur growth however, in terms of tourism it is in its early stages. Tours Despite the number of package cancellations, several tour companies provide a plethora of opportunities to adventurous, sports-mad, and eco-concerned travellers once they arrive. Dakkak Tours offers four different eco programmes combined with soft adventure as well as many adrenaline filled sports including trekking, rock climbing, canyoning, horse riding, and camel safari. In light of falling revenue across the industry, Ziad Dakkak, CEO, Dakkak Tours, suggested a change in focus on Jordan’s strategy. “We are stressing on promoting Jordan as a stand-alone destination where we have a lot to offer.” A diverse portfolio and readiness to adapt are proving beneficial to the company. Al-Jazeerah Travel and Tourism has found that outbound travel is best withstanding the current threat to the industry. Internationals who visit are escorted by tourist police to ensure security. Although the company offers eco and adventure tours, demand is low, remarked Ibrahim Abu Zannad, marketing manager, Al-Jazeerah Travel and Tourism. “Royal Society for the Conservation of Nature (RSCN) does not offer special rates for travel agencies (RAK rate), which does not encourage us to promote those products.” Although further promotion could help to further the sector’s environmental impact, Jordan stands as an eco-tourism leader in the region. RSCN, with its eco-tourism implementing division, Wild Jordan, spearheaded the trend, and won the Guardian-Observer Ethical Travel Award for 2010. According to RSCN, more than JD1.5 million (USD2.1 million) was generated from eco-tourism activities in Jordan’s different reserves in 2010, excluding Wadi Rum. As the number of tourists to Jordan’s nature reserves increase, economic conditions of local

King Hussain Hilton

communities around the reserves have boomed. Jordan houses eight nature reserves, which contain different ecosystems. The number is set to rise to 16, three of which will be launched this year: Qatar, Fifa and Jabal Masouda. Yehya Khaled, director, RSCN, highlighted that despite the booming eco-tourism industry, protection of Jordan’s nature reserves is faced with obstruction. “The major challenges we seek to address are people’s view of reserves as obstacles to development projects, the need to regulate land use around the reserves as well as resources for sustaining its infrastructure and socio-economic projects.” He added that Jordan’s reserves lack employees specialised in the management of such areas. Air travel Airlines, too, are experiencing the squeeze on demand spanning from private aviation to chartered airlines. Petra Airlines cancelled some flights, while others have been rescheduled to adapt to the situation. Marwan Shennara, director of commerce, Petra Airlines highlighted the impact. “2011 is witnessing a 25 percent drop versus 2010.” The airline, which has a long-term plan of becoming a low-cost carrier (LCC) is targeting Europe. “With the increase in facilities in Jordan, such as the expansion of the airport and the number of hotel rooms, our market will become more attractive to individuals and businesses,” added Shennara. Arab Wings private and executive charter operations based in Jordan have also noted cuts in demand since a lot of its clients are from Cairo, Damascus, Lebanon and other areas affected by unrest. Manal Obeid, head of sales and marketing, Arab Wings, emphasised the expansion plans of the business despite the fall in demand. “We are in the process of opening the first maintenance centre for business jets in Jordan.” Amid detrimental affects in the travel industry,

easyJet’s reasonably new London to Amman service represents tremendous opportunity to position Jordan as a destination for budgetconscious travellers from the UK and the rest of Europe. The airline reports it could also oﬀer services from France and Switzerland if demand is strong enough. Pushing forward The Travel and Tourism Economic Impact report for Jordan, 2011, released by the World Travel and Tourism Council (WTTC) on February 14, indicated that leisure spending constitutes 91.2 percent of spending on travel and tourism in Jordan, with only 8.8 percent attributed to business spending. This indicates that the significant reduction in leisure travel is a mammoth loss to the industry. A figure of 89.7 percent was given for foreign visitor spending, indicating that a boost in domestic tourism could set profits back on track. Eco-tourism linked with adventure is evidently leading the way to boost Jordan’s tourism, while a strategy to promote medical and wellness based visits appear a suitable fit in the responsible tourism mix. Eco-tourism may be increased by strengthening promotions for eco tours; while sustainability in the market will require continually increasing awareness from visitors, tourism players, suppliers, manufacturers etc. In order to capitalise on Jordan’s tourism markets, of course regional conditions are required to improve. It is the profound contrast of the wealthy and powerful with the poor and dispossessed that created the surge for recent protests in Jordan, pushing for more equal distribution of wealth. This is something that needs to be recognised and addressed in order for the country to move forward. Jordan’s tourism industry is clearly focusing on heritage and the environment, while addressing pressing local and global concerns, and the hope for many Jordanians is that they will also benefit from eﬀorts. n JUNE 2011

- Syria

Striving for an Identifiable Agenda Syria’s hodgepodge of cultures, religions, sects and traditions, as well as its colourful and anguished history with countless remaining historical sites, have attracted worldwide visitors. Nevertheless, an identity struggle has persisted and a current plight for democracy has shifted the country into disarray. Today’s Syria is a fascinating place, albeit unstable, with potential to revive its languished image through developing its faltering travel and tourism industry. Travel Trade Monthly investigates the outlook for Syria’s tourism market. Marianna Keen writes

