Travel Trade Monthly October 2011

Middle East and North Africa Edition

October 2011, Issue 24

LONG HAUL: CANADA By promoting exceptional experiences and creating a stronger brand image for the destination, Canada is to penetrate international markets and further leverage the elevated interest in the country.

Kuwait has experienced a lack of tourists, despite developments in infrastructure and new projects.

Displaced tourism is, however, helping to stimulate its discovery as a diverse travel destination.

17 EXCLUSIVE: SPORTS TRAVEL Sport and tourism are integrated components of global culture, which have helped to bring people together and enhance tolerance, while also providing additional social, economic and political effects.

20 In This Issue MARKET UPDATE INVESTIGATION: Air Security VISIT: Kuwait EXPLORE: Oman ONSITE: Philippines TOUR: Sweden LONG HAUL: Canada TRAVEL TALK TRAVEL CHANNELS EXCLUSIVE: Sports Travel WHO’S MOVED RENDEZVOUS NEWS & EVENTS OCTOBER 2011

ISSUE 24

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VISIT: Kuwait

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TRAVEL TRADE WEEKLY Managing Editor Mary Kammitsi mary@traveltradeweekly.travel Journalists Rita Kasziba Marianna Keen Dominique Christou Design & Layout Elina Pericleous Sales & Marketing Maria Demetriadou Brighite Ess Dominique Tennant Directors Andreas Constantinides Mary Kammitsi Headquarters T.T.W. Travel Trade Weekly Ltd. 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

Abu Dhabi Records Best July Abu Dhabi’s hospitality industry has registered record hotel guest figures in July, influenced by traffic from the wider Arab region.

W

ith a steep surge of 39 percent in guest numbers and a 35 percent rise in guest nights, the emirate achieved its best ever hotel performance levels for the month of July. The 189,486 guests at the hotel and hotel apartments, accounted for 507,612 guest nights and pushed occupancy levels up nine percent, to 65 percent.

Overall revenue increased by six percent and totalled AED271 million (USD74.2 million).

Intensive interest from the Arab world, in particular from neighbouring countries, and extensive promotional campaigns drove the growth. Lawrence Franklin, strategy and policy director, Abu Dhabi Tourism Authority (ADTA), commented on the performance.

“The regional upsurge could likely be attributed to GCC travellers opting to spend time in a destination they associate with safety for their families, and with more of them choosing to holiday in July, ahead of the holy month of Ramadan, when they wish to be at home with their families.” The destination also benefitted from tactical product and promotional activities.

“We are also benefitting from increased awareness of Abu Dhabi’s offering resulting from greater product packaging in conjunction with stakeholders. These have all been supported by the destination’s increased competitiveness with average room rates down 15 percent on July 2010 to AED372.55 (USD102).”

Visitors from the GCC, excluding UAE,

Currencies shown in red are fixed against the US Dollar

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

There is no doubt that the GCC is proving to be receptive to Abu Dhabi’s expanding tourism and events proposition In the coming months Abu Dhabi will see the opening of a range of new hotels and resorts as well as a number of highly anticipated events.

“It is action all the way over the coming months which we anticipate will see us achieve this years stretch target of two million hotel guests, a rise of 10.5 percent on 2010, and leave us well placed to begin 2012 on a high,” commented Franklin.

IATA: Airlines Lost Quarter of Value

MENA Exchange Rates Accurate as of 27/9/2011

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)

accounted for 19,828, representing an increase of 98 percent over July 2010. Guest volume from the wider Arab market rose by 44 percent to 22,383, while Europe and Asia grew by 28 percent compared with the corresponding month in 2010. GCC travellers contributed to the surge with 39,087 guest nights, and Arab nationals with 54,190 nights, up by 124 percent and 33 percent respectively.

“There is no doubt that the GCC is proving to be receptive to Abu Dhabi’s expanding tourism and events proposition. ADTA and its stakeholders will look to further grow region at returns via additional marketing initiatives,” added Franklin.

1USD= 3.67 5.97 3.75 1,507.5 0.37 0.71 49.00 0.28 3.64 0.38 1.43 8.29 10,778 214.25 74.60 1.24

Airline share prices have lost one quarter of their value so far this year, while profits declined 60 percent, according to the International Air Transport Association’s (IATA) latest Airlines Financial Monitor.

Amid the fragile economic conditions, financial markets have cut their valuations of airlines by around one-quarter since the beginning of the year. IATA predicts that as the financial environment gloom rises, airlines are likely to face further challenges and be affected more than most sectors.

Second quarter (Q2) financial reports further deepened concerns. Whilst the airline industry generally earns 80 percent of profits in Q2 and Q3, with net profits totalling USD1.8 billion, airlines recorded a steep decline of 60 percent so far, this year. However, despite the widespread deterioration in profits, European airlines improved against the volcanic ash impacted corresponding period in 2010.

Although jet fuel prices are slowly dropping, they are still around 50 percent higher than in 2010, and Japan’s nuclear outages and the absence of Libyan oil could aggravate airlines’ vulnerability.

On a positive note, air travel was signalling an upward at a five to six percent pace in July, contributing to a 5.9 percent year-on-year growth, while air freight volumes continued to stagnate.

Despite demand softening, fleet capacity had been rising ahead of demand and airlines managed to sustain passenger load factors.

OCTOBER 2011

- Air Security

Checkpoint of the Future With intensive new airport constructions and expansions currently underway across the region, improving air security is integral.

Securing the air and preventing any losses, while at the same time sparing the billions of passengers from hassle, surely challenges the aviation industry. Travel Trade Monthly investigates the latest security trends and identifies the fine line between being vigilent and over-cautious.

Rita Kasziba writes

T

he 10th anniversary of September 11, 2001 terrorist attacks on New York, which kicked off the aviation industry’s most challenging decade, has once again thrown new light upon the urging questions of air security. With the International Air Transport Association (IATA) calling for new concepts and pressing for improvements in checkpoints at airports, the industry has been prompted to boost and modernise air security.

Tony Tyler, CEO, IATA, commented on the anniversary and indentified major lessons in security over the last decade.

“On September 11, 2001, anyone associated with aviation knew that the industry would never be the same. What we did not know was how resilient the industry would be in the aftermath of the tragedy or the direction in which it would change.

Governments must coordinate the development and deployment of security measures to ensure harmonised global standards and eliminate overlapping and redundant requirements among nations. Governments are obliged to foot the bill for security threats which are national challenges in the same manner as they would do in any other sector. Airlines and their passengers currently pay a security bill that had ballooned to USD7.4 billion by 2010.”

Securing the air, however, is a matter of cooperation, according to Tyler. “Passengers should and do play an important role in helping keep air travel safe. Vigilance and cooperation with authorities are crucial.”

Despite all endeavours, a certain risk does and will always remain.

“We must accept that there is no such thing as 100 percent risk-free security. Governments must focus on the probable and not all that is possible and avoid policies driven by knee-jerk reactions,” emphasised Tyler.

Securing the Middle East Security, often identified as the Achilles heel of the aviation industry, represents a particularly crucial issue in the MENA region. According to the Middle East Airport Security Market Assessment Report, it is expected that spending in this sector OCTOBER 2011

is to increase from AED127.7 million (USD24.7 million) in 2009 to AED212 million (USD57.7 million) by 2015. The study also indicates that the region currently accounts for 14.4 percent of the global critical infrastructure protection market.

Along with the UAE’s growing importance as an international hub, the aviation sector’s spending has gradually increased. Based on research findings from leading consultants Frost and Sullivan, the Emirates’ airport security spending in 2009 totalled AED31.6 million (USD8.6 million), accounting for as much as 23 percent of the total Middle East expenditure in this sector.

Looking Forward In a move to reduce the existing risks and threats,

IATA has recently unveiled the first mock-up of the ‘Checkpoint of the Future’, which has been designed to enhance security while reducing queues, using intelligence-driven risk-based measures. It is part of IATA’s commitment to secure aviation.

“We will never permit a trade-off between security and passenger convenience. Security is far too important. However, we can leverage technology and operating knowledge to enhance security while improving the passenger experience. That is the focus of our ‘Checkpoint of the Future’ project,” emphasised Flint Perry, head of corporate communications, the Americas, IATA. IATA’s much anticipated ‘Checkpoint of the Future’ project is to herald a new era by enhancing the level of security while reducing queues.

We must accept that there is no such thing as 100 percent risk-free security.

Governments must focus on the probable and not all that is possible and avoid policies driven by knee-jerk reaction 3

- Air Security “The IATA ‘Checkpoint of the Future’ offers a vision for how airport security can be made more effective and convenient for passengers. For this we need a risk-based approach to security. It is important to emphasise that the checkpoint concept is not about racial or ethnic profiling nor does it in any way impinge on privacy rights and privacy laws. It is about using information already provided to government authorities for purposes of customs and immigration.”

The ‘Checkpoint of the Future’ combines two elements: classification of passengers through risk assessment, and advanced screening technology.

