Travel Trade Monthly March 2013

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MARCH 2013

ISSUE 41

VIEW: AIRPORTS Fuelled by multi-billion dollar investments, the region’s airports are set to become major global hubs catering to an anticipated 400 million passengers by 2020.

As the world watches over Egypt, waiting to see what the future holds, tourists are steadily beginning to return to the land of genial promises.

04 EXPLORE: DUBAI Dubai’s astonishing rise from a small fishing and pearling community to one of the fastest growing metropolises continues to impress and inspire the world.

11 IN THIS ISSUE MARKET UPDATE VIEW: Airports VISIT: Egypt EXPLORE: Dubai ONSITE: Palestine TOUR: UK EXCLUSIVE: Luxury Travel SPECIAL REPORT: Waterparks INVESTIGATION: VFR WHO’S MOVED TRAVEL TALK RENDEZVOUS NEWS & EVENTS

02 04 06 11 18 19 22 24 26 28 30 31 32

VISIT: Egypt

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MARKET UPDATE

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

Etihad Airways’ Profit Surges 200 Percent Etihad Airways concluded 2012 with a net profit of USD42 million, leaping 200 percent over 2011, driven by strong improvements in revenues, passenger numbers, and cost control.

SALES & MARKETING 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 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

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he airline’s revenue increased 17 percent to USD4.8 billion, while passenger numbers rose 23 percent, breaking the 10 million mark for the first time in its history, to reach 10.3 million, and seat factor jumped 2.4 percentage points to stand at 78.2 percent. The numbers were also bolstered by the national carrier’s equity partnerships and codeshares, delivering more than USD600 million in total revenue.

James Hogan, president, Etihad Airways described 2012 as a game-changing year for the airline.

“We have delivered improved net profit, the second consecutive year we have been in the black, a remark-

able achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment,” he further commented, adding that over the last months, the airline has taken great strides in building the industry’s first ‘equity alliance’, with its investments in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus, which, as Hogan stressed, are contributing significant value to the business.

“And we have met our mandate of contributing to the economic development of Abu Dhabi, growing its aviation sector and building trade and tourism connections across the globe,” he concluded.

MENA EXCHANGE RATES Accurate as of

25/01/2013 Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

6.73

Saudi Arabia (SAR)

Riyal

3.75

Lebanon (LBP)

Pound

1,504.00

Bahrain (BHD)

Dinar

0.37

Jordan (JOD)

Dinar

0.71

Syria (SYP)

Pound

70.80

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.57

Morocco (MAD)

Dirham

8.40

Iran (IRR)

Riyal

12,285.00

Yemen (YER)

Rial

214.31

Algeria (DZD)

Dinar

78.52

Libya (LYD)

Dinar

1.26

Etihad Airways

Air Arabia: Record Number Passengers in 2012 Air Arabia has achieved yet another record after carrying a total of 5,301,484 passengers in 2012.

The 13 percent growth in passenger volume reflects the airline’s ambitious expansion strategy, which saw the carrier launching flights from its primary hub in Sharjah to nine new destinations, including Kazan, Taif, Salalah, Ufa, Odessa, Erbil, Astana, Basra, and Rostow, and increasing frequencies on a number of routes. In addition, Air Arabia The 13 percent growth also continued its expansion from its hubs in Morocco in passenger volume and Egypt, reaching a global network of 82 cities. reflects the airline’s “Air Arabia continues to witness significant yearambitious expansion on-year growth in passenger numbers, and this strategy demonstrates the growing popularity of the airline’s value for money services,” highlighted Adel Ali, group CEO, Air Arabia, adding that as a pioneer of the low-cost concept in the region, the airline remains committed to setting the standard for the low-cost travel segment, offering great fares to an ever-growing range of destinations.

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VIEW

Airports

Ready for Take-Off

Dubai International, Concourse A

 Rita Kasziba writes

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his year marks the 100th anniversary of commercial flights, and over the century, as Tony Tyler, director general, International Air Transport Association (IATA), noted, through an ever-expanding network, air transport has utterly transformed the way we live, work, and trade, providing jobs for some 57 million people and supporting USD2.2 trillion in economic activity by connecting people and goods on 35,000 routes.

IATA anticipates that 3.1 billion passengers will cross the world’s airport terminals this year, and considering that 100 years ago that number was precisely zero, the industry’s unprecedented growth and vital role in socioeconomic development worldwide is indisputable.

The Middle East is set to grow at an annual rate of 6.6 percent between 2012 and 2016, according to IATA’s estimated regional figures, with the number of passengers handled by the region’s airports reaching 400 million by 2020.

“With an estimated two-third of the world’s population living within an eight-hour flight of the Middle East, the region is ideally situated to provide efficient connections to a large segment of the world’s population,” said Patti Chau, regional director, Asia Pacific, Airports Council International (ACI).

“With many Middle Eastern airports serving as hubs between the East and West, the region’s airports have benefitted tremendously from the flow of traffic through their terminals and the rise in air travel in Asia,” she continued, noting that determined to utilise the strategic location, the region’s governments, including Dubai, Abu Dhabi, and Qatar, have developed an integrated aviation strategy, aimed at further fostering the sustained growth of the sector, which is increasingly seen as a key pillar of their economic diversification drive.

“The region also benefits from fast-growing local economies, a large and young population, as well as tourism, all of which contribute to bolstering demand,” Chau added, further stating that as a result, the Middle East proved to be the fastest growing region over the last decade, at an annual growth rate of nine percent.

To cater to the anticipated demand, as a study from Reed Travel Exhibitions, reveals, Middle Eastern governments continue to allocate sizeable sums for the development of new and existing airports and related segments at an estimated cost of AED437 billion (USD119 billion).

RECORD AFTER RECORD Over the past decade, the UAE’s aviation sector has experienced phenomenal growth, with its three major airports in Dubai, Abu Dhabi, and Sharjah almost quadrupling their annual passenger volume, from just over 20 million in 2002 to over 79.9 million in 2012, establishing aviation as a vital part of the country’s economy, contributing more than AED145 billion (USD39.47 billion) or 14.7 percent to the national GDP. “This amount is projected to grow further in the

Midfield Terminal Building, Abu Dhabi

With forecasts suggesting that the number of air passengers will exceed the three billion mark for the first time this year, and double by 2030, fuelled by multi-billion dollar investments, the region’s airports are set to undergo profound transformations in the coming years to become major global hubs catering to an anticipated 400 million passengers by 2020. coming years and as such justifies the country’s huge investment in airports and airline networks,” predicted H.H. Sheikh Ahmed bin Saeed Al Maktoum, president, Dubai Civil Aviation Authority.

In 2001, Dubai International barely made it to the top 100 airports worldwide, ranking as the 90th in terms of international passenger volume, though, as Chau further highlighted, in 2011, the airport already managed more than six times the population of the UAE, while recently it has already leapfrogged Hong Kong International Airport as the world’s third busiest airport after welcoming a record 57,684,550 travellers in 2012.

“Moving into the top three is a fantastic achievement for Dubai International and we have now London’s Heathrow and the number one spot firmly within our sights,” declared Paul Griffiths, CEO, Dubai Airports, revealing that this year, some 65.4 million passengers are expected to pass through the airport.

“Dubai International has grown at an average annual rate of 15 percent since its opening in 1960,” attested Ali Zaigham, manager, media relations, Dubai Airports, attributing the unprecedented progress largely to Dubai’s aviation model which, as Zaigham noted, ‘rightly treats’ aviation and logistics as the backbone of the national economy.