hile protesters on the streets are appealing for democracy, better living conditions and better leadership, the economy has all but ground to a halt in Syria. Despite President Bashar Al Assad’s previous apparent interest in reform, media shows him to have resorted to a devastating option for both civilians’ and industries’ wellbeing. The International Monetary Fund (IMF) in April downgraded Syria's 2011 growth forecast to three percent from 5.5 percent, with detrimental eﬀects of the chaos having spread to all sectors, including tourism. In December 2010, Syrian prime minister, Mohammad Naji Otri and Lebanese minister of tourism, Fadi Abboud, reviewed means of enhancing the Syrian-Lebanese cooperation to serve the best interests of the two countries; however given the escalation of Syria’s struggle, tourism has taken a spot on the backburner. It is not just current instability that has raised concern surrounding the industry. According to the Global Competitiveness Report 2010-2011, from the World Economic Forum (WEF), released on September 9, 2010, Syria's tourism industry became less competitive last year. Among the 16 Middle East and North Africa (MENA) countries surveyed, Syria was ranked 13th most competitive, with only Iran, Algeria and Libya positioned lower. However, Syria's tourism industry ranked relatively well in terms of price competitiveness, coming 51st in the global ranking out of 139 countries. According to the WEF report, the shift towards a green economy has accelerated significantly. The international community has increasingly recognised the need to deal responsibly with climate change in cohesion with other global challenges such as extreme poverty and economic volatility, while preparing for the future. Syria may well have located the right path in preserving its unique ecosystems and reaching sustainable solutions, but capitalising on this will need to wait until it has reached goals in other areas of prosperity in the country. In light of recent changes in government, Lamia 10

Krak des Chevaliers Krak des Chevaliers

Assi is the new minister of tourism for Syria. It has been suggested that she should encourage investment by taking some tips from Turkey, namely by oﬀering investors free land and subsidised financing for a large portion of the total cost of a project. Stronger leadership, further investment and the address of protesters’ requests will need to be achieved for tourism to resume; and the travel industry may well be the market to provide jobs and better living conditions if not democracy. Archaeological sites, cultural tourism, ecotourism and religious tourism are all likely to resume their attraction to European visitors after some kind of stability and security is achieved.

The media is still playing a big role in spreading fake information about the real situation that we are passing through Hotels and Tours The hotel and tour industries in Syria have been shocked by the significant reduction in tourism since protests broke out and news of violence was disseminated across international media. Some industry players are benefiting from a diverse product oﬀering, while others across the board are looking to exploit whatever markets they can. Abeer Yousef, quality and customer care manager, Julia Dumna Group, highlighted the scope of Syria’s attraction across cultures. “Syria, has many cultures and that is why it is suitable to most nationalities.” Inbound packages have been aﬀected, which Yousef attributed partly to disinformation in the media

Syria in Brief Capital: Damascus Currency: Syrian Pound (SYP) Language: Arabic about the political and civil situation. “The media is still playing a big role in spreading fake information about the real situation that we are passing through.” He expressed that international media is misleading with regard to government eﬀorts, and is cultivating negative perceptions. “Our government is working really hard to get out of this bad situation safely,” he added. Sharif Al Ferm, managing director, Dawn Group, agreed that media is exaggerating the situation. “I think they [international media] are playing an unethical and unprofessional game.” Some encouraging figures may well remain in government but the problem remains that there is no obvious coherence or aﬀective leadership, and the agenda of elites that influences the outcome is not profiting civilians. With media so often influenced by elites, people around the world are left unsure of the facts. Whatever the truth, the country’s economy, its tourism and its people’s livelihoods are at stake. Zein Sarmini, operations manager, Levant Sans Frontières, highlighted the extent of the impact currently being experienced by the tourism industry in Syria. “Travel trade has been hit very badly in Syria to zero demand. Not a single package can withstand the threats to the industry.” In spite of the scale of the situation, Naram Omran, director of public relations, Four Seasons Hotel Damascus, remarked on the positive attitude taken towards recovery of the industry. JUNE 2011

- Syria “We saw a general decline in occupancy compared to 2010 but we continue to be optimistic about the recovery of our business later in 2011.” He added that both leisure and business markets have been equally affected and visits from its main markets in the Middle East have been reduced by recently imposed travel advisories. The cancellation of trips to Syria increased after some countries issued travel advisories warning their citizens against going to Syria while unrest prevails. This has affected the entire region and is unlikely to resume to normality until stability is evident. “The hotels in Syria were very cooperative [regarding group cancellations],and no one asked for a no show penalty due to force major,” added Sarmini. In light of the stagnant market, Dawn Creative Tours is attempting to develop domestic tourism. “This development is a trial from our side to do something to overcome the shortage of demand from other markets abroad,” expressed Al Ferm. He added that so far, the market to best withstand the threat on the industry is corporate travel. The focus across the hotel and tour industries is on improving conditions for when stability resumes, including looking to the future of tourism. “We are using most of our time for training, upgrading the software and looking for new packages to be ready for the future, like eco tourism packages,” added Al Ferm. British ethical tourism group, ResponsibleTravel.com, sells tours and accommodation in a range of Middle Eastern countries including Yemen, Palestine, Oman, Iran and Syria. An Egypt-based holiday tops their 10 year charts, with Turkey coming second, signifying positive business for Syria in eco-tourism. Developments In order for the tourism industry to prevail, the security and contentment of employees working in the field are paramount, particularly to levels of hospitality achieved. Omran expressed that the Four Seasons Hotel Damascus has invested in the wellbeing of its employees. “We have enhanced the hotel’s employee experience through the full renovation of the staff restaurant and the opening of an employee lounge.” Julia Dumna Group is set to launch Julia Dumna Hospitality Academy as well as the soft opening of its new hotel in Aleppo: both promising developments for the industry and the economy. InterContinental Hotels Group plans to open Holiday Inn, Damascus in Syria this year, while the four-star Four Points by Sheraton Tartous is scheduled to open on July 1. It will be located in the city centre of Tartous, Syria's second largest port city. 12

