Travel Trade Weekly May 2012 by T.T.W. Travel Trade Weekly LTD

MAY 2012

ISSUE 31

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MAY 2012

ISSUE 31

INVESTIGATION: PRIVATE AVIATION The MENA regionâ&#x20AC;&#x2122;s private aviation sector has so far this year exceeded forecasts and promises to continuously expand at a considerable pace.

Following a year of whirlwind changes across the region, Lebanon is propelling towards its ambitious goals and reenergising its efforts to welcome visitors from all walks of life.

06 EXPLORE: BAHRAIN Manama is, this year, celebrating and showcasing the culture, people, and traditions of Bahrain to the world, as it stands representative of the Arab Capital of Culture.

14 IN THIS ISSUE MARKET UPDATE INVESTIGATION: Private Aviation VISIT: Lebanon EXPLORE: Bahrain ONSITE: Thailand TOUR: Spain LONG-HAUL: Kenya TRAVEL TALK TRAVEL CHANNELS EXCLUSIVE: Budget Travel WHO'S MOVED RENDEZVOUS NEWS & EVENTS

03 06 09 14 20 22 25 28 30 32 34 35 36

VISIT: Lebanon

MARKET UPDATE TRAVEL TRADE WEEKLY MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel JOURNALISTS Stefanie Saghbini Rita Kasziba Dominique Christou

Abu Dhabi: Hotel Guest Volume on the Rise Driven by the large-scale events taking place in the emirate, Abu Dhabi witnessed a five percent growth in guest numbers during February, compared to the corresponding month in 2011, according to figures released by Abu Dhabi Tourism & Culture Authority.

SALES & MARKETING Maria Demetriadou Brighite Ess 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

he emirate, which welcomed 184,296 guests through its hotels’ and hotel apartments’ doors, accounting for a total of 550,352 guest nights, also attracted some 10,000 participants for the annual World Ophthalmology Congress, which greatly contributed to these results. The UK retained its position as the emirate’s largest international source market, followed by Germany, which H.E. Mubarak Al Muhairi, director general, Abu Dhabi Tourism & Culture Authority, believes will continue to perform strongly aided by the increasing airberlin access to the capital city. Meanwhile, India climbed to third place in terms of guest arrivals to the emirate, while figures from Saudi Arabia also continued to grow, as Al Muhairi explained, “We are increasing our focus on the GCC and the Saudi Arabian market in particular, where once again we envisage sustained growth which, [has been

significantly aided by increased Etihad frequency to Abu Dhabi from Dammam and Kuwait].” In addition, as a result of a heightened competitiveness in the emirate’s hospitality industry, hotel occupancy dropped five percent, and averaged at 68 percent for the first two months of the year, though revenues increased one percent and totalled AED818 million (USD224 million). Set to implement strategies to deal with the slight drop in figures, Al Muhairi stressed, “We are working hard with stakeholders to produce an increasing range of tailored and specialised products and are busy developing consumer focused promotional plans targeting the golf, beach, nature, adventure and MICE segments. We are also looking to enhance our distribution channels through trade incentive initiatives and are seeking out ’preferred partners‘ willing to further engage with us in exciting and highly productive business-to-consumer initiatives.”

Accurate as of

20/04/2012 Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

6.05

Saudi Arabia (SAR)

Riyal

3.75

Lebanon (LBP)

Pound

1,505.50

Bahrain (BHD)

Dinar

0.37

Jordan (JOD)

Dinar

0.71

Syria (SYP)

Pound

57.45

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.53

Morocco (MAD)

Dirham

8.48

Iran (IRR)

Riyal

12,280.00

Yemen (YER)

Rial

215.50

Algeria (DZD)

Dinar

75.14

Libya (LYD)

Dinar

1.25

MAY 2012

Muscat International Airport: Solid Growth Data released for 2011 by IATA has confirmed a record year for international passenger volume at Muscat International Airport, which witnessed 2.4 million arrivals, equivalent to a rise of 14 percent over 2010, while Oman’s second largest city, Salalah, experienced a 13 percent increase. The data further shows growth from the majority of its European visitors particularly from Italy, which increased by 77 percent. Meanwhile, the GCC inbound market jumped 27 percent. “2011 was a challenging year for our tourism industry, but the IATA data confirms solid growth from our key tourism markets,” H.E. Maitha Al Mahrouqi, unMuscat dersecretary, Ministry of Tourism, Oman, commented. “This shows that our aligned tourism and aviation strategies are working, while our wider international airline partners are also growing their underlying business.” Oman is also increasing its profile in business tourism with the construction of its 3,000-seat convention and exhibition centre on track for opening in 2015.

INVESTIGATION

Private Aviation

On Top of the World The MENA region’s private aviation sector concluded 2011 with somewhat encouraging end-of-year results, which trickled well into the first quarter of this year, and having so far exceeded forecasts, the sector promises to continuously expand at a considerable pace.  Stefanie Saghbini

writes

fter witnessing a slight drop in figures overall in 2011, the private aviation sector is gradually seeing improvements as it gears up for major developments this year, and over the next 10 years, steadily welcoming a soaring number of new high-value jets to its service. According to results published in the latest issue of

Honeywell’s Business Aviation Outlook report, which comprises a survey of over 1,500 flight departments worldwide, an estimated total of USD230 billion worth of sales and delivery in new business jets through to 2021 has been recorded so far; equivalent to a two percent increase in total expected industry sales value, compared to the prior 10-year horizon it forecasted in 2010. Meanwhile, Honeywell’s current industry outlook avers another period of global expansion this year, anticipating higher delivery levels than in 2011, with a potential demand for more than 5,000 aircraft worldwide during the 2012 – 2016 period. LEADING THE WAY Aggregating all regions, five-year purchase expectations remain at a 30 percent level, according to Honeywell’s report, which also affirmed an observed increase particularly across Asia, Africa, and the Middle East, all of which ranked the highest regardless of the economic environment. Further commenting on the world’s emerging markets across the private aviation sector, Adam

Twidell, CEO, Privatefly.com said, “Aviation growth in Asia will continue to support global private jet manufacturers. New deliveries will be dominated by Asian customers who are not afraid to exploit the business benefits of private flying.” In addition, a strong indication of growth and necessary developments across the Middle East were highlighted at the four-day NBAA 38th Annual International Operators Conference, held in March in the US, where a paper, compiled by Ali Al Naqbi, chairman, Middle East Business Aviation Association (MEBAA), was presented, forecasting impending growth parameters in the region. These predictions are a result of the increasing number of business aircraft expected to reach 1330, from the current 453, by 2019, and the figure of business aircraft movement to rise from the present 110,000 to 160,000 by the end of the year. Business aviation in the region is currently valued at USD493 million with the expectancy to rocket to over USD1 billion by 2018, according to Al Naqbi’s report. Overall, the UAE holds the Middle East’s second largest private aviation market after Saudi Arabia, with a market volume of AED736 million 

MAY 2012

INVESTIGATION

(USD200 million), representing some 40 percent of the region’s total market, which Al Naqbi anticipates will grow annually by 12 – 15 percent. GLAMOROUS TRAVELLING Complementing these positive forecasts, private aviation companies across the MENA region have been progressing with plans and paving the way for even brighter prospects ahead, such as Abu Dhabi-based international luxury flights services company, Royal Jet, which recorded an increase in total revenues by 31.2 percent from 2010. These results, in turn, saw net profits rocket 234 percent and flight hours up by 30 percent. Having followed a programme of organisational realignment, the private jet company is said to have been propelled to its best-ever result, both operationally and financially, since it launched services eight years ago, this according to Shane O’Hare, president, Royal Jet, who further expressed positive sentiments for the company's future. “We have a number of new initiatives planned for the year and I look to coming months with confidence,” he explained. Such initiatives include the recent commissioning of a USD9 million upgrade of one of its six-strong fleet of Boeing Business Jets (BBJs).

