Travel Trade MENA July 2013

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JULY 2013

ISSUE 45

VIEW: ONLINE TRAVEL AGENTS Online travel platforms and web-based agents are witnessing rapid development, even in the Middle East where travellers are considered to be more conventional.

Travel and tourism professionals across the Kingdom of Saudi Arabia work continuously to mould its infrastructure and overall tourism product into seamless perfection.

04 EXPLORE: LIBYA Libya possesses tourism potential and the country’s gradually reviving industry is keen on realising its vision of turning the destination into a flourishing tourist hub.

09 IN THIS ISSUE MARKET UPDATE VIEW: Online Travel Agents VISIT: Saudi Arabia EXPLORE: Libya ONSITE: Greece EXCLUSIVE: Short-Haul Travel TOUR: Hong Kong INVESTIGATION: Exhibitions WHO’S MOVED TRAVEL TALK RENDEZVOUS NEWS & EVENTS

02 04 06 09 11 15 17 19 21 22 23 24

VISIT: Saudi Arabia

6

2

MARKET UPDATE

TRAVEL TRADE WEEKLY MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel COPY EDITOR Stefanie Saghbini SENIOR JOURNALIST Rita Kasziba JOURNALIST Maria Kazeli PRESS Maria Demetriadou Pauline Shahabian Derek Lainsbury DESIGN & LAYOUT Elena Stylianou DIRECTORS Andreas Constantinides Mary Kammitsi HEADQUARTERS T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607, Fax: +357 22 210466 WEBSITE www.traveltradeweekly.travel EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel PRINTED IN CYPRUS Cyprint Plc P.O. Box 58300, CY-3732, Limassol, Cyprus Tel: +357 25 720035, Fax: +357 25 720123 Email: info@cyprint.com.cy

MENA EXCHANGE RATES Accurate as of

25/06/2013

QAIA: Year-to-date Passenger Traffic over Two Million

Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

7.01

Saudi Arabia (SAR)

Riyal

3.75

Lebanon (LBP)

Pound

1,511.00

Bahrain (BHD)

Dinar

0.37

Jordan (JOD)

Dinar

0.71

Syria (SYP)

Pound

100.37

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.64

Morocco (MAD)

Dirham

8.49

Iran (IRR)

Riyal

12,283.00

Yemen (YER)

Rial

214.50

Algeria (DZD)

Dinar

79.57

Libya (LYD)

Dinar

1.28

Continuing its upward traffic trend, Airport International Group (AIG), the company responsible for the rehabilitation, expansion, and operation of Queen Alia International Airport (QAIA), reported a year-on-year increase of 1.4 percent in passenger figures for the air hub in April, welcoming 536,559 passengers during the month under review and lifting year-to-date passenger figures to 2,009,083, up 4.4 percent.

Despite a 1.9 percent drop in aircraft movements (ACM) in April, year-to-date ACM remains 2.1 percent above 2012 figures, accounting for 20,980 ACM. As Jordan continues to benefit from the traffic growth phenomenon across the Middle East, Kjeld Binger, CEO, AIG, expects strong results at QAIA. “As an active transfer hub and tourism destination, Jordan is expected to play an increasingly important role in channelling traffic in the region, especially now that QAIA enjoys significantly improved infrastructure and passenger capacity,” he said.

Middle Eastern Airports: Traffic Up 10.2 Percent Passenger traffic growth across the Middle East’s airports continues to outperform the global average, based on the Airports Council International’s latest report for April.

W

hile global passenger volumes increased by 1.8 percent year-onyear, international passenger levels were up 2.4 percent and domestic traffic climbed 1.3 percent, with the Middle East reporting a 10.8 percent surge in international passenger traffic flow and a 10.2 percent rise in total passenger volume.

Similarly, although many major US and European airports are still feeling the brunt of the economic slowdown, others hubs, including Dubai, Istanbul, and Kuala Lumpur continue to experience double-digit gains.

Total freight traffic worldwide rose one percent in April, and 3.6 percent in the Middle East.

Dubai International Concourse A

JULY 2013

4

VIEW

Online Travel Agents

Surfing the Web

Online travel platforms and webbased agents are witnessing rapid development, even in the Middle East where travellers are considered to be more conventional with regards to their travel arrangements, while the USD8.6 billion online travel market is set for further significant growth in the region. become very popular with the local Emirati population.

“Based on the success and earnings in this market, we expect to invest more resources to customise content and reach out to larger communities in the UAE. We are also planning a foray in GCC and also have plans to set up an Arabic website,” Gupta revealed.

Similar aspirations were disclosed by Steven Rice, senior commercial director, ebookers.com, who highlighted that the Middle East is and has been a very important market for the company, which boasts a dedicated hotel sourcing team to cover the region.

“We also have fantastic relationships with the key airlines that service the main hubs, plus our marketing and product teams continue to spend considerable time, and resources, developing and executing strategies to ensure we attract a large volume of customers. We expect this region to grow substantially in the future and the Middle East will continue to be a key focus for ebookers,” Rice elaborated.

EFFECTIVE COLLABORATIONS

 Maria Kazeli

R

writes

ecent statistics released by PhoCusWright have revealed that gross bookings made in the Middle East online travel sector, both through direct channels and online travel agents (OTAs), grew an impressive 18 percent in 2012 to reach an estimated USD10.5 billion, with these figures expected to increase by 22 percent, to USD15.6 billion, in 2014 during which OTA bookings alone are to amount to USD6 billion.

OTAs co-exist with various meta-search engines, which are channels enabling holiday makers to book directly with a hotel or airline, or through an OTA, and Wego is one such travel meta-search engine comparing the inventory of 700 travel sites to produce search results for its users, while in 2012 it launched its site in Arabic and established regional headquarters in Dubai.

Regarding content usage, Mohamad Ibrahim Masri, managing director, MENA, Wego, said, “Flights are the most frequent search, followed by accommodation though the ratio varies by market.

In terms of revenue, Wego India, for example, has a higher hotel component for weekend getaways by car or rail, but in Saudi Arabia two-thirds of the total is air with a much higher average transaction value.”

The reasons behind these online tools’ popularity were identified by Julie Pedersen, global public relations manager, momondo, who commented, “We find that travel meta-searches have carved an undeniable position within the online travel industry. momondo has retained its mantra; flexibility and reacting fast, often by creating a solution, where we see a gap in the market.”

A pure OTA gives users the option to buy the product through its own channel, as Mohit Gupta, chief business officer, MakeMyTrip, explained, “An OTA offers the dual advantage of choice and convenience.

You can choose to fly on one airline and return on some other airline. Customers booking with OTAs can access and select promotions and offers with a variety of partners like banks and airlines at competitive prices.”

In addition, Gupta pointed out that choice, convenience, transparency, and competitive pricing are the key reasons behind why consumers choose OTAs, since they have the freedom to avail services as per their preference and feel empowered in their transactions with OTAs, unlike offline transactions where the seller tries to heavily influence, and in some cases, push products on the customer.

The company’s foray in the UAE has been very successful, Gupta announced, saying that the brand is already well-known among Indian expats and has now

OTAs are a fast emerging distribution and booking tool used by an increasing number of people to access the content of hotels, which depend heavily on OTAs to fill up their inventory, according to Jagdish Pai, director of sales and marketing, Meliá Dubai, who expects collaboration with OTAs to intensify as it is a userfriendly, transparent, and financially secure medium to transact reservations.

“The electronic media, transparency of offers, and an emerging tech savvy population in a fast changing world will further push the popularity of OTAs,” conluded Pai. Along similar lines, Henning Fries, group director, operations, Habtoor Hotels, underlined that OTAs have a successful business model and as such they have become an integral part to the hotel industry’s value chain, therefore they will continue to be included in Habtoor Hotels’ future business strategy. “OTAs offer an excellent opportunity particularly for independent hotels to access markets which would otherwise be difficult to reach. As long as they continue to add value to hotels and other businesses, there is no reason to wish them away,” he further explained.

Commenting on whether the hotel industry should free itself from OTAs and sell its product solely through its own channels or not, Mohan Mahtani, director, reservation and online department, Golden Sands Hotel Apartments, believes this would be futile, as it is not JULY 2013

Online Travel Agents possible to compete with such hospitality giants and that hotels’ own channels can only supplement OTAs in that it can present an independent image in the virtual market.

Sharing the above opinion, Joydeep Ghosh, director of sales and marketing, Mövenpick Tower & Suites Doha, illustrated that OTAs bring in their own strength and add significantly to any hotel’s sales and marketing arsenal, which is especially beneficial to hotels that do not belong to big hospitality networks and need extra support.

Collaboration with OTAs is highly useful and on excellent terms for Radisson Royal Hotel, Dubai, as Agnes Hlavacs, director of revenue, Radisson Royal Hotel, Dubai, commented, adding that guests’ buying habits are changing towards online channels in most markets thus it is very important to ensure that the hotel is represented across these channels in the best possible way to capture these online shoppers.

EMPOWERING OTAS In a region where Arabic is a first language, it becomes important for OTAs to provide local and regional consumers with content and a user interface in their own language, while language support remains a key factor in the growth of online businesses in MENA, advocated Antoine Medawar, vice president, MENA, Amadeus, who

JULY 2013

ebookers.com

attested that most OTAs manage their own language customisation with the support of their in-house team.

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5

The primary objective for OTAs is to drive visitors to their website, increase customer loyalty and widen the customer base, and this is what Amadeus has prioritised in providing the industry with the right products and services, such as the Amadeus Master Pricer portfolio and the Amadeus Extreme Search solution.

Another leading technology services provider is Travelport which supports many OTAs and had originally developed the e-Pricing platform specifically for their ease. One of the factors pushing OTAs popularity especially in the MENA region is high Internet and smartphone penetration, according to Matthew Powell, regional product director, Middle East and Africa, Travelport. “The young population of the Middle East is at the helm of this change. At this point in time, 44 percent of the total Middle East population is less than 20 years old. In Saudi Arabia, the percentage goes up to 50 percent of the population,” he explained.

Also observing OTAs attractiveness, Akbar Al Baker, CEO, Qatar Airways, offered a valuable insight and said, “We live in an extremely ‘instant’ time, where people know the value of their time and live their lives accordingly. The convenience of being able to research and plan a trip at leisure is definitely one the main reasons behind the popularity of OTAs.” 

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Saudi Arabia

UNIQUE STORY

OF SUCCESS

Saudi Arabia has long been luring in 10s of millions of tourists to its shores annually, all of whom come to enjoy its many faces, as travel and tourism professionals across the Kingdom work continuously to mould its infrastructure and overall tourism product into seamless perfection.

The world's largest mosque, Al-Masjid Al-Haram

Riyadh

 Stefanie Saghbini

S

writes

audi Arabia is the largest economy in the region and its GDP is forecast to grow by about five percent over the next few years, according to Chong Kee Hiong, CEO, The Ascott Limited (Ascott), who uttered these words while securing the management contract for Ascott’s first premier serviced residence in the Kingdom’s capital city, Riyadh.

