Travel Trade MENA June 2014 by T.T.W. Travel Trade Weekly LTD

JUNE 2014

ISSUE 56

VISIT: JORDAN The proverbial cloud of regional tension has shown an unexpected positive side, with increasing numbers of visitor’s flocking to Jordan as a safe alternative.

The Middle East has become one of the fastest growing aviation markets and is now home to some of the world’s most advanced and busiest airports.

04 ONSITE: RED SEA The Red Sea area has long established itself as one of the region’s most popular holiday hotspots.

09 IN THIS ISSUE MARKET UPDATE

VISIT: Jordan

ONSITE: Red Sea

EXPLORE: Palestine

TOUR: Sri Lanka

EXCLUSIVE: Airports

TRAVEL CHANNELS

WHO’S MOVED

RENDEZVOUS

TRAVEL TALK

NEWS & EVENTS

EXCLUSIVE: Airports

MARKET UPDATE TRAVEL TRADE PUBLICATIONS MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel COPY EDITOR Emily Millett SENIOR JOURNALIST Rita Kasziba

Jumeirah Group’s Earnings Rise Eight Percent Driven by strong demand from the company’s main markets, the UK, Russia and Saudi Arabia, Jumeirah Group recorded solid increases in revenues and earnings in 2013.

JOURNALIST Maria Kazeli PRESS Maria Demetriadou Pauline Shahabian 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 103670 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

onsolidated group revenues grew eight percent while total revenues under management rose 11 percent, and earnings before interest, tax, depreciation and amortisation jumped eight percent. During the year under review, occupancy and average room rates across the group’s owned and leased portfolio increased five percent, contributing to an 11 percent improvement in RevPAR. The UK represented a total 16.4 percent of total room nights sold, while Russia accounted for 16 percent of the company’s revenues. Gerald Lawless, CEO, Jumeirah Group, described 2013 as a stellar year for the group, saying, “The first quarter of the current year has seen that momentum continue with strong occupancy in our hotels, restaurants and other businesses and strong demand for new hotel projects both in the Gulf region and internationally.”

Jumeirah Emirates Towers

Emirates Group: 26th Consecutive Year of Profit MENA EXCHANGE RATES Accurate as of

29/05/2014 Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

7.15

Saudi Arabia (SAR)

Riyal

3.75

Lebanon (LBP)

Pound

1,511.50

Bahrain (BHD)

Dinar

0.37

Jordan (JOD)

Dinar

0.71

Syria (SYP)

Pound

149.05

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.63

Morocco (MAD)

Dirham

8.25

Iran (IRR)

Riyal

25,596.00

Yemen (YER)

Rial

214.81

Algeria (DZD)

Dinar

79.60

Libya (LYD)

Dinar

1.22

Emirates Group posted a profit of AED4.1 billion (USD1.1 billion) for the 2013-14 financial year, marking a 32 percent year-on-year growth and the company’s 26th successive year of profit. During the period ending March 31, the company’s revenue reached AED87.8 billion (USD23.9 million), an improvement of 13 percent, with Emirates alone registering a record revenue of AED82.6 billion (USD22.5 billion) and a profit of AED3.3 billion (USD887million), up 43 percent. In 2013-14, the airline increased capacity by 5.9 billion available tonne kilometres (ATKMs), the largest capacity growth in the carrier’s history in a single year, bringing Emirates’ total passenger and cargo capacity to 46.8 billion ATKMs. Carrying a record 44.5 million passengers, up 13 percent, the airline also maintained a robust passenger load factor at 79.4 percent in spite of a 15 percent rise increase in seat capacity by available seat kilometres.

Emirates

JUNE 2014

VISIT

Jordan

LIVING

JORDAN IN BRIEF

ON A PRAYER Every cloud has a silver lining, and in Jordan’s case, the proverbial cloud of regional tension has shown an unexpected positive side, with increasing numbers of visitors flocking to the country as a secure alternative to the high-risk zones of neighbouring destinations. Petra

 Emily Millett writes

inding itself hurled into the spotlight as one of the region’s safe destinations, Jordan is looking to make the most of this new-found attention, playing on its unique tourism offerings, and promoting itself as a stand out, and stand-alone destination to global audiences. “We are definitely blessed to be operating in a place like Jordan that is known for being a safe haven, and an excellent environment for both business and leisure,” said Oussama Massoud, regional general manager, Jordan and Palestine, InterContinental Hotels Group (IHG). “Therefore, we are seeing a surge in the number of visitors coming from outside the country, as well as locals who adopt the ‘staycation’ concept.” Commenting on the country’s performance according to findings from data compiled in February this year, Elizabeth Winkle, managing director, STR Global, said, “Jordan [...] is posting both occupancy and Average Daily Rate growth. Jordan and Bahrain are reporting the largest occupancy growth.” The report confirms that Amman registered a double-digit occupancy surge in February rising 10.2 percent to 59.3 percent. RevPAR increased by 15.2 percent to USD97.16.

According to the Economic Impact of Travel & Tourism 2014 report, put together by the World Travel & Tourism Council (WTTC), the total contribution of travel and tourism to Jordan’s GDP in 2013 was JOD4.8 billion (USD6.8 billion), making up 20.3 percent of the whole. This figure is forecast to rise by 2.7 percent this year and then by 5.3 percent per annum until 2024. Leisure travel spending generated 87 percent of direct travel and tourism GDP in 2013 compared with 13 percent registered for business travel spending. Expenditure in the vacation segment is expected to augment by two percent this year, followed by another 4.9 percent rise per annum to reach JOD4.9 billion (USD 7.04 billion) in 2024. Spending on corporate-centric tourism is forecast to ascend by 4.6 percent to JOD478.1 million (USD674.8 million) this year, and calculations propose this amount will reach JOD821.4 million (USD1,159.3) in 2024. A huge 88.2 percent of the total was made up of international tourism receipts, while only 11.8 percent was generated by domestic tourism. Investment into the travel and tourism sector in 2013 amounted to JOD435.7 million (USD614.9 million), with the WTTC results suggesting that this figure will grow by 3.8 percent this year, and then by five percent per annum over the next 10 years to JOD738.7 million (USD1.04 billion) in 2024.

Capital: Amman Currency: Jordanian Dinar (JOD) Language: Arabic

A significant portion of this investment is being poured into the enhancement of Jordan’s accommodation portfolio as STR Global’s February statistics confirm that at the end of the month some 3,231 rooms were under construction in the destination. EXPANDING FOOTPRINTS A number of regional and international hotel companies are seizing opportunities to put their stamp on the destination by opening new properties in a bid to claim a share of the increasing arrivals. FRHI Hotels & Resorts is set to welcome the fivestar Fairmont Amman in 2015. Located in the heart of the capital, only 30 minutes from the airport, the 300room hotel will feature food and beverage options, a spa and swimming pool, and over 2,000m² of function space, including a ballroom. Commenting on the expansion, Jennifer Fox, president, Fairmont Hotels & Resorts, said, “Amman is a key gateway destination in the region and this property will be an important addition to the growing Fairmont brand. Jordan has seen increasing investment in a variety of business sectors and we believe the market will respond positively to the entry of a new luxury hotel in the capital.” Home-grown hotel group Rotana Hotel Management Corporation is jumping on the bandwagon with plans to expand into the country with two new properties due to open this year. The Boulevard Arjaan by Rotana is located in the new Boulevard development in Abdali, Amman. The hotel hopes to appeal to both long-term guests and families and features 400 suites. Meanwhile, Amman Rotana offers 450 rooms and suites as well as meeting rooms and leisure facilities. Placing Jordan high on its list of expansion-worthy destinations, Starwood Hotels & Resorts Worldwide currently has a total of four properties under construction in the Hashemite Kingdom. Having pinpointed Amman as a high-yield market, the company is set to open The St. Regis Amman in May 2016 and W Amman in June of the same year. The new additions will bring some 1,000 rooms to Jordan’s inventory according to Michael Wale, president, Europe, Africa and Middle East, Starwood Hotels & Resorts. “There is great potential for the hospitality sector in Jordan, [...] and the opening of the four new hotels is testimony to a rising interest in Jordan’s tourism attractions. [...] We believe that Jordan enjoys great potential for attracting more tourists due to its stability and the availability of many tourism attractions. [...] Expectations for the hospitality sector in the country are high,” Wale added. JUNE 2014