Passengers approaching the checkpoint will be directed to one of three lanes, depending on the information scanned from their passport or ticket.

Level of Measures The consistent improvement of air security has been often hampered by concerns. While organisations, airports and airlines have been steadily investing in security developments, passengers often complain about hassle and long queues. Being aware of concerns, IATA, strives to bridge the gap.

“We believe it will take five to seven years to fully realise IATA’s vision of the ‘Checkpoint of the Future’. However, there are things we can do in the next two to three years that will help improve the passenger experience and reduce the hassle factor. For example, the risk-assessment of passengers is ready to be brought into operation.

Several countries are already preparing their own ‘known traveller’ projects for launch. Some of the technology to lessen the hassle factor is available today (or will be shortly), for example shoe scanning machines so that shoes do not need to be removed,” explained IATA’s Perry, who also touched upon the burning question of air security in the Middle East.

“Realistically, there are different levels of threats and we cannot take a one-size-fits-all approach to dealing with them. With new airports and rapid expansion and upgrade of existing airports, the Middle East should lead the industry in equipping airports with modern security equipment and implement industry initiatives.”

Leading the Industry In a move to guide security measures, the Gulf Centre for Aviation Studies (GCAS), the

The Middle East should lead the industry in equipping airports with modern security equipment

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training arm of Abu Dhabi Airports Company (ADAC), earlier this year launched the first ICAO Aviation Security Crisis Management programme to train senior professionals on the implementation of the latest methodologies in security regulations. The project aims to improve and maintain the highest standards in regional airports and seaports, in line with the international laws and regulations stated by the International Civil Aviation Organization (ICAO).

Sultan bin Yaqoob Al Zaabi, executive director, The Higher Committee of the UAE’s Civil Seaport and Airport security, elaborated on the initiative. “Enforcing the highest levels of security on increasingly busy airports and seaports demands constant assessment and evaluation. This is especially true for the UAE as it expands into a major export, re-export and transition hub for goods and people alike.”

Dubai International Airport (DIA) has won awards in recognisation of the quality of services provided, including security checks. Considering that DIA is projected to become the world’s busiest airport, continuously improving security aspects is vital. In an attempt to maintain high standards, Dubai Airports and Dubai Police signed a Memorandum of Understanding (MoU) to further cement the five-decade long partnership between the two entities. Certain methods, however, raise concerns.

“As the terrorist threat has evolved a number of governments have determined that the use of whole body scanners is a necessary part of the screening process, with an alternative being body pat-downs,” added IATA’s Perry.

“However, IATA believes that privacy concerns associated with the use of body image scanners are a significant issue for travellers everywhere and we do not support the use of them for primary screening. In addition to the privacy concerns, they are too slow, and because they cannot always distinguish dangerous objects from innocent ones, a pat-down is frequently needed as well, further delaying the process with additional invasion of privacy. Recent changes to imaging software are somewhat addressing privacy concerns, but IATA believes that the machines are still too slow and unreliable for use as a primary method of screening.” n OCTOBER 2011

- Kuwait

Kuwait’s Tourism Sprouts Following Arab Spring Endorsed as a cosmopolitan and modern travel destination, demonstrating rich heritage and tradition, Kuwait has experienced a lack of tourists, despite developments in infrastructure and new projects. Displaced tourism is, however, helping to stimulate its discovery as a diverse travel destination, as Travel Trade Monthly discovers.

Marianna Keen writes

I

n March this year, the Travel and Tourism Competitiveness Report, released by World Economic Forum (WEF) ranked Kuwait an overall 95th of 135 countries worldwide. Despite unrest across the Arab world having discouraged tourism to the region, the country’s ranking as 12th in MENA for its travel and tourism competitiveness, just above Syria, and two places below Egypt, suggested that other issues were at the helm of its lacking industry.

According to Euromonitor International, the inbound travel market in Kuwait is small, with only 554,000 arrivals in 2010, the majority of which were for business travel. Spending only short periods in the country, these visitors have spent little on leisure and entertainment, and

Kuwait’s travel and tourism infrastructure has remained underdeveloped compared to its regional counterparts.

The country ranked 31st in the WEF report with regard to safety and security, suggesting largescale unrest is not forecasted, however, the research suggests that tourism has not kept pace with development in Kuwait, with tourism competitiveness standing over 30 places lower than its human development index ranking, along with countries such as Libya and Iran.

The four year National Development Plan (NDP), introduced in 2010 to revive and boost the country’s economy, as well as to diversify it away from a dependence on oil, was anticipated to reactivate some delayed projects and bring new supply to the travel accommodation market,

Due to recent events which have taken place throughout the Middle East, leisure travellers, especially Kuwaitis and Saudis, spent their holiday this year in Kuwait

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Kuwait in Brief Capital: Kuwait City Language: Arabic Currency: Kuwaiti Dinar (KWD) Kuwait City

in addition to adding more tourist attractions, according to Euromonitor International research.

Recent analysis by MKG Hospitality suggests that tourism has increased in recent months, perhaps in response to the NDP, as well as regional instability. It found that the GCC, except for Bahrain, experienced strong growth just before Ramadan, with Kuwait accommodation recording exceptional RevPAR growth at almost 23 percent – rebounding from a drop in the corresponding period of 2010. This was fuelled by a nine percent rise in occupancy rate and a 4.5 percent increase in average daily rate. The significant rise in occupancy is considered to be a consequence of displaced leisure tourism following continued unrest in some parts of the Arab world. Kuwait’s tourism market, which has long been business focused, is now attracting more diverse attention and flourishing.

Reports from the accommodation market suggest that the majority of this shifted tourism has come from the the domestic market as well as the wider region, while business tourism has also increased.

Hotels Khadija Meftah, public relations and communications executive, Mövenpick Hotel & Resort Al Bida’a Kuwait, noted the change in visitor markets.

OCTOBER 2011

- Kuwait “Kuwait is not a leisure destination; most of our business is coming through government groups, sports groups or other business travellers from different countries in the world. But due to recent events which have taken place throughout the Middle East, leisure travellers, especially Kuwaitis and Saudis, spent their holiday this year in Kuwait, to avoid the risk of going to other places, such as Lebanon and Syria, which led to a steady increase in occupancy throughout the year. There has also been a huge increase in business travel guests this year. After what happened in Bahrain, most of the companies have moved their offices to Kuwait, especially banks and telecommunications.”

A rise in developments is increasing corporate travel to the country further, remarked Meftah, suggesting that, following industry reports earlier this year, signs of improvement are emerging. “Kuwait is going through major developments and big projects are planned for the near future, that is why we see many companies bringing experts from outside Kuwait, and to be able to cater to the market’s needs, we recently launched Al Bida’a residences, which are perfect for people coming

Kuwait city

to Kuwait on short or long-term contracts.”

Another new accommodation option is Magic Ice World, which incorporates an ice exhibition and ice bar and restaurant, offering visitors a unique experience, expressed Odd Roar Olsen, general manager, Lofoten Trading Turizm.

“Customers can experience all the concepts of ice at one place. It will be made out of ice and it will be a totally new experience that the costumer will never forget. The rooms will change every month so that every time there is a new room. It will be the first in the world to combine all this concepts, and is a must see when it opens.”

Welcome to Marina Hotel Kuwait HOTEL SERVICES Airport Meet & Greet Service Complimentary Shuttle to and from Kuwait International Airport Concierge service Car Hire Service Exclusive Ladies Hair Salon Fully Equipped Business Centre Gift Shop Guest Relations Laundry Service Free Internet Wi- Fi throughout the property Audio/Video Conferencing Facility LEISURE FACILITIES 3 outdoor Swimming Pools and Jacuzzi Access to the Marina’s breathtaking beach Fully equipped Gymnasium Squash court with coach Jacuzzi and Sauna Body Massage Therapies & Anti-Stress treatments Separate female and male spa

DINING FACILITIES Atlantis: Embarked on the sea, this stunning restaurant offers delectable array of Mediterranean food, open for lunch and dinner.

Six Palms: Covered atrium lounge, the spacious Six Palms restaurant serves buffet breakfast.

Lobby Lounge: Serves a variety of Tea and Coffee as well as delightful snacks throughout the day.

Waves Pool Bar: Nestled in the heart of the pool, overlooking the coastline, it offers a variety of refreshing cocktails, snacks and a choice of healthy food.

Ballroom, Meeting & Banquet Facilities catering to groups from 6 to 750 persons.

For more information and reservation call: +965 22230030 or email: reservations@marinahotel.com

TEL: +965 22230030 / 25719000 FAX: +965 22244972 Address: P.O Box 707 Salmiya 22000 Kuwait Email: reservations@marinahotel.com Web: www.marinahotel.com

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Kuwait is going through major developments and big projects are planned for the near future

Kuwait was chosen for the development because it is seen as a growing metropolis in the Middle East, according to Olsen. Lofoten Trading, a Norwegian company, is currently seeking a partner or investor from the Middle East to realise the Magic World Project, since it broke its agreement with Turk Kapital, so no starting date or location for the development has yet been settled.