Palmyra

Air travel Commercial flights in and out of Syria are available throughout the world despite travel warnings, although frequency of flights has been aﬀected due to lacking demand. Michael Braun, spokesman, Austrian Airlines, emphasised the stability of operations in Syria. “The situation in North Africa is diﬀerent to the one in Syria. We have safe flight operations in Syria.” Austrian Airlines’ service of five flights per week to Damascus is promising towards the revival of tourism from Europe. “Tourists’ safety is a key element for a prospering travel industry everywhere in the world. In the long run, we believe in this market since Syria is such a beautiful and interesting country,” added Braun. Although potential tourists are discouraged by news of violence in Syria, as well as by visa restrictions for travel into Syria (especially for those coming from outside the Arab world), available flights are awaiting the return of more passengers. The future for Syria’s tourism in the coming months and coming years is unpredictable. Businesses across the board are preparing as best they can for conditions to improve, while they apprehensively await the moves of the Ministry of Tourism and the outcome of clashes between civilians and the Assad regime. The situation is likely to take some time to settle even when a degree of agreement and democracy is achieved. Given room to manoeuvre, tourism cooperations between Syria and Lebanon may resume. Previous plans on the table included improving the quality of tourist products and developing tourism services to enhance the role of tourism in the country’s development process. Good relations and cooperation with Turkey may also lead to positive developments in the tourism industry. According to the Travel and Tourism Economic Impact Report, Syria, 2011, released by the World Travel and Tourism Council (WTTC) on February 14, the total contribution of travel and tourism to Syria’s GDP is forecast to rise from SYP412.7 billion (USD8.7 billion or 14.2 percent

Umayyad Mosque, Damascus

of GDP) this year to SYP607.5 billion (USD12.8 billion or 13.4 percent) by 2021. Tourism has evidently contributed a lot to Syria in the recent past. The report was released prior to uprisings in Syria, so the tourism outcome is unknown, however the report indicates it has potential. The WTTC report indicates that travel and tourism is expected to support directly 320,000 jobs (4.8 percent of total employment) this year, rising by 2.7 percent per annum to 417,000 jobs (4.4 percent) by 2021. Travel and tourism investment is estimated at SYP39.9 billion (USD841.7 million) or 7.6 percent of total investment for this year. In order to improve the Syrian economy and its tourism industry more quickly, the hope is that these will increase further. The Federation of Arab News Agencies reported on May 5, that at a meeting with the board of directors of Damascus Chamber of Tourism, Assi called upon the tourist activities to increase their role in improving the Syrian tourist product and in conveying the true civilised image of Syria to the world, in addition to attracting investments, upgrading quality and paying more attention to internal tourism. She highlighted the importance of the tourist sector in the national economy as it improves living conditions and provides job opportunities. Delegates at the meeting agreed on the importance of the communication and participation in decision making, calling for reconsideration of prices and taxes in light of a study to be prepared by the Ministry of Tourism. Preparations appear underway for Syria’s tourism to resume progress whenever possible. Damascus is a significant cultural and political centre in the Arab world, while the country also oﬀers an abundance of beautiful countryside and heritage, which will always oﬀer interest to travellers from across the globe. Tourism players are investing in employees, quality assurance and sustainable development, which is likely to make the country even more attractive to travellers. Syria may also be able to capitalise further on the increasingly budget aware traveller market. n JUNE 2011

- Sri Lanka

The Hidden Gem of the Indian Ocean Due to the harsh impact of the civil war, Sri Lanka has been long outshined by its neighbours. In the post-war period the prospects for tourism has altered and the island is now rapidly becoming a bustling tourist hotspot with arrivals increasing dramatically. The government has declared this year as the year of tourism and aims to turn Sri Lanka from a hidden gem to the true pearl of the Indian Ocean.

Rita Kasziba writes

he end of the conflict in May 2009 came along with relief as well as further challenges for the tourism industry. Despite the crucial economic times the country was forced to keep relatively discounted prices to defy the favoured neighbouring countries. This strategy has paid rich dividends. The industry has fast rebounded and tourist arrivals increased with 2010 reaching an all time record of 654, 476 arrivals, along with a record breaking 46 percent year-on-year growth. The top generating region was Western Europe with 256,861 arrivals; while from the Middle East 37,540 tourists explored the country, with more than 9,000 arrivals originating from the UAE and Saudi Arabia. The intensive influx continues well into this year with 215,124 arrivals registered in the first three months, representing a year-on-year increase of 34.1 percent and forecasted record-breaking figures by the end of the year. In 2010, average spends per tourist night increased from USD82 to an impressing USD87, and it is projected to grow to USD97 this year, due to gentle price corrections. The government declared this year as the year of tourism. Malraj Kiriella, acting managing director, Sri Lanka Tourism, elaborated on the comprehensive promotion campaigns, which included the organisation’s participation at the Arabian Travel Market (ATM) in Dubai. “Visit Sri Lanka 2011 marketing campaign comes to life at a stage in which Sri Lanka is experiencing the changing winds of new found freedom and gradually marching towards securing its due place in the world tourism map. By launching this campaign we hope to promote a range of vibrant experiences to the tourists who visit our country and make their stay an everlasting memory filled with much colour to cherish for a lifetime. We hope Visit Sri Lanka year 2011 will bring Sri Lanka tourism its greatest heights this year.” Airlines SriLankan Airlines, the national carrier, provides convenient connections to several destinations in the Middle East, including Abu Dhabi, 14