Jordan THINKING BIG The other two Starwood Hotels & Resorts Worldwide openings, namely Al Manara, a Luxury Collection Hotel, Saraya Aqaba and The Westin Saraya Aqaba, are both slated for an April 2016 launch, and will form part of Saraya Aqaba, a mega development project on the country’s Red Sea coastline. Described by Ali Hassan Kolaghassi, chairman, Saraya Aqaba, as a master-planned community featuring commercial, residential, tourist, recreational and infrastructure facilities, the USD1 billion project covers some 634,000m² and is built around a manmade lagoon adding approximately 1.5km of beachfront to the Gulf of Aqaba. Entertainment options will include retail outlets, a beach club, specialty restaurants, a kid's club, a sports complex and Wild Wadi Aqaba water park managed by Jumeirah Group. The Dubai-based company is also due to launch Jumeirah at Saraya Aqaba, Jordan on the site. Business, events and conference spaces will also be available. Ghassan Ghanem, CEO, Aqaba Development Corporation (ADC), and vice chairman of Saraya Aqaba, stated, “Saraya Aqaba is one of Aqaba’s pioneering projects that falls within Aqaba’s investment vision. [...] We believe that this project will contribute to the

JUNE 2014

revival of Aqaba specifically and Jordan as a whole.” Indeed efforts are being made across the board to increase the port city’s appeal, and promote it as a top tourism destination. Industry stakeholders in the area are eagerly awaiting the benefits of this development, as Michel Lansen, general manager, DoubleTree by Hilton Aqaba, explained, “We are looking forward to the expected growth of Aqaba, as outlined by the Aqaba Special Economic Zone Authority (ASEZA) as plans get underway for a number of major construction projects in the city including the Ayla Oasis and Saraya Aqaba.” Overseen by Ayla Oasis Development Company, the Ayla waterfront destination development will introduce a wealth of new hotel, retail, residential, business and entertainment options to Aqaba and will add some 17km of new seafront to the city. Abu Dhabi-based Al Mabaar is also investing in Aqaba with the mega mixed-use Marsa Zayed project. Hoping to help transform the area into a premier destination for travel and business, the site will feature high-rise residential towers, retail, recreational, entertainment, business and financial districts and branded hotels. Several marinas as well as a state-ofthe-art cruise ship terminal will also play a significant role in the overall improvement of the coastal city. Commenting on the sector-wide determina-

VISIT

tion to build strong foundations for the industry in Aqaba, Lansen said, “We are delighted to see the continued efforts to build tourism in Aqaba by all stakeholders and the private sector including ADC, ASEZA, Jordan Tourism Board and the Ministry of Tourism and Antiques, all of whom are helping to accelerate growth in the hospitality industry and subsequently the demand for hotel rooms. Aqaba is ideally placed to support Jordan’s tourism aspirations whether its business-led or across the many different sectors of leisure tourism. The tremendous work carried out by ASEZA has shaped Aqaba’s status as a distinct destination with broad sector appeal.” Part of the work being done by ASEZA to evolve the tourism product in Aqaba includes the improvement of the destination's infrastructure with an emphasis on the aviation industry. Confirming this fact, Nancy Tayyan, head of tourism marketing division, marketing and tourism directorate, ASEZA, said, "[We] have developed a co-op marketing support for non-charter operators and airlines to stimulate demand for Aqaba in key source markets. The major prequalification condition for obtaining the support is that all marketing projects should promote or include a minimum stay of four nights in Aqaba or two nights at Aqaba hotels, one in Wadi Rum and one night in Petra.” 

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REACH FOR THE SKY While industry insiders welcome news regarding increasing numbers of airline routes direct into Aqaba, elsewhere in Jordan, the addition of a brand new terminal building at Queen Alia International Airport (QAIA) in March 2013, has proved to be a key catalyst in furthering economic development. Spanning over 103,000m², the building increased QAIA's capacity from 3.5 million to nine million passengers per year, with plans to further grow this figure to 12 million travellers annually. Kjeld Binger, CEO, Airport International Group (AIG), the entity entrusted with managing and operating the airport, commented, “With its advanced capabilities, the airport will play a major role in placing Jordan on the map as an ideal choice for leisure and business travellers, as well as a convenient transfer hub. The Jordanian government has taken significant steps to restructure the transportation sector in the Kingdom, particularly its civil aviation industry in order to meet the rapid increase in travellers, as Jordan is fast emerging as a regional hub for passengers and airlines from around the world,” he continued. The new terminal will also benefit the national carrier as Basel Kilani, executive assistant to the president and media and corporate communications, Royal Jor-

Jordan

danian (RJ) confirmed, “It constitutes added value for RJ, since it is the hub of the airline’s operations. The additional logistical capabilities of the new terminal are bound to give [us] more opportunities to serve a higher number of passengers and operate more flights, boosting the company’s competitiveness, helping it to implement strategic plans for growth and expansion.” Although RJ currently operates some 60 percent of traffic at the airport, the expanded facilities are already seeing a return on investment with a number of regional airlines clamouring for a bit of the action. Etihad Airways has announced plans to increase its services from Abu Dhabi to Amman from 18 flights per week, to triple daily schedules from July 2, adding over 800 seats per week between the two cities. August will see Emirates launch a third daily Dubai – Amman service, while Jazeera Airways reported a 15 percent increase in passengers carried on the Kuwait – Amman route from January 2013. This rise in popularity within the Kuwaiti market prompted action closer to home, with RJ also stepping up the frequency of flights to the Gulf state from 10 weekly operations, to two per day in April. Speaking about important upcoming steps in the continued development of the carrier’s operations, Kilani said, “RJ is undertaking all preparations to receive its first Boeing 787 Dreamliner aircraft, which is

expected to join the airline’s fleet in August. [We] will be receiving four more Boeing 787 Dreamliners by the end of the year; the other ordered aircraft will follow in the next few years, helping RJ reach new markets and fly to more cities around the world.” The new aircraft will have a total capacity of 270 seats with 24 full-flat seats. According to Kilani, passengers on the 787 Dreamliner can also enjoy wider seat pitches and bigger windows. “These 787 airplanes are expected to gradually replace the current Airbus 340s and 330s, in line with RJ’s strategy of modernising its fleet, expanding routes and keeping up with latest technology,” he said. The carrier transported 3.2 million passengers in 2013, with the Middle East and neighbouring countries proving the most popular routes, Kilani revealed. LOOKING OUTSIDE THE BOX The aviation industry is not alone in its plight to open Jordan up to new markets, and as Khano explained JTB is also working on broadening the destination’s horizons with intensified promotional campaigns in Asia and four roadshows organised in South Korea, Japan, Taiwan and Thailand. “The JTB campaigns in Asia and Europe constitute an attempt to make up for the drop in the tourism 

JUNE 2014

VISIT

coming to Jordan where the sector has been affected by regional turmoil,” said Khano. "Religious tourism has witnessed growth. Pilgrims from Latin America, China, India and South Korea have started to flow considering Jordan as a stable and peaceful country despite what is going on in the surrounding counties.” According to Khano, Days Inn Hotel has added 70 brand new deluxe rooms, two restaurants, a ballroom, and three small meeting rooms to its inventory. “The extension in rooms and meeting facilities enables us to target other new segments such as corporate meeting groups, subsequently increasing our business share in the market,” Khano commented.

Jordan

the country as a go-to destination for business tourism. On this note, Kamel Ajami, country manager, Jordan, Hilton Worldwide, exclaimed, “King Hussein Bin Talal Convention Center (KHBTCC) managed by Hilton Worldwide continues to promote the Dead Sea as one of the most significant MICE hubs in the Middle East region to national and international audiences.” Commenting on business at the centre so far this year, Ajami, added, “We have been enjoying a buoyant year at KHBTCC. We have already played host to notable events [...] and we are looking forward to more exciting initiatives. KHBTCC is an incredibly flexible and versatile amenity for Jordan and we are delighted to see the variety of conferences, conventions and events we continue to attract, including an increasing number of cultural events using the magnificent backdrop of the Dead Sea as a persuasive attraction.”