Private Aviation In addition, Rizon Jet has also been witnessing encouraging results recently, driven by the inauguration of its new VIP facility in Doha, located near the capital’s international airport, as Hassan Al-Mousawi, CEO, Rizon Jet, affirmed, “The feedback since the inauguration has been very positive and promising and we are seeing an increased interest in Rizon Jet’s general services.” The company is, therefore, forging ahead with expansion plans as Al-Mousawi further indicated, “Firstly, Rizon Jet is focusing on increasing awareness in the local community and neighbouring markets, for example in Saudi Arabia where we are seeing huge potential. Moreover, the company recently took on another managed aircraft available for charter, therefore increasing Rizon Jet’s capacity. In addition, we are in talks with the French airport authorities to open a facility at Le Bourget Airport.” Dassault Falcon, the business jet operation of Dassault Aviation, has also been experiencing satisfying results among its Middle East market; one which John Rosanvallon, president, Dassault Falcon, views as having significantly matured. “The Middle East represents a major market for Dassault Falcon, with a two year backlog of aircraft deliveries. Our view of the Middle East business aviation market over the long term remains very positive because of the vitality of the region and the strong internationalisation of business.”

Akbar Al Baker, CEO, Qatar Airways shared similar sentiments stating that the Middle East remains a hotspot for private aviation particularly among business travellers. The airline’s corporate jet division, Qatar Executive, has, so far this year, shown a dynamic performance compared to the corresponding period in 2011, according to Al Baker, who outlined a major strategic expansion plan to widen its reach into Europe and the US as well as other emerging markets, such as Africa, Russia, China, and India, to become what he described as a truly global player. Furthermore, Claire Brugirard, commercial manager, Air Charter International, also announced a good year so far, having performed within expectations and met targets, as it steadily progresses with projected growth as planned. According to Brugirard, the Middle East market to set to carry on with stable improvements, thanks to a strong recovery being noted in the UAE’s tourism sector and a robust economic growth in Qatar, while North Africa is set to endow the charter aviation markets with great prospects. Certianly no stranger to the private aviation industry, the North African region recently welcomed Palais Namaskar, Marrakech, which offers private jet services exclusive to its guests, and what Frank Marrenbach, CEO, Oetker Collection, described as part of the group's bespoke services - a new signature in hospitality.” 

MAY 2012

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Lebanon

Recharging the Industry Byblos

LEBANON IN BRIEF Capital: Beirut Currency: Lebanese pound (LBP) Language: Arabic

 Rita Kasziba writes

ebanon’s tourism industry stands as one of the main pillars that feeds and contributes to the development of the country, as H.E. Fadi Abboud, minister of tourism, Lebanon, described, and this is apparent in the industry's direct contribution of LBP22,416.8 billion (USD4.13 billion) it provided to the country’s GDP in 2011, representing 9.8 percent of the total GDP, with the expectancy to increase by 4.5 percent this year. All in all, Lebanon welcomed some 1.7 million visitors in 2011, and although this showed a decrease of 24 percent over 2010, the country’s tourism sector is progressing with investment and development plans, this according to World Travel & Tourism Council’s (WTTC) latest report which recorded travel and tourism investments of LBP1,906.8 billion (USD1.27 billion), or 10.1 percent of total investments. Moreover, this amount is set to increase by 2.6 percent this year, and 4.5 percent over the next decade. In line with these improving forecasts, targeting a mixed clientele, thus widening the pool of potential clientele (and investors), is pivotal, stressed Mona Mounzer, sales and marketing manager, Byblos Sur Mer. “Lebanon attracts both luxurious and budget oriented travellers. With a variety of hotels, both low budget with reasonable services and upscale hotels with spas, restaurants and shopping experiences, Lebanon can cater to all kinds of tourists depending on their budget,” she explained. Bassam Bou Sleiman, deputy general manager, Riviera Hotel, agreed, adding, “We have all type of visitors to Lebanon; low budget, medium, and high budget clientele looking for various options. However, the percentage of luxurious type of visitors is increasing to Lebanon as there are quite good number of hotels that cater for them.” Hilal Saadé, director of sales and marketing, Le Gray, Beirut, observed a similar stream. “Lebanon is now perceived as a destination for luxury travellers, who enjoy comfort along with certain pampering services which can only be found once taking an option of luxury.” Christian Madsen, manager, Phoenicia Hotel, concurred, ”Beirut, and the Phoenicia Beirut in particular, has always had a solid reputation for the extravagant living, drawing visitors in for the 'jet-set life'. But there is no doubt that Beirut is much more than this and does equally lure in 'value-for money and thrifty' travellers that come to explore the city, nature, culture, or simply to enjoy the beaches or skiing in the mountains. And these travellers can also find very decent offers in the mid-range  MAY 2012

Following a year of whirlwind changes across the region, which resulted in huge losses throughout the travel and tourism industry, Lebanon is propelling towards ambitious goals and re-energising its efforts to spread the message that the country is safely welcoming visitors from all walks of life.

VISIT

and budget hotels that are in the city and around." Golden Tulip Galleria, which opened at the beginning of the year, has seen both business and leisure tourists enter its doors so far, depending on the time of year, as Mohammad Zein, director of sales and marketing, Golden Tulip Galleria, indicated, “Most of the visitors in low season are the business clients and in the vacation and summer season the leisure will be more and that is why Lebanon as a destination has an identity between the other destination it can be combined as business and leisure.” OPEN FOR BUSINESS According to Aline Ghanem, operations manager, Anastasia Travel, Tourism & Limousine, 2011 was a year of business tourism to Lebanon. “Both Lebanon and our company received a significant number of business travellers, and the country hosted various major corporate events,” she added. Noting the same tendency, Maya Abi Karam, sales manager, Hotel Le Bristol, further indicated, “The number of international conferences held in Beirut was encouraging and the prospect is growing. MICE is one of the highest revenue generating segments as it incorporates professional and business meetings, product launching, workshops, trainings, interactions

Lebanon

and cultural programmes.” Roy Bou Gharios, director of sales, Ramada Beirut – Downtown, added, “More than 60 percent of our business stems from the business segment and the other 40 percent from the leisure segment.” Likewise, Hadi Akl, general manager, Bella Riva Suite Hotel, continued, “Our fully equipped large conference venues capture the MICE industry that accumulated our income over the past couple of years, forming half the percentage coming from our business segment, which sums up to 45 percent, leaving the remaining 55 percent for leisure travellers.” Rita Chbat, communications manager, Mövenpick Hotel & Resort, Beirut, added, “MICE business represented the core of our demand due to our extensive facilities with the main feeder markets being the Gulf region as always.” Moreover, Madsen said, “Phoenicia Beirut is very strong on the MICE market, representing some 25 percent of our business mix, having built up an indepth knowledge and experience handling all types of meetings and events, something which can only come after many years of practice. With our diverse selection of newly renovated meeting rooms and ballroom, offering the newest Audio/Visual equipment, we can cover any type and size of function.” Beirut International Exhibition and Leisure Centre (BIEL), the country’s leading multipurpose venue, hailed as one of the largest and most modern complexes of its kind in the area, spans 82,000m2, and according to Chirine Daniel, sales manager, BIEL, it consolidates Lebanon’s status as the business hub of the Middle East, and strengthens its role as the main gateway to the area. “The centre held around 50 events in 2011, including exhibitions, concerts, gala dinners, kids’ events, as well as weddings, with visitor or guest volume ranging between 3,000 and 40,000, depending on the type of event,” she commented. “In addition, Pavillon Royal held approximately 100 events.” Meanwhile, the ministry spared no effort to leverage the country’s potential on this field, according to Abboud, who said, “Our latest focus has been revolving MICE tourism, which involves offering adequate spaces