Amman, Bahrain, Damman, Dubai, Jeddah, Kuwait, Muscat and Riyadh. In addition, a number of airlines operate flights from the Middle East to Colombo, namely Emirates, Etihad Airways, Qatar Airways, Gulf Air, Kuwaiti Airways and Royal Jordanian. Colombo’s profile is undoubtedly on a rise, emphasised Basel Kilani, media director, Royal Jordanian. “Passengers travelling between Amman and Colombo fly on the route for multiple reasons: business as well as leisure. We predict strong growth this year due to an increase in capacity. The fourth frequency to Colombo starts this summer due to the growing demand on the route.” Gulf Air has re-commenced services between Bahrain and Colombo in October 2010. The success of the route has exceeded expectations. Karim Maklouf, chief commercial oﬃcer, Gulf Air, commented on the service. “Since then we are witnessing 80 percent seat load factors. There are hundreds of passengers from Bahrain, as well as from the GCC countries, visiting Sri Lanka on leisure holidays or visiting friends and relatives. In addition, Gulf Air provides excellent connectivity via its Bahrain hub to the vast Sri Lankan diaspora living and working in Europe and North America. Because of our strategic location at the doorstep of Saudi Arabia, our Colombo service has been well embraced by the Sri Lankan business community as they can reach out not only to the business of Bahrain but also to the multi-million dollar business market of Saudi Arabia.” The recent frequency and capacity increase underscore Sri Lanka’s revival. “Eﬀective May 17, flights between Colombo and Bahrain increased from seven to eight per week with a 14 percent added seat capacity to meet the increasing demand during this summer season,” concluded Maklouf. Hotels The lower prices at the beginning of the post-war period have since then gradually been altered, heralding a new era of the Sri Lankan hospitality industry which has fast gained upon the region in terms of pricing. Colombo’s five-star hotel

Sri Lanka in Brief Capital: Colombo Curreny: Sri Lankan Rupee (LKR) Language: Sinhala, Tamil Colombo

rates climbed higher than in Bangkok, due to momentous increase of about 40-60 percent in 20 months. However, industry specialists warn about further price rises without notable improvement in both services and quality. In summer 2010, around 1,000 hotel rooms were refurbished, and massive renovations are planned for this year as well, along with new hotel brands’ forays into the island, including Shangri-La Asia which is poised to launch two new properties. The 500-room luxury hotel in Colombo plans to welcome its first guests in 2014, while a 300-key city resort in Hambantota is scheduled to open in 2013. Greg Dogan, president and CEO, Shangri-La International Hotel Management, commented on the new properties. “Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage, and above all it is well recognised for its warm and hospitable population. The local government is fully committed to rebuilding the economy following the end of three decades of conflict and we believe that Shangri-La will be able to assist in positioning the country as a prime global tourist destination.” In addition, both Marriott and Hyatt are said to be eager to develop a hotel each in Hambantota. Daniel Ford, executive director of communications, Asic Pacific region, Marriott, confirmed that the company is deliberating investment. “We are interested in Sri Lanka and currently considering a number of opportunities for several of our brands.” n JUNE 2011

Michael Scully

Ashraf Helmy

Managing Director Hospitality, Seven Tides

General Manager, Iberotel Emirates Grand Hotel

“Guests in the future will be more inclined to favour an authentic cultural experience, entertainment, ambience as well as creative food and beverage initiatives. These aspects need to come through a flexible design to create an overall experience that would be memorable by being diﬀerent. Gulf hotels presently focus too much on capturing western demand while reacting slowly to the growth potential in the booming economies in Asia and the Far East. Innovative design will be essential if hotels here are to create new opportunities to exploit more niche markets and by doing so, broadening their overall appeal.”

“We would like to introduce our hotel as the newly opened business hotel along Sheikh Zayed Road that will stand as an icon of warm Middle East hospitality. We have well appointed rooms with well equipped kitchens, spacious bedrooms, large lounge and a dining area that can accommodate up to six people. Business men and women who are travelling with their families will be staying comfortably at our hotel.”

Innovative design will be essential if hotels here are to create new opportunities to exploit more niche markets

We would like to introduce our hotel as the newly opened business hotel along Sheikh Zayed Road that will stand as an icon of warm Middle East hospitality

Ashraf Helmy

Michael Scully

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

JUNE 2011

Medical Tourism Looks Healthy The outlook for medical tourism has never looked so healthy and, with a fine collection of state-of-the-art hospitals and highly skilled medical staﬀ, the Middle East is one of the more popular destinations when patients opt to travel abroad for their healthcare needs.

survey commissioned by organisers of the Arab Health Exhibition & Congress, suggests the UAE is among the top 20 medical tourism destinations in the world. Of the 35 countries identified in the survey as being significant healthcare tourism providers, India was ranked as the number one destination, with Thailand and Singapore positioned at second and third places respectively, while the UAE came in at number 11. Some of the reasons given by survey respondents for why patients travel abroad for medical treatment are accessibility, better quality and availability. Perhaps the main reason, however, is aﬀordability. A heart bypass in the US, for example, could cost between USD70,000 and USD133,000 but the

JUNE 2011

same operation could be priced at USD7,000 in India or USD22,000 in Thailand. Likewise, a hip replacement in India, Malaysia, Singapore, South Korea or Thailand can cost as little as a fifth of what it would in the US. Many medical tourists are also going abroad for plastic surgery treatment. A face-lift, priced up to USD16,000 in the US, can cost as little as USD2,400. Dental care is also proving to be a popular sector of medical tourism, particularly in Costa Rica, Hungary, Mexico and Thailand, which are quickly gaining a reputation for high-quality dental work at low costs. The medical tourism sector is currently worth more than USD60million and is expected to be worth about USD100million by 2012, proving that it is an aspect of tourism worth taking seriously.