'Destination Dead Sea', an all-party collaborative effort in partnership with the Ministry of Tourism and Antiquities, with the support and backing of the JTB.” According to Ajami, the cooperative group will focus on strategically aligning these collective efforts to create a compelling and attractive campaign to not only support and reflect the variety of local leisure options in the destination, but also to further promote the Dead Sea’s most famous natural asset. Hilton Worldwide will further contribute to the Dead Sea’s tourism offering with the 285-room Hilton Dead Sea Resort & Spa hotel opening later this year. “We are confident its opening will add significant

A STAND-ALONE DESTINATION

Speaking about the situation in hotel's around the popular Dead Sea area, Alaa Hijazi, director of sales and marketing, Winter Valley Warwick Dead Sea, said, “Winter Valley Warwick Dead Sea is capitalising on the introduction of new inbound business into the country, and we have been successful in opening new channels from abroad to attract more clients into the hotel. The plan for the current year is to create more awareness of our conference facilities, and promote the hotel as a destination for small and medium-size functions.” New international markets aside, businesses are also opening up to new tourism niches, expanding their pool of offerings to target wider audiences. According to Suzan Jaber, marketing manager, Le Royal Hotel Amman, the property plans to add specially designed children’s activities to attract family vacationers. Speaking about future projects outlined at the hotel, Jaber explained that new rooms and suites were due to be added to the inventory as well as two new food and beverage outlets and the renovation of the current accommodations product. Certain speciality areas are being given more focus such as the MICE sector, as Abed Al Razzaq Arabiyat, managing director, JTB, confirmed, “This year we are hoping to highlight our MICE, eco and nature experiences as well as our fun and adventure offerings. We have also recently launched our food campaign that emphasises Jordanian culture through the gastronomy of different areas, ethnicities and geographies.” With the MICE segment expected to grow exponentially over the next few years, a number of existing venues are pulling out the stops to further promote

Jordan’s widespread and diverse appeal is working in its favour in its plight to be noticed as a world-class stand-alone destination. “Jordan’s ability to attract international visitors is renowned. Leisure travellers are drawn to the country’s rich cultural and historic jewels, and its geographic location is also ideal for the corporate sector and in staging international seminars and conferences. Jordan is a major competitor in everything from cultural heritage and religious tourism to health and wellness, sports, corporate and adventure,” said Lansen. Looking to remove itself from the stigma attached to some of its neighbouring countries, Jordan is focusing on the key attributes that make it unique such as its religious affiliations which make it so popular amongst spiritual tourists. According to Arabiyat, religious tourism has always been a pivotal part of the tourism offerings but has never reached the market it deserves. “JTB was very excited about Pope Francis’ visit to Jordan [in May]. Not only will his visit solidify our position as an integral part of the Holy Land [...], it was a launch point for our religious tourism campaign. What we are working on now is to revitalise the field by promoting sites that people never even knew existed.” Another key characteristic that works to the country's advantage is the natural medical and wellness tourism appeal of the Dead Sea. “The most prominent trend we are witnessing at the moment is the increased popularity of religious tourism and medical tourism,” said Massoud. “As for the medical tourism, we have the Dead Sea, which is quite famous for its healing powers. So we have many guests coming from all over the world to our resorts to benefit from the many positive attributes of the Dead Sea and its mud.” Commenting on efforts being made by industry insiders in the Dead Sea region specifically, Ajami, said, “We have been very busy in recent months actively working with neighbouring hotels to generate plans to help position the area as a world-class destination with global appeal. We have established

value to Dead Sea’s tourism offering,” said Ajami. “We must never forget that Jordan is an extraordinary country in so many different ways. Jordan is rich in culture, history and heritage and we must do all we can to promote these distinctive assets to the world’s travellers,” he concluded. Another one-of-a-kind strength is Jordan's ‘golden triangle’, as Tayyan highlighted, “ASEZA is aware that capturing the experiences in the golden triangle (Aqaba, Petra and Wadi Rum) and generating publicity about them is the key for marketing the destination and creating awareness.” ASEZA is now joining forces with other tourism businesses in the golden triangle to cross-promote and create more substantial marketing activities that enhance the overall visitor experience. “It is crucial to align and market the golden triangle together to offer a deep and diverse range of experiences that significantly enhance the competitive offering,” Tayyan added. Boasting a plethora of natural country-specific tourism magnets that keep its popularity stakes high, the next challenge for Jordan will be working together as a combined cooperative unit to ensure potential visitors see it as a destination in its own right, separate from Lebanon, Syria and Egypt with whom it has often been linked. “Key stakeholders must work together to ensure that the bottom line in the ‘Jordan tourism product’ offering is able to attract tourists and have them think back of coming back to Jordan as a stand-alone destination,” Hijazi concluded.  JUNE 2014

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Red Sea

The Many Shades of the Red Sea

Aqaba

With its rich heritage, all year round sunshine and broad accommodation options to fit every taste and budget, the Red Sea area has long established itself as one of the region’s most popular holiday hotspots.  Rita Kasziba writes

riven by major developments, Saudi Arabia’s Red Sea coast has continued to flourish, however Jordan and Egypt have gone through somewhat more turbulent times. “The tourism industry is fragile by nature. A bit of news about unrest in any country is highly impactful, but tourism in Egypt has this special nature,” elucidated Jens Freise, vice president, marketing and sales, destinations and hotels, Orascom Development Holding, referring to the strong guest loyalty, the great value-for-money and the depth and diversity of offerings available in Egypt and the Red Sea area, where the company is largely responsible for the popular resort of El Gouna. As Jean-Philippe Ferrini, resident manager, Captain’s Inn and Turtle’s Inn, El Gouna, noted, although the Red Sea area remained safe and stable, since 2011 it has been quite challenging to maintain healthy performance levels. “The fluctuating instability that has been shaking the region has unquestionably placed much stress on the Red Sea area forcing the hospitality field to suffer a substantial setback, resulting in a deterioration of visitor numbers,” reaffirmed Rasha Sherif, director of business development, Sinbad Club, Hurghada. In fact, based on data compiled by TRI Hospitality JUNE 2014

Consulting, during the first two months of the year, Sharm El Sheikh’s hotel sector for example recorded a 38.4 percent year-on-year decline in bottom line profitability. In comparison, while average room rate rose to USD385.33 in Dubai for the two-month period, it stood at USD41.64 in the Red Sea destination, and the gap is even greater when RevPAR is being taken into account: USD335.02 in Dubai versus USD23.25 in Sharm El Sheikh. PROFIT VS. OCCUPANCY As Mohamed Eid, assistant director of sales and marketing, Gorgonia Beach Resort, Marsa Alam, noted, due to the area’s distinctive character Marsa Alam managed to remain less affected, between August 2013 and December 2013 however a number of prominent international tour operators decided to cancel their flights to the destination, leaving hoteliers no choice but to adapt to the new market conditions. In fact, in favour of high visitor numbers and occupancy levels, tour operators and hoteliers have been prompted to slash their prices, leading to lower bottom line earnings. As Eid pinpointed, while hotels operated by international chains retained relatively healthy average rates, putting sales and occupancy levels into jeopardy, properties run by the private sector were more flexible in terms of price policies and cutting back on certain

costs, allowing them to maintain high guest volumes often compromising, however, on service levels. As Ferrini also noted, companies chose different tactics and while some have been focussing on all inclusive offerings at lower rates to ensure high turnover and profitability, others have created deluxe all inclusive packages, a form which already proved successful in South America, and which also worked. “I guess the questions is, to reach high occupancy and high rates, do you want to be cheap or do you want to be known for quality – regardless of the hotel’s star rating,” Ferrini asked. “At Captain’s Inn for example, we decided to follow the second model. I rather target a bit lower occupancy with higher rates than just fill up the hotel for nothing. I know that an empty room is a cost on my shoulders, but I rather focus on guest satisfaction than just numbers and eventually, numbers will follow,” suggested Ferrini. Recognising that focussing on occupancy levels could easily backfire in the long-term, and that, as Ferrini said, quality drives occupancy, most hoteliers targeted a healthy balance between occupancy and rates. “We have decided to disregard [profitability] for a while and focus on quality key performance indicators. We sat down [in El Gouna] as a group and decided that while just dropping prices and reducing costs certainly had some advantages, if it was to be against quality, then it had no purpose as it would take us longer to get back to our standards, and might make 

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Red Sea

us lose profitability in the long run,” explained Ferrini. Weighing in on the question of quality versus quantity, Soha El Torgoman, general manager, Hilton Hurghada Resort, said, “In case of Hilton Hurghada Resort, our priority is to ensure we constantly maintain high standards across all areas of the hotel and strive to ensure our guests enjoy the best possible hospitality experience and explore and appreciate the many delights Hurghada has to offer,” reinforced El Torgoman.

market and the local sector has also showed encouraging increases. El Torgoman cited recent industry reports which suggest that although due to economic factors Egyptians have been travelling less in recent times, they have still revelled in the vast array of attractive domestic offerings. As Ferrini noted, having promoted itself on the local market extremely well over the past years, El Gouna was also able to attract a large number of do-

El Gouna

and months, demand for holidays in the Red Sea has picked up again. “In the ranking of the most popular holiday destinations for German TUI guests, Egypt ranked number eight in 2013, only one position down from 2012. With this Egypt has shown certain resilience in the face of the crisis despite clearly noticeable declines in 2013,” stated Spichala, saying that the broad range of holiday opportunities, modern hotels, high-proportion of all inclusive facilities and the good value-formoney are all major advantages over other holiday destinations. “At TUI, Egypt is one of the countries with the highest guest satisfaction. If the situation stabilises and stays permanently calm, chances are good that the Egyptian tourism industry will regain its former strength,” asserted Spichala. Anticipating the highly important German market’s swift return, Sherif said, “We are expecting an improvement of business from Germany due to the direct charter flights from Berlin, Düsseldorf, Stuttgart and Hanover to Hurghada International Airport. Likewise, we also expect increased traffic from the Gulf countries with direct flights from Dubai, Kuwait and Bahrain, which is a completely new market for the Red Sea, one that needs to be explored,” added Sherif.