“Based on this approach, Dubai provides a worldclass infrastructure and capacity and a tax-free environment to boost the aviation sector, while promoting the open skies policy globally,” added Zaigham, who also remarked on the ways in which the destination’s strategic location, between growing economies such as India, China and Russia, on one side and consumer markets in the West, helps positioning it as a global hub.

Another key factor, as Zaigham noted, is the fastpaced expansion of the home-based carriers.

Likewise, 2012 also marked another record year for Abu Dhabi International Airport with over 14.7 million passengers, announced Ahmed Al Haddabi, chief opMARCH 2013

Airports erating officer, Abu Dhabi Airports Company (ADAC).

Similarly, today Jordan’s Queen Alia International Airport (QAIA) caters to more passengers and airlines than ever, with 40 carriers operating via the airport during the summer peak, revealed Kjeld Binger, CEO, Airport International Group (AIG), reporting that 2012 marked another record-breaking year for QAIA with passenger traffic exceeding six million for the first time.

Beirut’s Rafic Hariri International Airport welcomed over 5.96 million travellers, compared to 5.60 million in 2011, Bahrain International Airport posted a 8.8 percent year-on-year growth with passenger numbers amounting to 8.48 million, while Muscat International Airport also reached a new height, after greeting over 7.5 million passengers for the first time in the airport’s history.

Erbil International Airport (EIA) registered a 53 percent year-on-year improvement with passenger numbers hitting 947,600, bringing the total number of travellers at the airport, since the inauguration of the new terminal in September 2010, to 1.7 million.

The robust growth, as Andrew Jones, adviser, commercial department, communications and marketing, EIA, explained, is down to the proven link and relationship between economic development and airports. “The economy here is growing, fuelled by oil and gas bonanza, hence traffic demand grows.”

THE BIGGER THE BETTER Backed by heavy investments, the region’s aviation sector is vigorously working to develop collaborative policies in a quest to turn airports into the backbone of economic growth and foster their competitiveness on the global level.

Jordan is gearing up for the opening of the new QAIA, which, as Binger explained, was intuitively designed to match the world’s leading airports in terms of traveller experience.

“This new QAIA terminal will significantly increase the airport’s capacity [from 3.5 million passengers] to nine million passengers. Future expansions, which will be carried out as needed, will allow the airport to reach a capacity of 12 million passengers per year,” informed Binger.

AIG has invested an estimated USD750 million in the construction of this landmark terminal, in addition to USD100 million that has been spent for the rehabilitation of the ailing facilities.

“In launching the new terminal, we will be closing and demolishing the [previous] terminals to make way for further developments. The opening of the new terminal and the subsequent closing of the old ones marks the most crucial milestone in the airport development project since its opening in 1983,” stressed Binger, who described the construction of the new terminal as a ‘national project’, which is set to bolster not only the Kingdom’s aviation industry but the nation’s economy as a whole.

Heralding a new chapter in Qatar’s aviation industry, Hamad International Airport, formerly known as New Doha International Airport, is set to welcome the first commercial flights on April 1. As H.E. Abdul Aziz MARCH 2013

Al Noaimi, chairman, Qatar Civil Aviation Authority, revealed, the first phase of the USD15.5 billion project will involve 12 international airlines, including low-cost carriers, while Qatar Airways, the operator of the airport, will move its entire operations to the new facilities in the second half of the year. The world-class airport, as Al Noaimi, noted, will firmly put the country on the global stage, and will accommodate 28 million passengers annually, increasing to 50 million beyond 2015.

“This will be a world-class facility that promises to propel our nation further on the international stage,” commented Akbar Al Baker, CEO, Qatar Airways, stressing that, the ‘story’ certainly will not end here.

After handling over 57.6 million travellers in 2012, Dubai International is to soon approach its original capacity of 60 million passengers per annum, as Zaigham pinpointed, adding that the timing of the opening of Concourse A in January was no coincidence, as the new facility lifts the airport’s capacity to 75 million.

“With 20 contact gates all capable of handling the superjumbo, Concourse A will be home to Emirates’ fleet of A380s, from where passengers will connect to more than 20 Emirates A380 destinations around the world,” explained Zaigham, saying that by 2020, Dubai International’s passenger volume is expected to soar to 98.5 million. In comparison, traffic at London Heathrow, the world’s busiest airport for international passengers, was close to 70 million in 2012.

Within the next few years, 20 million people are expected to be handled by Abu Dhabi International Airport, therefore the construction of the 700,000m2 Midfield Terminal Building (MTB), slated for completion by 2017, and the overall redevelopment and expansion of the airport forms a vital part in the government’s Abu Dhabi 2030 vision. Located between the two runways, the x-shaped complex will feature a full terminal building, passenger and cargo facilities, extensive duty-free area as well as food and beverage outlets, and will cater to 27 - 40 million passengers annually.

Kuwait Airports has also outlined plans to expand the airport’s capacity from six million passengers to 20 million passengers per year and establish the airport as a major passenger and cargo hub. The multi-billion project will

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include a new USD3 billion terminal equipped with the latest technology, as well as an additional USD3 billion to widen the runways, enhance the control tower and build a new one, as well as set up a new cargo facility.

In Oman, the new terminal at Muscat International Airport, designed to handle 12 million passengers, is scheduled for completion by 2014, with further expansions planned in three subsequent phases, which will ultimately bring the annual capacity to 24, 36, and 48 million passengers. At Salalah Airport, where passenger volume exceeded the 0.6 million mark for the first time in 2012, the new terminal will increase capacity to one million once it becomes operational in 2014, with the design allowing further expansion to cater for two, and later on six million passengers.

Saudi Arabia is also planning to issue bonds to fund construction work at King Abdul Aziz International Airport in Jeddah, increasing its capacity to 30 million passengers, as well as at King Khaled Airport in Riyadh. Due for completion by April 2014, Basra International Airport’s upgrade will allow for safer landings and increased flights during the night and poor weather conditions, further enhancing Iraq’s air connectivity.

Bahrain Airports also plans to extend the passenger terminal at Bahrain International as part of an USD1 billion overhaul project, which will bring capacity from the current nine million to 13.5 million. 

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VISIT

Egypt

ETERNAL ELEMENTS

OF SURPRISE

As the world watches over Egypt, waiting to see what the future holds for a country submerged in ancient heritage, profoundly resonant throughout its vast and deeply historical setting, peppered with contemporary developments, tourists are steadily beginning to return to the land of genial promises.

Avenue of Human-headed Sphinxes

Temple of Kom Ombo

 Stefanie Saghbini

W

writes

orld Tourism Organization (UNWTO)’s World Tourism Barometer released in January, has shown that the subregion of North Africa, alongside Southeast Asia, recorded the largest increase in arrivals in 2012, swelling nine percent, highly attributed to Tunisia’s and Egypt’s strong rebounds of 33 percent and 15 percent, respectively, following on 2011’s declines.

Moreover, UNWTO’s World Tourism Barometer November 2012 edition stated that North Africa’s inbound tourism figures grew 10.2 percent between January and August, over the corresponding months in 2011; a period during which the region’s arrivals dropped 9.1 percent over 2010 results.

The study further indicated that during 2012, North Africa regained the lead over advanced destinations, thanks to certain countries such as Egypt whose increase in incoming international tourist numbers, during the eight-month stretch, reflected

a consolidation in figures of 20 percent, following 2011’s 32 percent deterioration.

Meanwhile, in June 2012, Business Monitor International (BMI) issued a preliminary study entitled Egypt Tourism Report Q3 2012, with reference to the country’s tourism prospects through to 2016, considering important issues which had been facing the sector since the outbreaks of large-scale unrest rocked Egypt in 2011, stating that it anticipated strong recovery in 2012 if these occurrences were to continue decreasing in frequency throughout the third quarter (Q3) and finally through to the end of the year under review.