Zaitunay Bay

in hotels or other locations where conferences and exhibitions can take place. The European Investment Bank predicts that Lebanon could be a successful country in this field as it is considered the most suitable country for MICE tourism in the Middle East, in addition to the wide experience and knowhow that the Lebanese people have. It is important for such tourism type to evolve so it can attract foreign and local investors.” FEELING THE HEAT Overall, Lebanon’s tourism industry is blooming, albeit in the face of regional turbulence, thus a lot of focus is also being placed on the popular regional as well as European segments, which remain of upmost importance. Lebanon has long relied on intra-regional travel, with a significant percentage of visitors entering the country by land, according to Abboud, who added, “The main reason [for the setback] was the difficulty for tourists to pass through Syria on the border crossing, especially for Jordanians and Iranians, who constitute up to about 300,000 tourists a year, thus this figure, declined 70 percent in 2011. In addition, the lack of alternative airports and cheap airlines operating to Lebanon did not allow these visitors to have any alternative.” Mounzer concurred, “[The situation] certainly affected the business as Byblos is a destination that gets several travellers coming by land though Syria and Jordan. The unstable situation in the nearby countries primarily affected the flow of those tourists coming to spend a weekend in Lebanon.” On a somewhat more positive note regarding travellers from neighbouring countries, Joseph Kanakry, CEO, Vent Nouveau Travel & Tourism, indicated that although the company may have lost a great share of occidental tourism in view of the unrest in Syria and Jordan, visitors from the Middle East, were not affected. “Visitors from Syria, Jordan, Iraq and the whole Middle East region have been always repeated travellers. We can add to them now Turkey, Cyprus, and Iran thanks to the lifting of visa requirements. One more factor: languages. Lebanese are multilingual besides Arabic that is the language of millions from North Africa up the Arabian Gulf,” he explained.  MAY 2012

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Abi Karam also listed the regional clientele, at Hotel Le Bristol, as the hotel’s most important, “Our major feeder markets are 60 percent from Arab countries, 20 percent from Europe, 10 percent from Asia, and 10 percent from America and Canada.” Moreover, the average 65 percent occupancy of Safir Heliopolitan Hotel, Beirut, was also primarily driven by intra-regional travel, as Ali M. Ballan, executive manager, The United Company for Development & Tourism (BALMA), the owning company of the property, revealed, “Our major feeder markets were Saudi

Lebanon

Arabia, Kuwait, Jordan, UAE, Egypt and Iraq. The GCC historically has been our main source market for the last several years and still is.” Likewise, Joanne Zarifé, marketing communications manager, Eddé Sands Hotel & Wellness Resort, highlighted, “Our clientele is spread as follows: Lebanese living in Lebanon and Europeans and expatriates coming from the GCC and Levant. Our main source is still Lebanese but the European and Levant or GCC segments are gaining a higher market share as well. “2011 was a record year in terms of occupancy

and hotel revenue,” added Zarifé. “We position ourselves as a year-round leisure destination targeting mostly leisure segments. 75 percent of our business stems from the leisure segment while 25 percent from MICE, and we are now developing our premises to increase our MICE market share. Eddé Sands have wagered on the numerous developments that have been introduced: the focus on wellness treatments, cures and healthy tailored menus, the uplifted wedding venues and catering facilities, the new restaurant’s addition and the upcoming expansions within Lebanon and the Middle East. We look forward to a very active season.” As for the European market, which, according to Abboud contributed to approximately 486,000 tourist in 2011, a number of losses were recorded from the region as Bou Sleiman explained, “The ongoing political uncertainty in parts of the region did not only affect Lebanon but the Levant countries as a whole. European travellers are major market feeders, especially when they buy tailored destination packages into Egypt, Jordan, Syria and Lebanon, and such packages did not really exist for 2011 due to the situation.” Bou Gharios reported similar observations. “A lot of European groups which have been scheduled for joint tours in Lebanon, Syria and Jordan have been cancelled,” he said, adding that inbound tourism volumes started to recover towards the latter part of the year. “After the first quarter, the hotel started to pick up especially in corporate business and leisure mainly from Turkey, Arab countries, and Europe.” In addition, Saad Khaled, general manager, Le Dix, said, “Although Lebanon maintained its stability, travellers were expecting an indirect influence that is why they preferred to spend their vacations in safer locations such as Turkey, London, Italy, or Thailand, just to name a few alternatives.” PROGRESSING WITH DEVELOPMENTS Lebanon also relies highly on the leisure market with 89.6 percent of the industry’s total contribution to the GDP stemming from this sector, according to WTTC’s report, and bringing a true gem to the country’s luxury tourism offering is Zaitunay Bay. Spanning some 20,000m2 and considered the first of its kind in Lebanon, this outdoor waterfront entertainment hotspot comprises two entities; a twolevel public promenade, which opened in December 2011, and an exclusive private club, Le Yacht Club – Beirut (LYCMAY 2012

Lebanon Beirut), which is still under construction and slated to welcome guests by the end of this year, according to Beirut Waterfront Development (BWD), the entity responsible for the overall development and management of the project. In addition, the destination offers an array of boutiques and outlets, watersport activities, an art lounge, and much more. A variety of year-round cultural and seasonal events taking place at the bay also allows visitors to better grasp the essence of the society and people, according to BWD. With Zaitunay Bay and other touristic projects, Lebanon seeks to continue proving itself as a prominent vacation hot-spot on the Mediterranean. In addition, Warwick Pangea Beach Resort and Spa is also quickly coming along after having gone through an extensive renovation and refurbishment, set to welcome its first guests on May 25, the property, which is just 15 minutes from the international airport, will boast 22 villas along with another 63 rooms and suites, explained Jamal Serhan, vice president, Middle East, Warwick International Hotels, who added that the hotel will be open all year round. THIS IS LEBANON During 2011, a total of 5,654,147 passengers passed through Beirut-Rafic Hariri International Airport’s

MAY 2012

gates, while aircraft movements totalled 63,333, and cargo traffic reached over 74,760 tonnes. Highly accredited to the country’s national carrier, Middle East Airlines (MEA) carried some 2.1 million travellers in 2011, representing an increase of eight percent over 2010, based on figures released by the airline. Moreover, MEA’s business figures are expected to spiral upwards as of this summer, as it gears up to join one of the world’s leading global air alliances, SkyTeam, after signing an agreement in February. As a result of these satisfying results and business development plans, in line with figures released so far this year and the country’s vast touristic offerings, professionals across Lebanon’s tourism industry remain positive regarding the future. Bou Gharious expressed, “We are already receiving a good deal of requests for the upcoming months, and we are very optimistic and expecting much better performances for our hotel and Lebanon’s tourism industry in general as long as the situation remains relatively calm.” Similarly, Saadé said, “For the current year, we predict an increase in occupancy levels due to the situation in Lebanon’s surrounding countries. We are on the tourism map for cultural tourism and religious tourism, we are also a contemporary art destination in addition to the existing factors that make Lebanon

VISIT

a unique destination and among which are hospitality, the facility in communication – Lebanese people are trilingual – and the touristic sites, the nightlife and heritage.” Kanakry agreed, “Lebanon has a good reputation and with its exceptional sites and people remains the everlasting pearl of the Orient.” The Ministry is certainly raising the bar and playing its part to propel Lebanon’s tourism sector into a prosperous future, leaving no stones unturned, adhering to its main objective of doubling its visitors arrivals from two million in 2010 to four million in 2015, through aggressive promotional initiatives. “As a country, it is important for us to convey the real picture about Lebanon. For this reason, we are trying as much as possible to attend each and every tourism exhibition abroad,” Abboud said. “In addition, we developed and contacted public relations companies to help us launch advertising campaigns that could help us emerge into new markets, such as Europe, China, Russia, and others.” Demonstrating mutual sentiments, Ballan concluded, “We encourage all travellers, whether they are travelling for leisure or on business, to visit Lebanon and experience the country’s charm. Lebanon offers sun, sand, ski, food, drink, nightlife, historical sites, great weather, and impeccable service.” 

EXPLORE

Bahrain

Building on its Traditions Manama is, this year, celebrating and showcasing the culture, people, and traditions of Bahrain to the world, as it stands representative of the Arab Capital of Culture, and as a result, the country’s tourism sector is destined to soon witness a huge increases in figures and development expansions.