“Saudi Arabia has the largest banking sector in the Middle East and is home to the 11th largest stock exchange in the world,” Hiong continued, adding that the country has been attracting huge volumes of foreign investments as its economy continues to diversify and grow.

Alex Kyriakides, president, Middle East and Africa, Marriott International, concurred, describing Saudi Arabia’s tourism sector as one which boasts strong growth potential, with an average increase of 6.5 percent year-on-year projected through to 2014.

Similarly, Mahmoud Mokhtar, vice president, operations, Saudi Arabia, Hilton Worldwide, commented, “The Kingdom is experiencing an influx of tourists; indeed, according to the latest World Tourism Organization (UNWTO) World Tourism Barometer, Saudi

Arabia saw a 14 percent growth in tourism in 2012, the fifth best performer globally.

“While many of the leisure travellers are pilgrims heading to the holy cities of Makkah and Medina, visitor expansion continues in other areas including corporate and MICE sectors as well as other leisure sectors.

“Tourist figures, domestic and international, are rising and the latest news by Saudi Commission for Tourism & Antiquities (SCTA) to mount a concerted effort to secure World Heritage status for several cultural and historical sites in the Kingdom is particularly welcome. If successful, this will give Saudi’s tourist industry a major global boost and will go a long way to achieve the Kingdom’s objective to attract 24 million arrivals by 2017.”

In line with this bright picture ahead, it is to no surprise, therefore, that SCTA continues to invest copious amounts of time and effort to upkeep the country’s travel and tourism infrastructure, in a bid to relentlessly cater to its visitors to the best of its abilities, side by side with UNWTO, as Taleb Rifai, secretary-general, UNWTO, recently pointed out.

Speaking at the headquarters of tourism organisation in Madrid, Rifai affirmed, “SCTA represents a unique story of success in the world,” he added. “Its great success in the organisation of tourism and antiquities sectors […] has enhanced its reputation and credibility among ministries of tourism and members

SAUDI ARABIA IN BRIEF Capital: Riyadh Currency: Saudi Arabian Riyal (SAR) Language: Arabic

of UNWTO, which we have actually touched recently.”

EMPOWERING ITS STATUS Progressing parallel to Rifai’s optimistic outlook, a large number of small- and large-scale developments are being planned over the next few months, in tangent with the Kingdom’s rising travel and tourism investments, which are set to escalate by 1.7 percent this year, over 2012 figures, according to World Travel & Tourism Council’s Economic Impact 2013 Saudi Arabia report.

Overall, travel and tourism investments reached SAR20.6 billion (USD5.5 billion) in 2012, equivalent to 4.9 percent of the country’s total investment, with these figures set to soar four percent per annum over the next decade, to reach SAR30.9 billion (USD8.2 billion) in 2023, representing 4.7 percent of the total investment figure.

With this metric on the rise, the report further shows that travel and tourism’s direct contribution to the Kingdom’s GDP is forecast to grow by 8.2 JULY 2013

Saudi Arabia percent this year, over figures recorded in 2012, where SAR52.1 billion (USD13.9 billion), or 2.2 percent of Saudi Arabia’s GDP, was achieved thanks to the increase in visitation figures.

The next decade is set to witness an elevation of four percent per annum, to reach SAR83.7 billion (USD22.3 billion) in direct contribution of travel and tourism to the Kingdom’s GDP by 2023.

In line with Saudi Arabia’s rocketing travel and tourism infrastructure, the sector’s most outstanding companies in the Kingdom showcased their products at the Saudi pavilion of the 20th session of Arabian Travel Market (ATM) in May, this according to H.E. Hamad bin Abdul Aziz Al Sheikh, assistant vice president, marketing, SCTA. Al Sheikh further stated that the aim of participation was to promote and draw investments to Saudi tourism destinations as well as market the Kingdom as a preferred tourism destination in GCC countries, perfectly timed to kick-start the summer season.

Similarly, exhibitors, co-exhibitors, and visitors, highly-praised the team at the recent Riyadh Travel Fair 2013, for providing them with a professional atmosphere, describing the show as the greatest level of tourism and destinations under one roof, as Bander Al-Gryni, general manager, ASAS Exhibitions & Conference Organizing Company, the show’s organisers, pointed out.

The fifth edition of show, which took place in mid-April at Four Seasons Hotel Riyadh at Kingdom Centre, spanned over 4100m2 and welcomed 13,678 visitors and 176 exhibitors across 32 countries, 47 percent of which were from the MENA region, 30 percent from Asia, and 18 percent from Europe, while the remaining attendees hailed from Australia (two percent), Africa (1.6 percent), and the US (1.4 percent).

Another recent, albeit smaller-scale, gathering, which set a strong focus on Saudi Arabia’s hospitality segment, was an invitation-only business breakfast meeting, which took place in May at The Ritz-Carlton, Riyadh.

Bringing together travel and tourism professionals including Kyriakides, who organised the event, as well as Badr Al Badr, CEO, Saudi Hotels & Resorts Co. (Sharaco), Gabriel Matar, head, hotels and hospitality, Jones Lang LaSalle, and Philip Wooller, area director, Middle East and Africa, STR Global, views were shared on the Kingdom’s booming hotel market while participants were provided with an insight into industry updates and prospects.

“STR’s report showed that the KSA room supply is around 50,000 operating rooms and a further 25,000 rooms under construction, which, in total, represents less than 1,875 rooms per million domestic and international travellers combined; a ratio which is significantly lower than mature markets,” commented Kyriakides.

However, Kyriakides further pointed out that with exponential growth projected for both inbound and domestic travel, driven by a number of large-scale projects, including the expansion of the Holy Mosques in Mecca and Medina, as well as a number of economic/industrial cities throughout the country and large infrastructure projects such as railroads and airports, the potential of the Saudi market is to more than double in size by 2020.

In fact, SCTA expects domestic tourism in the Kingdom to grow this summer by five percent compared JULY 2013

to 2012, with the rate of spending exceeding SAR10.5 billion (USD2.8 billion), compared with SAR8.9 billion (USD2.4 billion) in 2012, thus increasing 18 percent, as depicted in a statistical report released by Tourism Information and Research Centre (MAS), the statistical information and tourism research branch of SCTA. The research also showed that for the period July - August, there will be an increase of some 300,000 domestic tourists compared to the two-month stretch in 2012, to reach approximately 5.3 million visitors, while overnight stays in tourist accommodations this summer will reach 4.9 nights per person, bringing in a total of 25.9 million nights compared to 24 million nights for the same period in 2012. This is expected to trigger an eight percent rise in rate expenditure per tourist per night between July and August, or SAR406 (USD108).

GLOBAL TRENDSETTERS At the business briefing in Riyadh, Wooller described the hotel performance of some of Saudi Arabia’s key cities as comparable with the well-established cities of London, Paris, Tokyo, and New York, further announcing that Jeddah achieved similar occupancies to these global tourism hubs during 2012, while Riyadh surpassed average room rate.

“The next two to three years will see a considerable increase in hotel room supply particularly in Riyadh,

Riyadh

Jeddah, and Mecca, but with large government-supported projects across the country, I see no reason why demand will not keep pace with the supply,” explained Wooller.

These positive results were also presented in TRI Hospitality Consulting’s HotStats UK, Europe & MENA 2013 Hotel Industry Report, which reported growth in average room rate (ARR) of 10.9 percent to USD227.39 and room occupancy of 5.2 percentage points to 79.4 percent, across Jeddah year-on-year, resulting in RevPAR improvement of 18.7 percent to USD180.54.

Meanwhile, 2012 proved to be a more challenging year for Riyadh, whose occupancy levels reached 59.2 percent, marking a decline of 2.3 percentage points over 2011 results, bringing ARR down 2.2 percent to reach USD244.86, and RevPAR down 5.9 percent to USD 144.97.

So far so good for the two cities this year however, as shown in the company’s HotStats MENA Chain Hotels Market Review – April 2013 report, which illustartes

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that during the month under review, hotels in Jeddah demonstrated particularly strong profitability, highly attributed to the Jeddah International Tourism and Travel Exhibition, which attracted 25,000 attendees; the city’s ARR grew 14.2 percent, to USD242.82, which drove RevPAR up 13.9 percent, while occupancy declined 0.2 percentage points to 79.4 percent.

A number of large events in Riyadh also helped occupancy grow 4.3 percentage points to 74.1 percent in April, however ARR declined 2.1 percent to USD246.15 on the back of the growing supply, especially in the mid-market segment and compressed RevPAR growth to 3.9 percent, the study showed.

Providing his comments on the results, Peter Goddard, managing director, Middle East and Africa, TRI Hospitality Consulting, said, “Although Jeddah experienced a slight reduction in occupancy levels during April, hoteliers were able to maintain the growth in ARR this year […]. Riyadh, on the other hand, is experiencing declining rates as a number of new hotels enter the market. With over 1,500 [additional] rooms expected this year, hoteliers will face continued pressure on performance as new hotels [launch] with low rates in order to carve out market share.”

PRIMARY OPERATORS OF CHOICE Abdul Latif Jameel Real Estate Investment Company (ALJREIC), one of the Kingdom’s leading real estate and development companies in Saudi Arabia, is geared up to inaugurate its Anjum Hotel during the third quarter of the year.

Part of Jabal Al Ka’ba project, a SAR10 billion (USD2.6 billion) development which is set to see the construction of 8,500 rooms in a cluster of hotels in Mecca over the next two years, Anjum Hotel will be offering 1,743 rooms and suites upon completion, along with a wide range of Sharia-compliant hospitality services, based on global standards.

Yousef Abdul Latif Jameel, chairman, ALJREIC, commented, “Our SAR10 billion (USD2.7 billion) investment into the Jabal Al Ka’ba project in Makkah is aimed at further strengthening the travel and tourism infrastructure in Saudi Arabia.”

Another hotel group which is focusing on the expansion of its operational hotels in the holy city of Mecca is Makarim Hospitality Group, the hotel and resorts arm of Sharaco, which is expected to open the 104-room Makarim Shorofat Hotel in the third quarter of the year.

Upon completion, the four-star hotel will bring the group’s tally in Mecca to 1,400 rooms across five hotels; a presence which Badr described as strong and one which, he stressed, resulted in a growth of revenue for the group of 20 percent in 2012.

Also taking an industry lead in keeping pace with the Kingdom’s vision and ambition is Hilton Worldwide, whose team places confidence in the future of the country as well as in the new set of hotels expected to open in the next few years, this according to Mokhtar.

“Hilton Worldwide currently has six hotels in four cities across Saudi Arabia, with a further 20 hotels in our development pipeline,” he added, listing the 

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Eastern Province areas of Al Jubail and Al Khobar, the northwest province of Tabuk, and Riyadh as the properties’ future locations.

“As part of the Jabal Omar Development, six properties will be developed in Makkah alone, which will help meet the demand of the increasing number of religious visitors to the holy city,” Mokhtar continued.