On a conclusive note, during the first nine months of 2012, Egypt drew in a double-digit increase of 13 percent in tourism receipts, according to the study, while Magdi Gamil, director of sales and marketing, Fairmont Nile City Towers, stated that some 8.1 million tourists visited the country between January and September, with 96 million overnight stays reported in Egyptian hotels, injecting some USD10 billion into the economy.

“Tourism is a vital pillar of the national economy, representing 11.3 percent of Egypt’s GDP and 17 per-

EGYPT IN BRIEF Capital: Cairo Currency: Egyptian Pound (EGP) Language: Arabic

cent of its foreign currency reserves, in addition to 12.6 percent of the total manpower of the state, with four million people directly employed in the industry,” Gamil explicated, revealing that by the end of 2012, Egypt had welcomed 11 million tourists all-in-all.

“This number is anticipated to reach 14 million this year, with the Ministry of Tourism hoping for USD13 billion in tourism-generated income,“ he further revealed.

REMAINING AFLOAT The country’s hotel sector saw healthy indications of improvement towards the end of 2012, according to data compiled by STR Global, which had presented an escalation in occupancy levels of 24.5 percent,  MARCH 2013

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reaching 45.6 percent, in December 2012, reporting the largest increase in the Middle East.

Meanwhile, TRI Hospitality Consulting’s HotStats MENA Chain Hotel Market Review November 2012, a study on full-serviced hotels, stated that while Sharm El Sheikh witnessed the highest occupancy rates, Cairo posted record profits since the 2011 revolution. According to the survey, the capital’s hospitality segment showed signs of full recovery in the month under review, registering a 74.3 percent increase in gross operating profit per available room (GOPPAR) to USD71.75, while RevPAR grew 32.3 percent to USD64.27 driven by a 14.3 percentage point improvement in occupancy to 55 percent, masking the two percent decline in average room rate (ARR).

These results can be highly accredited to the regional market, which proved somewhat irrepressible in the face of the unrest, and whose commitment to Egypt could be seen in BMI’s revised growth forecast and views on total tourism nights recorded for the fourth quarter of 2012, which was said to reach around 24 percent y-o-y, from the previous estimation of 15 percent.

Marten Schwass, general manager, Kempinski Nile Hotel, also noticed this changing trend, describing the locals, and in particular the hotels of Cairo, as resilient, which, throughout the past 12 months, re-

Egypt

lied on local business to bolster revenues, while, he added, travellers were rescheduling trips around periods of instability.

Gamil also reported that during 2012, Fairmont Nile City Towers’ top three contributors to the property’s clientele base hailed from Egypt itself followed

by Saudi Arabia, and Lebanon, while in 2011, Egypt and Saudi Arabia also claimed first and second spot, while the US followed, in third.

Analogous to Schwass’ view on the changing tourism trend across the capital, Peter Goddard, managing director, TRI Hospitality Consulting, Dubai, also indicated that recovery in Cairo is evident, albeit still suffering to a certain extent. “The Cairo market has been resilient to continuous political upheaval with hotels in the city demonstrating that they have recovered as performance indicators return to pre-revolution levels,” he explained.

Gamil affirmed his tenacity to claim his slice of the pie. “Despite the political unrest and recent clashes in Cairo’s Tahrir Square, inbound tourism appears to be on the rise and we will be keen to grab every opportunity that is out there to make it happen,” he asserted.

A PROMINENT DESTINATION A good example of the capital’s buoyancy can be seen in the end-of-2012 results of Fairmont Heliopolis & Towers, which witnessed slight signs of recovery and progressed slowly in 2012 versus 2011, this according to Noha Mansour, director of marketing and public relations, Fairmont Heliopolis & Towers, Cairo, who announced increasing y-o-y occupancy rates of seven percent, and a y-o-y rise in RevPAR of 13 percent.

With regards to feeder markets in 2011, Mansour listed Egyptian guests as the property’s most popular guests, which, she underlined, generated the largest number of room nights than any other nationality. Following the local segment were Germany, Italy, Morocco, UK, France, and the US, Mansour continued, adding that in 2012, the top six countries ranked, based on room nights, were Libya, Germany, Africa, Italy, UK, and the US.

In addition, Kempinski Nile Hotel also remained on top of its league, and in particular among the luxury segment during 2012, this according to Schwass, who registered an increased number of visitors from the UK; a market he described as traditional and which signals positive growth for this year.

With regards to the hotel’s strongest contributors, Schwass listed the GCC, UK, and US as top three, stating that a drop in overall number of visitors since the revolution has been witnessed, however, he continued, these three key markets have recently been recovering, and in terms of occupancy year-to-date, the property remains in second place among its competitors in Cairo.

“Additionally, the business segment has been booming, and we have attracted an increased flow of business visitors from Turkey and Korea. The hotel recently hosted the Turkish government delegation and H.E. the Turkish Minister of Foreign Affairs, as well as large groups of corporate visitors from East Asia,” he further explained, also confirming that the property’s social events are always well-attended, making the hotel a meeting point for local socialites and dignitaries.

InterContinental Cairo Citystars also recently hosted high-ranking officials from Malaysia, which included Najib Razak, prime minister of Malaysia, and Anifah Aman, minister of foreign affairs, Malaysia, alongside a group of businessmen and media representatives from the country.

Upon his arrival to the hotel, Razak was welcomed

by Simon Stamper, area general manager, InterContinental Cairo Citystars, InterContinental Residence Suites Cairo Citystars, Holiday Inn Cairo Citystars, and Staybridge Suites Cairo Citystars, as well as Ibrahim Nashaat, general manager, InterContinental Cairo Citystars.

ROUND THE CORNER Revealing his forecasts for this year, Gamil is anticipating a breakdown of 37 percent in leisure travel, 28 percent in corporate guests, and 18 percent in groups, for Fairmont Nile City Towers, with expected room nights for the year to reach 75,932, average occupancy levels at 41.2 percent, and average room rate fetching in EGY752.32 (USD111.74). The top three targeted nationalities for this year remain the local market as well as Saudi Arabia and Kuwait, he revealed.

Commenting on the upcoming developments, Gamil said, “Also, opening soon is the Casino at Fairmont Nile City that is built on an area of 850m2 and has top line machines including five Roulette, five Black Jack, five Poker, one three-card Poker, one Ponto Banko, and over 30 digital slot machines. The Casino has a VIP room that includes one Roulette, one Poker, and one Black Jack tables.”

He also mentioned the recently-unveiled state-ofthe-art Presidential Suite, which, he further informed, is fashioned with contemporary elegant art deco furnishings offering, what he described as, the ultimate in urban chic. “It is spacious, comprising a bedroom, two living rooms, a dining area, a kitchenette, an office, a butler/secretary bedroom, and an open MARCH 2013

Egypt concept bathroom […]. All suites feature high speed Internet access, an interactive TV, and complimentary coffee and tea. Presidential Suite guests are provided with a personal butler for unrivalled comfort.“ Mansour is also eyeing a positive year ahead, with an increase in occupancy of 13 percent and an upsurge in RevPAR by 22 percent, highly dependent, as she inserted, on the country’s political and security stability. The main targeted markets for the year remain the property’s six leading contributors in 2012; Libya, Germany, Africa, Italy, UK, and the US, as well as the rest of Europe and the Middle East, Mansour further informed.