BAHRAIN IN BRIEF Capital: Manama Currency: Bahraini Dinar (BHD) Language: Arabic

and this figure is forecasted to rise by 4.2 percent this year and increase by 3.7 percent per annum to reach BHD769.4 million (USD2,040.7 billion) in 2022. SUPPORTING ONE ANOTHER These figures are being regarded as positive amid the recent happenings in the region and Bahrain, and tourism professionals are collaborating to transmit the message that the Kingdom is welcoming visitors

 Dominique Christou writes

he World Travel & Tourism Council’s (WTTC) country report released for Bahrain this year recorded a direct contribution of travel and tourism of BHD513.2million (USD1.36 billion) to the country’s GDP in 2011, corresponding to 5.6 percent of the total GDP,

Bahrain Grand Prix

MAY 2012

Bahrain in line with the capital’s eminence as this year’s Arab Capital of Culture. “We are positively moving forward. Many high profile public relations events have already been organised,” commented Bert Plas, general manager, Sofitel Bahrain Zallaq Thalassa Sea & Spa. Furthermore, Claudia Hardt, director, public relations, The Ritz-Carlton, Bahrain Hotel & Spa, highlighted the importance to work closely with the surrounding community in a bid to make use of synergy effects, to create awareness for the destination, and to strongly support one another, making use of relevant marketing tools from print and online media to social media. Sharing similar sentiments, Garfield Jones, deputy CEO, Gulf Hotels Group, and general manager, Gulf Hotel Bahrain, underscored the significance of collaboration between hotel operators and the Ministry of Tourism Affairs to boost the country’s tourism industry by co-exhibiting at key events for sectors such as MICE. Juliana Mateva, director of sales, Fraser Suites Seef Bahrain, also noted that group effort is of essence in order to boost tourism, as tour operators must work closely with the Ministry of Culture and the entire tourism sector, and support them in their initiatives in promoting Bahrain as a leading tourist destination. As the Kingdom gears up to become Capital of

MAY 2012

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region, while international hotel groups take advantage of development expansion opportunities. These include Renaissance Bahrain Amwaj Island, Four Seasons Hotel Bahrain; ibis Seef, Bahrain; and Royal Tulip Resort & Spa Amwaj, to name a few, all slated for opening in 2013.

The Middle East, especially the GCC region, is a crucial part in our market segment. It involves corporate, MICE, and leisure travellers Tourism 2013, even more focus is being placed on luring in visitors to the country, particularly from the

KEEPING A CLOSE EYE The GCC remains a strong market overall across the country, and in line with this, The Ritz-Carlton, Bahrain Hotel & Spa is set to eye its popular and evergrowing Saudi, Kuwaiti, as well as domestic Bahraini clientele, followed by North African guests, and showcase its products at travel trade shows throughout the year, this according to Hardt. “Furthermore, we will especially market our unique suite products, our villas. Business has seen an increased demand from travellers focusing on exclusive room products, high quality products, personalised services, and attention to details,” she said, also pointing out the important emerging markets such as India and Russia. Also bringing to light upcoming promotional activities and expansion plans, Jones, said, “The Middle East, especially the GCC region, is a crucial part in our market segment. It involves corporate, MICE, and leisure travellers. We have special packages tailored for 

EXPLORE

all the different segments as well as a wide range of facilities to meet their requirements.” With this year having headed off to a good start, the first quarter showed signs of a return to normality of the MICE and corporate markets, according to Jones, who feels optimistic regarding the third and fourth quarters as a result of strong advanced reservations in the books already. “The Gulf Hotel has also organised a number of sales trips to GCC countries to generate business, which benefits the hotel and Bahrain as a whole,” Jones continued, adding that not only is the property in the process of developing a 2500m2 spa with design work already underway, but Gulf Hotels Group will shortly be announcing the signing of a management contract to operate a new development in Bahrain. In addition, Fraser Suites Seef Bahrain is also a primary accommodation option among the MENA guest, with a total of 51 percent of its clientele coming in from neighbouring countries, segmented between visitors from Saudi Arabia, which are hailed as the largest market from the entire region at 60 percent, followed by other GCC states and North and Eastern African destinations such as Libya, Egypt, Morocco, Kenya, and Sudan, as Mateva explained. She further underlined this year’s plans which mainly focus on the leisure segment and tourists from the GCC during

Bahrain the year marks the hotel’s highest season, according to Plas. A GRAND ALTERNATIVE

Bahrain World Trade Center

the summer season. In addition, Sofitel Bahrain Zallaq Thalassa Sea & Spa, said to be the first thalassa concept in the region, is also gearing up for the influx of tourists from the GCC during Ramadan this summer, as this time of

The Formula 1 Bahrain Grand Prix is, without doubt, one of the most popular annual events which attracts a huge amount of interest both from local residents and visitors across the GCC and elsewhere, according to Shaikh Salman bin Isa Al Khalifa, CEO, Bahrain International Circuit (BIC), who said, “This interest grows each year as the motorsport culture in the Kingdom and the region continues to develop. While we are hopeful for continuing that upward trend and exceeding our record crowd of 100,000 spectators in 2010, we will be very pleased to be able to come close to that massive number.” Bahrain was the first-ever country in the region to host a Formula 1 race, and commenting on this proud fact, bin Isa Al Khalifa said, “This is where it all began, and this in itself has earned us the tag of ‘The Home of Motorsport in the Middle East’. With a vast variety of motorsport offerings available for visitors to BIC, Al Khalifa explains that most of the spectators who attend the race weekend are residents of Bahrain. “Our local fans usually make up 80 percent of those who attend the Grand Prix each 

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year, while the other 20 percent are from the other GCC nations and elsewhere.” Moreover, BIC is soon to experience the official opening of the VIVA Karting Track, which according to Al Khalifa, has quickly become one of the most important venues at the circuit. “It is a state-of-the-art track that has been homologated by the Commission Internationale de Karting (CIK). It is the only track in the world that can host a night race under CIK regulations.” With great response from the public, in the first year since its soft-opening in March 2011, more that 15,000 members signed up to the track. Additionally, it also attracts a huge number of arrive-and-drive clients throughout the week, especially on weekends, and in November, it will be hosting the final round of the 2012 CIK-FIA Under-18 World Championship and Academy Trophy.

Bahrain ity to Europe, the Indian subcontinent, and Far East, this according to Samer Majali, CEO, Gulf Air. “Traffic in the region was affected in 2011 due to a combination of unprecedented regional and economic factors in particular. However, traffic has picked up since late last year and we hope this year we will see a pre-2011 level, if not better,” he added.

RETURNING TO NORMAL With the country’s flag carrier, Gulf Air, currently operating 303 flights per week between Bahrain and the MENA region, travellers to and from the country are well served, and Gulf Air will continue to focus on strengthening its regional operations where it has a dominant presence by connecting niche and underserved markets while providing seamless connectiv-

Basket Weaving

Gulf Air recently increased services to Kuwait from 35 to 42 times a week, while operations to Aden are now being served three times weekly. Furthermore, the airline is to add two extra flights to and from Medina, from four to six frequencies per are week

while in the next two months, there will be increases on services to Copenhagen, Paris, and Nairobi. The Kingdom's second national carrier, which operates 120 flights a week from Bahrain International Airport to the MENA region, also witnessed slight decreases during 2011, as Richard Nuttall, CEO, Bahrain Air, explained, “2011 was a tough year due to the volatile situation created by the Arab Spring. We stopped operations to a number of destinations for a variety of reasons. During 2011, the MENA regions revenue went down by 30 percent and this year we expect the revenues to go up to make up for that lost revenue.” More exciting expansion plans are in the pipeline, according to Nuttall, who revealed the airline's intention to resume/operate flights to six destinations during this year, following the already re-started operation to Kuwait with eight weekly flights. Moreover, the airline is reinforcing its commitment to India by announcing four weekly services to Thiruvananthapuram, with further plans to increase to seven flights a week by the summer. Moreover, Bahrain Air has announced its acceptance as a full member of the International Air Transport Association (IATA), after having successfully renewed its IATA Operational Safety Audit earlier this year, and fulfilling all the required operational and safety standards necessary to qualify for the certificate. 