BROADENING THE HORIZONS

ON THE OTHER SIDE

In a move to maintain healthy business levels, professionals working along Egypt’s Red Sea coast have also embarked on various initiatives in a bid to further extend their market reach to make up for the losses from certain previous high-performer regions. “The Russian and Eastern European markets were the saviours for our industry during the last four years,” stated Sherif, adding that nevertheless regular clients from destinations like Western Europe also remained loyal to the Red Sea area. Commenting on the changing market patterns, Clare Mucklow, marketing manager, Camel Dive Club & Hotel, Sharm El Sheikh, said, “Over the last three years we have noticed a shift in the type of visitor; today we have a much higher proportion of guests who are returning on their second, or sometimes 10th, visit who have already visited us before and are confident about what to expect,” Mucklow disclosed, saying that in contrast, a drop has been observed in the influx of firsttime visitors who are simply looking for a sunny beach destination thus have a plethora of choices. “Sharm El Sheikh still represents incredible value-for-money, so certain markets have continued to perform well. These are notably Russia and Ukraine, together accounting for over 60 percent of arrivals during the first three months of the year, and the British market, representing approximately 25 percent of visitors,” informed Mucklow. This trend has also been reaffirmed by Ahmed Naiem, general manager, ibis Styles Dahaab Lagoon, who said that while due to travel warnings, the Western European segment performed below previous years’ levels, Eastern Europe remained a strong feeder

On the other coast of the Red Sea, Jordan’s tourism industry has also endured quite a rollercoaster ride these past months and years. “The strategic challenges facing Jordan’s tourism development are undoubtedly complex, involving multiple supply and demand factors,” said Michel Lansen, general manager, DoubleTree by Hilton Aqaba, adding that despite the spikes and drops, the iconic quality of the Kingdom’s tourism resources and the natural hospitality of Jordanians provide fundamental core strengths which can be used to effectively differentiate Jordan in unique ways. Mazen Abu Sakha, general manager, InterContinental Aqaba, admitted, “We definitely had to take steps to counterattack and fiercely bounce back. We tailored many promotions and packages to allure and attract both the local and international markets.” As Abu Sakha suggested, thanks to its safe haven status, the Red Sea and especially Aqaba continues to gain popularity among both Jordanian and international travellers. “We are confident that the number of tourists and visitors will continue to increase due to the inviting nature of Aqaba and its residents, and the breathtaking and safe environment,” he added. Jareer Massarweh, cluster director of marketing and communication, Kempinski Hotel Ishtar Dead Sea and Kempinski Hotel Aqaba, concurred, saying that impelled by the ongoing tourism projects taking place in the area, the Red Sea is increasingly becoming a preferred choice, and the presence of brands, such as Kempinski, has added a spirit of luxury to Aqaba.

El Gouna

mestic visitors and, as a result, remain less affected by the circumstances. Nevertheless, Europe maintained its position as a key feeder country. “Take the German market. The government had issued a travel warning against the destination, yet travel agents did not stop sending guests to our resorts,” added Ferrini. In fact, as Kathrin Spichala, spokesperson, TUI Germany, confirmed, since the Arab Spring, Egypt in general has been clearly behind the old holiday records, yet the Red Sea area remains a popular choice amongst German holidaymakers with Hurghada taking the number one spot as the leading Egyptian destination. “More than 90 percent of the German TUI customers are spending their holidays in Hurghada and most of our hotel brands are also located there,” asserted Spichala, adding that over the past weeks

JUNE 2014

Red Sea “People come to Aqaba to enjoy the beautiful all-year-round sunny weather, the best diving spots in the world as well as the facilities and services that complete the overall experience,” added Massarweh. Praising the local authorities and stakeholders’ steadfast efforts towards building demand for hotel rooms and accelerating the growth of the tourism industry, Lansen said, “The city’s enviable coastline location in the northeast corner of the Red Sea attracts both short- and long-stay tourists and the tremendous work carried out by Aqaba Special Economic Zone Authority has shaped Aqaba’s status as a distinct destination with a broad sector appeal.” As Lansen noted, these initiatives, along with the recent announcement of a USD1.5 billion leisure resort in Aqaba, are set to ensure the sector’s continued growth in the long term. PLANNING FOR THE FUTURE In Egypt however somewhat more intensified efforts will be needed in order to improve bottom line performance and ensure a solid platform for future growth. As Naiem noted, tapping into new markets is crucial and might require the need to find alternatives for international charter flights. Implementing a strong and persuasive promotional action plan and dynamic pricing strategies with the formation of a hotel comity are also steps that can accelerate the industry’s recovery. Supporting the idea of the establishment of an organisation that, through price regulations, would ensure a fair competition, Eid noted that already for this summer season the majority of European tour operators have converted their committed flight seats to Hurghada and Marsa Alam until the end of October. “It is a double-edged sword because hotels will get more guests however tour operators will gain even more power, putting hoteliers under pressure to get extra privileges and discounts,” explained Eid. In order to further broaden the destination’s markets, regaining the confidence of the international community by projecting a positive image of a safe and reliable destination is also crucial, stressed Sherif, adding that turning to new concepts, such as wellness and MICE tourism could also benefit the Red JUNE 2014

Sea region. Reinforcing the need for market diversification, Freise emphasised, “Specialised tourism, concept hotels, targeted marketing, efficient communication with both end users and business partners, and good value packages all add to that high-quality products and a holistic approach [which] are basically the secrets to attracting high-end business to Egypt.” Expressing his hopes to see further developments in this regard, Freise added, “Over the coming years, I hope we can have enhanced diversification on both

ONSITE

the geographic and the psychographic levels. New sports offerings, among them some extreme ones, new quality hotels with high-end leisure offerings and a growth in the MICE capacity [are what we hope for],” stressed Freise, adding that the winter season is anticipated to bring some positive improvements. Voicing similar optimism, Ferrini said Egypt’s Red Sea region will bounce back sooner than people think. “If I look at the forecast of the winter seasons, it makes me smile,” confessed Ferrini, adding that the light at the end of the tunnel is now clearly in sight. 

EXPLORE

Palestine

In the Face of Challenge Palestine is coping with numerous obstacles that continue to hinder efforts to develop a sustainable tourism industry. Restrictions on movement and access for both tourists and Palestinian service providers, make managing the tourist flow and developing themed routes difficult. However the state has succeeded in eclipsing negative bias and its tourism industry is following a steady path. PALESTINE IN BRIEF Administrative Centres: Ramallah, Gaza Accepted Currencies: US Dollar (USD), Jordanian Dinar (JOD) Language: Arabic

Dome of the Rock, Jerusalem

 Maria Kazeli

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he separation wall, combined with our lack of control over borders and points of entry, makes managing and developing a tourism sector extremely challenging,” commented Jeries Qumsieh, director, minister’s office, Palestine Ministry of Tourism & Antiquities (MOTA), adding that refusal to allow Palestinians to renovate, restore and manage key sites located in Sebastia, the Jordan Valley, and the coast of the Dead Sea hinder the ministry’s ability to develop a comprehensive tourism offer. Qumsieh added that despite these challenges, MOTA together with its partners has managed to persevere and continue developing the industry in a bid

to safeguard national treasures, and provide visitors with an authentic and memorable experience of Palestine and the wider Holy Land. 2013 saw the conclusion of a structured scheme which started in 2011 and focused on implementing a wide range of projects and activities that were aimed at developing the tourism product and enhancing the overall visitor experience, according to Qumsieh. “The national strategy revolved around developing Palestine as a competitive regional destination that is rich in religious, historical, cultural and natural resources. Some highlights include renovating and restoring key historical and religious sites, the opening of new tourist information centres, the instillation of tourism signs across selected areas and the ongoing marketing and promotional effort abroad,” Qumsieh remarked.