Urs Umbricht, general manager, Maritim Jolie Ville Kings Island Luxor, also placed a strong emphasis on the reliance on the country’s situation when stating his predictions for the year, however, his estimates seem somewhat optimistic with a modest surge in occupancy of five percent, a slight boost in ARR of three percent, and RevPAR growth of three percent, for Maritim Jolie Ville Kings Island Luxor, with all European, North and South American, Middle Eastern, and local markets high on the targeted list for the property.

For Dina Naeem, area director of public relations, Egypt, Starwood Hotels & Resorts Worldwide, the year is looking to be very positive for the hotel giant across all its property’s throughout the country, as she commented, adding that as an emerging market located at the nexus of the rapidly growing Africa and Middle East region, it is expected that the country will stabilise in the second half of year.

“Starwood is expecting to see a growth in tourism to Egypt over the coming year. The Starwood hotels in particular are pleased to announce some exciting new openings and renovations to excite both leisure and business travellers. [This year] will see the opening of Le Méridien Cairo Airport to entrench Starwood’s presence in the capital. The hotel is targeted primarily towards the business travellers and will be on an area of 23,500m2. Located in front of the arrival passenger Terminal 3, Le Méridien Cairo Airport is attached to the [main] building through an inter-connecting bridge, and consists of 330 rooms, 19 suites, three major restaurants, banqueting, conferences and meeting rooms, in addition to swimming pools, green areas, health club, and ample parking.

“Two Le Méridien hotels, [namely] Le Méridien Pyramids and Le Méridien Dahab, will open Egypt’s first two Explore Spas. These are the first branded spas by Le Méridien in Egypt offering a new perspective on spa experience, breaking away from how spa is viewed. […] The iconic Sheraton Cairo Hotel & Casino, located on the west bank of the Nile River, is undergoing a total revamp and is also set to open, with 656 rooms, in quarter four of [the year]. The renovation, which began in 2010, is considered one of the most comprehensive projects […] and is targeted towards the discerning leisure traveller as well as business travellers who are looking for much more than just a business trip,” she explained. Starwood Hotels & Resorts is also gearing up to open The St. Regis Cairo in October 2014.

MARCH 2013

Lan Tania, Fairmont Heliopolis & Towers

PREPARE FOR THE RED SEA Further south, towards the world-renowned tourist region of the Red Sea, the coastal city of Sharm El Sheikh was blessed with the entry of the peak season in November 2012, according to TRI Hospitality Consulting’s HotStats MENA Chain Hotel Market Review November 2012, as signs of improvement blossomed throughout the destination during the month under review.

According to the report, occupancy rates swelled 7.7 percentage points to 79.7 percent, pushing RevPAR up 5.4 percent to USD41.66, despite a 4.7 percent decrease in ARR to USD52.25. Meanwhile, total RevPAR boosted 8.7 percent to USD75.51, securely driven by an increase in food and beverage revenue with GOPPAR growing 5.2 percent to USD32.8.

However, Goddard believes that hotels in Sharm El Sheikh also appear to be struggling as market-wide rate reductions have negatively impacted financial results. “Although occupancy in the region has increased, the slashing of rates has had a dramatic impact on their

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peak season’s profit margins,” he continued.

Similarly, Umbricht highlighted that throughout many tourist destinations across Egypt, there exists an over-offer in hotel rooms, which, he believes, results in the very low pricing and thus is keeping Egypt very competitive against European competitors. “On the other hand, this is also resulting in a rate battle amongst the hotels which, at the end, is not healthy.

One of the losers will be the ecological and balanced tourism, and finally nature,” he further underlined.

On a positive note, Marc Reissigner, area general manager, InterContinental The Palace Port Ghalib Resort, Crowne Plaza Sahara Sands Port Ghalib, Crowne Plaza Sahara Oasis Port Ghalib, and Marian Lodge at Port Ghalib, this year expects a 42.68 percent in occupancy levels equivalent to an increase of 12.36 percent over 2012, with average daily rate to surge USD8.65 to USD45.36, from USD36.71 in 2012. This is all considering that MICE organisers place Egypt back into their event calendars, according to Reissigner who emphasised that the international MICE market will continue to be one of the properties’ main targets and remain the number one feeder segment to Marsa Alam, Port Ghalib destination.

In addition, the hotels will also be focusing on the corporate, meetings, and leisure markets; the latter including the underwater adventure, snorkelling, 

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families, and romance and couples segments, as well as wellbeing, Reissigner further informed.

“Named Egypt’s leading spa resort [...] Six Senses Spa is [the country’s] first on the Red Sea coast and is located among the splendid landscaped gardens, lagoons, stunning architecture, and pure luxury of InterContinental The Palace Port Ghalib. We have tailor-made a new honeymooners emotions experience with an inspired luxury palace of indulgence from the moment of arrival in Port Ghalib; our ‘emotions’ experience takes clients on a journey to the fascinating past, blended with luxurious comfort,” he continued.

Steigenberger Al Dau Resort also recently celebrated the traditional cornerstone placement of its new five-star Red Sea project, Steigenberger Aqua Magic.

With construction works well underway, Steigenberger Aqua Magic, owned by Sami Saad Holding, is slated for opening towards the end of the year, and will operate under the flag of the renowned German hotel group, Steigenberger Hotels. The resort will run as a family hotel boasting 700 rooms in capacity, a large swimming pool landscape, extensive recreational facilities, including its own Splash certified water park, and an exclusive entertainment area.

Moreover, Soma Bay, and in particular, Kempinski Hotel Soma Bay, is ready to welcome visitors, to a place offering what Schwass described as beauti-

Egypt

La Résidence des Cascades

ful sandy beaches and year-round sunshine, which, he informed, remain the main attraction for tourists worldwide. “By continuing to offer world-class service to our guests during the past 18 months, Kempinski Hotel Soma Bay has also been able to recover from the dip in tourism,” he added.

Also commenting on the resurgence, Stephen Banks, director of sales and marketing, Africa, Mövenpick Hotels & Resorts, said, “We have seen occupancies steadily rise over the last year with our hotels on the Red Sea performing particularly well.”

He added, “In April this year, Mövenpick Resort Soma Bay will open with 418 rooms on an unspoiled stretch of white sandy beach in this increasingly popular destination on the Red Sea. In addition Mövenpick Hotel & Resort Cairo - Pyramids will open a further 132 rooms with an entirely new building aimed at the upscale business traveller and leisure guest.

A PERSONAL MESSAGE The 2011 revolution has certainly had a significant impact on Egypt’s tourism industry, and this evidently continued in 2012, with direct impact on travel accommodation, air transportation, and tourist attractions, with value growth rates across the board declining to double digit levels, according to Reissigner, who added, “Operators introduced heavy discounts in order to lure tourists back and prices remained low at the beginning of 2012. As unrest continues in Egypt, with violence erupting again at the beginning of

[the year], and the country enters an on/off transitional phase, the second year post-revolution era is likely to result in slow growth and a gradual return to pre-crisis levels by winter 2013/2014.”

However, he recommends that anyone and everyone visit Egypt. “Everyone must know that whatever happens in Tahrir Square, the rest of Cairo and, most of all, the rest of Egypt and Red Sea are perfectly safe,” he continued. “This does not mean that the protests are not important, but tourism-wise there are no complications at all. If there is a demonstration on the same day you are in Cairo and you are concerned about your safety, just come and enjoy the sun by the Red Sea, Port Ghalib, were luxury meets nature.“ Naeem described Egypt as a safe and attractive tourist destination for international travellers and assured that Starwood Hotels & Resorts Worldwide is committed to actively promoting tourism to the region. “In 2012, Starwood launched a dedicated website egypt-hospitality.com to highlight the history of hospitality and services of all 10 Starwood hotels in the country. […] Egypt has culture, diversity, and stunning beauty which encompasses the country’s history and which are still present today.”