MAY 2012

ONSITE

Thailand

Picture Perfect Thailand is a world renowned tourist destination judged by its expertise in hospitality, overwhelming variety of accommodation options, striking tourist attractions, and exciting activities, all shielded with inherent traditions and culture; features which travellers from the MENA region value and continue to seek.  Dominique Christou writes

n 2011, tourism to Thailand increased by eight percent, and according to Wisoot Buachoom, director, Dubai and Middle East office, Tourism Authority of Thailand (TAT), this year is expected to sustain the same growth despite the holy month of Ramadan falling in summer, which, as Buachoom described, will be a challenge to all destinations. Revealing details of a newly-introduced initiative which has been implemented to pursue visitors from the MENA region, Buachoom said, “TAT has recently launched the ‘Amazing Thailand Academy Programme.’ Open to all travel agents across the Middle

East, the programme comprises of nine short lessons and a few quiz questions.” Furthermore, TAT has developed beneficial partnerships with many regional airlines as well as agencies, in recent years, where the authority provides training and product briefings on all regions of Thailand. “We are working with Etihad Airways on an ‘Amazing Thailand’ programme which offers passengers a range of special deals and promotions through Etihad Holidays, including holiday packages in Bangkok, Phuket, Chiang Mai, and Samui.” TRUE GENUINE HOSPITALITY

Bangkok

THAILAND IN BRIEF Capital: Bangkok Currency: Thai baht (THB)

Thailand is home to an endless variety of attractive offerings, and the MENA guest is no stranger to its promising hospitality, as Buachoom further pointed out, “Thai-ness which is at the heart of Thai hospitality and permeates all experiences within Thailand from hospitality, spa and wellness, to the daily interaction between the Thai people and visitors, is a major attraction for the MENA traveller.” Shopping is yet another very popular activity among tourists from

Language: Thai

the MENA region, as Jonathan Kreuter, director, marketing communications, The Unique Collection of Hotels & Resorts, indicated, stressing that the team at the hotel is very mindful of catering to these guests by serving them a variety of cuisine to satisfy palates from the region. Another property which proved popular among this segment in 2011 is Banyan Tree Hotels & Resorts, particularly with Saudi, Emirati, and Kuwaiti guests, this according to Zee Bassila, regional director of marketing, Middle East, Banyan Tree Hotels & Resort, who believes that this market will continue to grow this year. “The Middle East market is particularly suited to the Banyan Tree experience as they are seeking exclu-

MAY 2012

Thailand sive, private, personalised holiday experiences in locations that showcase rich culture and landscapes that contrast to the arid deserts of the Middle East. The hotels have found that the Middle Eastern guests want to feel at home when they travel abroad and every effort is made to satisfy these demands,” Bassila said. In addition, Anantara Hotels, Resorts & Spas has also been endeavouring to cater to its popular MENA guests, which are represented mostly by the GCC, Egypt, Jordan, and Lebanon, by collaborating with institutions across the region, as Meg Evans, area director of sales and marketing, Anantara Hotels, Resorts & Spas, pointed out, “Anantara works very closely with local destination management companies (DMC) in Thailand as well with DMC’s in the MEA region, mainly Dubai.” Moreover, Felipe Gotor, director of sales and marketing, Crowne Plaza Bangkok Lumpini Park also lay emphasis on the significantly important MENA guest, “We are leveraging on scale by having, within IHG Thailand, a Middle East expert from the region who supports all hotels due to his efforts and knowledge of the Arabic market and its needs. Internally, we are able to address the special requirements of the Muslim clients by special halal oriented cuisine and cuisine opening hours during Ramadan.” Similarly, Nelson Hilton, senior director, marketing, Four Seasons Hotels Thailand, highlighted

MAY 2012

the various products and amenities aimed at MENA guests which include Arabic menus in all of its restaurants, Arabic channels, prayer mats, and halal food. Over the past two years, the hotel recorded more than double-digit growth with regards to MENA travellers, most of which came from the GCC and UAE, according to Hilton, who also revealed details of the opening of an office in the region to better cater to the needs of Middle Eastern guests. Likewise, Grand Hyatt Erawan Bangkok also receives a lot of business from the Middle East, particularly between July and September, thus makes every effort to satisfy guests from the region, according to Richard Greaves, general manager, Grand Hyatt Erawan Bangkok, who further commented, “In 2011, Grand Hyatt Erawan Bangkok ran Middle Eastern food promotions for one month, and the hotel invited a guest chef from Grand Hyatt Dubai to cook and train our chefs in authentic Middle Eastern cuisine. In the guestrooms, Middle Eastern channels are available, and the hotel’s brochure is also available in Arabic.” Additionally, Dominik Stamm, general manager, Le Méridien Khao Lak Beach & Spa Resort, discussed aims to further expose itself to the progressively growing MENA segment, “We would love to grow our business from North Africa and also from the Middle East that saw a steady but slow growth with approximately two

ONSITE

percent of our overall business in 2011.” Khao Lak, as Stamm described, is a destination in Thailand of contrasting seasons, and is one which fits well with the leisure market, boasting miles of pristine beach and ranked as one of the world’s top 10 diving sites. FASTEN YOUR SEATBELTS Thai Airways, the country’s national carrier, is currently offering daily flights from Dubai to Bangkok and three weekly flights from Muscat to Bangkok, with plans to increase operations from the region in the next 12 months, as a result of growing demand, as Somachai Sukkhasantikul, general manager, UAE and Middle East, Thai Airways, noted, “Thai Airways saw a six percent increase in these operations in 2011, versus the same period of 2010, and we expect similar growth this year. We are considering the operation of flights between Bangkok and Abu Dhabi, with the feasibility study currently underway for winter 2012/2013.” Additionally, passengers wanting to reach Thailand directly from the region can travel directly with Emirates from Dubai and Etihad Airways as well as Bangkok Airways via Abu Dhabi International Airport. Travellers may also choose to opt for non-direct flights being served by Gulf Air, and Qatar Airways via Dubai International Airport. 

TOUR

Spain

Nothing Compares Spain lays claim to a certain traditional atmosphere embraced in untainted culture and unrivalled hospitality altogether cultivating a destination of supreme offerings. Having welcomed over 50 million tourists in 2011, it has once again earned its position as one of Europe’s most popular tourism hotspots and anticipates the further influx of visitors this year. SPAIN IN BRIEF Capital: Madrid Currency: Euro (EUR) Language: Spanish

Flamenco Dancers

 Dominique Christou writes

ourism represents one of Spain’s most imperative sectors for its economic growth and social development as it comfortably sits among the world’s most popular destinations, according to incoming tourism figures.

Barcelona

Maria Jesus Gonzalez, director of marketing communications, Spanish Tourism Office (Turespaña), indicated that the country's tourism industry generates close to 11 percent of the country’s GDP. “Spain is among the top two European positions in welcoming travellers from around the world and the top four worldwide, with almost 57 million tourists coming into the country in 2011, and a very positive trend; more or 

MAY 2012

TOUR

less eight percent of increase,” she commented. Spain is an exciting destination to visit according to Ane Ugarte, commercial manager, Gran Hotel Bahia Del Duque, who further pinpointed the country’s best features, “The climate in Spain, friendliness, and a fantastic relationship between quality and price, in addition to a variety of attractions, and a very strong historical heritage.” Ugarte further stressed the importance of working closely with the tourism authorities in order to attract people to the destination and create a solid business.