Prem Jagyasi, an experienced consultant in the healthcare travel sector, conducted the recent survey. He believes medical tourism is set for steady growth. “Medical tourism can oﬀer huge benefits in terms of quality of service and its aﬀordability. The industry is set to grow enormously over the next two decades as more and more destinations open up to patients from overseas.” n

- UK

UK’s Fun and Games Attracts Visitors The United Kingdom (UK) hopes to reap major financial rewards from hosting the Olympic Games in 2012 but experts have warned that its tourism and hospitality sectors stand to lose out on the full benefits unless they can become more competitive. Travel Trade Monthly looks at what can be done to leave an Olympic legacy for the industry. Duncan MacRae writes

ritain’s Royal Wedding drew the attention of the world’s media in April, as well as that of plenty of tourists who were keen to witness history in the making first-hand. The ceremony was just one of a handful of major events that the government and tourism agency, VisitBritain, hope will get Britain’s tourism trade back on track after the global recession caused it to falter. The Queen’s Diamond Jubilee this month, followed by the Olympics and Paralymics to be held in London in 2012, provide further opportunities to boost the tourism industry. By the end of this year, Britain will have attracted 300,000 more visitors than it did in 2010, according to statistics from VisitBritain. The number of inbound travellers is expected to be 30 million, and the amount they spend during

their holidays is set to increase to GBP17.2 billion (USD27.7 billion), up GBP0.34 billion (USD0.5 billion). These figures will likely be even higher in 2012. VisitBritain has been leveraging the major events with the roll out of a multi-million pound global marketing campaign that could revitalise the image of Britain in the core markets of America and near Europe and build awareness of all Britain has to oﬀer in developing tourism markets such as India and China. Concerns have been raised, however, that the events could come and go without Britain’s tourism industry taking full advantage of them. Ufi Ibrahim, chief executive, British Hospitality Association (BHA), expressed concern about the UK’s high level of VAT, compared with the low rates charged on accommodation by other leading European countries.

In competitive terms, UK tourism is operating with one hand tied behind its back, and this will become ever more damaging if we don’t do something about it 18

UK in Brief Capital: London Currency: British Pound (GBP) Language: English “This puts the UK at a severe competitive disadvantage, which is damaging UK tourism even harder since the rise in VAT to 20 percent – the third highest in the EU. In competitive terms, UK tourism is operating with one hand tied behind its back, and this will become ever more damaging if we don’t do something about it.” Marketing Budget hotel chain, Travelodge, also raised concerns over tourism marketing towards the end of 2010. The company is investing GBP140 million (USD225.1 million) in an eﬀort to make it London’s largest hotelier in time for the 2012 Olympics, although Grant Hearn, CEO, Travelodge, feels more could be done to promote the games. “I am a firm believer in the great opportunity provided by this magnificent event but there is no real plan to make the most of the commercial benefits that the games can oﬀer tourism.” Nevertheless, VisitBritan believes that plenty is being done to attract visitors. Carol Maddison, manager, VisitBritain UAE, notes that the organisation has launched an online media centre in both English and Arabic to facilitate the media with regular updates on events and what is happening in Britain. “The Royal Wedding provided a fantastic warm up to the 2012 Games, providing an ideal springboard for our ‘Britain You’re Invited’ marketing programme and giving us a taste of what the summer of 2012 holds in store. One of our biggest challenges in destination marketing terms is to use the Games to successfully showcase the country to new audiences in emerging markets.” The British tourism industry has also responded extremely positively to the Government’s challenge last summer to create a marketing fund of more than GBP100 million (USD160.8 million) to boost tourism around the forthcoming big events, according to Maddison. JUNE 2011

- UK The four-year marketing campaign aims to eventually deliver one million extra overseas visitors per year, GBP2 billion (USD3.2 billion) more visitor spending in the UK and 50,000 new jobs. Companies including British Airways, DFDS (ferries), lastminute.com, P&O and Radisson Edwardian have pledged cash and payment in kind to help match the GBP50 million (USD80.4 million) of public money already committed by VisitBritain. British Airways experienced a sharp growth in custom around the date of the Royal Wedding, especially from New York, Boston, Washington, Los Angeles, Miama and San Fransisco. Closer to home, there were increased passenger numbers from Edinburgh, Glasgow, Paris, Nice, Munich and Berlin. The airline expects a similar boost in business around the dates of the Olympics too. In March, low-cost carrier easyJet became one of the latest companies to sign up to VisitBritain’s marketing campaign to boost UK tourism. Carolyn McCall, chief executive, easyJet, is excited about the potential boost to the industry that the Olympic Games could have. “Over 300 million Europeans live within a one hour drive of an easyJet airport and this partnership will help easyJet bring even more visitors to the UK.”

“That will remain one of our main feeder markets and we see a lot of new potential in the African countries where, at the moment, we feel we are only touching the tip of the iceberg.” Despite concerns the BHA has raised in the past, it feels Britain’s tourism industry is in a position where it can take full advantage of any increase in visitor numbers. Miles Quest, publicity oﬃcer, BHA, points out that the hotel industry has constructed more than 1,500 new-build hotels, with more than 100,000 rooms over the past eight years.

“This investment has been well over 25 billion. No industry could have done more to face up to the new demands being made on it. And the restaurant sector, with more than 130 Michelin starred restaurants has transformed itself.” How successful the Olympic Games and Paralympics will really be for Britain’s tourism industry is down to the industry itself, according to Maddison. “Britain is on show, so we must make sure that we provide a quality product with a quality service.” n

Positive impact Luca Virgilio, general manager, Baglioni Hotel London, feels that Britain and London are being promoted in the right ways. “We feel very positive on the business outlook these events will bring to London as a destination. The impact of them is definitely very positive as they are putting London as a destination on the map in diﬀerent ways – heritage, fashion and beauty through the Royal Wedding and, of course, sporting events through the Olympics. I definitely feel that the impact will be stronger in the long-term because many people have actually deserted, and will desert, the destination during these heavy periods in order to avoid overcrowding.” In particular, Virgilio expects the events to entice more visitors from the Middle East and North Africa, with visitors from these areas already accounting for 20 percent of the hotel’s guests. JUNE 2011