Sharing similar sentiments and reaffirming Starwood Hotels & Resorts Worldwide’s top priority in implementing the hotel group’s recovery campaign, Hassan Ahdab, vice president, Africa and the Indian Ocean, Starwood Hotels & Resorts Worldwide, said, “It is very important, after the recent events in Egypt, that people’s faith and trust in a country which has so much to offer, be restored. We are convinced that the campaign will make some noise and draw those of our loyal longstanding guests who have been wary of revisiting Egypt, back to our resorts.”

“Our personal message to travellers planning to visit is come and join us,” remarked Sherine Emara, marketing manager, La Résidence Des Cascades. “Our hotels, our beaches, our golf courses, our Cascades Spa and Thalasso, our dive centre, our wind surfing, our kite surfing centre, our Soma Bay’s Marina Centre, with its restaurants and shops, are all operational and ready to welcome you,” she added.

Mansour believes that political and security stability are pre-requisites for tourism, as she elaborated, “Having tourism high on our president, Mohamed Morsy’s, agenda, in addition to the new initiatives taken by the ministry to boost tourism, we expect tourism to regain its previous position. Moreover, Egypt’s upcoming parliamentary elections will further enhance stability in Egypt.”

Tarek Moussa, chairman, Egypt & Beyond Travel, concurred, “Stability and safety are the key words for tourists to come back to Egypt and unless the president and government of Egypt get it right and bring back stability, tourists will remain in much lower numbers. Tourism in Egypt is very sick now, but it will never die.”

Meanwhile, Ibrahim Mohamed Ibrahim, managing director, Perfect Tours, stressed that customers looking for the world’s most enjoyable holidays, to exotic destinations in Egypt and abroad, do not have to do a single thing except, of course, to have a good time; the rest, he confirmed, will be taken care of.  MARCH 2013

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Dubai

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Why Dubai?

Dubai’s astonishing rise from a small fishing and pearling community to one of the fastest growing metropolises continues to impress and inspire the world. Welcome to the land of records and record-breakers where everything imaginable and unimaginable becomes a reality.

DUBAI IN BRIEF Country: UAE Currency: UAE Dirham (AED) JW Marriott Marquis Hotel Dubai

 Rita Kasziba writes

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ome to the world’s tallest building, largest shopping mall, a collection of iconic artificial islands, and some of the most instantly-recogniseable sights, Dubai has established itself as the city of superlatives, which continuously strives for greater heights.

Just when you think you have seen it all, a new ‘world’s first’ or ‘world’s most’ project is announced, inspiring visitors to return again and again.

Propelled by multi-billion dollar investments, in a space of just a few years, Dubai has grown into the world’s 13th most popular tourist destination, as Euromonitor International’s Top 100 Cities Destination Ranking shows, far outperforming the likes of Shanghai, Rome, or Las Vegas.

“The hospitality and tourism industry in Dubai is thriving,” commented Nasser Fawzi, director of sales and marketing, Kempinski Hotel Mall of the Emirates, adding that Dubai has turned into one of the most sought-after destinations worldwide, and thanks to the continuous efforts of the government and the Dubai Department of Tourism & Commerce Marketing (DTCM) people are becoming more and more familiar with the emirate and what it has to offer. “Visitors can find both choice and value here, making it the ideal destination for both leisure and business travellers,” he continued.

In fact, Dubai’s hotel sector concluded 2012 with the highest profits in the MENA region for the third consecutive year, according to TRI Hospitality Consulting’s HotStats survey, which shows that despite the growing room inventory, the destination’s soaring popularity and uninterrupted string of events, conferences, and festivals, helped maintain a steady stream of demand throughout the year leading to an average annual occupancy level of 81.4 percent, and a gross operating profit per available room surge of 13.3 percent, over 2011 levels.

“2012 was a very good year for the hospitality industry where Dubai went again from strength to strength,” confirmed Hazem Aouad, cluster director of sales and marketing, Radisson Royal Hotel, Dubai, and Radisson Blu Resort, Fujairah.

Karim Nahas, general manager, Rose Rayhaan by Rotana, also described 2012 as a record year for the hotel, when Dubai’s hospitality industry in general witnessed a boom, as the destination continued to benefit from the outcome of the Arab Spring and the government’s endeavours to market Dubai as a premier leisure destination.

Sharing similar views, Jan Siddiqi, director of sales, Ramada Plaza Jumeirah  MARCH 2013

Language: Arabic

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Beach Residence and Ramada Sharjah, attributed the over and above expectations performance to the collective result of various actions, including political well-crafted initiatives.

Praising the government and the tourism body’s continuous efforts, Rupprecht Queitsch, general manager, JW Marriott Marquis Hotel Dubai, the world’s tallest hotel at 355m, said, “DTCM works very hard to raise the profile of Dubai as a destination for the convention, business, and leisure business and we work closely with them on these campaigns and sales trips.”

Fawzi further added, “[The government along with DTCM] provide a lot of support to the hospitality industry through joint promotions, sales and marketing initiatives and partnerships. The government has positioned Dubai as one of the most sought-after destinations worldwide that has so much to offer, and as a result demand for the destination continued to grow steadily.”

TURNING AMBITION INTO ACTION Just in a single generation, Dubai’s population has grown from just 10,000 at the turn of the last century to over two million, comprising more than 200 nationalities by 2011, creating a characteristic destination of vibrant cultures and vivid contracts. Demonstrating

Dubai

the emirate’s growing significance on regional and global levels, everyday at present, an average of three million people spend their day in Dubai, including workers residing in other emirates and travellers visiting the destination on business or for pleasure.

As Husseim Hachem, cluster general manager, Al Bustan and Al Murooj Rotana Dubai, observed, the emirate has consistently made its strong mark as one of the top destinations all over the world, bolstered by widespread efforts of both the public and the private sector aimed at establishing Dubai as a desired place in every aspect.

“First, the government is doing a great job in promoting the city internationally and secondly, different industries like hospitality, travel, tourism, and more are working hand in hand to provide the best experiences to tourists and residents alike. In addition to these factors, Dubai as a city itself is a wonderful place with really nice people,” Hachem stressed.

In fact, Dubai’s visionary leadership has long identified tourism as a central pillar of its economic diversification strategy, hence the multi-billion dollar investments into the industry and related sectors, including infrastructure, transportation as well as public services, have turned the emirate not only into a tourist hotspot, but also into one of the best places to live in the MENA region, topping the regional ranking

of Mercer’s ’Quality of Living’ poll.

In addition, the ease of doing business, the close proximity to key growth markets, the centralised time zone, best suited to both eastern and western business hours, and the emirate’s safe, family-friendly, and multicultural environment have all become a major draw for skilled professionals. Consequently, numerous multinational companies have chosen to set up their regional headquarters in Dubai, making it a hub for trade and commerce, and the number one destination in the region for foreign direct investment.

“Dubai continues to cement itself as a prime hub in terms of international business,” confirmed Leon Salinel, executive assistant manager, sales and marketing, Dusit Thani Dubai, who explained that with its location in the Dubai International Financial Centre, and in close proximity to Dubai World Trade Centre and the Dubai International Convention & Exhibition Centre, the hotel enjoys high, and in fact, growing guest volume from the corporate sector.

“However, it is not just business travellers visiting the emirate,” Salinel stressed. “Dubai remains a hotspot for leisure travellers; it is the Las Vegas of the Middle East and somewhere people want to experience at least once in their lifetime.”