Meanwhile, having recently entered into an agreement with Hamad Abdulaziz Almousa Trading Group, Hilton Worldwide is preparing to welcome DoubleTree

by Hilton Al Khobar Corniche in 2104, which will mark the hotel group’s third property in the city.

Following a similar signed deal with Abdullah Aziz Al Rajhi & Sons, Hilton Worldwide is gearing up to launch its 20th property in the Kingdom and eighth in Riyadh in mid-2015, with the 309-room DoubleTree

by Hilton Riyadh - Olaya, ideally positioned at the capital city’s main artery, Olaya Street.

Saudi Arabia also remains at the forefront of Marriott International’s priorities, according to Kyriakides, who recently welcomed the 277-room Courtyard Riyadh Diplomatic Quarter with yet another Marriott International property slated to launch in the city in 2015, namely Courtyard by Marriott Riyadh North.

In addition, the hotel group is set to increase its portfolio in the holy city to 11 in total, with the 2014 openings of the 450-room Makkah Marriot Hotel, the 636-unit JW Marriott Makkah, and 432-room Courtyard by Marriott.

Hyatt International will also soon be spreading its presence across Mecca when it opens a 627-room Hyatt Regency, 200-key Hyatt Place, as well as a 200-unit Hyatt Summerfield Suites-branded property in 2014.

Another hotel giant benefitting from the Kingdom’s blossoming tourism industry is Accor, which launched its flagship brand, ibis, in the country in December 2012, namely ibis Riyadh Olaya, featuring 176 rooms, including 16 spacious units dedicated to families, and four rooms for individuals with special needs.

In addition, the first Suite Novotel, also under Accor, in Saudi Arabia opened at the start of the year, as part of a collaborative agreement with Al Hokair Group; the 115-room Suite Novotel Riyadh Olaya, which caters to corporate and leisure guests.

Moreover, Novotel Jeddah, which is slated to open by the end of the year, will feature 143 rooms and suites as well as business and leisure amenities.

Describing the country as a key market for the company, Christophe Landais, managing director, Middle East, Accor, noted, “We just recently signed two new contracts for Sofitel and Suite Novotel in Riyadh, and have now a pipeline totalling eight projects under construction in the Kingdom.”

The team at Ascott also views the Kingdom’s strong potentials, especially for serviced residences, this according to Hiong, whose partner in the upcoming Ascott Olaya Riyadh, Sym Lee, head of GCC, Ascott, added, “There is huge demand for quality accommodation in Riyadh but international-standard serviced residences is lacking. Ascott Olaya Riyadh will address the needs of expatriates and travellers for a spacious, secure, and comfortable place to call home.”

Slated for opening in 2015, Ascott Olaya Riyadh,

Saudi Arabia

SAUDIA

which will be part of a Rafael Real Estate Development real estate project and will offer guests a mix of studios, one-, and two-bedroom apartments.

InterContinental Hotels Group (IHG) also recently opened the eight-storey, 290-room Holiday Inn Riyadh Meydan, which Pascal Gauvin, chief operating officer, India, Middle East, and Africa, IHG, views as an answer to the city’s growing demand for comfort, functionality, and value accommodation.

This launch followed the opening of the 506-room Crowne Plaza Madinah, the hotel group’s first Crowne Plaza hotel in the holy city, located just steps away from Masjid Nabawi, one of the world’s largest mosques.

“With one of the best locations in the holy city of Madinah, we are confident that Crowne Plaza Madinah is the perfect destination not only for religious travellers but also for business and leisure guests,” commented Mostafa Blanco, general manager, Crowne Plaza Madinah.

IHG also recently signed an agreement with Dyafah Al Mutahida to launch the first Staybridgebranded property in the Kingdom, with the 200-key Staybridge Suites in Jeddah.

No stranger to Saudi Arabia is The Rezidor Hotel Group which is preparing to announce its 10th operational hotel in the country when it launches the 250unit Park Inn by Radisson Jeddah in the fourth quarter of 2014. Meanwhile, the inauguration of the 252-key Radisson Blu Hotel, Riyadh North Ring Road, is expected to follow Park Inn by Radisson Jeddah, when it takes place during the first quarter of 2015.

Moreover, Kerzner International Holdings entered into an agreement with Al Khozama Management in partnership with Saudi Oger, to develop and operate a 150-room One&Only resort in Obhur, north of Jeddah, boasting a 230m stretch of beach on the Red Sea coast.

According to Alan Leibman, CEO, Kerzner International Holdings, Jeddah is the perfect location for the first One&Only experience in the Kingdom of Saudi Arabia; a property which, he added, will be well-received by the many loyal One&Only guests and new guests alike.

A GLOBAL AIR HUB Alongside the rapid growth in hospitality developments across the country, is the upcoming expansion of Riyadh’s King Khaled International Airport (KKIA)’s Terminal 5, aimed at enriching passengers’ experience through the architectural and operational integration

of the airport’s existing terminals.

TAV Construction, a world’s leading airport construction company based in Turkey, recently won the design and construction tender for the airport’s Terminal 5, which will be completed within the next 16 months. Built with an investment of USD400 million, the project will involve a 100,000m2 passenger terminal and various auxiliary facilities, 90,000m2 multi-storey car park with a capacity of 3,000 vehicles, fire brigade building, and power station, just to name a few.

According to Sani Şener, CEO, TAV Group of Companies, the driving force behind TAV Construction and its USD16 billion worth of projects across the MENA, the contract value is USD400 million, making it a very important project and one which will pave the way for the airport’s privatisation.

The group’s investment and operation in Medina is also ongoing, Şener informed, concluding that work on TAV Construction’s USD800 million hangar construction project at Jeddah Airport also continues.

Meanwhile, the Kingdom’s national flag carrier, Saudi Arabia Airlines (SAUDIA), recently began its summer plan which is aimed at strengthening its position in the global aviation industry and capturing a fair share of the market, according to Faisal bin Ghazi Kayyal, vice president, planning and revenue management.

Kayyal further informed that SAUDIA carried 5.8 million passengers during the summer period of 2012 alone, marking an increase of 13 percent over the summer season in 2011, attributing the restructuring of international flights to the boost in figures. “We have also intensified our flights to major international destinations and this has contributed to increasing our market share,” Kayyal added.

As part of its efforts to restructure its domestic flights for the peak summer season and to meet the requirements and demand of people living in the region, the national carrier’s team has made as many seats as possible available, to and from the Kingdom’s major cities, as Abdullah Al-Ajhar, executive vice president, public relations, pointed out.

This growth in operations comes alongside the arrival of 65 out of the 90 new aircraft ordered by the airline, from Airbus and Boeing.

Furthermore, nasair, the Kingdom’s low-cost airline, recenty announced that it recorded a 20 percent increase in passenger numbers between January and May, compared to the results released during the five-month stretch in 2012, while its number of flights surged by 11 percent.

As François Bouteiller, CEO, nasair, noted, “The past year has been phenomenal as we saw the airline go from strength to strength. As Saudi’s national [low-cost] airline, we try to be more innovative to keep the services exciting and effortless to our customers. This approach has shown to be effective and we look forward to sharing further growth indicators soon as this is the most exciting time for aviation in the Middle East.”

Launched in the Kingdom in February 2007, nasair now provides a range of travel options to over 11 million passengers, with 950 weekly flights covering 88 routes both within and outside Saudi Arabia.  JULY 2013

EXPLORE

Libya

9

A Large Undiscovered Treasure

 Rita Kasziba writes

A

s Libya continues to pass through a critical period in its history, the country is relying heavily on its tourism industry to guide it through this crucial time of change and socio-political transformation, as a means of rebuilding its infrastructure, economy, and, most importantly, its image.

To exploit the country’s tourism potential, the Ministry of Tourism has outlined an action plan focused on institutional capacity building to pave the way for sustainable tourism development and has called on the public and private sectors’ active participation and support to help implement the strategy.

“Achieving sustainable tourism is a propeller to create employment, diversify Libya’s national sources of income, and promote our image as an attractive tourism destination, domestically and abroad,” said Ikram Bash Iman, minister of tourism, Libya, further stressing that the revitalisation of domestic tourism will also foster national cohesion in the crucial time of nationwide rebuilding.

To move the action plan forward and support the industry’s development as an effective way to increase national revenue, create employment, enhance national cohesion, and burnish the country’s image, the ministry has enlisted the World Tourism Organization (UNWTO)’s help to assist it in its tourism development efforts.

During UNWTO’s two-day workshop in Tripoli in June, issues such as institutional framework building, human resources development, sustainability and image building, and marketing have been addressed.

“Libya is a prime setting for tourism development, being blessed with natural, cultural, and archaeological assets, including five UNESCO World Heritage Sites,” noted Taleb Rifai, secretary-general, UNWTO, describing tourism as the right vehicle to contribute JULY 2013

With its abundant natural beauty, some of the least spoilt beaches on the Mediterranean coastline, prehistoric remnants, and archaeological marvels, Libya possesses a wealth of tourism potential, and the country’s gradually reviving industry is keen on realising its vision of turning the destination into a flourishing tourist hub. to the international repositioning of Libya and support its sustainable economic development and job creation particularly among the youth.

INTERNATIONAL RETURN The latest edition of the World Travel Market (WTM) in London marked Libya’s return to the global stage, where 33 percent of the respondents of a survey carried out agreed that Libya has tourism potential, while 12 percent stated that the country holds significant potential, citing the country’s 1,800km long coastline, history and culture, climate, Roman Empire legacy, and proximity to Europe as its main strengths.

“Libya could be one of tourism’s most exciting destinations in the future,” stated Simon Press, director, WTM, noting that countries such as Vietnam and Croatia have repositioned from conflict zones to tourism hotspots, thus there does not exist a reason as to why, over time, Libya cannot do the same.

Meanwhile, Ahmed Omar Maiteeg, chairman, DAA Construction & Tourism Investment, whose portfolio also includes Thobacts Hotel, Tripoli, brought to surface the need to further enhance air connections and

LIBYA IN BRIEF Capital: Tripoli Currency: Libyan Dinar (LYD) Language: Arabic

transmit a positive image of the country.

“Prior to the onset of the violence, the government developed a tourism plan [to] expand adventure and domestic tourism,” explained Maiteeg, noting that airport and road development along with rail projects are also among the main priorities.

According to Maiteeg, the past 12 months have brought positive developments for the country’s tourism industry, with most travellers visiting Libya for the first time, who, as Maiteeg affirmed, appreciate the improvements.

He listed the UK, Italy, and Turkey among the hotel’s main source markets, adding that these nationals never lost their faith in Libya and are now even more keen on visiting the country and exploring potential investment opportunities.

At Thobacts Hotel, whose occupancy now averages around 70-80 percent, the main focus is on the French, Italian, and other European business travellers and delegations, added Maiteeg.

TACKLING THE CHALLENGES In fact, an increasing number of businessmen and organisations are heading to Libya, as the country is expected to invest USD140 billion in projects over the next decade in line with its endeavours to build a sustainable future.