Although new hotel developments are few, accommodation options across the country have undertaken development and renovation to improve their product and remain competitive, with an apparent rise in tourist numbers from the business as well as the leisure segment now set to benefit from this.

With Kuwait’s travel industry long having been reliant on business travellers, Radisson Blu Hotel Kuwait has focused on corporate visitors and MICE, suggested Odile De Groot, revenue manager of the hotel, which is currently undergoing major renovation.

“Kuwait’s main segment is business related with very little generating from leisure. Our hotel features the Al Hashemi II Grand Ballroom, which has been noted by the Guinness Book of World Records as the largest wooden dhow in the world.” The hotel’s guest rooms are closed and due to open in September 2012. Following redevelopment, the hotel will feature 194 rooms, including 50 business class rooms, six junior suites, 23 executive suites, and one presidential suite. There will also be a 360m2 ballroom.

Also in Kuwait city, Swiss-Belhotel Plaza Kuwait is being gradually refurbished in order to better target business clientele, commented Ali Haddad, general manager.

“The owning company has decided to make the product more contemporary. That suits the business travellers because of our geographical location.” Along with renovations, a new executive lounge has been added on the 19th floor and new meeting facilities will be added on the ninth floor, with the entire project expected to be complete by the first quarter of 2012.

OCTOBER 2011

- Kuwait Kuwait City Marina

“2011 has been a prosperous year, having seen a 68 percent increase on its occupancy and 32 percent on revenue compared with 2010,” added Haddad, signifying correspondence with growth indicated by recent MKG Hospitality figures.

Meftah remarked that occupancy at Mövenpick Hotel & Resort Al Bid’a Kuwait has also adhered to this strong growth trend.

“We have noticed a significant increase in business and revenue since January. We have achieved an increase of 70.2 percent in terms of occupancy, compared with 2010, and an increase of 70.6 percent in terms of revenue.”

to privatise in an attempt to withstand the growing competition, with this year set to be a pivotal year.

Rafik Boghdady, vice president sales, Jazeera Airways suggested that political and social instability in the region had a minimal effect on overall demand on routes in the region.

“We successfully navigated our way through the unrest seen in the first half of 2011 by adapting capacity offered to some destinations. Some routes did see a drop in demand, while at the same time other routes picked up as travellers diverted their destinations. For example, while

Regulations Although an increase in inbound tourism is indicated, further international leisure travel may be deterred by current convention in Kuwait.

With regards to the regulatory framework for travel and tourism, the WEF report ranked Kuwait 127th in the world for its policy rules and regulations, which includes openness of bilateral air service agreements, suggesting areas where improvements can be made.

“Most bookings are done through local site offices due to entry visa restrictions for certain nationalities,” commented Radisson Blu’s De Groot.

Concerns have risen since reports were made that some commercial visit visas had been suspended over fears that rising numbers of expats were using them to enter the country, before transferring them to work permits to secure residency. Also critical to improving tourism to Kuwait is its air transportation sector.

In addition to lacking air services agreements, recent months have brought some negative developments in the industry, according to Euromonitor International. This includes the ceased operation of Wataniya Airways, due to its financial troubles.

Meanwhile, Jazeera Airways was driven out of its Dubai hub due to the launch of flydubai, and national carrier Kuwait Airways is being forced

2011 has been a milestone year for Jazeera Airways so far, despite all the unrest events in our region.

Commercially and financially we are performing exceptionally well

OCTOBER 2011

demand to Damascus was dropping due to the unrest, we also saw demand increase to already popular destinations such as Dubai and Amman.

Our 2011 performance so far has been very positive, especially when compared to the first half of 2010. Since then we have implemented several business enhancement measures to turnaround the business. 2011 has been a milestone year for Jazeera Airways so far, despite all the unrest events in our region. Commercially and financially we are performing exceptionally well, registering record quarterly profits in every quarter since third quarter of 2010 and higher load factors than in previous periods as well.”

There is not yet a tourism authority in Kuwait pushing the promotion of Kuwait as a tourism destination; inbound traffic from the wider international market reflects this. Although the rise in some visitor markets is positive, there is no certainty in the industry’s future given the instability across the region. Kuwait’s travel and tourism industry may retain interest and gain further demand by focusing on unique leisure and entertainment developments as well as restructuring its policy, rules and regulations relating to the industry. n

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- Oman

Embracing Durability and Change Following the Tourism Lull Oman’s travel and tourism market has experienced strong growth, but recent macroeconomic factors have provoked it to alter its strategy. Travel Trade Monthly investigates the country’s growing accessibility to budget travellers, as well as its further diversification.

Marianna Keen writes

O

man is often perceived as a niche destination for wealthy holidaymakers, however the changing travel and tourism environment, including the shrinking of travel budgets due to the continued impacts of the global economic downturn, combined with a growing number of low-cost carriers (LCCs), has influenced modifications, suggests Euromonitor International.

An overview of Oman’s travel and tourism industry, released by the world leader in strategy research for consumer markets in May, indicates that Oman has become more accessible to tourists looking for cheaper travel, and significant developments in the country’s infrastructure are likely to continue.

2010 saw inbound tourist arrivals recover strongly and the future looked very bright for Oman, however, unrest in the Arab world this year, prompted Euromonitor International and other industry analysts to revise its growth prospects for the country. It seems more stable than many other states in the region, however, having only experienced minimal unrest. The Travel and Tourism Economic Impact Report

2011 for Oman, released by the World Travel and Tourism Council (WTTC) in February, forecasts that the total contribution of travel and tourism to GDP, including its wider economic impacts, will rise by 5.5 percent per year, from OMR1,698.6 million (USD4,411.3 million), representing 6.8 percent of GDP in 2011, to OMR2,906.1 million (USD7,547.1 million), which represents 7.7 percent by 2021.

In 2010, the Omani Government announced its fifth consecutive five-year strategic plan for the development of travel and tourism in the Gulf state, which it is optimistic it can achieve. This forms part of its Vision 2020 scheme, which projects a six-fold increase in inbound tourist arrivals by 2020. Strategy surrounding this has altered due to new threats and opportunities within the industry, and the Ministry of Tourism continues to promote all tourism sectors and attract new markets, in partnership with key private sector players, such as Oman Air. Expanding Markets Growing popularity for low-cost carriers in the region, including Air Arabia, flydubai and nasair, has resulted in more demand for cheap travel

After the turmoil in the Arab world there was a lull in the market but it did not make a huge dent in Oman 10

Al Zufla Mosque in Seeb

Oman in Brief Capital: Muscat Language: Arabic Currency: Omani Rial (OMR) and tourism choices in final destinations than ever before and this is partly being achieved in Oman by adding a more extensive range of lower-priced accommodation options.

Christophe Landais, managing director Middle East, Accor, expressed the group’s widespanning plans for Oman in the future, including budget, midscale and upscale brands.

“We are under discussion to develop Pullman, some Novotel and some Mercure; probably also ibis’s in Muscat, Salalah and other cities. I think its going to be more of a long-term plan.”

The industry is expanding some travel sectors, while incorporating budget options. The country is further exploiting its diverse landscape, including the expansive Arabian Desert, the soaring Hajar Mountains, incredible oases and exotic beaches, by offering more adventure tourism options. This is being encouraged with developments including desert camping sites such as Al Areesh Camp, and the emergence of specialist adventure travel retailers such as Nomadic Adventures, suggests Euromonitor International. Cultural desert camps offering wadi bashing, and safari tour groups offering to take visitors to the best areas for mountain trekking, climbing, caving and other outdoor activities, are growing in popularity, many providing family options and a low prices.

OCTOBER 2011

- Oman Gap Adventures will introduce an Oman tour for 2012, informed Timothy Chan, public relations specialist, suggesting that the country has a unique offering. “[Oman] ranks as one of the region’s most relaxed places, with centuries of tradition and ample room for adventure, ancient spice-trading ports, secluded wadis, busy souks and homestays and camping amid pristine desert sands.”

Musandam Sea Adventure Travel & Tourism, which offers trekking, mountain safaris to Jebel Harim and cruises on traditional dhow, among other activities, has, however, seen a decrease in business due to regulations, commented Aziza Kartoubi, sales and marketing manager. “The increased cost of Oman visa affected our business a lot, with a reduction of 50 percent compared with the past years. Global Economic problems also affected the tourism sector. American tourists are not coming as before.” The group procures most of its business from the European market, while it offers transfers between the UAE and Oman for those staying in the emirates.

Adventure tourism is growing, commented Marie de Peyrecave, sales and marketing director, Muscat Diving & Adventure Centre. “Adventure tourism in Oman will hold its own and stabilise in the next season. The ability to catch business from other destinations will depend on us retaining the uniqueness and raw feeling which this type of client is looking for, and being cost competitive and providing a top safe service. The country needs to manage and balance infrastructure development with its environmental sustainability for each area.”