- LA

City of Angles As the world’s business, trade, technology, science and entertainment centre, Los Angeles (LA) proves to be the city with various angles where, despite the abundant diversity, both dreamers and investors arrive with optimism. Rita Kasziba writes

ith 25.7 million visitors in 2010, LA remains one of the world’s most sought-after destinations and retains its position as the second internationally most visited city in the US, where nearly one in five tourists come from abroad, indicate LA Convention and Visitors Bereau (LA Inc) figures. Tourism-related industries established themselves as prime employers with about 437,000 Angelenos working in the sector. Another striking figure is the visitor spending that totalled USD13.1 billion, 10.4 percent higher than in 2009, which can be attributed to the steadily mending financial environment. Michael McDowell, senior director, cultural tourism, LA Inc., the metropolitan’s oﬃcial tourism organisation, commented on the figures. “We believe that the economy is slowly rebounding and that there is a pent-up demand for travel – particularly leisure travel. As the most popular destination in the western US, LA is benefiting from both. We will continue working with LA World Airports, to maintain and expand LA’s role as the premier gateway to North America. Besides our top overseas visitor markets, including Australia, UK, Japan, France, Germany, South Korea, China and Taiwan, we believe that we can significantly grow our market in the Middle East, which represents an important region for us. Therefore, we will continue working with Emirates to promote its service between LA and Dubai through traditional and new media as well as various promotions.” Mark Liberman, president, LA Inc., predicts a two percent increase with an estimated 26.3 million overnight visitors for this year. "We're forecasting that LA will welcome more visitors in 2011 than it has in more than a

decade," stressed Liberman, who also claims that tourism will remain the region’s largest industry, generating an estimated USD14 billion and providing around 450,000 jobs. Airlines In 2010, more than 59 million passengers passed through the terminals of the metropolitan’s primary airport, LA International World Airport (LAX), nearly three million more than in 2009. McDowell, LA Inc, elaborated on the solid growth. “From 2009-2011, air carriers Delta, Iberia, Singapore, Turkish, American, United, Air China, Alitalia, Cope, Air Nippon, V Australia and, of course, Emirates have added a combined total of 16 new daily or weekly nonstop flights to LA. This expanded service makes travelling to LA even easier than before.” This also applies to the Middle East, as several Gulf and US carriers singed code share agreements, including American Airlines which code-shares with Etihad oﬀering services to Abu Dhabi and with Royal Jordanian on flights to Amman. The services from Los Angeles to Abu Dhabi and Amman connect through JFK, where passengers code-share on Etihad and Royal Jordanian flights. Virgin America, the US owned, controlled and operated airline, is another carrier serving Middle Eastern passengers. The airline has interlined agreements with Emirates and Qatar Airways. Emirates serves LAX, and connects SFO and SEA to DXB flights. Hotels As LA tends to recreate itself repeatedly, so does the metropolis’ hospitality sector with openings and re-openings framing the year. Marriott will soon enhance its LA portfolio with a 22-storey hotel tower that will house two brands: Courtyard and Residence Inn.

Los Angeles in Brief State: California Currency: United States Dollar (USD) Language: English, Spanish The construction of the project, that will encompass 377 rooms, is scheduled to commence in March 2012, while the grand opening is slated for March 2014. Antonio Villaraigosa, LA mayor, hailed the new developments. “This project will create countless local construction and permanent jobs and will expand Los Angeles’ infrastructure to support large-scale conventions that generate significant revenue for the city.” The latest Hilton property in the city, Doubletree by Hilton, LA Westside, opened its doors in April, while Ritz-Carlton was unveiled in 2010 and has received staggering responses since. Bridget Finley, director of public relations, RitzCarlton, LA, commented on the property. “The highly anticipated Ritz-Carlton, Los Angeles is the first luxury hotel of its caliber in Downtown LA. We draw a number of guests domestically, from all of California, New York, Dallas and Chicago as well as Western Europe and parts of Asia.” Another anticipated property, Mr. C, the signature hotel brand of Cipriani, will debut on June 1. The 12-storey, 138-room property sets the stage for a new era in timeless, contemporary hospitality. Ignazio Cipriani, fourth generation of the owner family, commented on the hotel. “Mr. C is the essence of how I envision travel and hospitality today. We look forward to bringing a new sensibility to the Los Angeles market and beyond.” Other upcoming hotels include Viceroy Beverly Hills, which is due to debut in 2012 and Wilshere Hotel, due to welcome its first guests in July, aﬃrmed Michael Orwitz, president, OSM Investment Company. “OSM Investment Company and Greystone Hotels is adding to its collection with the launch of the dynamic 74room boutique hotel which will breathe new life into LA’s famed Wilshire Boulevard. The property will appeal to travellers and locals alike filling the void for a place to stay, dine, relax and play in an area where there is much to see and do but little in terms of hotel oﬀerings.” n JUNE 2011

- Religious Travel

Travel Trade’s Prayers Answered Religious travel is a multi-billion dollar business, with the majority of the money in this sector being generated in the Middle East. Travel Trade Monthly examines what the region’s tourism professionals are doing to cater for this fast-growing market. Duncan MacRae writes

aith travel has become big business and has developed over the centuries into a dynamic industry valued at USD18 billion worldwide. It is a resilient market, having come through the global recession relatively unscathed and it looks as though it will keep going from strength to strength, particularly in the Middle East. A recent report from Euromonitor International suggests that the region’s travel and tourism industry is in a strong position and will grow in global importance, benefiting from robust religious tourism demand. Although there is an array of religious sites in the region, this growth will be driven mainly by tourists heading to Macca and Madinah. The Travel and Tourism Global Overview report tips Saudi Arabia’s tourism sector to have one of the largest compound annual growth rates in the world of 12.3 percent for arrivals over 20102015, which will result in an additional 9.3 million visitors to the country. This makes Saudi Arabia the fifth largest country in terms of absolute arrivals growth over the forecast review. Other countries, such as Jordan, Palestine, India, Japan, France, Italy and Portugal are also experiencing strong growth in tourism due to pilgrimages. Many companies are investing heavily in a bid to attract and accommodate religious travellers, and infrastructure developments in air transportation and accommodation will help encourage the development of religious tourism. Al Khozama Management Company (AKMC), a leading luxury commercial property development, investment and management company in Saudi Arabia, has earmarked religious tourism as its key focus. It recently announced the signing of a management agreement for its first five-star hotel in the holy city of Madinah, the Al Faisaliah Hotel Madinah, due to open before the end of the year. The company already operates the award winning five-star AKMC-Al Shohada Hotel in Makkah. Significant religious cities Religious tourism currently accounts for 47.1 percent of all trips to Saudi Arabia. Last year, almost one million Ramadan visas for foreign JUNE 2011