Spain Meanwhile, Gonzalez explained that the tourism office is currently working to promote Spain to the Middle East through social media campaigns and remains in constant touch with tour operators and travel agents as visitors from the region choose to travel using package tours. CONNECTING REGIONS Given the positive tourism flow mainly from the UAE and Qatar, the team at Turespaña is embarking on

further attracting visitors from the region to Spain, by intensifying its promotional activities in the region through its tourism office in Rome, as Gonzalez pointed out, “New air links between the UAE and Spain, and the opening of new visa offices in the UAE, makes a further increase in the flows between the two countries likely to happen. “In July, Emirates will begin operating a second daily flight to Madrid given the good results of the current one that has achieved an average load factor of 80 percent. Emirates will also open a new direct connection to Barcelona that will join the existing daily flights operated by Qatar Airways.” Furthermore, according to Spanish Airports and Air Navigation (Aena), the number of passengers arriving from the UAE on a direct flights totalled 86,533 in 2011 while Qatar’s figures tripled to reach 152,636. “These numbers highlight the need for further action in these markets to ensure that Spain will continue climbing in the ranking of favourite tourist destinations in the Gulf area,” Gonzalez expressed. Peter Pollak, general manager, UAE and director, Gulf, Afghanistan, and Iraq, Lufthansa, commented, “From our gateway in Munich, passengers can choose to connect from the five daily flights to Barcelona, and the four daily flights to Madrid.” This caters to the MENA traveller, through non-stop daily flights from Dubai to Munich and Frankfurt, and non-stop daily services between Abu Dhabi and Frankfurt, where Lufthansa operates an average of five daily flights from Frankfurt to Madrid, and six daily frequencies to Barcelona. AVAILABLE UPON REQUEST Making its way into Europe, Dubaibased hotel group Jumeirah Hotels & Resorts inaugurated its first European leisure resort, in the coastal city of Mallorca. Having welcomed guests on April 24, the team at Jumeirah Port Soller Hotel & Spa is ready to cater to travellers from the MENA region, and tailor-make their stay, according to Sandra Farrer, director of sales and marketing, Jumeirah Port Soller Hotel & Spa, who confirmed, “Being a Dubai-based hotel company, we are very familiar to the requests from guests from these regions and can ensure we meet and exceed their specific expectations.”  MAY 2012

Kenya

No Illusions - Just Magic  Rita Kasziba writes

ased on data released by Kenya Tourism Board (KTB), a total of 1,785,382 million travellers visited the country in 2011, as the authority continues to work hand-in-hand with the Ministry of Tourism towards positioning Kenya as a high value destination, which is currently being promoted as 'magical Kenya'. PROGRESSING WITH PRIDE

Following a record-breaking year in 2010, Kenya has once again stepped up the game in securely maintaining its reputation as one of the most fascinating countries on the African continent. KENYA IN BRIEF Capital: Nairobi Currency: Kenyan Shilling (KES)

As part of the development drive, tapping into emerging markets has been identified as one of the top priorities of the country’s tourism organisations, with the MENA region regarded as a highly potential target. Commenting on the Middle East and, in particular, the UAE as growing segments, John Chirchir, regional marketing manager, Middle East, KTB, said, “In 2011, having recorded 21,128 visitors, the UAE region witnessed a 42 percent year-on-year increase in arrivals to Kenya.” He attributed these figures to the coun-

MAY 2012

Language: Swahili, English

try's solid infrastructure coupled with its tremendous topographical diversity, which, he added, offer endless opportunities suiting to any desires of the Middle Eastern traveller. Fred Okeyo, regional marketing manager, North Africa, KTB, also accredited the ever-growing Arab

LONG-HAUL

market to the country’s position, alongside its close links with the Arabic history and its significant population of Muslim community. Also gaining rapid popularity from the North African segments, KTB has been implementing promotional strategies across the region, according to Okeyo, who explained, “We have begun penetrating Egypt and Morocco and we are optimistic that we will see very impressive figures in terms of tourist arrivals. So far we have erected billboards in Casablanca, Morocco, and other marketing activities are lined up as well.” Further promoting the country is its flag carrier, Kenya Airways, which, between October and December 2011, served a total of 956,742 passengers, marking a year-on-year growth of 15.4 percent. Hailed as ‘the pride of Africa’, Kenya Airways now serves a number of destinations in the MENA region, including Dubai, Muscat, Cairo, and the latest addition to its route map, Jeddah. Commenting on future plans regarding the growing MEA market, Titus Naikuni, CEO, Kenya Airways, said, “We do have plans of opening up more destinations in the Middle East and Africa as well; this includes Beirut and Asmara within the next year.” The airline recently signed a codeshare agreement with Saudi Arabian Airlines indicating developing bilateral relations between Kenya and the Middle East. “The codesharing partnership will complement 

LONG-HAUL

the two weekly flights by Saudi Arabian Airlines between Jeddah and Nairobi," Naikuni explained. The Middle East continues to grow into an important feeder market, bolstered by both new and existing services from the region, operated by Emirates, Etihad Airways, and Qatar Airways, this according to Aditya Mata, general manager, Amani Tiwi Beach Resort. Gulf Air is yet another Middle Eastern airline underscoring the importance of Kenya as a destination for travellers from the region, having recently announced an increase in frequencies as of June 1,

Kenya which will see the carrier launch two additional flights between the Bahrain and the African country. Praising the route as one of the airline’s most successful in recent times, Samer Majali, CEO, Gulf Air, said, “We have seen tremendous response from our customers from Kenya heading largely to London, Saudi Arabia, Doha, UAE, Mumbai, Karachi, and Bangkok. We have also been enjoying a very good support from customers in Bahrain, GCC, Indian subcontinent, and Far East.” Another Middle East carrier expanding into the growing destination is Etihad Airways, which recently

touched down in Nairobi marking the airline’s entry into East Africa. “This new route services the considerable and growing flow of people and capital between Kenya and North Asia, with major Chinese investment in Africa generating passenger demand in both directions,” explained James Hogan, president, Etihad Airways. The overall improving air connectivity of Kenya has in fact been crucial to the country’s development. “It has enabled easy access to the country,” highlighted Chirchir. “The recent entry of Etihad Airways, flights from Dubai, Sharjah and now Abu Dhabi, will certainly increase the number of visitors to Kenya.” CATERING TO THE MENA GUEST The hospitality sector has been playing its role in ensuring the MENA guest is well catered to. “Our team is trained to handle special needs of the Middle East clientele, including women and children, to ensure their privacy,” Mata indicated, while Ndeithi Kariuki, head of marketing, Heritage Hotels, which has also experienced a surge in clientele from the MENA region, added, “We have noticed a significant growth in the interest from the Middle East and North African markets, especially Egypt, Morocco, Turkey, UAE, Bahrain, Iran and Saudi Arabia.” Lydia Dentewo, general manager, Lake Bogoria Spa & Resort, concurred the industry’s continuous growth from the Middle Eastern markets, and indicated the property’s guest volume from the region accounts for some five percent. “We expect more this year because of some marketing we did in Dubai late 2011,” she stressed, adding that the property and its staff is well prepared to cater to these guests, offering halal food and most delicacies on request. With continuous initiatives and a more intense presence in international events, the Kenyan tourism industry is also expected to further strengthen its weight on the global stage. “Our outlook for the current year is positive,” indicated Kariuki. “It has been a slow start, but we know from the oncoming high season between July and September, things will improve.” According to Chirchir, KTB will focus on consumers through publicity initiatives to build awareness and demand for Kenya holidays, through collaborative marketing to sustain and mop up Kenya demand, and enhance knowledge of the destination.  MAY 2012

TRAVEL TALK

travel talk is your space

TONY TYLER

LAKSHMI DURAI

CEO, International Air Transport Association.

Executive director, Middle East, Royal Caribbean International.

“A sustainable airline industry could deliver much more to the global economy. But the unintended consequences of many government policies have contributed to keeping the industry on a knife-edge between profit and loss. Today’s industry situation reinforces the need for governments to take a more strategic approach to aviation with competitiveness-enabling policies that will deliver broad economic benefits. This has been tried, tested, and proven by many governments in Asia, and the Middle East. Europe, India, the US, and others should take note.”