In an effort to attract increasingly budget aware travellers and raise visitor numbers, the company has done its best to reduce costs. “Many trips are now set on specific days so guests can join others, we hope this will create volume and reduce costs so that we can attract a more local market with a wider appeal to other market sectors like single travellers or families,” added Peyrecave.

A decrease in visitor numbers, whether due to visa costs, the global economic downturn or unrest in the Middle East, were noted in hotels this year.

Sharon Beigel, director of communications, Shangri-La Barr Al Jissah Resort & Spa, shared the Nakhal fort

OCTOBER 2011

Sultan Qaboos Grand Mosque, Muscat

hotel’s experiences and optimism.

“Arrivals went down after the unrest in various businesses and areas in the country. We received a significant number of cancellations for a few weeks, but fortunately not for a long period of time. Because Oman has a reputation of being safe and having the friendliest, hospitable people in the region, it continues to attract leisure travellers.”

Although WTTCs analysis suggests that leisure travel spending (inbound and domestic) will generate 63.6 percent of direct travel and tourism GDP for this year, compared with a significantly lower 36.4 percent for business travel spending, it appears that some hotels have been able to rely on business even in challenging times.

Because Oman has a reputation of being safe and having the friendliest, hospitable people in the region, it continues to attract leisure travellers “This year, there has been an increase in free and independent traveller (FIT) business availing from special rates and promotions while there has been a slight decrease in wholesale business. Group business (MICE) shows a considerable increase compared to previous years,” added Beigel.

The four-star Majan Hotel in Muscat saw a dip in arrivals following instability in the region, although business tourism has remained strong, remarked Rajesh Mani, director of sales and marketing. “After the turmoil in the Arab world there was a lull in the market but it did not make a huge dent in Oman as there were not any issues here like in Tunisia and Syria. The corporate visitors on business were continuing to come and companies having contracts with petroleum companies or oil field offshore riggs had their contracts and their manpower put up in hotels.”

Renovation in Majan Hotel has just been

completed and work on an exclusive executive lounge is now commencing, in an aim to further expand business from the corporate sector.

“We did see a diminish in the German, Austrian and French markets, with a few groups getting cancelled, but presently, the coming season looks great. In comparison with 2010, we have been doing really well,” added Mani.

Oman’s business tourism sector is set to expand following the development of the USD1million Oman Conference and Exhibition Centre in Muscat. Due to open in 2014, it is poised to become the largest MICE venue in Oman.

The travel market in Salalah has been steady due to its dependence on the domestic market, suggested Ahmed El Meligui, director of sales and marketing, Salalah Marriott Resort. “The market for Salalah is very stable, as throughout the year we depend on the local Omani market and during the Khareef on the GCC market primarily. Again this year, our biggest customer base during the monsoon came from Saudi Arabia, Kuwait and UAE, followed by Bahrain.”

The annual Khareef festival, held from July to September, is a main cultural attraction in Salalah, and many hotels run at full occupancy at this time.

“For the European market, the new season will show if the turmoils have an effect. We have not received any cancellations yet,” added Meligui.

The resort from Marriott, which opened in March 2010, has experienced a successful year compared to its debut year, elaborated Meligui.

“In comparison with 2010, this year was a more successful year, occupancy rates were increased and average daily rates were nearly doubled.”

Awaited Developments A championship golf course designed by golfing legend Greg Norman will open as part of The Wave development in Muscat this December, with an aim to position Oman as an international golfing destination and further develop the sport amongst local enthusiasts.

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- Oman According to Muriya, a key tourism developer in Oman, Salalah Beach will also offer two 18-hole PGA golf courses as well as 15.6 million m2 of freehold villas and apartments, various prestigious hotel brands, including Club Med, Rotana and Mövenpick Hotels & Resorts, a 200 berth Marina and diverse restaurants and cafes.

The ongoing, grand projects of Jebel Sifah and Dunes in Muscat and Blue City in Al Sawaadi are also depended upon to expand Oman’s leisure and accommodation offering.

The first of five hotels to be incorporated into the 6.2 million m2 Jebel Sifah project was the fourstar, 55-room Sifawy Boutique Hotel, which opened to the public on September 16. It is Oman’s first integrated tourism complex (ITC) hotel, which includes a marina, surrounded by commercial facilities and shops. Low building density, with only 25 percent of the project’s land being built up, will leave the majority of space available for visitors to commune with nature, which is central to Jebel Sifah, according to Muriya, which is handling the project. Other hotel brands expected to join the beach front at Jebel Sifah include Four Seasons Hotels & Resorts, Banyan Tree Hotels & Resorts, Angsana Resorts & Spas, and Missoni Hotel.

Adding to the country’s long-standing luxury offering, Absolute Hotel Services Group has signed a management contract for Eastin Residences Muscat, Oman, which is scheduled to open late this year, introducing the brand to the Middle East. Accor will no longer develop Sofitel Muscat Resort & Spa as part of its growth plans in Oman, confirmed Landais.

“The Sofitel is not anymore on the map. There were some construction plans that were not given as they were on the path of the airport.”

However, the group looks forward to fulfilling the capacity for economy and mid-scale hotels in Oman, including with its ibis mega-brand.

Promotion The 2011 Muscat Festival, organised by Muscat Municipality and held in February, celebrated Oman’s traditional arts and heritage while

12

providing exciting activities. It hosted the second Tour of Oman, with an aim to draw international attention, showcase Oman’s infrastructure, help promote foreign investment in Oman and invigorate tourism, trade and economic activity, suggest organisers.

Putting it in a better position to globally promote upcoming tourism developments, the Ministry of Tourism in Oman recently joined the International Council of Tourism Partners as an alliance member.

When it became apparent that Oman remained stable and peaceful, those numbers began to increase once more Furthermore, the heads of the Ministry of Tourism’s international offices from the UK, Germany, France, the Netherlands, Belgium, Russia, the GCC, India and Australia met in Oman on August 13 to 18, for strategy and travel trade meetings. While the European market and GCC states accounted for the vast majority of the estimated two million visitors to Oman in 2010, Russia, India and Australia are considered promising source markets, with further promotions to be carried out there.

Air Many airlines provide flights to Oman, although some services were reduced following decreased demand because of turmoil in the region.

Abdulrazaq Al Raisi, chief communications officer, Oman Air, elaborated that this fall in demand was only temporary. “Many airlines in the region that rely significantly on leisure traffic have reported drops in passenger numbers, but the picture for Oman Air is a little more complex.

We did see a fall in leisure travellers when the political unrest first began, but when it became apparent that Oman remained stable and peaceful, those numbers began to increase once more. Oman air also carries many business travellers and ex-patriot workers who fly between the sultanate and their home countries. These valued customers continued to fly with us.”

The national airline of Oman looks, for this year, to be continuing the growth trend experienced in 2010. “Oman Air had a very good year in 2010, as far as passenger numbers are concerned and we saw year on year growth of 38 percent, which was significantly higher than the global average. So far, Oman Air appears to be continuing that trend this year and once again

we have seen a considerable increase in the volume of passengers travelling with us. During the first six months of 2011, we have recorded an increase of 24 percent compared to last year”, added Al Raisi.

With popularity of Oman as a holiday destination spreading to new markets, the airline is also continually opening up new routes. “We have no intention of halting our growth and we expect to be unveiling new services to Zurich, Switzerland, and the Russian capital of Moscow later this year.”

Oman Air recently made a joint venture agreement with Bahwan Travel Agencies, resulting in the formation of Oman Air Holidays LLC, which will promote inbound tourism to Oman as well as outbound travel to destinations served by the national carrier’s network.

International Air Transport Association (IATA) data for the year ending June 2011 signifies good news for Oman, indicating that total passenger arrivals to Muscat International Airport increased to 2.23 million, a 15 percent on 2010.

Muscat International Airport and Salalah Airport are expanding to accommodate an increase in passenger traffic. When complete, they will be set to receive 48 million and 10 million passengers respectively per annum. Arrivals at Oman’s key ports are also growing, with Muscat alone reporting over 90 cruise ship visits for the 2010 -2011 season. Also part of the rapid expansion plan from Oman Airports Management Company (OAMC), four new regional airports are expected to open for business by 2014.

Continued growth looks to be positive in Oman, with the country relying strongly on its continued security and stability to retain interest and demand from travellers worldwide.

Although regulations appear to be deterring some travellers, the emergence of new visitor markets and the opening up of diverse travel sectors, while heritage is preserved, look set to overcome threats within the industry and expand Oman’s travel and tourism market. n OCTOBER 2011

- Philippines

Revealing the World’s Best Kept Secret Following a record breaking year, the Philippines now strives to step out of its Asian counterparts’ shadow. Driven by a revised strategy and progressive promotion campaigns, Travel Trade Monthly explores how the country is keen to reveal the ‘world’s best kept secret’ by reaching out to a broader audience, including the Arab world.

Rita Kasziba writes

Manila Bay

I

n 2010, the Philippines made history after registering a record number of visitors.