As it was revealed at the recent Libya Projects 2013, the government’s development strategy includes various sectors from infrastructure to energy, as well as a USD2.5 billion upgrade to the country’s 

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busiest airports in order to expand capacity to over 28 million passengers per annum from the currently estimated five million.

Apart from the aviation industry, the hotel sector is yet another challenge. According to Maiteeg, Tripoli’s room inventory currently stands at around 3,000 rooms, and given the positive forecasts, this number is set to skyrocket to 100,000 within the next decade.

“There is a large untapped market to consider for the growth of travel and tourism in the future,” stressed Maiteeg, adding that a great deal of reconstruction and effective promotional activities are needed, in addition to tourism courses in schools and efforts geared towards getting the country back on its feet and engaging more in tourism developments.

Although hotels are plentiful, during the high tourist season, between October and February, top quality accommodation becomes difficult to book upon arrival, therefore building more hotels to international standards is one of the main issues.

Professionals working in the Libyan industry agree that despite the growing demand for tours to Libya, potential visitors are still knocking on closed doors.

Libya is a prime setting for tourism development, being blessed with natural, cultural, and archaeological assets, including five UNESCO World Heritage Sites “At the moment, the Ministry of Tourism is not offering tourist visas to Libya. We have requests every week, however, we are unable to serve [these travellers],” explained Ramzi Altni, manager, Libya Adventures, adding that relaxing visa regulations is essential if the country is to realise its tourism potential.

“Libya has all the pieces to become an amazing tourism destination,” Altni added, further remarking on the importance of distinguishing the destination

Libya

in order to better market it. “Libya will need to make a decision in the near future if it wants to be a holiday hotspot or a cultural destination.”

In fact, the government lays great emphasis on developing the tourism sector in order to diversify the economy away from oil and gas, thus the Ministry of Tourism is on a mission to transmit a positive image of the country and apart from attendance at travel trade events, it recently held a number of meetings with representatives of various countries, including Italy and Jordan, to enhance bilateral ties and discuss cooperation in the tourism sector.

Demonstrating the international community’s commitment to Libya, Starwood Hotels & Resorts Worldwide plans to make its debut in the country within months with Four Points by Sheraton Tripoli currently slated for opening on September 1, 2013.

The beachfront property, close to the colonial downtown area, will feature 204 rooms, including 18 suites, and will boast easy access to traditional bazaars, ancient Turkish baths, and the old town.

Likewise, a number of airlines announced their

As Abdul Amer, media officer, Libyan Airlines, explained, the airline carried some 1.25 million passengers in 2012, and it currently operates to seven local and 12 international destinations in 10 countries from the airports of Tripoli and Benghazi.

Speaking about Libyan Airlines’ growth plans, Amer suggested that demand is set to increase 250 percent by 2015, therefore the airline continues to invest in its fleet, with the latest additions being two new Airbus A330 aircraft.

Libyan Airline’s proposed merger with Afriqiyah Airways has been postponed a number of times and, according to Amer, the plan is currently being halted while the airline also awaits the European Commission’s decision to lift the current ban on the carrier flying in EU airspace.

“Expectations said that the ban will be lifted after the middle of this summer, however, it depends on the safety and security [situation],” Amer explicated, adding that the airline is keen on resuming flights to these European destinations and to further grow its network, especially in Asia and a few African counties.

“Libyan Airlines’ future plan concentrates on playing a pivotal role in linking Africa with Europe and Asia, and increasing the traffic from and to Libya,

return to the country; Qatar Airways has recently updated its Tripoli service to non-stop, while Emirates is set to resume flights to Tripoli as of September 1.

“We have been closely monitoring the situation in Libya and feel that the time is right to re-launch our services, which will help support business, international trade and passenger travel to and from Tripoli, as well as strength the country’s overall infrastructure,” explained Jean Luc Grillet, senior vice president, commercial operations, Africa, Emirates.

Since its establishment in 1964, Libyan Airlines has played a crucial role in connecting the country with different markets and cultures, and although the past years have brought significant changes and challenges, the national flag carrier continues to be a major driving force behind Libya’s revival.

while also increasing trade exchange and tourism,” concluded Amer.

Summarising the industry’s positive expectations, Maiteeg, said, “The new government aims to truly improve the lives of Libyans and the image of the country abroad, in an effort to boost the economy and, ultimately, the travel and tourism industry.”

Praising the government’s recent efforts, Ahmed Elalem, manager, C-Libya Tourism Company, explained that the country is now working hard trying to stand up again. “We believe that Libya can be a great touristic destination for all people,” he stated, while his colleague, Mahmud Tabib, manager, C-Libya Tourism Company, concluded, “We have what it takes to become the new and most exotic touristic destination in the Middle East and Africa.” 

ALL FOR ONE

JULY 2013

ONSITE

Greece

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Ancient Glory, Modern Perseverance

Following the return of political stability to the country, Greece’s tourism revenues are expected to bounce back this year to pre-crisis levels, as the Mediterranean destination pins its hopes on the warm climate, crystal water seas, long sandy beaches, and ancient monuments to pull it out of deep recession.  Maria Kazeli

F

writes

ollowing feedback provided from the tourist market, Greek authorities and industry professionals are rather optimistic in terms of tourism revenues for this year, as Angela Varela, director, marketing department, Greek National Tourism Organisation (GNTO), disclosed, adding that this positive outlook is due to the highly influential surrounding political, social, and economical fluctuation.

She revealed that holiday bookings made with significant tour operators in Europe so far indicate an increase from key markets, such as Great Britain, Germany, and the Netherlands, in comparison to 2012, while the authority also expects a rise in reservations from Eastern Europe and emerging markets, like China and Russia.

According to the Hellenic Statistical Authority, in 2012, the country received 256,973 visitors from MENA, whereas in 2011 the corresponding figure reached 262,848, thus marking a 3.1 percent drop in the overall numbers from the region. However, the authority’s data revealed that there was a 55.8 perJULY 2013

GREECE IN BRIEF Capital: Athens Currency: Euro (EUR) Language: Greek

cent surge in visitors from Iran and a 161.3 percent increase on Lebanon and Syria visitation figures.

In the past, Middle East travellers knew Greece very well and used to flock to the country often, according to Varela, who added, “Unfortunately, in recent years, the image of Greece in these countries, has been somewhat distorted by inaccurate media reports. Middle East travellers who come to Greece discover an ideal destination to conduct business and recreation. Greece’s unique tourism resources are comprised of a mild Mediterranean climate, superb cuisine, perfect beaches, unique monuments, archaeological sites, imposing mountains, spectacular landscapes pleasantly combined with culture, values, and a tradition that comes alive during events that take place all year around.”

She went on to explain that for the Gulf mar-

kets, GNTO aims to cooperate with key players who promote specialised packages according to tourist interests, while the new vision of Greek tourism will highlight the differential quality tourism product by attracting more tourists and experienced travellers, with the thematic axes, forming the foundation of the country’ s tourism product for the next years, being sun and sea, culture, diving, health and wellness, gastronomy, luxury, and city tours.

ATTRACTING MICE Within the framework of the City of Athens development and tourism promotion action plan aiming to highlight the capital in the international tourism market, Athens Development & Destination Management Agency (ADDMA) reached a cooperation agreement of strategic importance with the European Tour Operators Association, which saw the establishment of a series of annual business-to-business workshops under the name ‘Travel Trade Athens’.

The first such three-day trade event was held on April 22-23 at the New Acropolis Museum and comprised pre-scheduled appointments with local 

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Greece

suppliers, thematic visits around Athens, and social events for at least 80 hosted buyers including tour operators, conference and meeting organisers, and distinguished journalists from Europe and the US. Up to 200 businesses and suppliers from all sectors of the local tourism industry participated in order to present their services and products and to discuss ways of cooperation with the hosted buyers.

Commenting on the outcome of the event, Chrisa Konstantopoulou, manager, travel trade and online communications, Athens Convention & Visitors Bureau, attested that feedback for the workshop was extremely positive, with the majority of the participants (91 percent) showing their interest in attending 2014’s event and enriching, as well, their packages with new services and products.

She further noted that Travel Trade Athens drew

the attention of new markets such as India and Japan providing them the opportunity of gaining first-hand practical knowledge and features that will generate additional business initiatives. “Athens’ business tourism has suffered these past few years due to the economic crisis and organisers were hesitant to bring events to the destination. Nevertheless, we observe a constant rise in the demand of the destination especially for events in 2014 and 2015. […] Athens’ business tourism product stands strong offering highly competitive prices and services,” concluded Konstantopoulou.

Another popular venue in Athens for all types of events, among which are conferences and incentives happenings, is Aegli Zappiou, according to Anna Gilly, corporate sales manager, Aegli Zappiou, who said that participants from MENA form quite an important

Caryatides at Acropolis

percentage for the events organised by the European market. “We are more than positive that MICE tourism can benefit a lot, not only companies individually but also Greece as a business destination,” she added.

ENCOURAGING NUMBERS With a 7.2 percent of its total clientele coming from MENA, thus registering an increase of 13 percent in the first quarter (Q1) of this year, compared to the corresponding period in 2012, the team at Hotel Grande Bretagne, a Luxury Collection Hotel looks to capitalise on Greece’s recovery, as Aris Lefas, director of sales and conference services, Hotel Grande Bretagne, a Luxury Collection Hotel, Athens, and King George, a Luxury Collection Hotel, Athens, attributes this pleasant development to the property’s extensive attention to its Arab clientele.

“Hotel Grande Bretagne has staff trained in the Arab culture and naturally we have several associates in the operations departments speaking Arabic. Furthermore, we offer extended timing on our food and beverage services in order to meet the needs of our Arab guests [...]. An extended number of Arabic chan-

nels are available on our TVs, as well as a significant number of Arabic newspapers and magazines for sale in our gift shop. Last but not least, we are currently in the process of finalising the translation of our hotel website into Arabic,” Lefas said.

He further declared Athens as a favourable destination in the MENA region, thus efforts by the Athens Convention & Visitors Bureau support the city’s promotion, not only as a leisure hub but primarily as a business one, especially for incentives and meetings, since it has plenty to offer with regards to quality accommodation, exclusive venues, outdoor activities, indigenous cuisine, and a unique combination of history and present, which caters for all needs.

Lefas also suggested that Greece traditionally has been a leisure destination for the Middle East visitor who would choose the country for its beautiful islands and exclusive resorts, however, in recent years, there has been an upcoming trend for the MICE segment and an increased interest from companies, primarily in the pharmaceutical and medical as well as the investment and banking sectors.

In addition, for Hilton Athens, MENA guests represented six percent of its total visitors in Q1, with a 50 percent growth compared to 2012, according to Bart van de Winkel, area general manager, Greece and Cyprus, Hilton Hotels & Resorts, who admitted that MENA markets are important to the hotel, which remains popular for the Arab clientele, situated at a walking distance from Kolonaki shopping district and featuring the largest number of Acropolis-view rooms.