For another consecutive year, in 2013 the tourism sector in Palestine continued to show signs of stability and growth, as it recorded an increase of 14 percent in traveller arrivals and a five percent surge in overnight stays compared to 2012, having welcomed 2.5 million visitors and registering around 1.9 million overnight stays. As per MOTA’s statistics, aside from Jerusalem, Bethlehem continued to receive the highest number of inbound visitors and overnights followed by Jericho and Ramallah. “As far as top source markets, for another consecutive year Russia, Poland and Italy were the top three source markets for overnight stays in Palestinian hotels. In addition to our other traditional source markets such as the UK, Spain and France, we are seeing steady growth in new source markets such as Korea, India, Indonesia, Nigeria and Ukraine,” added Qumsieh. RISING UP “The tourism industry is developing very fast,” suggested Shakib Husseini, managing director, Dynamic Hospitality Management. “We have many professional tour operators that work on inbound travel and the majority on outbound travel. We are introducing so many new products in the market that will assist the travel agencies in smoothly selling packaged products to so many destinations in the Middle East, Europe and the Far East.” JUNE 2014

Palestine

Nablus

The Silver Star, Church of the Nativity

Husseini did not hesitate to claim that Palestinian properties are being wronged as the majority of agent business takes place in Jerusalem and Bethlehem, with rival tour operators sending 80 percent of inbound tourism to West Jerusalem’s hotels and under-serving the rest of the city. While Husseini supported that three large hotels have been built adjacent to East Jerusalem properties, he also emphasised that the Palestinian sector has not increased its number of rooms since 1967.

projects across the West Bank and Jerusalem under various stages of planning and construction, while new restaurants, upgraded transportation fleets, and numerous tourist resorts are also emerging. “In 2012, MOTA together with other partners launched Palestine’s Hotel Classification Project. The project, which is well underway, is implemented in cooperation with the Arab Hotel Association, the Holy Land Incoming Tour Operators Association, USAID Compete Project, the Jordanian Ministry of Tourism and Antiques and other private sector stakeholders. [...] The classification manual was finalised, published and circulated to hotels and other stakeholders and a team of around a dozen assessors were trained and are currently assessing hotels across the West Bank and Jerusalem. To date over 50 hotels are in various stages of completing their classification,” Qumsieh revealed.

Traditional Meal

At the same time a hotel activity survey presented by the Palestinian Central Bureau of Statistics, unveiled that during 2013, 600,362 guests stayed in hotels in the West Bank, 38 percent of which were from European Union countries, nine percent were Palestinian and another nine percent from the US and Canada. A total of 113 hotels in the West Bank responded to the survey, offering the results from a total of 5,890 rooms and 13,458 beds. As per the source, hotel room occupancy in the Palestinian territory reached just 25 percent in 2013. Nonetheless, Qumsieh made known that the private sector is now investing heavily in tourism developments and there are currently over 30 hotel JUNE 2014

CONSTANT STRUGGLE The state’s air carrier, Palestinian Airlines, was first established in 1995 and started operations in June 1997 with a series of charter flights carrying pilgrims to Jeddah. Following various setbacks the airline was forced to move to El Arish

EXPLORE

International Airport, Egypt in December 2001, after the destruction of the runway at its previous base, Yasser Arafat International Airport. In the most recent development, Palestinian Airlines resumed operations once again in late 2012 from the Egyptian hub in Sinai, but due to the prevailing situation, it froze operations in early 2013 since it was not feasible to hit any target, as Yasser Irqayeq, commercial director, Palestinian Airlines, disclosed. He went on to say that following this, the carrier leased one Fokker 50 airliner to Niger Airlines on an aircraft, crew, maintenance and insurance basis, while Palestinian Airlines’ second aircraft is still grounded in Amman. As for future plans, network expansions and targeted markets, all have been postponed for the moment, according to Irqayeq. For Palestine to successfully compete and get its share of regional tourism arrivals, it needs to diversify its tourism offerings and promote the richness in cultural, historical and natural resources, Qumsieh said. “While religious tourism will remain the backbone of our offering, there is a clear and identified need to develop and diversify our offer to be able to attract more regional visitors to spend more time and money in Palestine. We are seeing increased demand for more alternative types of tours with a bigger focus on cultural and nature based activities,” he concluded. 

TOUR

Sri Lanka

Aiming Higher Sri Lanka offers sunny beaches, over 2,500 years of culture and heritage, and breathtaking sceneries of tea plantations on misty mountainsides; however its people are the country’s true blessing, never denying their warm and honest smile, appreciated by over a million visitors annually.

SRI LANKA IN BRIEF Capital: Colombo Currency: Sri Lankan Rupee (LKR) Language: Sinhala and Tamil

 Maria Kazeli

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he pearl of the Indian Ocean, as Sri Lanka is often referred to, is experiencing new record visitor numbers, and ambitious tourist arrival targets until 2020 are reaching up to four million. A total of 1.27 million travellers came to the island in 2013, signalling an enormous 26.7 percent increase compared to 2012. Figures for the first four months of this year show that 534,132 tourists enjoyed the destination, an encouraging statistic as the annual target is set at 1.5 million visitors. This surge in Sri Lanka’s tourism industry has been long awaited, according to Ishanth Gunewardene, head of sales and marketing, Jetwing Hotels. “What is important is that the current growth in tourism has benefitted the hospitality sector overall and is now benefitting all stakeholders, the big hotels, the smaller hotels and what we call the informal sector which comprises guesthouses and homestays, which alone have seen tremendous improvement which is important as they facilitate community participation in tourism,” remarked Gunewardene. He stressed that this positive development has also attracted a lot of foreign investment and benefitted local communities, creating jobs and employment opportunities for local youth as well as hospitality professionals from overseas. Glenn de Souza, vice president, international operations, Asia and Middle East, Best Western International (BWI), also considers Sri Lanka to be one of the world’s most exciting emerging markets, both in terms of economic growth and tourism development. “The [arrival] statistics are proof that demand for quality accommodation is rising across the country, and BWI is in a strong position to cater to this new wave of travellers,” he said. Concerning market segmentation, emerging new destinations are occupying the place long held by traditionally dominant markets, with India, UK, China and Russia being the country’s top performing feeders for January. According to Gunewardene, for Jetwing Hotels, the Middle East region, and especially Saudi Arabia, the UAE, Kuwait and Oman, saw a 43.4 percent year-on-year increase in 2013 and a similar trend is expected this year as well. JUNE 2014

Sri Lanka ACTION TO BE TAKEN The enormous growth of the sector has triggered major developments in the country, with infrastructure being at the forefront of the state’s priorities. Mattala Rajapaksa International Airport was opened in 2013 in the south of the island to compliment Colombo’s Bandaranaike International Airport, while new expressways have shortened the distance to the beach resorts of the west and the southwest. “Improving infrastructure is a must and Sri Lanka has been focusing on this area consistently,” suggested Gunewardene. “There are now many new highways that we did not have a few years ago, city development schemes have been rolled out and many other projects aim at improving infrastructure with a view to enhancing the tourist experience.” More must be done in this area in terms of educational and training centres, upgrading facilities, creating theme parks, improving MICE-related facilities and locations, Gunewardene added. Along the same lines, Sri Lanka’s room inventory needs to be expanded since the shortage of rooms in certain parts of the country during the high season is obvious, according to Sushan Peiris, director, Modern Voyages. “The country has a large number of tourists visiting and in peak seasons the hotels could get overbooked in the event tours are not booked early,” he commented. “Having said this, Sri Lanka is developing rapidly and we have a number of both local and foreign hotel chains constructing more and more world-class properties. Therefore, it goes without saying that the continuous growth especially after the end of the war has been impressive,” Peiris also underlined. Subanu Perera, head of sales and group business development, Earl’s Group of Hotels, corroborated that Sri Lanka used to offer a small amount of choice while now there are more options, more hotels and more experiences. “Change of travel advisories and traditional connections too contributed a lot towards this growth. Some of the hotels have over 500 percent growth in smaller focused operations. There were 221 travel agents as per our list in 2009 and today there are over 461 in Sri Lanka,” Perera explained. FAST MODE Despite the double-digit growth in terms of inbound visitor arrivals, Sri Lanka’s hotel room supply is still scarce, commented de Souza, adding that the upcoming BEST WESTERN Elyon Colombo, the company’s inaugural property on the Indian Ocean island, will supply the rise in demand by providing a quality, internationally-branded hotel in a key destination in the country. “Opening this summer, the 60-room hotel will bring BWI’s world-famous attributes of comfort, convenience and service excellence to Sri Lanka for the very first time,” he said. Future destinations for BWI are likely to include more locations in the capital, Colombo, or other key JUNE 2014

Negombo

leisure and business destinations such as Kandy, Mirissa and Tangalle, while the group’s initial target for the next three years is to have four more hotels with a portfolio of approximately 400 rooms, rising to 700 rooms within five years, revealed de Souza. Another company adding inventory to the destination is Shangri-La Hotels and Resorts which is to launch two properties, namely Shangri-La’s Hambantota Resort & Spa and Shangri-La Hotel, Colombo, slated for opening in 2015 and 2017 respectively. The Hambantota resort, built along the shoreline, will feature 375 rooms including 26 suites and will be surrounded by a golf course, coconut plantations and sand dunes. “With the new shipping port, the second international airport and industrial zones close by, Shangri-La’s Hambantota Resort & Spa will be perfectly positioned for business travellers. Domestic and international holidaymakers will also be drawn to the property’s scenic seaside location,” claimed Rob Weeden, vice president, sales and marketing, Europe, Middle East and Asia, India and Indian Ocean, Shangri-La Hotels and Resorts. The company is also investing in a mixed-use development in the Sri Lankan capital, aiming to bring an international experience to the country, with Shangri-La Hotel, Colombo, which consists of 500 rooms in a 32-sto-

TOUR

rey building, offering 410 residential units in two 50-storey luxury towers, 68,000m2 of high-end retail and a 39-storey office tower. “This will be the first integrated lifestyle experience in Sri Lanka, which will be a world-class environment to enhance living and recreational standards for families to enjoy,” observed Weeden, adding that travellers are bound to be attracted by the island’s natural beauty and culture, and with improved infrastructure and transportation links, more people will be travelling there. Those links are to be further strengthened with Abu Dhabi-based Rotana Jet having introduced three weekly services between Colombo and Mattala and the emirate. In another development which is also set to improve connectivity to Sri Lanka, SriLankan Airlines joined oneworld, thus becoming the first carrier from the Indian subcontinent to become part of any of the global airline alliances. As part of oneworld, the airline will be able to offer all of its customers connections across a global network serving almost 1,000 destinations in more than 150 countries. With much going on and tourism taking the centre stage, Sri Lanka is poised to win the world over with its charm and as Peiris has put it, if you want to see it all just visit Sri Lanka. 