Reflecting Dubai’s dual appeal, Robert Barker, general manager, Mövenpick Hotel & Apartments 

MARCH 2013

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Dubai

Bur Dubai, described Dubai as the Hong Kong of the Middle East, adding that the unique model that has been created in the emirate, and which continues to evolve with the ongoing reinvestment and planning, is set to ensure Dubai’s success and prosperity in the long-term.

ENTERING NEW ERAS Dubai started the new year on a high with a record 1.7 million visitors attending the Downtown Dubai New Years’ Eve Gala, exceeding the reported attendance of one million at the world famous Times Square celebrations in New York City.

The destination’s abundant entertainment and amusement options, coupled with its vast retail portfolio, has long become a vital part of its appeal, with Dubai Mall welcoming over 62 million visitors in 2012, and as a market research conducted by Reed Travel Exhibitions has revealed, since the beginning of the year, some 48 percent of the emirate’s hotels were

Bluewaters Island project, located off the Jumeirah Beach Residence coastline, is envisaged to become one of the largest tourist hot spots in the world, featuring demarcated retail, residential, hospitality, and entertainment zones, as well as the world’s largest Ferris wheel at 210m, named Dubai Eye. With construction due to commence in April, the destination is set to further improve Dubai’s competitiveness on the global stage, as Abdullah Al Habbai, chairman, Meraas Holding, the developer of the project, suggested. “We have a clear mission and vision to strengthen Dubai’s global position in the tourism sector. This project will continue to build on the emirate’s reputation as leaders in the global entertainment and retail landscape.”

Another megaproject, Mohamed Bin Rashid City, hailed as a city within the city, is expected to set new benchmarks in urban development in the region.

Comprising four components, the project will create an integrated environment for the development of entrepreneurship and innovation and will feature a

Ocean View Hotel, JA Resorts & Hotels

located within a 2km radius of one of the five megashopping malls of Dubai.

Despite the stiffening competition, hotels located in close proximity to shopping complexes continue to thrive, as Fawzi confirmed, revealing that 2012 proved to be one of the most successful years for the property since it opened seven years ago. “As a city hotel, Kempinski Hotel Mall of the Emirates offers a truly unique proposition, which is well-liked by travellers from the Arab region. What we add to Dubai’s hospitality scene is a destination with entertainment for the whole family; there is Ski Dubai and the new Penguin Encounter experience, a great selection of dining options, a cinema, one of Dubai’s most popular malls, and a community theatre all in one location that is literally on the doorstep of the hotel,” Fawzi further explained.

In spite of the already overwhelming number of attractions, in a quest to spur demand, and support Dubai’s bid to host the World Expo 2020, the emirate is forging ahead with a number of new megaprojects.

The recently approved AED6 billion (USD1.6 billion)

myriad of record-breaking leisure and entertainment options, including a park, 30 percent bigger than London’s Hyde Park, designed to receive 35 million visitors per annum, as well as the largest family centre for leisure and entertainment in the region, set up in collaboration with Universal Studios, that will also include over 100 hotel facilities, further to the largest arts gallery in the region, and the world’s largest retail complex, Mall of the World.

“The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city,” emphasised H.H. Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, remarking on the vital role of such projects in the emirate’s Vision 2030 and boosting the UAE economy in order to enable it to enter a new era in which it will become the capital of entrepreneurship, arts, culture and family tourism for over two billion people.

In fact, the tourism sector in Dubai is growing by 13 percent annually, and the accelerated growth rates require the emirate to prepare all sectors for the

future, as passenger volume at Dubai International is set to surpass 90 million people per annum over the next five years. “Our development initiatives concerning infrastructure in all sectors should be aligned with this growth rate and we have the determination to reach our objectives and be the first in the region to achieve them,” concluded Al Maktoum.

THE MANY FACES OF DUBAI As a result of the joint efforts and heavy investments, over the past decades, Dubai’s hospitality sector has utterly transformed, according to David Thomson, chief operating officer, JA Resorts & Hotels. “Since 2003, the emirate’s hotel and hospitality sector has boomed, launched new niche products, developed new feeder markets, and roared ahead with new vigour after the slowdown of 2009/2010,” he said, adding that today, Dubai is considered a must-see destination for many more reasons than just shopping and going to the beach, which, as Thomson stressed, is vital for the sector’s future growth.

Echoing similar views, Habib Khan, CEO, Planet Hospitality, stated that people visiting Dubai can be segregated into three major categories, namely leisure, business, and transients.

“Within the leisure we have categorised the guests into travellers who come to witness the dramatic achievements and modernisation of Dubai […] whereas there are a smaller number, but its rapidly growing, of those intellectuals, educational groups, and individuals who seek better understanding of the Emirati and Arabic culture.”

Further commenting on the shifting trends, Rose Ann Shetty, CEO, Galavantor, which caters to a new generation of responsible travellers, noted, “The government continues to invest and develop wonderful local and cultural experiences and while Dubai’s focus continues to be a shopping and leisure destination, the type of travellers has changed; they are willing to stay longer and experience more,” Shetty explained, adding that desert horseback riding, Bedouin camping, trekking, and rock climbing are continuously gaining popularity.

In a bid to exploit another niche segment, medical and wellness tourism, DTCM has recently teamed up with the Dubai Health Authority to promote Dubai as a premier medical destination, capitalising on the emirate’s advanced healthcare system and highlyskilled professors.

“We are working to promote the medical tourism in Dubai, since Dubai has an excellent infrastructure, modern hospitals, and clinics offering a variety of medical [services] to visitors in search of quality health care,” explained Eyad Abdul Rahman, executive director, media relations and business development, DTCM. DTCM is also actively seeking ways to unleash the immerse potential of the burgeoning cruise tourism sector and secure its long-term growth by participating in various international exhibitions, with the aim of attracting more cruise liners.  MARCH 2013

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Dubai

Commenting on the strong economic fundamentals of the emirate and the breadth and unparalleled diversity of Dubai’s tourism product, Moussa El Hayek, chief operating officer, Al Bustan Centre & Residence, said, “[One of the] main reasons behind the prosperity in Dubai is the advanced infrastructure that tourists can enjoy here, including luxurious hotels and restaurants, transportation, malls, entertainment venues, parks, furthermore security, iconic buildings and to some extent, the flexibility of the rules.”

rently has 204 aircraft on order at a value USD73 billion.

Likewise, as the second-largest airline operating out of Dubai International, flydubai’s fast-paced expansion has been a key catalyst in the emirate’s unprecedented growth. In the past two years, the airline has more than doubled the number of destinations it flies to from 25 to over 50, a rate of more than one new destination per month and has increased its weekly services to over 1,000.

Since its inception, the low-cost carrier, which

RIGHT IN THE MIDDLE

served more than 5.1 million passengers in 2012, has laid great emphasis on connecting Dubai with fast-developing and previously untapped markets, opening up new opportunities for travel and trade in emerging markets, such as the CIS and Eastern Europe, in general. In 2012, more than 40 percent of flydubai’s route development concentrated on Central and Eastern Europe (CEE) and the CIS countries.

“We have seen great demand on our routes within the CIS and CEE as more people seek affordable fares and direct flights between Dubai and this region,” informed Ghaith Al Ghaith, CEO, flydubai.

In addition, today flydubai welcomes passengers to Dubai and beyond through its connecting flights to the Maldives, Sri Lanka, and other destinations.

As a matter of fact, in 2012, Russia and the CIS proved to be the second fastest expanding market in terms of passenger growth, behind South America, figures released by Dubai Airports have shown, and Al Ghaith revealed a similar trend, attesting that the carrier’s total number of flights to the CIS and CEE network was 45 percent higher between October 2011 and September 2012, compared to the previous 12 months.