Francisco Lardizabal, head of team Middle East, Philippine Department of Tourism (DoT), commented on the results and the source markets that contributed to this performance.

“More tourists trooped to the Philippines as visitor arrivals reached an all-time high of 3.52 million, surpassing the 3.3 million target earlier set by the DoT. East Asians, especially South Koreans, accounted for 44.4 percent of the total visitor count, regaining the number one position among the major source markets. The US ranked second, followed by Japan and China.”

According to Lardizabal, improved economic conditions in major markets, progressive expansion of the region’s lowcost carriers, and the international community’s increasing confidence in the Philippines, have significantly contributed to sustaining the increase in visitor volume.

Attributable to continuous gains in key markets, the Philippines has been gradually approaching target arrivals for this year, and recorded 1.91 million visitors in the first six months, up 12 percent over the corresponding period in 2010. At this rate, the country is now looking to outperform figures registered in 2010 and hit, if not surpass, the 3.74 target.

Improving infrastructure and upgrading services are pivotal to fulfill the set objectives. “The Philippines lacks accommodation in major destinations like Cebu and Bohol. Airport facilities require improvement in major destinations

OCTOBER 2011

including Manila. More roads need to be developed although the government is working on this concern,” added Lardizabal.

Recently appointed acting tourism secretary, Ramon Jimenez, has, however, no concerns regarding the marketing of the country and aims to double visitor numbers within the next five years. In spite of restrictive travel advisories on the Philippines, the floating traffic proves that it is still an appealing and safe destination.

“You don’t get 3.5 million to 3.6 million visitors if you are the most feared country in the world,” emphasised Jimenez.

While existing problems such as crime still raise a concern, selling the Philippines is a matter of

Philippines in Brief Capital: Manila Currency: Peso (PHP) Language: Filipino, English positioning and marketing. “You can go to a city in another country where the hotel is beautiful, but the service is horrendous. In spite of the pollution and dirt, this is a probably one of the most dynamic cities in the world,” commented Jimenez.

In a move to penetrate international markets, DoT is now to create a new slogan and strategy, and include social networking sites in its marketing campaign.

13

- Philippines “I cannot make Palawan more beautiful than what it is now, but the gap is transforming people into excited tourism units. Imagine if everyone would just blog on what is beautiful in the country,” added Jimenez.

Despite the burning question of uniting the industry, indentifying proper marketing tools is also crucial if the Philippines is to catch up with its Asian counterparts, and while the country has been gradually improving, it still falls behind its competitors, such as Malaysia, which received 24.6 million tourists in 2010. This raises the question as to whether the Philippines is lagging behind due to poor branding.

Attracting investment from developed economies is vital to progression, and foreign business chambers have long been pressing the government to lift the existing restrictions on foreign ownership over resorts and other tourist facilities.

The Philippine Travel Agencies Association (PTAA), however, has rejected proposals allowing foreigners to gain full ownership, explained Aileen Clemente, president, PTAA. “We do not need to follow the examples of our neighbours in the region. Allowing foreigners to own properties and to have a majority stake will lead to uncontrolled development in the country’s tourism industry. Philippine companies have the same capabilities as their foreign counterparts and they have a better understanding of what is needed to be done.”

The organisation therefore presses for keeping the 40 percent restriction and urges proper incentives for local firms and measures that would sustain the industry’s growth.

Penetrating international markets, including the MENA, forms part of the strategy, especially when considering that the Philippines has not yet fully taken advantage of the Arab market.

“Tourism arrivals from Middle East countries totalled 29,460 from January to July this year, a hefty 16.92 percent increase from the same period in 2010,” commented DoT’s Lardizabal.

“The main challenges include the relatively strict visa and entry policies and procedures for nationals of Middle East countries that do not belong to GCC countries, the lack of halalcertified food establishments, especially in provincial areas, and the limited awareness and information about the Philippines in the Middle East. The lack of promotional materials and collaterals in Arabic, as well as the lack of tour packages from the Middle East to the Philippines, further add to the challenges.”

The country’s negative image, raising concern about safety and security, the lack of air connections between the Philippines and the 14

Mount Mayon Legazpi City, Luzon Islands

Middle East, and the high air fare (compared to other tourism destinations in Southeast Asia on the existing services) also explain the relatively low Middle East visitor number to the Philippines.

“The Philippines has been absent from tourism promotions in the Middle East region for quite some time. It was only in 2008 that the Philippines returned to promoting itself in the region and this has since caused an increase in tourist arrivals. Plans for the next few months include advertisements in partnership with the private sector, participation in Middle East travel fairs, execution of familiarisation tours and development of new promotional materials produced specifically for the Middle East market.

We just hope that the Arab travellers will discover and try the Philippines as their new destination and that we are now more than ready to welcome them with the renowned Filipino brand of hospitality,” added Lardizabal Airlines Emirates and Etihad operate services to the capital city of Manila, while Qatar Airways also offers flights to Cebu. James Hogan, CEO, Etihad Airways, commented on the airline’s services.

“The Philippines is one of the world’s best kept secrets and has enormous appeal as a holiday destination for travellers from the Middle East and Europe. Etihad is committed to doing more with the Philippines Government and its tourism board to grow the economic benefits of tourism to the country and our business.”

The national flag carrier, Philippine Airlines (PAL), currently offers flights to Abu Dhabi, Dubai, Bahrain and Doha. Despite resuming a long-awaited service to Riyadh in 2010, the carrier soon cancelled the route in April this year (five years after first dropping it in 2006). Constant losses and the steadily low load factors on the route put an end to the operations. Nikki Gozon, vice president of operations, PAL, commented on

Manila skyline

the challenges of the route.

“It was a difficult route to sell because we are only allowed to fly three specific aircraft registries, one particular Boeing 747 and two Airbus 330s. It becomes an operational nightmare because we only use these specific aircraft into the city. When one airplane is down, we cannot change what aircraft to use.”

Imagine if everyone would just blog on what is beautiful in the country Hotels Fairmont is to open a 300-key property, Fairmont Makati, in 2012, whereas Tune Hotels plans to launch a range of properties in the coming years.

Cymantha Sothiar, communications, groups CEO’s office, Tune Hotels, commented on the future strategy of the group for the destination.

“According to our plan, six Tune Hotels are to open in the Philippines next year (2012). Our first Tune Hotel in the Philippines will open in Angeles City, Pampanga in Q1 2012, with 165 rooms. Three will be in Manila: Ermita (Q1 2012, 167 rooms), Makati (Q2 2012, 213 rooms) and Ortigas (Q4 2012, 250 rooms). Elsewhere, Cebu Island (150 rooms) is slated for opening in Q1 2012 while Cagayan de Oro, Mindanao (150 rooms) will open in Q4 2012. 2012 will be a very busy year for Tune Hotels in the Philippines.”

The company caters to both domestic and international travellers, including those from the Arab world.

“We have already been receiving a small, but steady stream of guests from MENA at our existing hotels in Malaysia, Bali in Indonesia and England, and we are sure our hotels in the Philippines will be great, affordable options for our guests. Tune Hotels will work closely with the tourism authorities to promote the Philippines as a favourite destination, that is halal-friendly, to Middle East and North African tourists.” n OCTOBER 2011

- Sweden

The Capital of Scandinavia Claims its Title As one of the fastest growing sectors, tourism is integral to Sweden’s social and economic development. With its innovative infrastructure and stable economy, the country is well positioned to lure travellers and investors alike. Despite far outstripping its Nordic counterparts, Sweden is yet to tap into the vast market of the Arab world.

Rita Kasziba writes

B

ased on data from Tillväxtverket, the Swedish agency for economic and regional growth, the total travel and tourism consumption in 2010 increased by 3.2 percent, making up 2.9 percent of Sweden’s total GDP. The total number of nights spent amounted to more than 52.4 million, an increase of 2.7 percent compared with 2009.

Nights from travellers outside of Europe grew by 15.5 percent, however, from them, only the US ranked among the top 10 largest foreign markets.

Sweden’s success lies in its elaborate tourism strategy, noted Thomas Bruhl, CEO, VisitSweden, the organisation that promotes the brand of Sweden and Swedish destinations and experiences internationally.

“Sweden is not competing with the large holiday destinations but we are creating a niche as a modern country with a strong connection to nature and tradition.”

A recent survey by the organisation found that exotic nature experiences in combination with a modern lifestyle are the main draw cards of Sweden.

Despite the country’s rising profile, the Middle East remains an untapped market, noted Susanne Stübs, research coordinator, VisitSweden.

“The Middle Eastern market, with its high potential, is up to now not a prioritised market of VisitSweden but cooperation occurs with the Council for the Promotion of Sweden, the Ministry for Foreign Affairs, the Swedish Institute, Invest in Sweden Agency, the Swedish Trade Council, the Ministry of Industry, Employment and Communications and Visit Sweden.”

The Capital The capital city of Stockholm, often known as ‘Venice of the North’, has long been considered as one of Scandinavia’s political, cultural and economic focal points. Driven by extensive marketing activities and promotions, Stockholm has grown into a lucrative city for both leisure and business travellers, commented AnnCharlotte Jönssen, public relations manager, Stockholm Visitors Board.