EXCLUSIVE

Airports

Wheels Up

Midfield Terminal Building

 Rita Kasziba writes

ccording to Airports Council International (ACI)’s preliminary figures, in 2013 traffic at the world’s 150 biggest airports rose 4.4 percent to 4.07 billion passengers. and the Middle East, along with South America, proved to be the fastest developing regions, posting an astonishing growth rate of 7.7 percent, almost double the global average, lifting passenger figures to 16 million. A statement released by ACI Asia Pacific informs that over the past few years the Middle East’s economies performed extremely well, largely due to the high oil prices and the governments’ pledge to establish tourism as a priority in their national development strategy. With an estimated two-thirds of the world’s population living within an eight-hour flight from the Middle East, airlines such as Emirates, Etihad Airways and Qatar Airways have successfully exploited their opportunities, resulting in high growth rates across the region, ACI Asia Pacific’s data shows. As Daniyal Qureshi, director, Airport Show, noted, MENA airports are projected to cater for 400 million passengers by 2020, thus billions of dollars are being invested across the region to provide additional capacity on the ground and in the air to accommodate the fast-escalating demand. Qureshi cited the International Air Transport Association (IATA)’s recent regional outlook which suggests that with an annual growth rate of 6.6 percent until 2016, the Middle East will become the second

Bahrain International Airport

Propelled by the commitment of the region’s governments to transform the aviation sector into a key pillar of their economic diversification drive, over the past years the Middle East has become one of the fastest growing aviation markets and home to some of the world’s most advanced and busiest airports. fastest developing aviation market. Capitalising on the region’s increasing significance on the global map, Middle East carriers are expected to spend a whopping USD450 billion on over 2,500 aircraft by 2030, corresponding with the International Civil Aviation Organization’s forecast that predicts a 5.2 percent annual rise in regional air traffic until 2030, thus the urgent need to address issues such as airspace bottlenecks and innovative technology and solutions. MOUNTING PRESSURE Based on estimations, the UAE airspace system currently handles some 600,000 movements per annum, this number, however is set to double over the coming years to reach 1.2 million movements by 2025, a figure, which, according to Ibrahim Ahli, director, Dubai Air Navigation Services, is broadly equivalent to the current volume of traffic handled in the New York and London areas. To facilitate the anticipated growth, the capacity of the UAE’s airports is set to be increased to handle 250 million passengers by 2020, noted Qureshi. “The UAE’s airports are investing up to USD50

billion in new and expansion projects over the next 15 years,” disclosed Qureshi, saying that Dubai alone is expected to spend over USD8.1 billion on new infrastructure ahead of the much-anticipated Expo 2020. Driven by double-digit growth rates throughout the year, Dubai International closed 2013 with over 66.4 million travellers, up 15.2 percent year-on-year, making it one of the fastest-growing hubs globally, and positioning it on ACI’s annual preliminary ranking as the world’s seventh busiest airport in terms of total passenger traffic. In comparison, in 2002 Dubai’s main hub occupied the 65th position on the same list with less than 20 million passengers. More significantly, in terms of international traffic, Dubai International is already the world’s second busiest hub after London Heathrow, and according to a statement released by Dubai Airports, the management is confident about reaching the top spot by 2015. Dubai International is now two years into a USD7.8 billion expansion programme which will increase capacity to some 100 million passengers per year by 2020. Concourse A, hailed as the world’s largest Airbus A380 hub that opened in January 2013 and serves Emirates and Qantas at Terminal 3, is also part of the project, and as the management revealed, work JUNE 2014

Airports is already in progress to build Concourse D, which will cater to all other airlines operating into Terminal 1. The project, which is due for completion in the first quarter of 2015, will immediately bring the airport’s capacity from 75 million passengers per annum to 90 million travellers. In addition, the refurbishment of Terminal 1 and the capacity enhancement project of Terminal 2 are also progressing on schedule and will be completed by the end of the year. According to Dubai Airports’ management, the master plan for Dubai World Central is also under review with a mind to bring forward the timetable for the build programme for the emirate’s second airport in order to accommodate the projected traffic growth. “Dubai Airports has been preparing itself to double the emirate’s passenger capacity to 200 million passengers a year by 2045, up from the current target of 100 million a year by 2020,” explained Qureshi, saying that as the Middle Eastern airports harbour aspirations of becoming iconic travel hubs, immerse business opportunities for the global aviation industry have arisen, with the cash-rich, vision-driven regional airports eagerly building up top-quality, highly-efficient sustainable infrastructure to meet future requirements. Similarly to Dubai, Abu Dhabi International Airport also closed 2013 with double-digit growth in passenger volumes, having welcomed more than 16.5 million travellers, up 12.4 percent year-on-year. The record figures follow the opening of the new arrivals hall for Terminal 1 and 3 in 2013, and underscore, as Ahmad Al Haddabi, chief operations officer, Abu Dhabi Airports, said, the UAE capital’s status as a growing destination of choice and a logistics transit point. Within the next few years, over 30 million passengers are expected to use Abu Dhabi’s main hub as their origin, destination or transit point for international and domestic flights and the Midfield Terminal Complex (MTC) is currently being constructed to handle this traffic. Due for completion in 2017, the Midfield Terminal Building (MTB), the main component of MTC, is destined to become the gateway to Abu Dhabi and the future home of Etihad Airways, contributing significantly to the long-term success of the emirate’s aviation sector. In fact, over the past years, aviation has established itself as a vital engine in the UAE’s economy, contributing some AED145 billion (USD39.48 billion) or 14.7 percent to the national GDP, and in order to accommodate the escalated traffic flow, the country’s other airports are also expected to play an increasing role in the coming years. Speaking about the mounting pressure on air capacity and congestion in the Gulf area, Mohammed Qazi, acting CEO, Ras Al Khaimah International Airport, said, “With some of the world’s fastest growing airlines based in the Middle East, the region’s airspace is increasingly becoming congested. Also as the GCC straddles the centre of the world’s flight path, the demand for Arabian Gulf airports as aviation hubs is increasing.” JUNE 2014

EXCLUSIVE

a memorandum of cooperation with Abu Dhabi Airports to initiate an airport development masterplan that will ensure the delivery of an efficient and adequate expansion programme for the hub. THE NEW HUB

In light of these developments, over the past two years, Ras Al Khaimah International Airport, which has recently become the second UAE-base for Air Arabia, has further improved its facilities to provide airline operators with a viable transit or end-destination alternative. “Over the last 12 months we have expanded the airport with major investments in infrastructure and technology, an endeavour we hope alleviates immediate concerns over aircraft congestion in the Arabian Gulf airspace,” claimed Qazi, saying that the recent initiatives also reflect the management’s efforts to provide an optimum passenger experience and are a major draw for commercial airlines looking for landing space and new hubs to operate from in the UAE. “The emirate of Ras Al Khaimah itself is witnessing record numbers of tourism and economic development and as a result we anticipate over 350,000 passengers to pass through the airport before year-end,” disclosed Qazi, adding that as long-haul carriers from the CIS region, Russia, Western Europe and the GCC look for new hubs to operate through within the Middle East, aircraft movements are set to escalate over the coming years. To capitalise on this growth and turn the aviation sector into a catalyst of the emirate’s development, Fujairah’s Department of Civil Aviation, owner and operator of Fujairah International Airport, has recently signed

Meanwhile Qatar has recently unveiled its state-of-theart Hamad International Airport (HIA) after welcoming the first commercial flight and the first passengers on April 30. In the initial phase, 10 carriers operated to the hub, while the remaining carriers, including Qatar Airways, were expected to move to the new location from Doha International Airport on May 27. “HIA’s pioneering design, engineering and construction makes it a flagship national project and one of the most ambitious global projects currently underway,” supported Abdulaziz Al-Mass, senior manager, public relations and communications, Doha International Airport and HIA, adding that with stateof-the-art infrastructure and facilities all housed within one space, as well as optimised flow, the hub sets a new global standard in travel experience. Spanning 29km2, 60 percent of land reclaimed from the Arabian Gulf, the New Doha International Airport project includes HIA and the Airport City, representing 100 buildings of various uses. 