Regarding business tourism, he added, “The Middle East is a growing market and their MICE sources are slowly finding their way to Greece thanks to direct flights from Cairo, Doha, Abu Dhabi, and Dubai. The MICE opportunities from the Middle East are mainly found in the pharmaceutical, governmental, and petroleum industry.”

Even though no change was recorded in MENA guests hosted at Capsis Hotels & Resorts for Q1, JeanMarc Roucos, sales and marketing director, Capsis Hotels & Resorts, believes that a number of Greek hotels are adequately equipped to cater for such needs, like the OUT OF THE BLUE, Capsis Elite Resort which can offer Arab guests suites with private pools for extreme privacy for ladies, pork-free menus, prayer rugs, and bidets in bathrooms. However, he advocates that MENA can evolve as an important market for Greece only once it is marketed effectively within the region.

The same belief is shared by Katerina Giannioudi, director of sales and marketing, Radisson Blu Park Hotel Athens, who said that the number of MENA guests to the property on an individual basis is still very low, something which she attributed to the fact that Athens is unknown to MICE business due to lack of promotion and knowledge of what is on offer.

Similar views were also expressed by Thomais Tsolomiti, owner, Thomais Travel, who attested that most visitors from the Middle East this year had travelled for short leisure trips, business, and health tourism, as she wishes for good marketing to take place in order to promote Greece.  JULY 2013

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RAISING THE BAR Starwood Hotels & Resorts Worldwide announced in March that the internationally-renowned King George Hotel would join The Luxury Collection Hotels & Resorts portfolio and, as a result, the company, in partnership with Lampsa Hellenic Hotels, opened King George, a Luxury Collection Hotel, Athens, on June 5, marking the brand’s eighth property in the country.

Featuring a majestic neoclassical façade, King George Hotel, a Luxury Collection Hotel, welcomed its first guests in 1936 and occupies a prime location in the historic Syntagma Square, the centre of Athens’ golden quarter, as it is situated between the Parliament and the fashionable Voukourestiou Street, within walking distance from the Acropolis, the Old City of Plaka, and other notable sights in Athens.

According to Lefas, the hotel, which features 59 elegant rooms, 43 suites with views of the city and the

Greece

century symbol of Athens.

Stelios Vasilakis, co-chief public affairs officer, Stavros Niarchos Foundation, explained that MICE tourism is especially important at this moment, as it allows visitors to witness progress, as well as experience all that Greece has to offer, and to that end, Stavros Niarchos Foundation organised its Second Annual Conference on Philanthropy end of June, providing guided tours of the SNFCC site, where attendees viewed first-hand the foundation’s commitment to and conviction in the country’s future.

OPENING UP THE SKIES With a common goal to create a favourable setting in the aviation market of Athens and further enhance passenger traffic, as Yiannis Paraschis, CEO, Athens International Airport (AIA), proclaimed, AIA and Aegean Airlines presented their initiatives for the summer season, in March.

Hotel Grande Bretagne, a Luxury Collection Hotel, Athens

Acropolis, and a two-bedroom Penthouse Suite with a private terrace offering a panorama of Athens, alongside a private swimming pool and open-air Jacuzzi, will target MENA travellers, which, he described as is a promising market.

Another ambitious project underway, as Lenia Vlavianou, co-chief public affairs officer, Stavros Niarchos Foundation, analysed, is the development of the Stavros Niarchos Foundation Cultural Center (SNFCC); a sustainable arts, education, and recreation complex that includes new facilities for the National Library of Greece and the Greek National Opera, as well as the creation of the 170,000m2 Stavros Niarchos Park; a plan announced in 2006 by Stavros Niarchos Foundation which funds the project through an exclusive grant of EUR566 million (USD752 million).

Upon its completion in 2015, the project aspires to provide a vital destination for travellers, tourists, and culture aficionados and ultimately impart a 21st

“For any metropolitan airport, as well as for AIA the existence of a strong and viable home-based carrier operating from Athens is extremely important. It is only through cooperation and joint actions that we can expect and shape a more favourable operating framework for both the aviation market and the enhancement of the city’s tourism product,” Paraschis explained.

After Aegean Airlines’ agreement with Marfin Investment Group for total acquisition of Olympic Air in October 2012, indications remain positive for the private Greek carrier with Q1 results exhibiting increased international traffic and revenue. Overall, Aegean Airlines carried one million passengers in Q1 with figures on international flights reaching 585,000, rising by seven percent versus 2012.

Following announcements for new routes and the expansion of its international network to 30 additional destinations this year, Aegean Airlines recently revealed plans to reopen the Athens-Cairo itinerary

beginning October 3, after a two-year interval. Dimitris Gerogiannis, CEO, Aegean Airlines, noted that the carrier is taking initiatives for the development of tourism and the regions of Greece.

MARKETING EFFORTS GNTO promotes Greece with participations in international tourism exhibitions, on/offline marketing activities, and common promotions in collaboration with tour operators in markets of great interest for the Greek Tourism. According to Varela, in order to attract MENA travellers in particular, the country participated for the first time at the 3rd Jeddah International Travel & Tourism Exhibition, held between April 9-11 at Jeddah Hilton Hotel, and at the Arabian Travel Market, Dubai in May. “As part of that effort, we aim to facilitate the issuance of visas for Saudi citizens as much as possible. In most cases, we can now issue Schengen visas for Saudi citizens in less than 48 hours,” she said.

Middle East travellers who come to Greece discover an ideal destination to conduct business and recreation Regarding MICE, Konstantopoulou explained that Athens Convention & Visitors Bureau has implemented an action plan which includes the organisation of events such as Travel Trade Athens and the Black Sea Forum, which will take place in cooperation with the United Nations Development Programme in October; arrangement of site visits and study missions to organisers and representatives of the MICE media; and active presence in the social media to increase the visibility of the destination.

Perspectives are positive for Greece and its future, though de Winkel warned, “Provided that [Athens] remains calm, a slight increase in arrivals should be expected, however, the competition with the neighbouring countries is still strong and there is still a lot to be done in terms of marketing and public relations.”  JULY 2013

Short Haul Travel

EXCLUSIVE

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Opting for a Short Ride With aviation evolving into a major industry, and with air travel playing a crucial role in every person’s daily reality, short-haul travel is rising in popularity especially in the MENA region where travelling options are more traditional, and at times, limited.  Maria Kazeli

T

writes

he International Air Transport Association (IATA) has upgraded its global outlook for the airline industry to USD12.7 billion in profits this year, on the backbone of USD711 billion in revenues. This is a USD2.1 billion improvement to the initial USD10.6 billion profit projected in March and a boost on the USD7.6 billion profit generated in 2012.

Speaking on global aviation trends at the Arabian Travel Market in May, Sunil Malhotra, director, aviation sector, MENA, Ernst & Young, informed that some Gulf carriers are joining global alliances, whilst others enter into strategic codeshares to promote traffic

JULY 2013

flows between continents.

“Facing future uncertainty in a risk-laden market, legacy carriers are also scrambling to find a model that works, with a refocus on short-haul routes, development of low-cost carriers (LCCs), and re-evaluation of their long-haul networks,” Malhorta continued.

Corroborating the above, an aviation analysis report released by CAPA – Centre for Aviation, a provider of independent aviation market intelligence, recorded a transformation in Europe’s short-haul market, with three big legacy groups, Air France-KLM, International Airlines Group (IAG), and Lufthansa, transferring their short- and medium-haul operations to their LCC partners in a bid to regain lost ground.

Revealing Ryanair’s profit for the first quarter of the year, which exhibited a 13 percent year-on-year

rise, Michael O’Leary, CEO, Ryanair, announced that the carrier aims to achieve a 20 percent share of the European short-haul market over the next five years, particularly given that many of Europe’s high fare incumbents are restructuring and cutting capacity.

Following similar patterns, a traditionally longhaul airline, Virgin Atlantic Airways, in April launched its first ever domestic flights serving UK. “We will be adding important feed traffic to our long-haul network and demonstrating our serious intent in building a successful short-haul business,” confirmed Gretchen Watson, head, marketing and public relations, Middle East and Africa, Virgin Atlantic Airways, who revealed that the airline is expecting delivery of a Boeing 787 Dreamliner aircraft before looking to further expand its services within the MENA region. 

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Short-Haul Travel FAMILIAR HOSPITALITY

ARAB NETWORK While short-haul airborne transport seems to be a headache for European carriers, regional travel in MENA is predicted to rise due to various factors, this according to Manal Diab, director, external, environment and membership affairs, Arab Air Carriers Organization, who foresees revival of traffic with regards to Egypt, Libya, Tunisia and Yemen.

Diab also forecasts an expansion of the market in Saudi Arabia, with the licensing of two additional airlines in the Kingdom, as well as greater access for international flights to regional airports in Saudi Arabia and Egypt, which comprise the biggest domestic markets in the Arab world.

Adding to these, Ahmed Janahi, acting chief commercial officer, Gulf Air, explained that the carrier’s short-haul seat capacity has risen year-on-year, with the strongest performing routes within MENA being Kuwait and Amman, while, he added, Gulf Air is committed to investing more in short haul-travel and strengthening its regional network by serving neighbouring capitals with double-daily flights.

“Regional business travel focuses mainly on short-haul flights throughout the year, especially with Gulf Air’s aim to service a minimum of daily doubles to regional capitals, [and] corporate [travellers] are able to travel to conduct business and catch an evening flight back,” Janahi said, further mentioning that Middle Eastern leisure travellers are more flexible and their type of travel depends on the time of the year.

Arabia, Qatar, Oman, Bahrain, Baku, and Istanbul,” he said, expressing his opinion that leisure short-haul travel is more likely to be affected by rising costs, rather than business travel, as it is necessary.

The future of short-haul travel in Jordan is very much dependent on the political situation in the region and the good promotion for package prices, claimed Homam Hasanat, director of sales and marketing, Jordan Artist Tours, who also confirmed that Middle Eastern travellers prefer short tours mostly.

BRIGHT FUTURE AHEAD

Short-haul travel has changed the concept of travel as it has become a commodity rather than a luxury

REGIONAL EXPERTS Short-haul travel is a trend on the rise as Moataz Amin, chief operations officer, Holiday Factory Package Tours, based in Dubai, attested. “The trend now, as we can see in Holiday Factory and [from] what we are capitalising on, is short-haul; as [one] can see from our website, all our featured packages are weekend packages [to] Dubai and Abu Dhabi from Saudi

Hoteliers in MENA also seek to accommodate regional travellers’ needs, as a day’s short-haul travel is picking up especially for corporate visitors, revealed Lally Villanueva, coordinator, sales/ food and beverage, Swiss-Belhotel Doha, who further asserted, “Many business travel programmes and travellers are set to benefit from improved air travel options, because low cost or no-frills carriers have focused on luring lucrative corporate traffic in recent years. Some airlines have [also] expanded their domestic route networks.”