“We operated 109 percent more flights in the region in September 2012 compared to September 2011, illustrating the demand for travel between the nations,” added Al Ghaith. “We are constantly looking for new opportunities. Our approach is to target destinations within a five-and-a-half hour radius of Dubai, which puts us within reach of more than 2.5 billion people, one third of the world’s population.”

Remarking on the airlines’ major role in Dubai’s development, El Hayek highlighted, “Flight frequency to different cities all over the world made Dubai the hub of the world as Emirates, flydubai, and Air Arabia have all launched various routes to different cities, while other ‘giant’ airlines moved their operations to Dubai due to the advanced infrastructure and the excellent services provided by Dubai International.”

Besides the government and the tourism organisation’s vigorous work, Dubai’s advanced air connectivity and excellent infrastructure have also played a vital part in the destination’s unprecedented growth, as Fawzi noted.

“Another contributing factor is the airlift into the destination and the continued growth of Dubai International and the UAE’s airlines, including Emirates, Etihad Airways, and flydubai, who have also seen phenomenal growth over the past few years, bringing more and more people to the destination [who] will be looking for accommodation,” elaborated Fawzi.

In fact, with its strategic location on the global axis between East and West, connecting the developed and the developing world, Dubai boasts access to over 2.5 billion people within a four-hour flight, as Queitsch pinpointed.

Dubai’s geographic location makes it a major global hub for trade, commerce, and tourism; a key competitive advantage for Emirates. An increasing proportion of the traffic between Europe and Asia now flies through the Middle East, and the airline expects this share to further grow, taking into consideration that Dubai’s location also facilitates rising trade flows to and from India, China, and Africa; three of the carrier’s strongest markets.

In the financial year 2011-12, Emirates carried a total of 34 million passengers leading to an average load factor of 80 percent, while for the first six months of the financial year ending September 30, 2012, passenger volume reached 18.7 million, marking a yearon-year increase of 15.4 percent.

Over the last year, Emirates’ network has grown rapidly, bringing new countries, cultures, and experiences for customers to explore and, of course, opening up new markets for Dubai. Reflecting Emirate’s ambitious expansion plans for the future, the company cur-

In line with the airlines’ expansion strategy, hoteliers are increasingly focusing on reaching out to these new markets, including the CIS and Russia, which Shaff Butt, director of marketing and communication, Jumeirah Beach Hotel, already listed among the hotel’s key feeder markets.

Besides the traditionally strong GCC and European markets, mainly the UK and the German speaking countries, demand from the CIS nations also continues to be strong, as Siddiqi explained.

Reporting similar trends, Salinel added, “The GCC has always been a primary source market and has remained strong over the past few years. Other source markets which have begun to show significant growth for us as a hotel [are] within the CIS region and Asian markets.”

Butt further added, “Over the past few years we are seeing continued positive results from our main key markets, such as Europe, which continues to show good numbers as well as the GCC and wider Middle East. For this year, our main focus is the CIS market and we would also like to target Asia and Africa since we are getting good pick up as well as more repeat guests each year.”

Nahas listed South Africa, Brazil, and Turkey among Rose Rayhaan by Rotana’s target emerging markets, while others, including Barker remarked on the growing demand from Far Eastern countries, and mainly China.

Likewise, Hachem noted that China, India and the rest of Asia have also started to make up for a big chunk of Al Bustan and Al Murooj Rotana Dubai’s clientele, while Aouad also added South America to the list of the markets ‘to watch’ for Radisson Royal Hotel, Dubai, and Radisson Blu Resort, Fujairah.

Mohamed Taher, director of sales and marketing, Traders Hotel, Dubai, listed a number of emerging markets which hold great potential, including the Middle East, Africa, Southeast Asia, Australia, Scandinavia, Algeria, as well as Serbia.

The constantly strong business levels from these markets set to balance demand with supply, noted Taherw, who anticipates a rise in both rates and overall business levels. “Demand will offset the growth in the increased room inventories with more exhibitions being held in the city as well as the increased air traffic with the expansion of the airport.”

Hachem further added, “This is admittedly a challenging year as the markets get more and more penetrated. In addition, 2012 had been great which adds more pressure to the industry in general to maintain and exceed the previous achievements.”

Echoing similar views, Wael El Behi, general manger, Ramada Downtown Dubai, concluded. “Dubai is one of the most sought-after travel destinations in the world. The hospitality sector is getting bigger and better every year. Hotels are coming up with innovative facilities to ensure guest satisfaction and a traveller has a wide range of hotels to choose from. Most hotels have increased their efficiency and profitability levels which is commendable. We hope to continue this success. […] With the growing hospitality sector, a traveller will be enticed to visit the city again.”  MARCH 2013

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Palestine

Forging Ahead with Pride  Dominique Christou writes

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n 2012, Palestine witnessed an increase in the number of inbound tourism by some 2.25 million visitors, 18 percent higher than that recorded in 2011, and this paved the way for a boost of 25 percent in overnight stays in hotels and guesthouses across the country to reach 1.8 million.

In order to keep visitor levels high, the Ministry of Tourism and Antiquities together with stakeholders have implemented numerous projects in a bid to increase traffic to the region.

One example is Jenin Tourist Center, which is scheduled to open later this year and is set to add to the improvement of Jenin as a tourist destination, to attract both local and international visitors, with a focus on the quality of the area’s residential life and the creation of economic opportunities through tourism.

With Poland being heralded as the destination’s second major feeder market in 2012, having welcomed 200,000 Polish visitors throughout the year, Palestine acted as a partner country, for the first time, in one of

Palestine, rich in culture, deep in history, blessed with holy sites, and highly worthy of its popularity amongst all travellers alike, is a destination which never seizes to amaze the world of travel and tourism. the global renowned travel trade shows, TOUR SALON, Poland, which gave the Middle Eastern country the opportunity to showcase itself to what is being recognised as one of the most promising markets.

With regards to Palestine’s vast selection of accommodation offerings, the country provides an array of friendly and welcoming hospitality services, and this is evident in the healthy performance results reported in 2012.

Grand Park Hotel, which opened towards the end of September 2012, after a USD13 million renovation transformed it into a five-star property from a fourstar, recorded 50 percent occupancy in the first six months in operation, this according to Mohammed Zomlot, general manager, Grand Park Hotel.

“We expect performance to be much better this year as the hotel is very well-known and guests now know we have had this renovation and want to come and see the new look,” he added.

With the majority of the hotel’s guests hailing from Palestine itself, Europe, America, and the Middle East, Zomlot pointed out that the hotel attends international conferences, sets out marketing strategies, and also participates in exhibitions in order to keep figures high and promote the hotel as a perfect choice for travellers.

Further growing its presence in the region, Grand Park Hotel is set to open two new hotels in Palestine in the second quarter of the year, and is to be the first local hotel chain in the country.

Thomas Brugnatelli, general manager, The American Colony Hotel, also revealed the recent

PALESTINE IN BRIEF Administrative Centres: Ramallah, Gaza Accepted Currencies: US Dollar (USD), Jordanian Dollar (JOD) Language: Arabic

completion of what he described as the spectacular Palm House building, alongside other changes which came onboard, to cater to the property’s main clientele, 45 percent of which, Brugnatelli revealed, hailed from Europe, mostly from France, Italy, Germany, UK, and Spain, while the US segment claimed a 35 percent market share. “For over a hundred years, The American Colony Hotel has a proud reputation of one of the most exceptional and famous hotels in the Middle East,” he concluded.

Royal Court Suites Hotel is yet another property which completed a solid 2012 in terms of business performance, as Joseph Ayoub, general manager, Royal Court Suites Hotel, announced, who further indicated that with new additions to management and plans for further upgrades, the hotel expects its performance to continue to improve into the future.