OCTOBER 2011

“In 2010 we had over 10 million bed nights, an increase of 41 percent since 2000, and six percent compared to 2009. In the first six months of the year the city received more than 4.5 million visitors; two-thirds of them, domestic and onethird international.”

While the largest international markets remain Germany, the UK, the US and Norway, visitor numbers from the MENA region remain low.

“In order to attract visitors, a destination needs three things: attractivity, accessibility and efficient marketing. We have chosen seven priority markets, additional secondary markets, and markets we are observing. Our primary focus is accessibility, attracting more direct flights from and to the Middle East,” added Jönssen.

“Our primary target group is the global traveller.

Stockholm is not a primary city, but when you

Sweden in Brief Capital: Stockholm Currency: Swedish Kronor (SEK) Language: Swedish have been to Paris, London and New York, you are eager to do something different.”

Considering the heavy investments and improvements expected over the coming years, travel and tourism is to be the catalyst in the country’s development over the next decade.

Given the fact that the World Travel and Tourism Council predicts the industry’s total contribution to GDP to increase from SEK193.7 billion (USD29.2 billion) this year to SEK305.4 billion (USD46.2 billion) by 2021, the industry is forecasted to drive investments and job creation.

Sweden is not competing with the large holiday destinations but we are creating a niche as a modern country with a strong connection to nature and tradition 15

- Sweden In fact, WTTC predicts industry related investments to grow from a total of SEK17.3 billion (USD2.6 billion) this year to SEK22.9 billion (USD3.5 billion) by 2011, whilst the number of jobs supported by the industry is to rise from 266,000 this year to 352,000 by 2021.

Airlines Bridging links between two parts of the world, Qatar Airways commenced direct flights to Stockholm in 2007, marking the airline’s debut in Scandinavia and representing the first Middle East carrier to serve the Nordic region. The route has fast proved to be popular, prompting the airline to increase capacity and expand it to a daily service in 2010.

Scandinavian Airlines (SAS) boasts an extensive network, yet does not operate direct flights to the Middle East. Anders Lindström, public relations director, explained the lack of services with strategic and geographical reasons.

“Even though SAS aims to offer an extensive network, many of the destinations in the Middle East and Africa are better served via our partners who also have a better geographical situation for serving destinations going south. Scandinavia or the Nordic region is better placed to serve the US and Asian destinations from a geographical point of view.”

The improvement of economic prospects in the Nordic region resulted in improved traffic volume.

“Our load factors improved strongest on Swedish domestic and intercontinental routes during 2010, increasing by about five points. This was generally driven by the improving economic situation, above all in Sweden, in the second half of 2010,” added Lindström.

Growth in the remainder of the year is predicted to continue at a stronger pace than initially expected.

“The Scandinavian and Swedish markets are very

Stockholm

Stockholm

competitive. The total capacity increase during 2011 is expected to be around 10 percent, well above long term averages. SAS has managed to improve its profitability during 2011 despite these challenging markets, through significant cost reductions, and it had the highest EBT-margin of the three major Nordic carriers during the first half of the year,” explained Lindström.

Hotels According to trivago Hotel Price Index (tHPI), while some of the most popular cities in the continent witnessed a slight dip, Scandinavia, and Sweden’s industry in particular, enjoyed fairly good prices during the summer peak season in July. Going against the European trend of lower fees and figures, hotel rates in Sweden increased by 10 percent and by seven percent in Stockholm, making the city one of the most expensive capitals in Europe in terms of accommodation prices.

Swedish hotel chain, Scandic, continues to expand at a rapid pace, and has recently opened its latest property, Scandic Victoria Tower, the tallest hotel in the Nordic region. The company will soon cut the ribbon at a new hotel, upon opening Scandic Grand Central on October 1.

Martina Tengwall, public relations manager,

Stockholm is not a primary city, but when you have been to Paris, London and New York, you are eager to do something different 16

Scandic Grand Central commented on the upcoming property.

“Scandic is the largest hotel chain in the Nordic region with 160 hotels, so our guest will mainly come from these countries, although we expect more international travellers at Scandic Grand Central than at other Scandic hotels on the market. Therefore, we have also worked harder to create awareness of the hotel in the international arena. Other markets that we believe will be of primary interest are the UK and Germany.”

The company has also set its sights on the Arab market. “We are expanding at a rapid pace and have many new hotels in the pipeline for the coming years. Within the next year we will open no less than seven new hotels. Our home market is Nothern Europe but we are also looking for opportunities all over Europe. It is not very likely that we will have a hotel in the Middle East in the near future, not because of lack of interest in that market but rather lack of resources to launch a hotel chain and brand in a new market.”

Radisson Blu is also to enhance its Swedish portfolio with Radisson Blu Hotel, Uppsala scheduled to open in May 2012, and Radisson Blu Hotel Gothenburg in early 2013.

One of the most outstanding highlights of the country, the ‘world’s coolest hotel’ attracts a large number of visitors each year, commented Camilla Bondereva, press relations manager, Icehotel AB. “We will open on December 3 and the winter season will last until April 21. The summer season starts the first week in June and goes on until the end of August. Our main foreign markets are the UK, Germany, France, the Netherlands and the US, but we have received guests from all over the world. The number of Russian guests has steadily increased, as well as Chinese. We are also visited by people from Australia, the Middle East and many other parts of the world. Therefore, we are interested in the Middle East market, but at the moment we do not have any agents in this region.” n OCTOBER 2011

- Canada

Canada Keeps on Exploring By promoting exceptional experiences and creating a stronger brand image for the destination, Canada is to penetrate international markets and further leverage the elevated interest in the country. Innovative marketing activities and the promotion of high quality tourism earned Canada the title of the best country brand.

Rita Kasziba writes

I

n 2010, Canada received 15.9 million international visitors, up two percent since 2009, driven by the US leisure travel sector, which accounted for 63 percent of the overall inbound figure.

By generating more than CAD74.1 billion (USD75.2 billion), the industry contributed two percent to the country’s GDP, and provided 610,600 jobs.

The vigorous promotional campaigns, reaching out to a broader audience and creating awareness in emerging markets, have paid rich dividends, noted Michele McKenzie, CEO, Canada Tourism Commission (CTC).

“Canada’s international brand ‘Canada. Keep exploring’, developed and managed by the CTC, made great strides and yielded significant results in 2010. The success of our brand is creating global awareness of Canada as a destination, it is one of the main reasons that FutureBrand ranked Canada as the number one country brand in 2010.”

Signature Experiences In a move to better market Canada and make it stand out in a fiercely competitive tourism marketplace, CTC created a Signature Experiences Collection. The innovative marketing campaign targets high-spending international travellers craving a unique and exotic experience.

Maxime Bernier, minister of state, commented on the approach. “By highlighting unique Canadian experiences abroad, this ground-breaking initiative will encourage the world to visit Canada. It will increase our share of international visitors and generate greater revenues for Canadian businesses.”

Frontiers North Adventures is one of the 48 tourism enterprises included in the collection.

By widening the eyes of the tourism world and luring more visitors, Canada sets high goals.

“Tourism is one of the fastest growing economic sectors in the world and it has become a very high stakes game and one in which countries are competing to win, and Canada is competing to win,” stated McKenzie.

Airlines Etihad Airways’ service to Toronto, currently operating three times a week, has fast proven popular. Peter Baumgartner, chief commercial OCTOBER 2011

Banff National Park, Canada

officer, Etihad, commented on the service.

“Canada was our first North American route and we have enjoyed tremendous success since launching services to Toronto in 2005. Etihad has carried more than 330,000 passengers to and from Toronto since 2007, including 100,000 in 2010. The load factor over the last 12 months has been consistently over 80 percent.”

James Hogan, CEO, Etihad Airways, has earlier this year outlined plans to increase capacity on the route. “There are 384 weekly long and ultra long haul flights into Toronto every week. Etihad flies just three of them, less than one percent.

Etihad is a friend to Canada and we want to be a connector to Canada.”

Emirates debuted in Canada in October 2007, while Qatar Airways launched flights to Montreal in July this year. Akbar Al Baker, CEO, Qatar Airways, commented on the route. “By entering Canada, Qatar Airways is giving the travelling public more choice and more options they fully deserve. But with only three flights a week to Montreal, we are constrained by the limited capacity.”

Air Canada and Middle East Airlines launched codeshare services in the summer of 2010, covering flights between Canada and Lebanon via Geneva and London, Heathrow. In addition, the Canadian airline codeshares with bmi to Beirut.

Isabelle Arthur, manager media relations and community investments, Air Canada, commented on the alliance. “Air Canada has been expanding coverage of the Middle East and Africa region with Star Alliance and joint venture partners Lufthansa, Brussels Airlines, bmi and United/Continental. By connecting to one of our Star partners, Air Canada passengers can fly to and from several Middle East and African destinations.”