With regards to cost, Villanueva deems that this has its toll on short-haul travel but as long as air passengers get the same quality of services from their preferred airline, they will not mind the price.

At Al Bustan Rotana Dubai and Al Murooj Rotana Dubai, there is a continuous increase in the number of both short- and long-haul travellers, with the former being a stronger market considering the influx of GCC businessmen and leisure travellers in Dubai, according to Hussein Hachem, cluster general manager, Al Bustan Rotana Dubai and Al Murooj Rotana Dubai, who attributes this to the fact that Rotana has established its mark as a brand born locally; a positive and determining factor when GCC travellers make their decisions.

Similarly, The Meydan Hotel and Bab Al Shams Desert Resort & Spa, have witnessed a rising trend in short-haul vacationers this year, as indicated by Craig Senior, regional director of sales and marketing, Meydan Hotels & Hospitality, who also pointed out that the GCC and Middle East markets are the main provider, with booking patterns currently within three to four days and average length of stay towards two to three nights.

Sharing similar views, Sharaf Udeen, owner, Alfalah Travel & Tourism, explained that most of the families and Middle Eastern travellers opt for shorthaul travel as it is more convenient and can be adjusted to their holiday plans. “Travellers prefer to reach a destination with less flying hours which will help them to arrange their vacation more effectively and confidently while long-haul makes it difficult.”

Diab highlighted the fact that the lack of a viable and modern alternative way of transport and the relatively small penetration of LCCs in the Arab market could give short-haul travel a comparative advantage and lead to its further evolution.

A parallel viewpoint was offered by hoteliers, with Hachem describing the future of incoming short-haul travel as very promising, while he feels that there will be an increase in terms of outgoing short-haul travellers from the region considering the positive outlook in the economy. Senior also expects the region to continue benefitting from the short-haul holiday maker, due to facilities provided, air lift offered, and first-class accommodation available.

Meanwhile, Janahi observed, “Short-haul travel has changed the concept of travel as it has become a commodity rather than a luxury. [...] Increased frequencies, flexible flight schedules, and minimal transit times allow passengers to carry out their business or leisure in another country but return home at the end of the day.”  JULY 2013

Hong Kong

Asia’s World City

TOUR

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On the other hand, as Fung pinpointed, the Middle East is seen as one of the most vibrant markets in the world, making it a highly lucrative region for Hong Kong’s businessmen.

Demonstrating Hong Kong’s appeal as a MICE destination in 2012, AsiaWorld-Expo, which covers more than 70,000m2, sold over 185ha of the total area, up 20 percent over 2011, Allen Ha, CEO, AsiaWorld-Expo, revealed.

The venue is fully integrated with the Hong Kong International Airport, making it one of the few exhibition and event centres in the world to enjoy such close ties to a major international airport, according to Ha. “The venue features convenient access to neighbouring hotels and some of Hong Kong’s leading tourist attractions [including Hong Kong Disneyland, Ngong Ping 360, Noah Ark, and Lantau], making it easy to create MICE events and blend business and leisure,” highlighted Ha, who added that with MICE visitors and event organisers becoming more sophisticated nowadays, the demand is on the rise for onestop MICE venues.

SOURCES OF POTENTIAL

Hong Kong

Cosmopolitan yet decidedly distinctive, modern yet with a certain grandeur, and well-organised albeit chaotic, Hong Kong has multiple faces, which make it one of the most competitive destinations in the world.  Rita Kasziba writes

“A

s Asia’s world city, Hong Kong has much to offer to you as a visitor, whether you are coming here on business or for pleasure,” highlighted John Girard, general manager, Regal Airport Hotel Meeting and Conference Centre, and area general manager, Hong Kong, Regal Hotels International, noting that the destination boasts a unique charm that embraces the sophistication of a global city, cultural diversity, and a cosmopolitan lifestyle, along with natural beauty and spectacular sceneries.

“Travellers visiting Hong Kong are looking for the authentic taste,” added Karen Ching, marketing communications manager, Hyatt Regency Hong Kong, who further noted that Hong Kong is also a safe and convenient destination for travellers to stop-over for a few days.

In 2012, 15 years after the Chinese handover, Hong Kong welcomed over 48.6 million visitors, almost seven times its population, 34.9 million of whom hailed from Mainland China, while the Middle East region accounted for 183,352 arrivals.

Figures from the region, however, already showed JULY 2013

HONG KONG IN BRIEF Capital: Hong Kong Currency: Hong Kong Dollar (HKD) Language: Cantonese, English

a notable increase of 4.2 percent in the first quarter of the current year, while total arrivals to the destination reached over 12.7 million during the three-month stretch, marking a robust 13.5 percent surge over the corresponding period in 2012, and projecting a positive outlook for the year.

As Perry Fung, regional director, Middle East and Africa, Hong Kong Trade Development Council (HKTD), noted, Hong Kong has come to establish itself as the business and trading hub of Asia, and the most important gateway in supporting Middle East companies to do business in Asia and Mainland China in particular.

“For the last consecutive years, including the current year, Hong Kong is being ranked as the world’s freest economy in doing business by Heritage Foundation,” explicated Fung, noting that HKTD’s Dubai office provides a wide range of professional services to traders, associations, chambers and government organisations.

With annual arrivals nearing 50 million against the seven million inhabitants of Hong Kong, many believe that it is time the destination starts focusing on quality instead of quantity, positioning the Middle East region high on strategic agendas.

Michael Ziemer, general manager, The Excelsior, Hong Kong, believes that due to the relatively long distance and the differences in cultures, Arab travellers are still likely to opt for Europe instead of Hong Kong, however feels that the region holds promising potential.

“The Middle East and North Africa are new markets to us and our company, and Mandarin Oriental Hotel Group has already set up a regional sales office in Dubai to handle the Middle East market,” explained Ziemer.

Also remarking on the potential of the MENA region, Christina Cheng, general manager, Harbour Plaza 8 Degrees, Hong Kong, noted that in accordance with its economic growth, MENA is set to become a key market for inbound tourism in Hong Kong.

As Cheng further explained, ever since the hotel’s opening in 2009, the management has been keen to lure Arab travellers and the hotel has also certified to provide Halal food.

Commenting on the recent shift in Hong Kong’s strategy, Cheng said, “The new transformation of high value tourism towards protecting environment and melting into local cultures showcases Hong Kong’s natural characteristics.”

In fact, according to the organisation’s data, per capita spending of Middle Eastern visitors in 2012 amounted to HKD8,318 (USD1,071), higher than the average spending of HKD7,818 (USD1,006), with the key source markets from the region being Saudi Arabia and the UAE. Referring to the high spending power of 

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TOUR

MENA, Girard described it as one with high potentials, therefore management is working hand-in-hand with HKTB and various attractions and hotels in Lantau to promote the area and attract more visitors.

Calvin Mak, CEO, Rhombus International Hotels Group, the operator of Hotel Panorama by Rhombus, concurred, adding that Hong Kong has long been an attractive destination for Middle Eastern travellers, thus the hotel lays great emphasis on catering to the Arab travellers’ needs, with customised cuisines and connecting rooms.

According to Mak, there is a wide range of options for high value tourism in Hong Kong, with the Middle East ranking high on the list. “With the phenomenon of Middle Eastern travellers holding stronger spending power, no doubt this sector would become a targeted source market,” he added, noting that attracting these markets is of great importance as with a number of projects in the pipeline, the hotel sector is expected to become more competitive than ever before.

Meanwhile, as Sherona Lau, director of marketing, The Peninsula Hong Kong, revealed, the past years’ global economy conditions have already caused a shift in market patterns, with a number of key markets demonstrating notable declines, which have been balanced out by emerging markets.

“For example, China, the Middle East, Russia, India, and South America have shown healthy growth over 2012 and we aim to penetrate them further in the forthcoming years. […] The Middle East and North Africa do play an important role for The Peninsula Hong Kong as they have high spending power and are sources of great potential of market share for Hong Kong,” reiterated Lau.

Hong Kong

‘de-facto brand ambassador’ for the destination.

In 2012, Cathay Pacific carried some 29 million passengers, while in the first quarter of the current year, passenger volume reached 7.2 million, up 2.8 percent over the corresponding period in 2012.

As Yuan noted, since the launch of its first flight to the GCC in 1976, Cathay Pacific has been committed to providing excellent products and services to Gulf travellers and enhance their overall travel experience.

“In addition to the new weekly passenger service between Abu Dhabi and Riyadh, we have also upgraded our fleet serving all the Middle East routes with our award-wining new business class, premium economy,

Hong Kong

national Airport (HKIA)’s passenger numbers has skyrocketed from 34.3 million in 2002 to 56.47 million in 2012, turning the hub into one of the world’s busiest airports for international passengers.

During the first quarter of the year, the airport welcomed some 14.3 million travellers, registering a year-on-year growth of 5.2 percent, as a result of a number of new flights, including Air Seychelles’ Mahé - Hong Kong route via Abu Dhabi, and, as Stanley Hui Hon-chung, CEO, Airport Authority Hong Kong, indicated, with the declared runway capacity of HKIA further increasing to 64 flights per hour in the summer schedule, the average number of daily scheduled services has now reached 1,037.

In order to cater to the growing demand, the airport, which already welcomes over 100 airlines, has drawn up ambitious medium- and long-term development plans, in line with the International Air Transport Association’s forecast which anticipates annual passenger volume at HKIA to reach 97 million by 2030.

The airport authority is investing over HKD12 billion (USD1.5 billion) in developing new facilities, including the Midfield and apron development projects, due for completion by the end of 2015, which will enable the airport to handle 10 million more passengers per annum, while the proposed threerunway system is set to further increase the airport’s current capacity of 420,000 flights per year; a number which is expected to hit 620,000 flights annually between 2019 and 2022.

To cater to the anticipated demand, Hong Kong’s

RAISING AWARENESS In line with its endeavours to enhance Hong Kong’s appeal in the Middle East, HKTB and Cathay Pacific recently jointly hosted an interactive session for over 80 travel professionals from around the UAE in Dubai with the aim to showcase the national airline’s products and Hong Kong as a burgeoning business and attractive leisure destination.

“Hong Kong is an ideal hub and stopover point for passengers who want to enjoy a seamless connection.

Hong Kong also has a lot to offer and that will allow transit passengers to explore different lengths of stay in the city,” pinpointed Brian Yuen, country manager, UAE and Oman, Cathay Pacific.

Yuen described the airline, which has been serving Hong Kong since 1946, as one of the biggest investors in the country; the HKD5.5 billion (USD708.6 million) state-of-the-art cargo terminal, which is set to further enhance the destination’s position as a leading logistics hub, is the latest example of its investments.

Further elaborating on Cathay Pacific’s vital role in Hong Kong’s socio-economic development, Yuan highlighted that the airline and its subsidiaries currently employ over 22,000 staff in Hong Kong alone, making the group one of the country’s largest employers, and with over 100 offices around the world, the

Hong Kong

and new long-haul economy seats at the beginning of the year, which were very well received by our passengers,” he claimed, adding that the team keeps a close eye on the changing market demand in the region.