pilgrims were issued by the Ministry of Hajj, an increase of 16 percent from 2010. Masaed Al Said, CEO, AKMC, comments that the company has been at the forefront of the hospitality industry’s development in the country since 1995. “One of the key aspects of AKMC’s business and development strategy is to expand its hospitality portfolio into the significant religious and business cities in the Kingdom.” Etihad Airways is another company that is doing its best to cater for the religious travel market, recently increasing its number of flights to Jeddah from seven flights per week to 12. James Hogan, CEO, Etihad Airways, expects strong growth in demand from religious travellers in the coming years. “Saudi Arabia is a cornerstone market for Etihad and Jeddah has always been an important strategic destination for the airline. Our new flights will further cater for the Saudi Arabian population living in Abu Dhabi and across the UAE, as well as the growing numbers of business and religious travellers looking to fly to the city.” Hotel group Rezidor operates one hotel in Madinah. A total of 90 percent of guests at Al Muna Kareen Radisson Blu Hotel, Al Madinah, are religious travellers and this can reach almost 100 percent during Ramadan and Hajj seasons. The company plans to open three more hotels in Saudi Arabia’s holy cities within the next couple of years and Mohamed Benamar, district director Saudi Arabia, Rezidor Hotel Group, believes the religious tourism market has a great deal of potential. “According to the Saudi Supreme Commission for Tourism and Antiquities, it is estimated that religious tourist arrivals to the country grew by five percent year-on-year to 12.9 million in 2010, after remaining constant in 2009 at just over 12 million.” Growth and profit In Jordan, religious tourism is considered to be equally as vital. Sa’ed Zawaideh, marketing manager, Jordan Tourism Board ( JTB), has noticed an enormous increase in religious travellers to Jordan, especially from the US, Canada, Latin America, Italy, Spain and Eastern European countries.

Mecca

“Religious tourism is considered to be part of the Jordanian niche products and one of our most unique segments. Therefore, we oﬀer all necessary facilities and services either at the sites or the area beside.” JTB began increasing its eﬀorts to attract religious tourists in 2000, after Pope John Paul II visited the country and after declaration of Bethany Beyond the Jordan, the baptism site of Jesus, as the beginning of Christian pilgrimage. “I believe the sector is going to develop more in the coming years,” Zawaideh adds. “The main reason is that it’s becoming more well known, especially after the Vatican assigned five pilgrimage sites in Jordan as a part of the Christian pilgrimage.”

Every year millions of Muslims come to Mecca for the Hajj, the largest annual pilgrimage in the world Despite the hugely positive outlook for religious tourism, Rezidor’s Benamar believes the sector must be marketed better if it is to reach its full potential. “We have to visit the main feeder markets for the religious travellers such as Turkey, Egypt, Morocco, Malaysia, Indonesia and South Africa, to showcase what is on oﬀer. Lately, the European market such as France, UK, Germany and Holland, became a very interesting market for our properties.” Zawaideh concurs, adding that improvements can also be made on facilities and services. “We will continue to host media, church leaders and specialised tour operators. We can still do more in order to succeed, as marketing never ends. All eﬀorts need to be combined and gathered to reach the targeted tourists.” n 21

Karim Maklouf

Karim Maklouf has been appointed as chief commercial officer at Gulf Air. Maklouf joined the carrier in October 2010 as director of commercial planning, and has led a business-critical department since then. He has 14 years experience in commercial and strategic planning along with operational understanding. Maklouf started his career with Lufthansa, where he gained experience in pricing, network planning and project management before taking on the position of senior vice president of German Wings, a subsidiary of Lufthansa. He, thereafter, held the chief commercial officer position at SkyEurope airlines and worked as chief commercial officer and deputy CEO of Malev Hungarian Airlines.

Elaine Watson Elaine Watson has been appointed by Southern Sun Middle East as complex general manager of Al Manzil and Qamardeen Hotels. Watson, who has long been recognised within Dubai’s hospitality community, began her career as financial controller in the UK. Prior to joining Southern Sun, she worked for Marriott for most of her 20 years spent in the industry. She held positions of director of rooms and director of operations with the lodging company’s franchised properties before taking on the role of pre-opening general manager at Marriott International, in charge of its first Executive Apartments property in Dubai Creek. Following the successful launch of the hotel, Watson, who was the first female general manager in the Middle East, was awarded with the company’s International Global Diversity Award. She also led the teams of Marriott’s Dubai Green community property (operating under its Countyard brand) as well as of its Executive Apartments Green Community development. Elaine Watson

JUNE 2011

Q&A with Simon Coombs Shaza Hotels prides itself as a contemporary lifestyle brand oﬀering authentic Middle Eastern hospitality experience with the highest of standards. The company aims to enhance its portfolio of properties to 26 in the next five years. Simon Coombs, president and CEO, talks about the brand’s vision, positioning and further developments. Travel Trade Monthly: With careful of the East include alcohol-free hotels? evaluation required for each potential Shaza Simon Coombs: Shaza Hotels will not serve property, and rigid selection criteria applied, alcohol but our focus is really on what we do have do you believe Shaza will reach its target of rather than what we do not have. Not serving alcohol is not and never will be a legitimate 26 hotels by 2016? Simon Coombs: It is true that we are very positioning statement and there are far more selective over which projects we should take, and the protection of our brand is of critical importance to Shaza. Having said this, it is interesting that because Shaza occupies a market niche and provides an attractive solution for owners looking for an international luxury operator, who at the same time understand the traditions and culture of the East, we are finding many like-minded owners and developers who strongly identify with our brand. This has actually meant that when we receive an opportunity, the process then benefits from the strong alignment between owner and Shaza in terms of our shared vision.