Canada in Brief Capital: Ottawa Currency: Canadian Dollar (CAD) Languages: English, French Hotels Starwood Hotels & Resorts Worldwide is to consolidate its position in the Canadian market with the opening of a range of new properties over the coming years. These include Element Vancouver Metrotown, which upon opening in 2014, will mark the eco-chic boutique brand’s debut in Canada.

Brian McGuinness, senior vice president, Specialty Select Brands, Starwood, commented on the upcoming properties.

“Our specialty select brands play to the next generation of travellers in diverse global markets.

Canada is no exception. Not only has Four Points proved to be a runaway hit in Canada, but aloft is also picking up its pace.”

Following Shangri-La’s successful foray into Canada with the opening of Shangri-La Vancouver in 2009, the company is now to launch its second property, the 202-room luxury Shangri-La Hotel Toronto, slated to open in August 2012.

The largest city in Canada attracts a wide range of hotel chains, noted Michele Simpson, manager, media relations, Tourism Toronto.

“This year, Trump Toronto will also open its doors, for the very first time in Canada. Also a new Four Seasons is slated to open in 2012.

“The year 2010 established a new record for tourism in Toronto as the number of hotel room nights sold crossed 8.93 million, and Toronto received approximately 80,000 visitors from the Middle East,” added Simpson. n 17

Bernie Ecclestone CEO, Formula One Group.

“The Formula One Etihad Airways Abu Dhabi Grand Prix has been an immense success for Etihad, Abu Dhabi and for Formula One, bringing the airline and destination to an estimate worldwide audience of more than 500 million Formula One fans. The influx of visitors travelling to Abu Dhabi also brings a direct economic benefit, with over 20,000 people pouring into the UAE for the event, representing 10’s of millions of dollars for the local tourism industry.”

The Formula One Etihad Airways Abu Dhabi Grand Prix has been an immense success for Etihad, Abu Dhabi and for Formula One

Bernie Ecclestone

Akbar Al Baker

Toufic Tamim

CEO, Qatar Airways.

“We operate in one of the most competitive and dynamic markets. Winning this award [Best Airline in the Middle East and Africa, 2011 Business Traveller Asia Pacific Awards] among the tremendous amount of competition out there is an honourable achievement and continues to highlight the importance of continuing to invest in products and services to ensure travellers have an experience to remember. Yet again Qatar Airways has demonstrated that it continues to make its presence felt and be increasingly recognised for the high levels of service that the airline is renowned for worldwide in the 14 short years in operation.

This has been an excellent year for Qatar Airways.”

Yet again Qatar Airways has demonstrated that it continues to make its presence felt and be increasingly recognised for the high levels of service

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

“Business travellers want to concentrate on making their trip a success. They don’t want the detail of extras, they simply want to know everything that they need is included as part of their stay. Mövenpick Hotels & Resorts has always understood the key elements that enhance a successful business trip, a convenient location, efficient meeting and conference facilities and dedicated business services. With the Business Bundle package we have gone one stage further to provide corporate travellers with a genuine executive boost.”

Akbar Al Baker

Amr Hamed

With the Business Bundle package we have gone one stage further to provide corporate travellers with a genuine executive boost Toufic Tamim

Hotel manager, Liwa Executive Suites, Abu Dhabi.

“Since opening, we have enjoyed a constant stream of business.

Executives looking for high-end accommodation options that offer them all the comforts of home have been drawn to Liwa Executive Suites managed by Coral Hotels & Resorts. Moving forward, we are very confident of improved results as we head towards the end of the year, with occupancy levels set to reach as high as 95 percent during peak periods such as the Formula One.”

Amr Hamed

Since opening, we have enjoyed a constant stream of business

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 18

OCTOBER 2011

Europe Named Family Dream Destination Families travelling with children seek an authentic experience and would like to visit Europe, revealed the latest survey of Travelocity.

T

he poll outlined the priorities and most desired destinations of those travelling with kids and found that 88 percent of respondents have a dream trip they would take if money was no object. Of those, the majority (60 percent) defined an authentic, local experience as top antecedence, while 40 percent stated that having the best service possible comes first.

Eileen Ogintz, family travel expert and author Travelocity, elaborated on the results. “It is telling that families who travel with children are more likely to have dream trips in mind than those who don't travel with kids.

They want to show children the world and know travel is the most wonderful gift you can give a young person. What families may not realise is their travel dreams are far more attainable than they may think.�

In terms of dream destinations, most of the

Rome

families would pick Europe (27 percent), followed

by Hawaii (25 percent) and the Mediterranean (nine percent).

The first choice with regards to the type of trip parents would like to take their kids on was a tour

of a foreign city (37 percent). Relaxing on a beach came second (22 percent), and cruise trips third (18 percent), while visiting a theme park (12 percent) or seeing exotic wildlife (11 percent) proved to be popular options as well.

UNWTO Reports Healthy International Tourism Growth in this Years First Half According to the latest results from World Tourism Organisation (UNWTO), international tourism grew by 4.5 percent in the first half of the year, suggesting that despite challenges, international tourism continues to consolidate the return to growth initiated in 2010.

The total number of arrivals reached 440 million, 19 million more than in the same period in 2010, amounting to a new record. The increase follows on from a 6.6 percent increase in 2010.

An increase of 4.3 percent growth has persevered in developed countries, closing in on emerging economies which registered a 4.8 percent increase.

This reduced gap reflects the decreases in international traďŹƒc to the Middle East and North Africa, as well as a slight slowdown in the growth of some Asian destinations following a very strong 2010.

All regions showed positive trends with the exception of the Middle East (-11 percent) and North Africa (-13 percent). Results were better than expected in Europe (+6 percent), boosted somewhat by temporary redistribution of travel following unrest in the MENA region, as well as by the recovery of Northern Europe (+7 percent) and Central and Eastern Europe (+9 percent), and rising popularity of Southern and Mediterranean Europe (+7 percent). Sub-Saharan Africa (+9 percent) also continued to demonstrate growth, while figures for the Americas (+6 percent) were slightly above average, despite strong results for South America (+15 percent). Asia and the Pacific (+5 percent) recorded a comparatively slower pace. Results indicate that destinations such as Egypt, Tunisia and Japan are seeing a recovery in demand.

Growth in the remainder of this year is expected to soften somewhat as recent months have brought increased uncertainty.

OCTOBER 2011

19

- Sports Travel

Spectator Sports Help to Revive the Middle East Sport and tourism are integrated components of global culture, which have helped to bring people together and enhance tolerance, while also providing additional social, economic and political effects. Travel Trade Monthly looks at the sport tourism market in the Middle East and how the expanding sector is aiding development and building bridges.

Marianna Keen writes

T

he World Tourism Organisation (UNWTO) recognises that sports tourism is now a rapidly expanding market and that interest in sport, especially elite sporting events, has grown at a phenomenal rate.

A country’s readiness to host a major sporting event sends a message that it is politically stable, socially prosperous, and developing an image which is particularly sought after in the Middle East, in light of the Arab Spring.

Since procuring the 2022 FIFA World Cup, Qatar applied to host the ceremonial first leg of the 2016 Tour De France, despite being on a different continent. Starting the event in the Middle East would pose logistical and meteorological challenges, with intense heat shaping

the event, however such issues have not deterred ambitions.

Qatar Airways was the official airline for this year’s Tour de France, forging promotional, as well as cultural ties between the two entities.

According to Qatar Tourism Authority (QTA), Qatar has for some time now been recognised as a sporting destination, hosting international events and championships in tennis, golf and MotoGP, with world class facilities such as the Khalifah tennis stadium, Aspire Zone and Losail race track strengthening its standing in this sector. The country hosted the 2011 AFC Asian Cup finals as well as the Qatar ExxonMobil Open 2011 tennis tournament in the beginning of this year, spurring occupancy rates, which in January registered at 74 percent.

The biggest addition to ours ports events calendar this year comes on New Year’s Eve, when the emirate will welcome the Volvo Ocean Race fleet

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The increase in projects due to the upcoming 2022 FIFA World Cup will be pivotal for the industry, remarked Fabien Chesnais, general manager, Mövenpick Hotel Doha.

“Qatar’s development and marketing exposure is definitely benefiting all hotels in Qatar, and also the line-up of projects in the run up to the World Cup is quite impressive, and every year business is getting better.”

Oman too has attempted to cash in on the popularity of the Tour de France, by hosting its own tour, the Tour of Oman, which was held for the second time this year, in February.

The Asian Beach Games, held in Oman in December 2010, attracted worldwide interest and helped boost infrastructure developments.

There are different situations to keep in mind with regards to tourism originating from sports events, suggested Dayne Lim, product development director, Abu Dhabi Tourism Authority (ADTA).

“It is important to understand the difference between sports events that bring spectators to the emirate, for example the Formula One Etihad Airways Abu Dhabi Grand Prix.”