Commenting on the carrier’s growth strategy, Yuan revealed that Asia, especially Mainland China, remains the central focus, where the group already operates some 390 flights every week, including code-share routes, primarily via Dragonair, a member of the Cathay Pacific Group.

Demonstrating the destination’s growing global profile, over the course of a decade, Hong Kong Inter-

infrastructure is developing at a rapid pace with new key attractions and hotel establishments, alongside the launch of the Kai Tak Cruise Terminal, which just opened 15 years after the closure of the Kai Tak Airport, hailed as one of the most extreme airports in the world.

HKTB also lays great emphasis on encouraging these (potential) visitors to extend their length of stay and spending, eventually creating more business opportunities and benefits for different sectors and communities across Hong Kong, as, according to the World Travel & Tourism Council’s predictions, international tourist arrivals are forecast to reach 50.06 million by 2023.  JULY 2013

Exhibitions

Meet Me There

Arabian Travel Market

Located at the crossroads of East and West, the Middle East has been a central meeting point for thousands of years, where partnerships are being established and agreements are signed, and where today some of the world’s most prestigious events take place for the travel and tourism industry.  Rita Kasziba writes

N

ives Deininger, director of sales, Golden Sands Hotel Apartments, Dubai, described a ‘must-attend’ event as one which offers great exposure for a market in which the hotel or the company is already present or wishes to enter.

“These exhibitions target our markets and most of the decision-makers in the industry are present at the event so we meet with quality partners with whom we have built relationship. We discuss contracts and close deals because the decision makers can give you the answers right away.”

According to Ayman Ashor, general manager, Tilal Liwa Hotel, Abu Dhabi, when it comes to adding an exhibition to the calendar, the main criteria is to JULY 2013

reach the key feeder markets, thus the management participates in a number of high-profile regional and international shows throughout the year.

As Moussa El Hayek, chief operating officer, Al Bustan Centre & Residence, Dubai, pinpointed, choosing the most suitable platform to market the product to the right audience is crucial.

“What is potential for other properties is not necessarily potential for us,” noted El Hayek, adding that besides the most important regional and global travel trade shows, exhibitions in the CIS countries as well as China are rapidly gaining prominence in the region.

Yet, despite the growing significance of these events in the emerging markets, the International Tourism Bourse (ITB) Berlin remains a firm fixture on the agenda for most industry professionals.

“ITB Berlin is truly the world’s leading travel trade show; not only are all sectors of the leisure market

INVESTIGATION

19

represented, but ITB Berlin is also staging the largest and most important convention of industry experts in the world since 2004,” claimed David Ruetz, head, ITB Berlin, Messe Berlin, stating that the volume of business negotiated and concluded at the show is estimated at EUR6 billion (USD7.97 billion), underscoring, as Ruetz depicted, the event’s long-term business benefits for participants.

This year, over 10,000 companies and organisations exhibited their products and services to more than 170,000 visitors, including some 110,000 trade visitors in the German capital, and the show, as Ruetz noted, continues to witness a strong demand from the MENA region.

“About five percent of the exhibitors at ITB Berlin come from the region,” he informed, attributing the event’s success to the great importance of the European and German markets in the Arab countries, and adding that today, over 40 percent of buyers register from abroad.

Reed Travel Exhibitions (RTE), the organisers of the Arabian Travel Market (ATM) in Dubai, The Gulf Incentive, Business Travel & Meetings Exhibition (GIBTM) in Abu Dhabi, World Travel Market in London, and a number of luxury, MICE, and specialist events, currently operates 21 travel events, attracting over 100,000 visitors and over 17,000 exhibitors per year, as Mark Walsh, portfolio director, RTE, explained.

“With over 30 years of experience in the market place, RTE has seen a vast amount of professionals through its doors. […] On a more local level, over the past two decades, ATM has grown significantly, in tandem with regional tourism. Looking back it seems incredible that an event that started with just 2,200m2 in 1994, has grown to over 22,000m2 and now welcomes more than 20,000 trade visitors,” he added.

Today, travel trade shows in the Middle East run the gamut from mega exhibitions to hotel shows and events dedicated to niche segments, such as the luxury, religious, spa, and medical tourism segments, and building on the region’s recent passenger traffic growth phenomenon, over the past 13 years, The Airport Show has become the second largest dedicated airport equipment, technologies, and services exhibition in the world, and the largest event of its kind for the MENA region, as Daniyal Qureshi, event director, The Airport Show, explained.

“A strong global interest in the Middle East was reflected during [this year’s] event gathering 20 percent more visitors than its previous edition and event highlights reported investments worth over USD100 billion into the region’s airport industry,” informed Qureshi, further revealing that the 13th edition of the show attracted 225 exhibitors from 35 countries, along with six national pavilions and 60 hosted buyers.

“Considering the success of this year’s event, we have already rebooked over 50 percent of the space for 2014 and will continue to build on the new features launched this year,” added Qureshi.

The Airport Show, similar to a number of other travel trade events, takes place at the Dubai International Convention & Exhibition Centre, part of the Dubai World Trade Centre (DWTC), which, in 2012, welcomed over 1.85 million visitors and 37,000 companies.

“DWTC plays a prominent and influential role in 

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INVESTIGATION

Exhibitions

positioning Dubai as the epicentre of business tourism in the region,” asserted Ahmed Alkhaja, senior vice president, venues, DWTC, remarking on the widespread benefits of being the ‘go-to destination’ for global MICE. “Per person, our foreign visitors contributed 11-times the economic value to Dubai in 2011 compared to locally-based visitors. This means that DWTC has a real and tangible effect on the Dubai economy, acting as a catalyst for growth and contributing 2.1 percent to the total GDP of the emirate in 2011,” added Alkhaja, who announced that between January and May, DWTC hosted 137 trade events, conferences and exhibitions.

“For more than 30 years, DWTC has played a critical role in the growth of Dubai. The region’s leading venue in terms of size, diversity of calendar, scale of events, and the volume of business generated, has become the epicentre for trade and business tourism, hosting hundreds of events annually, including the Arabian Travel Market.”

Alkhaja described ATM as one of the largest and most important travel and trade events in the industry’s calendar, and the spring board through which deals are made.

Similarly, the Abu Dhabi National Exhibition Centre (ADNEC) plays host to some of the region’s leading events, including GIBTM which once again attracted a record number of buyers this year, with corporate

adding that Sharjah has been making a bold push for promoting its business tourism sector, thus these events play a key role in boosting this sector both directly and indirectly.

“With every passing year we are increasing the geographical bandwidth of all our shows and making entry into new markets and countries,” added Al Midfa.

keting instrument that offer excellent value for money.

“The costs of establishing customer contact at ITB Berlin are far below those of buyers’ business trips or of organising road shows. Equally, these contacts are of a higher quality,” added Ruetz, who pinpointed that nothing can substitute for face-to-face meetings at trade fairs.

WHEN IN NEED

THE VIRTUAL HANDSHAKE

Speaking about how the past years’ regional and economic uncertainties have had an impact on these exhibitions, Ashor highlighted, “Many companies have reduced the size of their stands, either because the serious buyers are few wherein they can be coordinated by mails or their market budgets are limited. For us, we attend the main exhibitions and since we belong to Danat Hotels & Resorts, the costs are split between six hotels.”

Likewise, Deininger admitted a reduction in the size of the company’s stand in order to lessen the cost, however, it did not stop the management from participating in all key exhibitions. “[It is] because we need to highlight our presence to our partners and strengthen our ties with them and exhibitions are the ideal platform to do these activities,” noted Deininger.

Looking at the situation from another point of view, Alkhaja added, “One thing we learned from the situation is to adapt and look forward. We have con-

Attending exhibitions or organising in-person road shows can, however, become a severe drain on the budget, thus virtual exhibitions are (cost) effective options by offering the opportunity to save money and time while connecting with existing and potential partners without leaving the office.

“Everything now is moving towards the latest trends, online communication and interaction, and we are sure that virtual events and exhibitions will overcome the physical participation as this would be more cost effective,” suggested El Hayek.

JA Resorts & Hotels has already gained experience as a virtual visitor in such events, Anabela Radosevic, director of sales and marketing, JA Resorts & Hotels, explained, adding that the reduced travel costs, less paper waste, easier access to visitors and exhibitors from around the world are obvious benefits.

“We did, however find that such events have not yet reached the required ‘mass’ appeal amongst our

ADNEC

Arabian Travel Market

ITB Berlin

meetings buyer participation accounting for 35 percent of all hosted buyers attending the show, compared to just 11 percent in 2012.

In 2012, ADNEC and Al Ain Convention Centre staged 360 events and welcomed some 1.4 million visitors, and this year, as Humaid Matar Al Dhaheri, chief commercial officer, ADNEC, indicated, is set to break the previous records.

“ADNEC is expecting an eight percent increase in the number of events scheduled in its facilities and Al Ain Convention Centre this year as compared to 2012.

We anticipate the attendance of more than 1.74 million visitors this year, marking a 24 percent boost as compared to 2012,” suggested Al Dhaheri.

In the neighbouring emirate of Sharjah, Expo Centre Sharjah (ECS) is hosting 20 shows this year, Saif Mohamed Al Midfa, director general, ECS, revealed,

tinued to host relevant exhibitions, conferences and events which helped to aid recovery by attracting toptier business to the region, whilst also creating avenues through which business can continue.”

In fact, looking at the record-breaking participant numbers at the past years’ events, exhibitors and buyers seem to be even keener to take advantage of business potential that these shows can generate.

“No industry has been untouched by recent events but, if anything, economic uncertainty and political upheaval has strengthened the business focus of the events,” stressed Walsh, adding that exhibitors and visitors alike are eventually working harder to maintain business levels thus travel trade shows are often seen as even more essential in times like this.

Speaking about these event’s long-term benefits, Ruetz noted that trade fairs are an extremely effective mar-

target markets to make it worthwhile for us to participate as exhibitors, although we will keep a keen eye on developments and may get more involved in the future,” she said, stressing that hospitality still is very much a ‘people’ industry and experience, thus virtual exhibitions will probably find their niche alongside the current more traditional exhibitions.

Deininger concurred, adding that people in this industry will still want to meet and discuss business opportunities face-to-face because there is a personal touch and it adds to ones’ credibility.

Walsh concluded, “There is nothing more reassuring to customers than doing business face-to-face, especially in today’s economic climate. This is particularly important in the Middle East region and in travel as it is the personal interaction you get that often dictates whether you will sign a contract or not.”  JULY 2013

WHO'S MOVED

EMMA GOLUBEVA Emma Golubeva has been named director of sales and marketing at the soon-to-open Novotel Al Bustan Abu Dhabi and Adagio Al Bustan Abu Dhabi.

Golubeva, who has more than 12 years of experience in the hospitality industry, started her career with a Russian tour operator company first in Turkey and later on in Egypt before joining Millennium & Copthorne Hotels in Abu Dhabi, where she worked her way up on the corporate ladder to become a

sales manager.