EXCLUSIVE

The passenger terminal alone features a 600,000m2 internal area and has three courses and 33 contact gates, which will subsequently be increased to five courses and 65 contact gates in the final build-out. In addition to a premium shopping experience, HIA will also offer a wellness facility with swimming pool, gym and squash courts, as well as other services including a 100-key hotel and a public mosque. “HIA [became] fully operational on May 27 and in its first phase it will have capacity for 30 million annual passengers, as three out of five concourses will open – A, B and C. Concourse A and B mirror each other in design and Concourse C, the largest of all three, will offer passengers unobstructed views of the airfield. However, HIA will almost double its capacity

Airports

passengers by 2020. Bahrain International Airport for example handled 7.4 million passengers in 2013, and in line with the evolving aviation trends and the increase in traffic, Bahrain Airport Company (BAC) and Bahrain Ministry of Transport have developed a three-tiered development project, known as the Airport Modernization Program (AMP), to upgrade the airport’s infrastructure and services. When completed, AMP is expected to expand the airport’s handling capacity to 13.5 million passengers a year and significantly elevate its commercial offerings. As a statement released by BAC notes, while destinations, such as Doha, Dubai or Abu Dhabi have invested heavily in expanding their national

carriers’ network, a move, which in turn resulted in their respective hubs’ growth, other counties, such as Bahrain, have opted to build on their own competitive edge and upgrade their airports’ infrastructure, operational capabilities, air traffic management and services through modernisation programmes. Kuwait, which has a total of seven airports, is planning to invest USD698.5 million in the redevelopment of Kuwait International Airport with construction of the second terminal slated for completion by fall 2016. While the new facility will cater for 13 million travellers, capacity is set to be increased to 25 million and 50 million through further developments. In Iraq, USD50 billion is being invested into new terminals and related services with expansion

Hamad International Airport

from 30 million to 50 million annually with the addition of two further concourses – D and E at a later date,” explained Al-Mass, saying that HIA was planned as part of the long-term strategic vision of the country to create a world-class aviation hub. “The new airport will play a critical role in maintaining Qatar’s position as one of the world’s fastest growing economies and acting as a gateway to the Middle East and onto the rest of the world. HIA will be one of the key drivers of the economy diversification and will have a strong impact on the human and economic development pillars of Qatar National Vision 2030,” concluded Al-Mass. REGIONAL AMBITION With ACI’s regional outlook suggesting that with a compound annual growth rate of 6.3 percent, the Middle East will report the strongest international passenger increase between 2013 – 2017, governments are allocating increasing budget shares for airport infrastructure developments and it is estimated that in the region some USD100 billion, including USD40 billion in the six GCC countries only, have been earmarked for airport expansion and new developments to prepare for the anticipated 400 million

Dubai Airports has been preparing itself to double the emirate’s passenger capacity to 200 million passengers a year by 2045, up from the current target of 100 million a year by 2020

projects currently undergoing in Baghdad, Basra, Erbil, Najaf, Mosul and Sulaymaniyah. Along with the multi-billion dollar infrastructure developments, much emphasis is being laid on air traffic management as airspace is becoming more of a scare. According to ACI Asia Pacific’s statement, the regional governments and stakeholders’ forwardthinking vision and strong support is something that is worth sharing with the world. BAC's management highlighted similar points, emphasising that what the rest of the world can learn from the Middle East in terms of aviation management are the growth and expansion strategies of the airlines as well as the governments and other stakeholders. These developments are often being fast-tracked and are driven by a surge in foreign investment and tourism entering the region. The growth strategies applied by the regional players to tackle this increase provide valuable knowledge and insight for the international aviation industry, while the key lesson to be learnt by the Middle East is that sustained investment in infrastructure and facilities is critical and a more systematic approach needs to be adopted in order to elevate facilities and services in line with the growing aviation trends both worldwide and regionally, BAC's statement emphasises..  JUNE 2014

TRAVEL CHANNELS

Austria: Record Visitor Numbers from the Middle East With a 612 percent increase in guest volumes from the Middle East over the last decade, Austria has established itself as one of the fastest growing European countries in the region.

B Schönbrunn Palace, Vienna

Anjum Hotel to Support Saudi Tourism A recent study by global travel market research firm, PhoCus Wright has revealed the steady growth of Saudi Arabia’s travel market, with an expected increase in revenue from SAR38 billion (USD10 billion) in 2012 to SAR43 billion (USD11 billion) this year. Governmental developments and private projects such as the 1,743room Anjum Hotel, are backing this development. Youssef Abdul Latif Jameel, chairman, Abdul Latif Jameel Real Estate Investment, said, “We, as the lead developers of the Anjum Hotel and the Jabal Ka’aba project, have decided to contribute to the expected increase of more than 15 million tourists coming to the Kingdom throughout [the year].”

UAE Travellers to Spend More on Family Trips Visa has conducted a study with the participation of 300 credit cardholders in the UAE, showing that over the next 12 months, affluent travellers will splash out more on family holidays. As Marcello Baricordi, general manager, UAE and global accounts, Visa, MENA region, revealed, in 2013 family vacations had the third highest spending incidence among respondents in the UAE with 89 percent of them taking an overseas holiday, with India, the US, Turkey, Maldives and France leading the list. The findings were revealed at this year’s Arabian Travel Market, which also featured several other luxury-themed sessions.

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ased on data from the Austria National Tourist Office, 2013 proved to be the fourth consecutive record-breaking year for the country, with arrivals from the Middle East rising 23 percent to 268,476 guests, and overnight stays standing at 872,571. The first quarter of the current year indicated a continuation of this trend with a 29 percent surge registered in guest volumes, and a 19 percent hike recorded in overnight stays. The Middle East has become one of Austria’s most significant markets ranking third in 2013 behind Germany and China, and with new luxury hotels, shopping centres and family attractions set to open over the coming months, the European country is poised to attract even more travellers from the region.

WHO'S MOVED

WAEL SOUEID Wael Soueid has been promoted to area general manager at Anantara Hotels, Resorts & Spas. With more than 20 years of experience in the hotel and leisure industries, Soueid will be overseeing the operations of all five of the companyâ&#x20AC;&#x2122;s properties in Abu Dhabi including Abu Dhabi city, Sir Bani Yas Island and Liwa Desert. Building on his broad hospitality

experience and solid understanding of the Middle Eastern cultures, and using his proactive and dynamic approach to management, Soueid will empower his team to excel in their roles, whilst making a positive contribution to the overall business.

Soueid will empower his team to excel in their roles

VANESSA CHINOPOULOU Vanessa Chinopoulou has been appointed cluster marketing manager at Bin Majid Hotels & Resorts. Having worked for several years as a corporate communications and marketing manager at the five-star Pentelikon Hotel in Athens, Chinopoulou has extensive experience in the hospitality field. In her new role, she will lead

the daily marketing operations and will also oversee the groupâ&#x20AC;&#x2122;s properties in the region. Chinopoulou considers Bin Majid Hotels & Resorts a very prominent hospitality chain in the UAE and the Gulf region and strongly believes that the company is committed to providing the highest quality service, timely support and customer satisfaction.

JAMES KAPLAN James Kaplan has taken on the position of senior vice president of development at Minor Hotel Group. With his legal background, and over 25 years within the development area of the hospitality industry, Kaplan brings extensive experience to the role. During the 1990s, Kaplan owned and operated Kaplan Consulting Group based in Hong Kong, before joining Marriott International as vice president of lodging development in 1998. He moved to Kerzner International in 2002 and worked first as vice president of development in Asia Pacific and the Middle East and later as senior vice president of global business development.

Kaplan then joined InterContinental Hotels Group as vice president of business development and planning for the Europe, Middle East and Africa (EMEA) region before moving to FRHI in 2007 to work first as senior vice president in EMEA and later as senior vice president of development of development for Asia Pacific and India.

With his legal background, and over 25 years within the development area of the hospitality industry, Kaplan brings extensive experience to the role JUNE 2014

RENDEZVOUS

Q & A with Elia Timani Crisis management is becoming increasingly critical for any organisation and here Elia Timani, managing director, chief business development officer and president of sales and marketing, Five Continents Hotels & Resorts, Hansa Hotel Management, discusses his companies’ approach.