Abu Dhabi has a world-class calendar of elite sporting events, these include the European PGA Tour sanctioned Abu Dhabi HSBC Golf Championship, to be held in January 2012, and the Abu Dhabi International Triathlon, which will take place in March 2012.

“We are currently undertaking a feasibility study to examine the construction of a multi-purpose indoor events arena that is capable of hosting a wide spectrum of major international events,” Lim added. Investment in sport has been a key strategy to help Abu Dhabi reach its target of 2.3 million hotel guests a year by 2012.

“The biggest addition to our sports events calendar this year comes on New Year’s Eve, when the emirate will welcome the Volvo Ocean Race fleet for the third stop of the nine month, round the world sailing race,” enthused Lim. The Middle East’s rapidly expanding involvement in the international and regional sports event scene looks to have a positive effect on worldwide perceptions of the region, as well as on participating countries’ tourism industries and overall development. n OCTOBER 2011

Khaled Amer

Khaled Amer

Khaled Amer has been appointed director of sales and marketing at Sheraton Khalidiya Hotel, Abu Dhabi. Amer has fifteen years of work experience in the hospitality industry, including sales, management and business development. He has previously held various managerial, operations management and sales positions at a number of hotel chains and at several properties of Starwood Hotels & Resorts Worldwide. In addition, he has extensive knowledge of international conventions and gala function management as well as broad quality and standards skills.

Amer holds a Bachelor’s degree in business administration from the Suez Canal University, Egypt, and a diploma in travel and tours service from the American University in Cairo, Egypt.

Martin van Kan

Roddy Gordon

Martin van Kan has been named general manager of Fairmont Palm Jumeirah, scheduled to open in autumn 2012. With a career spanning over 25 years, the seasoned hotelier brings extensive operational expertise and strong strategic vision to the role. Having previously held various executive positions within leading hotel companies, he has gained experience in multiple destinations around the world. During his 10- year tenure with InterContinental Hotels Group (IHG), he worked in various countries, including China, Lebanon, UAE, Qatar and Oman, while during his nine years with Hyatt International, he was based in the Philippines, Indonesia, Martin van Kan South Korea and Nepal.

Most recently he worked for IHG as director of operations, Oman, and general manager of Al Bustan Palace InterContinental Muscat, which he led to several achievements in business performance and environmental and community relations. He is a graduate of the Ecole Hôtelièr Les Roches, in Switzerland. As general manager, van Kan will be in charge of the opening and subsequent performance as well as day-to-day operations of the property.

Roddy Gordon has joined the expanding Rosewood Hotels & Resorts team as director of marketing of Rosewood Abu Dhabi, scheduled to open in the fourth quarter of 2012. With a career spanning over 23 years, Gordon, a strategic sales and marketing professional, brings extensive knowledge, with emphasis on the premium hotel and service sector, to the role.

He has gained experience in various positions with Hyatt International in multiple locations, including Chicago, Hong Kong, London, Dubai, Seoul and Auckland.

In the last three years, he worked as vice president of sales and marketing at Tamani Hotels and Resorts, Dubai.

Gordon holds a BA in hotel, catering and institutional administration from Robert Gordon’s University, Roddy Gordon Scotland.

Salim Touma

Salim Touma 22

Salim Touma has been appointed general manager of Coral Boutique Hotel Apartments, Dubai. Touma, who brings more than 16 years of experience to his role, has been tasked with overseeing the overall commercial operations and management of the property. He began his career with InterContinental Hotels Group (IHG) in 1996, where he gained experience in various managerial positions in Lebanon, Saudi Arabia and Oman. He, thereafter, moved to Dubai as director of revenue management at Dusit Thani Dubai. Prior to taking on his current position, he worked as group vice president, sales and revenue management at Hospitality Management Holding’s corporate headquarters.

In addition to his extensive knowledge and in-depth financial and operational skills, Touma holds a number of certificates in management leadership and training.

OCTOBER 2011

Q & A with Fouad Bizri For many players in the Middle East’s hospitality industry, new strategies have been called for, following unrest in the region.

Fouad Bizri, newly appointed general manager of Samaya Hotel Deira discusses with Travel Trade Monthly how he plans to stimulate the hotel’s performance so that the relatively new brand’s reputation may be enhanced.

Travel Trade Monthly: Congratulations on your appointment as general manager of Samaya Hotel Deira. What short-and-longterm plans do you have in place to stimulate the hotel’s development and consolidate its presence in the market, in order to attract guests?

Fouad Bizri: Thank you. We are planning to update our facilities and services by renovating our presidential suites as well as by adding a massage centre. We are also looking into entering new markets.

Travel Trade Monthly: What is your main source market, considering that Samaya Hotel Deira is a dry hotel?

Fouad Bizri: Our main source markets are Iran, China and the GCC, and recently we began targeting the CIS market.

We are using different marketing tools to attract more guests to the hotel

have revealed positive figures. How did the turmoil affect Samaya Hotel Deira’s performance in the summer and during Ramadan and Eid? Fouad Bizri: We have noticed since the

Fouad Bizri

beginning of this year that our hotel occupancy has increased compared to last year’s performance during the same period.

We have started targeting the CIS market and we are using different marketing tools to attract more guests to the hotel, above all with our rates Travel Trade Monthly: In a highly competitive environment as the UAE, where all international hotel chains are present with a variety of properties, a bespoke brand name might bring a large volume of business in. Samaya Hotels and Resorts is, however, a relative newly established company. How do you ensure high occupancy amid the competition, and how do you plan to Also, we are using e-marketing as well as traditional media to enhance Samaya hotel’s enhance the brand’s reputation?

Fouad Bizri: To be frank with you, it is always reputation and its branding as a five-star, dry

Travel Trade Monthly: With its ideal location near the airport and Dubai’s financial and shopping centres, the hotel offers an ideal base for business travellers. difficult to enhance the brand of a rather new hotel. Over the last few years, we have drawn in Considering this, are you planning to target player in the market. Our strength is investment repeat business and increasing loyalty from a new customer profile or sector? Also, how in a professional team in the hospitality field. guests who enjoy staying with us. n do you plan to increase the number of leisure travellers in the hotel?

Fouad Bizri: As you have mentioned we are ideally located in the business sector of the city and we are even a short distance from some of the popular malls and some famous attractions in the city. We have started targeting the CIS market and we are using different marketing tools to attract more guests to the hotel, above all with our rates, which are competitive compared with other five-star properties in our area.

Travel Trade Monthly: While political unrest in the region is still shaping some countries’ hospitality industries, making recovery a sluggish process, the UAE’s average key hotel performance indicators OCTOBER 2011

It is always difficult to enhance the brand of a rather new player in the market

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Enhanced Handling for Perishable Cargo with ADAC New Cargo Terminal Abu Dhabi Airports Company (ADAC), has announced that phase one of the new cargo terminal for handling perishable goods has been completed. This new facility is located at Abu Dhabi International Airport and will improve the handling capabilities of Abu Dhabi Cargo Company (ADCC). The new 6,000m2 facility is specifically designed to hold two bulk rooms with storage available for products such as meat and fruit with a separate area for palletised cargo.

A laboratory is also present whereby Abu Dhabi Food Control Authority (ADFCA) will be able to sample food. Each facility caters to the regulations of International Air Transport Association’s Perishable Cargo.

This state-of-the-art facility will significantly improve the handling capabilities of ADCC as it will allow cargo customers the freedom to safely

Abu Dhabi Cargo Company

transport a wider variety of cargo, including important items such as medical and biological samples. ADAC will work closely with the ADFCA to guarantee that all of the perishable goods transported through ADCC align with

safety and security regulations.

By the end of this year, the second phase of the facility is to be completed and will aim to amplify meat handling shipments which will be followed by certain guidelines set out by the ADFCA. n

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

International Golf Travel Market Belek, Antalya, Turkey, November 14-17, 2011 (www.igtm.co.uk) The premier event for the golf travel industry with pre-scheduled appointments, networking opportunities and industry updates.

ITB Asia 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.

Philoxenia Thessaloniki, Greece, November 18-21, 2011 (www.philoxenia.travel) The expo, now in its 27th year, aims at promoting tourism in Southeastern Europe and the Mediterranean. It acts as an international meeting point for professionals activated in different sectors of the tourism industry.

World Travel Market London, UK, November 7-10, 2011 (www.wtmlondon.com) Leading global event for the travel industry, presenting a diverse range of destination and industry sectors, providing an opportunity to meet, network, negotiate and conduct business.

EIBTM Barcelona, Spain, November 29 – December 1, 2011 (www.eibtm.com) Leading global event for the meetings and events industry, which gathers more than 14,200 professionals for three days.

Dubai Airshow Dubai, UAE, November 13-17, 2011 (www.dubaiairshow.aero) The foremost aerospace event in the Middle East, which consistently delivers key buyers and decision makers.

World Green Tourism Abu Dhabi, UAE, December 5-7, 2011 (www.worldgreentourism.com) An event that is supported by the ADTA and the EAD, and the only one in the region dedicated to the promotion of sustainable tourism.

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OCTOBER 2011