Prior to her recent appointment, she served as director of business development at Yas Island Rotana and Centro Yas Island.

In her new position, Golubeva aims to promote the hotel complex and the Adagio brand both in the UAE as well as in the wider GCC region.

Golubeva aims to promote the hotel complex and the Adagio brand

CHRISTIAN HYLANDER Christian Hylander has been named vice president of sales at Carlson Rezidor Hotel Group.

Hylander, who is based at the corporate support office in Brussels, will be responsible for leading the Carlson Rezidor sales function in Europe, the Middle East and Africa (EMEA), for defining and implementing the company’s sales strategy, and for delivering the company’s revenue objectives in EMEA.

JULY 2013

Prior to joining Carlson Rezidor Hotel Group, Hylander worked for 27 years for Scandinavian Airlines Systems, where he lastly served as senior vice president of corporate and agent sales.

Hylander will be responsible for leading the Carlson Rezidor sales function in Europe, the Middle East and Africa

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ALEX PICHEL Alex Pichel has been named managing director of Hotel Al Khozama and Al Faisaliah Hotel, Riyadh, by Rosewood Hotels & Resorts.

The new appointment comes following a decision made by Erich Steinbock, former regional vice president and managing director, Al Faisaliah Hotel, A Rosewood Hotel, to retire after a career of success in the hospitality industry, both in the Middle East and globally.

Pichel, already a member of the senior management, has been serving Al Faisaliah Hotel, A Rosewood Hotel as general manager over the past two years.

Having spent over 25 years in the hospitality industry, he brings a wealth of knowledge and experience to the role in which he will oversee the dayto-day operations and activities of both hotels, and implement the company’s growth strategy.

STEPHAN KILLINGER Stephan Killinger has been promoted to president at Mazagan Beach & Golf Resort in Morocco.

Killinger has over 25 years of experience in the hospitality industry and has worked around the world, including in England, US, Bahamas, Philippines, Australia, Bali, Switzerland, Egypt, and Germany, holding various leadership positions for a number of luxury hotel brands, such as Four Seasons Hotels and Resorts, The Peninsula

Hotels, and The Ritz-Carlton Hotel Company.

Not new to the company, Killinger has previously served as general manager of One&Only Reethi Rah in the Maldives.

Killinger has over 25 years of experience in the hospitality industry and has worked around the world

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TRAVEL TALK H.E. MARWAN BIN JASSIM AL SARKAL

travel talk is your space

CEO, Sharjah Investment and Development Authority (Shurooq).

“The Mleiha [Ecotourism] Project forms part of Shurooq’s larger strategy that aims to capitalise on Sharjah’s immense heritage and ecological resources through the development of such projects as the Kalba Eco-Tourism Project and the recently-announced Sir Bu Nuair Island project. Through the development of these world-class projects, we aim to encourage tourism by enhancing the quality of facilities for visitors in the region and thereby stimulate the emirate’s economic growth.”

VISHAL DHAMIJA General manager, SNTTA Cargo.

“The annual Supply Chain and Transport Awards event recognises some of the best performers in the field of cargo and logistics, and SNTTA Cargo is proud to have been honoured as the general sales agent of the year.

The recognition is an endorsement of the global best practices adopted by SNTTA Cargo, as we pursue an aggressive growth strategy, encouraged by the UAE’s growing importance as an international cargo and logistics hub.”

WAYNE PEARCE

SOHA ZAHAR

CEO, Oman Air.

Cluster director of sales and marketing, InterContinental Hotels Group, Jordan.

“The recent 100 percent on-time departure figure [registered on April 26] is the highest we have scored in the past year and it is a wonderful tribute to our staff’s combined efforts. […] Whilst this is a great achievement for our staff, the benefits of our punctuality will be felt most by our customers, who are increasingly looking at issues beyond price, such as on-time performance, before choosing who to fly with. Our continuing, combined goal is to deliver even greater punctuality, further improving the very high, award-winning standards of our products, services, and passenger experience.”

“In Jordan, we are blessed for having such a safe environment that helps us to operate safely and comfortably.

Also, Jordan enjoys beautiful scenery and has exquisite locations and cities, such as Jerash, Aqaba, Petra and many more. And many important conferences, summits, and forums take place in Jordan. All this combined makes Jordan an excellent spot for both leisure and business travellers.

This positioning is ideal for us, as Crowne Plaza Amman is considered a hotel that is convenient and suitable for both leisure and business travellers. Thus, we are confident that this will definitely be an excellent year.”

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 JULY 2013

RENDEZVOUS

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Q & A with Bernhard Haechler Having spent over two decades with Shangri-La Hotels and Resorts and more than 10 years in the UAE, Bernhard Haechler, general manager, Shangri-La Hotel, Dubai, shares his views on how the brand has won over the Middle Eastern clientele.

Travel Trade MENA: As an industry veteran who has been with Shangri-La Hotels and Resorts for over two decades, what do you regard as the main qualities and values of the brand that set it apart from its competitors?

Christian Bernhard Muhr Haechler

Vice president, operations, Egypt and Levant, General manager, Shangri-La Hotel Dubai Hilton Worldwide

Bernhard Haechler: Shangri-La Hotels and Resorts has a very strong family ethic. We believe that all of our colleagues and guests are part of our family. We like our guests to feel as though they are staying in a home away from home when they spend time in one of our hotels. It is important to get to know each guest and always refer to them by name.

Secondly, as an Asian hospitality company we do not shout from the rooftops when we are recognised with an award; we remain humble and we always strive to go that extra mile in our service standards, facilities and overall guest experience.

Travel Trade MENA: Since joining Shangri-La Hotel Dubai’s pre-opening team in April 2002, Dubai’s hotel sector has experienced a period of rapid growth and with a number of properties under construction, the competition is set to heat up in the coming years. What were the main challenges a decade ago and what are the main challenges at the moment?

Bernhard Haechler: 10 years ago the landscape of Dubai was very different. Sheikh Zayed Road was not the busy road it is now and there were just a handful of hotels in this area.

The challenges 10 years ago were different to

Shangri-La Hotel, Dubai

JULY 2013

daymakers. How would you describe your clientele?

Bernhard Haechler: The majority of our guests stay with us for business purposes. Naturally, our location lends itself to business travel and our facilities are very much tailored to this market. That said, a good percentage of our guests stay for leisure. With tourist attractions such as Burj Khalifa and The Dubai Mall on our doorstep, it is no surprise that we are very busy during the Dubai Shopping Festival and similar events.

Travel Trade MENA: The hotel is set to embark on a refurbishment. Could you please tell us about this project?

Bernhard Haechler: Some of the key areas of the hotel will be renovated this year and in 2014. We are currently working on finalising the details.

[those of ] now. It was more difficult to find international workforce in 2003 and there were no attractions [nor a] financial hub surrounding the hotel.

Nowadays, there is a great deal more competition in the luxury sector but generally the demand is robust enough to ensure that we all compete healthily.

Travel Trade MENA: Located in the heart of the city, in close proximity to the airport, the hotel offers an ideal base for both business travellers as well as holi-

We believe that all of our colleagues and guests are part of our family

Travel Trade MENA: As the vice president for Shangri-La Hotels and Resorts in the UAE, could you please tell us about the company’s development plans for the market?

Bernhard Haechler: Currently, we have four properties in the UAE and one in Muscat, Oman. We just opened Shangri-La Bosphorus, Istanbul, and we shall be opening Shangri-La Hotel, Doha at the end of this year.

Other exciting destinations opening soon include Shangri-La Hotel at the Shard, London, and Jing An Shangri-La, West Shanghai.

Three-bedroom serviced furnished apartments

24

NEWS & EVENTS

Sharjah’s Potential at Arabia Expo 2013 Aiming to strengthen cooperation with the Russian business community and open up new avenues to further enhance trade and investment relations between the two countries, Sharjah completed its first participation in Arabia Expo 2013, which took place between May 30 - June 1 in St. Petersburg, Russia.

The emirate, which has been witnessing recent rapid developments across various economic sectors, was represented

by Sharjah Investment and Development Authority (Shurooq), Sharjah Chamber of Commerce and Industry, Sharjah Economic Development Department, Hamriyah Free Zone Authority, and Sharjah Airport International Free Zone.

Ahmed Obaid Al Qaseer, chief operating officer, Shurooq, gave a presentation during the Russian-Emirati Business Forum, held on the sidelines of the show, where he stressed Sharjah’s business potential, as well as varied and unique investment opportunities within the four key investment areas identified by the authority as strategic growth areas namely, travel and leisure, renewable energy and the environment, logistics, and healthcare.

Meanwhile, Elie Armaly, director of business development, Shurooq, noted that the emirate’s strategic geographical location, excellent infrastructure, and investment friendly business environment, make it an great base for Russian investors to expand their operations into the Middle East.

EVENTS

Qatar Airways to Host IATA Conference Qatar Airways has been chosen to host the International Air Transport Association (IATA)’s 70th annual general meeting and World Transport Summit between June 1 - 3, 2014, in Doha.

“After a long 17-year gap, IATA is finally returning to the Middle East for their conference and I promise we will not disappoint in their choice to bring this annual gathering of ours to my country. This is in recognition of the city and country fast emerging as a successful global aviation hub,” commented Akbar Al Baker, CEO, Qatar Airways, who was voted onto the IATA board of governors in 2012, further adding that the event will also give Qatar the opportunity to showcase its new infrastructural development and the Hamad International Airport.

Tony Tyler, director general, IATA, described Qatar as a fantastic location at the heart of the fast-growing and dynamic Middle East region. “The government understands the power of aviation to drive economic growth and development. And the country’s approach to aviation is a beacon for our industry,” concluded Tyler.

Sponsored by

ASIAN International Trade & Tourism Expo Dhaka, Bangladesh, July 2 – 8, 2013 (www.asiantradeexpo.org) The event will provide a platform for manufacturers, suppliers and various tourism sectors to showcase their products and services.

Food and Hospitality Oman Muscat, Oman, September 2 – 4, 2013 (www.foodandhospitalityoman.com) The event showcases a comprehensive range of services in the international food, beverage, and hotel industries.

Travel & Tourism Fair (TTF) Kolkata, India, July 5 – 7, 2013 (www.ttfotm.com) TTF is hailed as India’s largest business-to-business focused travel trade show network.

Group Leisure & Travel Trade Show Birmingham, UK, September 18 – 19, 2013 (www.leisureshow.com) One of Britain’s biggest annual group travel events with 200 exhibitors and 2,000 visitors.

Global Business Travel Association (GBTA) Convention San Diego, US, August 4 – 7, 2013 (www.gbta.org) GBTA’s Convention will bring together thousands of business travel buyers and industry suppliers and a strong line-up of keynote speakers.

The Hotel Show Dubai, UAE, September 28 – 30, 2013 (www.thehotelshow.com) Now in its 14th year, this show is a key meeting place for leading suppliers and buyers.

JULY 2013