Travel Trade MENA: What are the main values and characteristics of Five Continents Hotels & Resorts that set it apart from its competitors? Elia Timani: Our business is focussed on hotel and restaurant crises management and we venture into projects which are considered very high risk that other companies would not find beneficial to pursue. Five Continents Hotels & Resorts however accepts the challenges and offers professional management services. Having already gained many years of experience in crisis management, Five Continents Hotels & Resorts has built a network of financial institutions, which, along with our personal willing to support these projects, guarantees immediate aid. By creating an ideal balance in the ‘owner, financial institution and hospitality management company’ triangle, our aim is to ensure joy and success. Over the years, Five Continents has developed a tank engine that is capable of supporting any property facing a crises situation with the help of international tour operators that are willing to do business with Five Continents properties. In addition, the company also offers the most advanced ecommerce and online solutions to fit all business needs. Travel Trade MENA: What type of one-of-a-kind products and services are offered by the company and how can these help ensure successful hotel operations? Elia Timani: The core of the company is our ladies and gentlemen, therefore we are investing in our people who are all inspired by the same desire to exceed all expectations. We believe that our business is all about people – this is the main product of Five Continents. Travel Trade MENA: What are the company’s main target markets at the moment? How would you describe your clients and their businesses? Elia Timani: Our name, Five Continents refers to our worldwide reach as we have had established connections on all five continents, enabling the company to stay ahead of the game and target new destinations and partners from emerging economies.

JUNE 2014

Travel Trade MENA: Please tell us about Hansa Hotel Management. How is the company related to Five Continents Hotels & Resorts? What are Hansa Hotel Management’s main targets?

Elia Timani Managing director, Five Continents Hotels & Resorts, Hansa Hotel Management.

focuses on running quality three-star properties with the main aim of changing the perception of budget hotels and turning the concept into a true value-formoney experience. The name Hansa reflects our vision to develop properties in important port cities around the world. We are confident that we are heading in the right direction to reach our target and increase the number of quality three-star properties available for families, as well as business and corporate travellers alike. Our concept, which focuses on reliability and quality, clearly reflects the main values of the company. Travel Trade MENA: Please tell us about the companies’ plans for the coming months.

Elia Timani: Hansa Hotel Management is the sister company of Five Continents Hotels & Resorts and it

Elia Timani: Three new properties are joining Hansa Hotel Management’s portfolio: one in Sharjah, one in Abu Dhabi and one in Dubai. Meanwhile, Five Continents Hotels & Resorts’ will also be welcoming the addition of three more properties, one of which is located in Al Barsha [Dubai], opposite of The Mall of the Emirates, while the others are in Al Mazar and at Dubai Marina. In the coming months, we are also aiming to open our central reservation office in order to link our properties in Europe and the MENA region and offer round-the-clock quality services to our international customers.

TRAVEL TALK

travel talk is your space

RICHARD KAROL

SALIM AL KINDY

Vice president, Americas, Wings Travel Management.

Acting CEO, Oman Air.

“I am pleased that Wings Travel Management has consolidated its position in Brazil [by acquiring 100 percent of Brazilian travel management company, Cabtur Operadora de Turismo] and I believe that we are now well-positioned to become the premier provider of travel and logistics services to the rapidly expanding Brazilian oil and gas market.”

We are now well-positioned to become the premier provider of travel and logistics services

“[The Airplanes 101 seminar, organised by Oman Air and Boeing Commercial Airplanes Communication] is the latest in a series of initiatives that Oman Air and Boeing have jointly undertaken in Oman. […] Oman Air currently operates 17 Boeing aircraft and the timing of this event [was] particularly appropriate, as we will be receiving a further 14 Boeing airliners over the next couple of years. These include the innovative B787 Dreamliner which will provide our customers with the ultimate 21st century passenger experience.”

MAHER SALMAN AL MUSALLAM Acting CEO, Gulf Air.

“[The graduation of three of the airline’s Bahraini employees] is a great achievement and a reflection of their dedication to their ongoing training and development. On behalf of the entire airline, I congratulate them on this notable achievement and look forward to seeing their further growth and advancement within the national carrier’s workforce.”

I congratulate [the Bahraini employees] on this notable achievement

TRAVEL TALK IS YOUR SPACE – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel JUNE 2014

RENDEZVOUS

Q & A with Manuel Levonian As Salalah continues to witness strong growth both in terms of visitor numbers and investment activities, Manuel Levonian, general manager, Crowne Plaza Resort Salalah, looks at the key factors driving the positive trend, both in the city and the Sultanate as a whole.

Travel Trade MENA: How would you summarise the past few months? What were the main highlights for Crowne Plaza Resort Salalah?

Christian Muhr Manuel Levonian

Vice president, operations, EgyptResort and Levant, General manager, Crowne Plaza Salalah Hilton Worldwide

Manuel Levonian: The year started on a positive note for Crowne Plaza Resort Salalah. Not just in terms of revenue but also in terms of the overall guest experience which we have seen increase over the past years. At InterContinental Hotels Group (IHG) we lay great emphasis on guest experience and thanks to all our efforts, we have been able to achieve higher guest satisfaction, resulting in memorable stays for our valued guests. I would say that this has been one of the major highlights for us over the past months. Travel Trade MENA: In recent times, Salalah has experienced a steady growth in investments and tourist numbers. In your opinion, what are the main trends driving this positive development? In other words, what makes Salalah an attractive destination for visitors and investors alike? Manuel Levonian: The initiatives from the government have definitely helped boost investments and tourist numbers into Salalah. The Ministry of Tourism’s efforts to position Salalah as a tourist destination have been commendable, especially the campaign, launched in partnership with Oman Air, promoting Salalah as an attractive short break destination. Also, a number of familiarisation trips have been organised which will definitely help deliver results in the coming months and years. Another advantage is that Salalah, as a destination, is blessed with the ‘gift of nature’. From pristine beaches to mountains and various sightseeing options, Salalah has it all.

Travel Trade MENA: Omanisation has long been a priority for all businesses in the Sultanate. How important is it for you? In your opinion, how can the employment of Omani nationals contribute to the industry’s future development and enhance the destination’s profile? Manuel Levonian: One of the main attractions of any destination is the warmness and hospitality of the local people. I believe that Oman is blessed to have people who are so warm and welcoming and this initiative will definitely help support future development. At our property we also ensure that guests enjoy the true Omani hospitality with our Omani colleagues playing a vital role in delivering that 'true' guest experience. Travel Trade MENA: What are your plans for the coming months?

tination is gaining popularity in new markets and the new airport and better connectivity will definitely help bring more visitors to Salalah, resulting in more foreign revenue opportunities for Oman.

Manuel Levonian: Major renovation has already been done for our villas, offering a fully refurbished product for our guests. Apart from that, and in a bid to ensure our guests enjoy their stay with us, we always strive to upgrade our products and services.

Travel Trade MENA: With Salalah Airport’s development well underway, how do you see the destination’s future? How will this advanced airport help drive your business? Manuel Levonian: Salalah’s growth as a tourist destination is directly linked to the development of the new airport. With all current ongoing efforts, Salalah as a des-

JUNE 2014

Crowne Plaza Resort Salalah

NEWS & EVENTS

Airport Show Closes on a Positive Note With a 20 percent increase in gross exhibition space, the 14th edition of the Airport Show proved to be the most successful event since its launch in 2001. This year’s show attracted 250 exhibitors from 39 countries from all over the world, with more than 60 percent of the exhibitors being repeat attendees. The event also hosted two co-located programmes this year, namely the

inaugural Travel Catering Expo and the second Global Airport Leaders’ Forum. The aviation industry gathering occupied about 12,600m² of gross exhibition space across three halls at Dubai International Convention and Exhibition Centre, marking significant growth over the 2013 edition. In addition, the hosted buyer scheme recorded a 80 percent surge with an all-time high participation of 105 decision makers.

EVENTS Arab Luxury World Dubai, UAE, June 2 – 3, 2014 (www.arabluxuryworld.com) The conference will focus on opportunities and challenges in travel and hospitality, and art and cultures, amongst others. International Luxury Travel Market (ILTM) Asia Shanghai, China, June 2 – 5, 2014 (www.iltm.com/asia) An invitation-only event where travel agents and advisors from across Asia meet global luxury travel experiences. Connect Marrakech, Morocco, June 3 – 6, 2014 (www.connect-aviation.com) The event will bring together airports, airlines, suppliers and tourist industry professionals from around the world. Turkey & Neighbours Hotel Investment Conference (CATHIC) Istanbul, Turkey, June 9 – 10, 2014 (www.cathic.com) One of the region’s premier meeting places for the industry with more than 300 hotel investors, operators and developers. Kingdom Business & Luxury Travel Congress Riyadh, Saudi Arabia, June 9 – 10, 2014 (www.kbltcongress.com) A unique business platform that will bring Saudi corporate travel buyers and outbound travel agents under one roof. Americas Incentives, Business, Travel & Meetings Expo (AIBTM) Orlando, US, June 10 – 12, 2014 (www.aibtm.com) A leading global exhibitions for the US meetings and events industry delivering individually qualified hosted buyers and eligible trade buyers. JUNE 2014