Travel Trade Monthly: With the Shaza Al Madina now open, which hotel will be next to join the family? Simon Coombs: The next hotel to open will

compelling aspects to our brand upon which to focus, such as our unique food and beverage oﬀerings and highly intuitive and personalised service standards.

Travel Trade Monthly: When do you forecast that the Shaza brand will extend to the broader Indian subcontinent including the Ottoman areas? Simon Coombs: We are currently pursuing several opportunities in Turkey. A little known fact of interest here is that Sarajevo was once the second most important city in the Ottoman Empire, after Istanbul, and we will have two properties there. India is extremely interesting to Shaza and we have already had a team in India pursuing opportunities. We believe that Shaza is a perfect fit for selected cities within India.

be our very exciting property in Marrakech, followed by Fez which will be particularly interesting because it is the first property to open under our exclusive ‘Shaza Collection’ flag. We also expect our hotels in Karbala and Sarajevo to open in 2013.

Travel Trade Monthly: The Shaza Hotel website suggests additional European locations may include London and Geneva, due to their dense population of feeder markets from the Shaza belt. When are Travel Trade Monthly: In addition to these these developments expected to take place? cities, what other areas of the Middle East Simon Coombs: Specifically referring to and North Africa will feature a Shaza London and Geneva, it is hard to say when we will be able to find the right partner and the right branded hotel in the coming years? Simon Coombs: We have an extensive list of project for Shaza. Our initial thinking was to projects, both under negotiation and already committed. In addition to a second property in Sarajevo, we are developing interesting opportunities across Iran, Dakar, Doha, Riyadh, Jeddah and Mecca, as well as city and resort opportunities in Oman, Istanbul and other key destinations in Turkey. There will also be development in Abu Dhabi, Al Khobar, Sharjah, Kuala Lumpur, Durban, Cape Town, and we even have an opportunity to develop an exclusive resort in the Caribbean.

enter via direct investments but even this approach requires us to identify the most outstanding opportunities. It is possible that one of our existing partners would like to bring Shaza into these markets and, of course, we would welcome the opportunity.

Travel Trade Monthly: Shaza Hotels was established as the joint venture of Kempinski and Capital Guidance. What unique features of Eastern style, culture and service have been carried over from Kempinski’s Travel Trade Monthly: Will the Shaza long standing experience in the hotel market? brand’s adherence to the authentic experience Simon Coombs: Our relationship with JUNE 2011

Simon Coombs

Kempinski lies at the centre of everything – our ability to deliver operating expertise, our distribution, know-how, training expertise, systems and procedures and, indeed, this underpins the credibility of our brand. Whilst Kempinski clearly brings distinctive European flair, even to its Middle Eastern properties, Shaza has evolved from the East, culturally and philosophically. Whilst still leveraging Kempinski’s long standing experience in the region, it is still of fundamental importance that Shaza Hotels continues to develop its own identity, touch and character in terms of both products and service style and culture.

Travel Trade Monthly: What unique features do Shaza affiliated hotels, such as Hotel Bristol Sarajevo, offer to guests? Simon Coombs: Even affiliated hotels must reflect the Shaza standards and philosophy. Employees of an affiliated hotel still feel part of the family, and it is my responsibility to ensure that they do. It may be that we do not fully implement some of our more distinctive elements in terms of products, but we will embark on the same thought process to ensure that these distinctive elements are developed for specific hotels in a unique and individual manner that is sympathetic to the location of that hotel. The process and our attention to detail will not alter – if we are responsible for the operation of any hotel then we will always ensure that our guests feel the difference. n 23

Business Opportunities to Increase at EIBTM Following the success of EIBTM 2010, business opportunities for this year’s event may increase, with hosted buyer appointments possibly rising by 10 percent. Reed Travel Exhibitions (RTE), the event organiser, is now set to make changes to its prescheduled appointment (PSA) system and has announced that it will increase the number of matched appointments from six to seven per day of attendance for all buyers. The changes were proposed after research from EIBTM, showed that both buyers and suppliers

want RTE to find ways of achieving even more opportunities to do business during the event. Graeme Barnett, event director, EIBTM, underlined the importance of the changes. “The return on investment for buyers and suppliers attending EIBTM is top of our agenda and as their satisfaction is part measured by the business achieved onsite, we want to create more opportunities to satisfy the demand.” Figures show that 65 percent of hosted buyers did, or will do, between USD50,000 and USD1

million of business as a result of their attendance at EIBTM 2010.

The return on investment for buyers and suppliers attending EIBTM is top of our agenda This year’s EIBTM will take place in Barcelona from November 29 - December 1. n

Images from EIBTM 2010

International Travel Expo Hong Kong, June 9-12 , 2011 www.itehk.com Hong Kong’s only Travel Fair also covering markets of China and Asia. Asia Luxury Travel Market Shanghai, China, June 13-16, 2011 (www.altm.com.cn) An event showcasing the world's most sought after destinations and travel experiences to travel buyers from across the Asia Pacific.

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. 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.

CITY FAIR The European Cities Travel Workshop London, UK, June 20, 2011 (www.cityfair.travel) A one day event of pre-scheduled appointments dedicated to the sector of city tourism.

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

AIBTM Baltimore, US, June 21-23, 2011 (www.aibtm.com) A US event for the business travel and meetings industry.

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

JUNE 2011