“We, Royal Caribbean Arabia, have been promoting and selling cruise vacations in the Middle East over the last 17 years. This has increased awareness of cruising as one of the best holiday options to the Middle Eastern vacationers. Visiting multiple destinations, hassle free travelling, best value for money, plenty of onboard offerings, our Gold and Anchor service, as well as the international atmosphere onboard our ships are just some of the features that attract guests to cruise with us."

MAY 2012

TRAVEL CHANNELS

Abu Dhabi Secures MICE Prospects According to Abu Dhabi Tourism & Culture Authority, the direct economic impact of business events hosted in the emirate is expected to grow seven percent over the next eight years.

bu Dhabi's direct economic impact produced by its meetings incentive conventions and exhibitions (MICE) business events sector is set to reach AED 5.1 billion (USD1.4 billion) by 2020, and as a result targets have been set in hope to become the region’s leading MICE destination and listed among the world's top 100 meeting hubs . Moreover, the authority anticipates a four-fold increase in the number of MICE events currently held and the doubling of corporate visitor arrivals and yield. By 2020, Abu Dhabi Tourism & Culture Authority expects 10 times the number of MICE events to

the current figure, with the volume of business visitors and yield quadrupling. Commenting on these significantly positive predictions, Mubarak Al Nuaimi, international promotions manager, Abu Dhabi Tourism & Culture Authority, said, “Abu Dhabi is in better shape than ever to secure major convention bids with the availability of over 20,000 rooms in the emirate’s 127 hotels and hotel apartments. Its additional guest rooms are making rates more competitive and the extra choice can only benefit us.” Further highlighting the significance of the medical sector in Abu Dhabi, Al Nuaimi noted that the tourism body has already been successful in securing the Asia Pacific

Abu Dhabi Tourism & Culture Authority expects 10 times the number of MICE events to the current figure, with the volume of business visitors and yield quadrupling Congress 2015, which, with its anticipated 3,000 delegate attendance, is expected to deliver a direct economic impact of USD3.95 million. “We are actively bidding for other major medical meetings and although competition is tough, we believe the case study of World Ophthalmology Congress 2012 will stand us in good stead,” he concluded.

MAY 2012

EXCLUSIVE

Budget Travel

Less is More

Amid the current gloomy economic climate, budget-savvy travellers, determined to tighten their belts, are increasingly looking for alternative ways to cut their travel expenditures, ushering in a new era of value for money transport and accommodation options.

 Rita Kasziba writes

budget traveller is anybody or any corporate who is travelling for business or leisure and who is very much conscious of their ‘value for money’ aspect, as defined by Bruno Debray, general manager, ibis Kuwait, who further emphasised that when it comes to quality, these travellers do not necessarily settle for less either. Laying down the motto ‘Save on money, not on service’, Debray further explained, “Actually, people travelling on budget expect the same thing like anyone else. In fact, there is almost no difference between travellers, as their requirements are the same; these include safety, security, cleanliness, connectivity, and quality of service. However, budget travellers are more autonomous, verse into new technology, open to changes and modernity.” Syed Mushir, general manager, Ramee Guestline Hotel, Deira, Dubai, concurred, “Budget travel is not about travelling as cheaply as possible. The focus is on discovering a great travel experience without

breaking the bank. I think what all budget travellers, and all travellers in fact, have in common is trying to find a travel experience that is unique and fun.” THE RISE OF LCCs Speaking with regards to the growing attraction of lowcost travelling, Debray added, “The popularity of budget hotels as well as budget airlines speaks for itself.” Indeed, the increasing costs of flying have constructed the foundation of the success story of low-cost carriers (LCC). This concept was inaugurated in the Middle East in 2003 by Air Arabia. “In just nine years, Air Arabia has grown from a single aircraft serving five destinations to becoming a leading regional airline with a fleet of 30 aircraft and a strong network of 70 destinations spread across the Middle East, North Africa, Europe and the Indian subcontinent,” Adel Ali, group CEO, Air Arabia, expressed. Along parallel lines, Rafik Boghdady, vice president, sales, Jazeera Airways, said, “When it comes to short-haul travel, outstripping all other aspects, ‘value for money’ tops travellers’ priority ranking. Keeping in mind that our network has an average flight time of two hours, travellers just do not see

any value in flying first class on a short flight to Bahrain or to Dubai.” Describing air travel as a necessity as opposed to a luxury, Boghdady further indicated that passengers’ requirements are confined to the basic, yet comfortable and satisfying levels. “Travelling smart is the keyword in today’s society,” he said, adding that a flat bed, a three-course menu, or even the latest blockbuster movie hit does not quite make sense on a 45-minute flight. “Instead, customers prefer efficiency and quality on a short-flight time,” he explained. Budget-conscious travellers, however, cannot easily be deceived, and although price might be their first and foremost concern, other aspects are taken into account as well. “There are a few pivotal items that are high on their list, including fast and easy check-in, lounge access, on-time departure, a selection of tasty and fresh sandwiches and soft drinks. And that is exactly what we offer – a seamless and convenient travel experience,” Boghdady continued. Expressing similar sentiments, Ghaith Al Ghaith, CEO, flydubai, said, “At flydubai, we have found that budget travellers often want the same things as any other traveller, including convenient flights, quality accommodation, and a range of activities in their chosen destination, but want to know all their options in advance to help them manage their budgets more effectively.” AVIATION PIONEERS The success story of flydubai was built on the premise of combining quality and reliability with affordability, according to Al Ghaith, who further indicated that by offering an alternative at a lower cost, budget carriers have played a vital role in further stimulating travel demand in the region. “LCCs have revolutionised the region’s airline industry,” he said. “While passengers pay for everything on traditional airlines, low cost carriers offer services as optional extras that make travel more affordable and therefore encourages more people to visit different destinations.” The advantages brought to the region’s whole industry extents further, given the fact that these airlines not only offer an alternate option, but they have also become pioneers in many emerging destinations, highlighted Al Ghaith. “LCCs have also opened up new routes to travellers in the region. In addition to flydubai providing a low cost alternative on already popular routes from Dubai, such as Beirut and Kuwait, we have also MAY 2012

Budget Travel opened up destinations that were previously underserved by direct air links to the UAE, such as Baku, Azerbaijan and Bishkek in the Kyrgyz Republic. “This strategy has proved successful as we have had a positive impact on many of our destinations, helping grow overall passenger traffic in places such as Syria, Egypt and Sri Lanka. Furthermore, a number of destinations such as Abha, Yanbu and Gassim in Saudi Arabia were previously restricted to domestic travel or did not have direct air links to Dubai or the UAE, underlining our commitment to offer convenient and affordable travel to more people in the regions we serve,” Al Ghaith highlighted. Moreover, Boghdady added, “Middle East LCCs currently account for only seven percent of the total passenger traffic, compared to other mature markets, such as Europe, where the percentage is 35 percent; so we see great potential for growth. This region is fast emerging as the world’s commercial aviation hub and there is a level of expertise as well as demand that we can capitalise on.” “As long as airlines continually offer a product that caters directly to the needs of the customer, value for money travel will not just gain ground, but soar in the Middle East; and at Jazeera Airways, that is exactly what we aim to do in the years to come,” he concluded.

MAY 2012

TRANSFORMING THE HOTEL SEGMENT Likewise, although the region is often hailed as the cradle of impeccable luxury, budget accommodations are also set to revolutionise the industry. Christophe Landais, managing director, Accor Middle East, said, “We can say that Accor has pioneered the ‘value for money’ concept by introducing our first ibis hotel in the Middle East in 2003 in Dubai. Its popularity has increased in the Middle East region over the past years, with a growing network of nine hotels currently under operations.” Further leveraging the rising popularity of such accommodations, Accor has unveiled plans to significantly expand its ibis portfolio in the region including its debut into Saudi Arabia this year with the opening of ibis Riyadh. ibis Abu Dhabi Gate is also scheduled to welcome its first guests later this year while ibis Yanbu is set to inaugurate soon. Furthermore, ibis Fujairah slated for opening in 2013. The company in fact, has long endeavoured to strengthen its economy brands. “In 2011, Accor has unveiled its economy brand dynamisation strategy to revolutionise its economy brand portfolio around the ibis brand,” Landais explained, adding that this approach is built on the ambitious plan to establish ibis as a ‘Mega Brand’ with three brands, namely ibis, ibis

EXCLUSIVE

styles, and ibis budget, starting September 1. Indeed, today’s budget savvy travellers are increasingly opting for value for money accommodation even in destinations such as Dubai. Illustrating this rapid prgression, Mount Royal Hotel, located in the heart of the city, achieved 87 percent occupancy in 2011, this according to the Naeem Khan, hotel manager. “We actually recorded 11 percent growth over 2010, driven by strong contribution from our main markets, including Turkmenistan, Kazakhstan, Oman, Saudi Arabia, and Iran.” Khan strongly believes that the central location of the property has been vital to its success. “Budget travellers are mostly interested in shopping trips and pleasure, thus they prefer to stay near to the market avoiding, in this way, any additional costs for taxis. Furthermore, they are also looking for locations where activities and night clubs are available on moderate rates. People are just looking for a clean and comfortable accommodation, and our experience shows that more guests are opting for lower rate accommodations than ever.” Value for money accommodations options are also extremely popular among groups, as Saad Kheld, general manager, Le Dix, Lebanon, expressed, adding that this segment would rather spend on touring the country as luxury is the least of their concerns. 

WHO'S MOVED

JAN BUNDGAARD Jan Bundgaard has been appointed general manager of M枚venpick Hotel & Resort Beirut. With a career spanning over 26 years, Bundgaard brings extensive international experience including managerial knowledge to his new position. Most recently, he served as general manager of The Grand Mauritian; a Luxury Collection resort in Mauritius. Prior to that, he held the same position at various other

properties, including The Westin Mumbai Garden City, India; The Westin Nusa Dua, Bali; and The Westin Kuala Lumpur, Malaysia. Having headed the finance department for the Asia division of Starwood Hotels & Resorts Worldwide earlier in his career, Bundgaard also has solid background in finance. In addition, he speaks English, French, and all Scandinavian languages fluently.

RENZO CAVAGLIOTTI Renzo Cavagliotti has been appointed general manager of InterContinental Doha The City. Having worked for more than three decades in the hospitality industry, Cavagliotti brings a wealth of experience to the newly-opened property. He has served with InterContinental Hotels Group (IHG) around the globe, holding various positions at regional head offices and at properties in the US, Brazil, Indo-

nesia, Spain, and the UK. From 1999 onwards, Cavagliotti worked as general manager at IHG propeties across the GCC and Levant, including InterContinental Le Vend么me Beirut, InterContinental Regency Bahrain, and InterContinental Muscat. For more than a decade, he has developed deep understanding of the business as well as the needs of leisure travellers and residents within the Middle East.

MAY 2012

RENDEZVOUS

Q & A with Moussa El Hayek Al Bustan Centre & Residence prides itself as a family-oriented complex, providing this growing segment with spacious accommodation and a plethora of activites to enjoy the perfect family holiday. Moussa El Hayek, chief operating officer, Al Bustan Centre & Residence, speaks about the growing appeal of the apartment concept across the UAE.

Moussa El Hayek Chief operating officer, Al Bustan Centre & Residence

for extended stay. What role do you think the apartment concept plays in the property’s success? Moussa El Hayek: The apartment concept is always gaining recognition in the hotel industry as more families are travelling. At the end of the day they prefer to stay in apartments, which are more convenient than hotels, keeping in mind that hotel apartments are operating as full-fledged hotels so the client can enjoy big-sized apartments with kitchenette facilities and hotel-embedded services. Travel Trade Monthly: Al Bustan Centre & Residence has long been engaging in various corporate social responsibility programmes. How have you been performing in this field?

Travel Trade Monthly: What aspects make Al Bustan Centre & Residence stand out? Moussa El Hayek: Al Bustan Centre & Residence is a unique concept as it combines a full-fledged hotel with a shopping mall. This characteristic gives us an upper-hand in this market as our product can satisfy all our clients’ needs. Travel Trade Monthly: The hotel recently participated in the East Mediterranean International Travel and Tourism Exhibition (EMITT). What conclusions would you draw from this event? Moussa El Hayek: Since the inception of Al Bustan Centre & Residence we never missed any chance to penetrate new markets as our inventory is very large, therefore, we are always looking for ways to seek and attract new segments in order to maintain high occupancy throughout the year. EMITT is one of the important exhibitions which definitely helped us to conclude new business. Exhibitions in general are very essential for any organisation. They are the platform where we can introduce new packages to the public as well as to our partners. We also are planning to attend exhibitions in CIS and China during the coming few months. Travel Trade Monthly: The hotel is an ideal base

MAY 2012

Moussa El Hayek: As the trend now is directing towards eco-friendly and green hotels, part of our plan is to move forward in this direction and we have already participated in many activities such as the “No Smoking” and “Responsible Awareness” programmes. On top of this, we have engaged in a variety electrical and natural process improvements. Travel Trade Monthly: The property is celebrating its 15th year. How do you feel the property contributed to the UAE’s hospitality industry? Moussa El Hayek: We think that our contribution was very essential in creating the awareness and the demand for the apartment concept; therefore, since our inception, we have witnessed

many hotels already combining the two concepts together; hotel and hotel apartments. This is a proof that the apartment concept, which was not very popular at the time of Al Bustan’s inception, is now becoming prevalent in the UAE’s hospitality industry. Travel Trade Monthly: How do you think Al Bustan Centre & Residence will perform this year? Moussa El Hayek: We started the year with an excellent performance, exceeding the corresponding period of 2011 and the budget. As far as Al Bustan Centre & Residence is concerned, we are confident this year will be very successful and our market share will be as what we have forecasted.

NEWS & EVENTS

BBC Brings the Big Stories With a uniquely international perspective, covering the latest in-depth and unbiased news in English, Arabic, and Farsi, on BBC World News, BBC Arabic, and BBC Persian respectively, BBC is committed to bringing the world’s big stories to the travel industry. BBC’s correspondents have long been presenting dramatic footage and up-to-the-minute reports from around the Middle East, with record audiences tuning in to grasp current situations, such as BBC Arabic which has witnessed an increase of over 80 percent since the Arab Spring. In the coming months, BBC will focus on some of the most anticipated global elections, while remaining committed to delivering key programming such as Middle East Business Report, HARDtalk and Fast:track; the flagship travel show which provides an insight into the world's most desirable destinations and investigates the most pressing issues affecting both business and leisure travellers. The channels will also be covering the London 2012 Olympic and Paralympic Games and the Queen’s Diamond Jubilee, which attract a global audience of over 225 million. BBC World News is currently distributed on 40 airlines, four of which offer it also as a live in-flight channel, along with 142 cruise ships and over 1.9 million hotel rooms around the world.

EVENTS

Placing Qatar in a Superior Position By hosting a range of high-profile events, Qatar National Convention Centre (QNCC) has been playing a vital role in consolidating Qatar’s position as a global premier business destination. Since its opening, the centre has hosted a total of 52 events and welcomed more than 30,000 visitors, while estimated delegate spending from overseas visitors exceeded QAR41 million (USD11.2 million). QNCC recently played host to the United Nations Conference on Trade and Development (UNCTAD XIII), which took place from April 21 – 26, attracting some 4,000 delegates worldwide. Other high-profile events on the agenda include the 25th Universal Postal Congress, slated to take place in September and the United National Framework Convention on Climate Change (COP 18), starting at the end of November. Commenting on COP 18, Trevor McCartney, director of business development, QNCC, said, “This is a challenging event but at the same time, it poses a great opportunity for QNCC to take centre stage in showcasing its capabilities and flexibility as the host venue. The success of this event will put us in a superior position to attract many more large conferences and exhibitions to the country.” In conclusion, based on figures released by Qatar Tourism Authority, business tourism accounted for 72 percent of the total number of visitors received by Qatar in 2011, and was also voted the World’s Leading Business Travel Destination at this year's World Travel Awards.