“The Royal Court Suites Hotel will be undergoing remodeling to our lobby and outside terrace, which we are excited for,” he expressed.

Catering to MENA guests, of which 20 percent make up the property’s entire clientele base who predominantly come from Jordan as well as Palestine itself, the hotel provides a highly service-orientated staff and a location that puts MENA travellers in the heart of Ramallah, close to its best attractions, and provides them with the opportunity to experience a land sacred to Muslims and Christians, boasting holy sites scattered across its land. Further to local and regional travellers, the hotel is also popular among international organisations, non-governmental segments, and business travellers arriving from Europe, US, and Japan.

Commenting on the ways through which fellow professionals can work to improve visitor arrivals, Ayoub advised, “Hotel operators in Palestine can boost the country’s tourism industry by running well managed operations that provide high quality service and up to date properties that are exposed to the outside world through proper marketing.”

This year also looks to be better than 2012 for Golden Park Resort, during which the property witnessed average performance levels and occupancy rates of 55 percent among the Czechs, Slovakians, Indians, Sri Lankans, Nigerians, Polish, and Egyptians, according to Ibrahim Giacamam, general manager, Golden Park Resort, who announced changes throughout the hotel in the coming months.

“We are renovating parts of the hotel, to compete with local markets,” he revealed, adding that this will include a full renovation of the lobby as well as the rooms. “There is competition from new hotels opening in Bethlehem, thus we want to keep our guests happy,” Giacamam concluded.  MARCH 2013

TOUR

UK

Meticulously Personalised  Dominique Christou writes

A

ccording to the latest World Travel & Tourism Council Economic Impact report published in 2012, direct contribution of travel and tourism to the UK’s GDP in 2011 reached GBP35 billion (USD54 billion), 2.3 percent of the country’s total GDP, with a forecasted rise of 1.3 percent in 2012, and an annual increase of 4.1 percent over the next decade, when the industry is estimated to be contributing GBP53.1 billion (USD81 billion) to the UK’s GDP in 2022.

Patricia Yates, director of strategy, VisitBritain, expected 31 million inbound visits to the UK for 2012, giving the destination, as Yates described, a perfect foundation to see continued strong growth in international tourism for this year, contributing revenue to the UK economy and creating new jobs across the country.

VisitBritain recently ventured, yet again, into the GCC, following the successful execution and delivery of the BritAgent online training programme in the UAE, Saudi Arabia, and Kuwait.

MARCH 2013

The UK tourism board’s global online training initiative, which has been designed to meet the needs of travel trade ‘front-liners’ from new starters to experienced sales personnel, was recently launched in Qatar at the British Embassy, Doha; a programme which, upon completion, grants the agents with BritAgent status, signifying their expertise and knowledge about travel to Britain.

“Britain is already a major beneficiary of outbound travel from the Gulf,” confirmed Sumathi Ramanathan, regional manager, Asia Pacific and Middle East, VisitBritain. “Visitors from the Gulf region are a major source of revenue for the UK; from January to September 2012, these visitors spent nearly AED5.5 billion (USD1.5 billion), already showing a seven percent increase over 2011. From 2006 through to 2011, Qatar has shown an outstanding increase in visitor numbers of 59 percent and the spend per night significantly outshines all the other countries,” Ramanathan added.

Official figures released by VistBritain reveal that in 2012, the UK witnessed the best November since 2007, with visitation figures a soaring nine percent higher than 2011, keeping the country on track to reach the 31 million mark by end-2012.

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The UK has long been an admired choice among MENA travellers, highly accredited to the typically distinguished English hospitality, worldrenowned shopping outlets, quality selection of entertainment, plethora of family activities, and, last but not least, the overabundance of picturesque parks scattered across the country.

UK IN BRIEF Capital: London Currency: British Pound (GBP) Language: English

November 2012 saw healthy results from nearly all the regions in the world, exempt the US, according to the study, which stated that the UK welcomed 10 percent more tourists from Europe and 12 percent from the rest of the world. 

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UK

Yates expressed great satisfaction for this success stressing that 2012 was no ordinary year for inbound tourism, so to announce the best November in five years is an achievement.

AN AMPLE CHOICE These healthy results are evident in the hotel sector across the country, partially attributed to the relatively strong MENA market as Daniel Simmons, executive director, HotelREZ, noted, further indicating that the hotel currently has a presence in Dubai, and as a result, is strategically developing the MENA markets to support the members’ growth.

o-y improvement from the top five Middle Eastern markets; a 104 percent y-o-y upsurge from Saudi Arabian visitors, and a 33 percent y-o-y rise from UAE visitors.

Assuring that the MENA guest is well-catering to, London Hilton on Park Lane trains its staff to provide the welcome that visitors from the region have come to expect, equipping the team with the skills to handle tailored requests, according to Brayshaw, who elaborated, “There is a dedicated guest relations teams for Middle Eastern guests, with Arabic-speaking team members. Facilities are available for visitors’ private chefs to cook within the hotels’ kitchens and serve their own dishes to their employer. Arabic TV stations are also available.”

BRINGING IN BUSINESS Further boosting MENA tourism to the UK, on March 31, British Airways (BA) will launch an additional four flights to and from Amman, increasing the frequency from daily to 11 per week. “Jordan is an important market for British Airways and we are thrilled with the excellent growth we have seen here since re-introducing Amman to our route network. We are keen to further enhance our operations to and from Jordan and the announcement only consolidates our commitment to the Jordanian market,” commented Paolo De Renzis, area commercial manager, Middle East and Central Asia, BA. In addition, Qatar Airways has launched its inaugural long-haul Boeing 787 Dreamliner service on the Doha - London Heathrow route, becoming the first airline to operate regular scheduled flights onboard the state-of-the art aircraft to and from the UK. Akbar Al Baker, CEO, Qatar Airways, said, “The Doha - Heathrow route is one of our most popular international routes and it was only fitting that we deploy our new 787 to and from London.”

INVESTING IN THE UK

London

Guests from the UAE, Turkey, Egypt, Saudi Arabia, and Kuwait, along with Cyprus contributed to two percent of the hotel’s total reservations percentage results for 2012, this according to Simmons, who also reported a 20 percent year-on-year (y-o-y) increase in revenue. “Our hotel members benefit from a 90 percent increase on IDS (Internet distribution services) and direct connect bookings, a 35 percent increase on GDS (global distribution systems) bookings, and a 60 percent growth on CRO (central reservations offices) and voice bookings.”

Commenting on the property’s latest developments, Simmons revealed the recently-launched MICE Desk which, he pinpointed, is an additional solution to HotelREZ’s member hotels and will help boost revenue.

“At HotelREZ, we are very confident that our new MICE Desk will raise awareness and continue to increase reservations for our hotel members from meetings, incentives, conventions, and events packages. To complete the consumer booking cycle, HotelREZ is launching REZanalyst; a new social media and review analytics tool for hotels to help manage their online reputation,” he concluded.

Also showing signs of strong performance is London Hilton on Park Lane, thanks to the London 2012 Olympic Games and Paralympics whose international committee chose the property as the headquarter hotel, this according to Ashleigh Brayshaw, marketing and communications manager, London Hilton on Park Lane.

With one out of four of the hotel’s guests hailing from the MENA region, Brayshaw pointed out that in 2011, the property witnessed particularly high growth in visitor numbers from the region, with a 21 percent y-

Moreover, the UK, especially London, offers a full range of activities, according to Brayshaw who observed that the Middle Eastern guest is increasingly organised with the time spent in the capital, and one who enjoys combining a variety of activities. “Popular activities include sending children to summer schools in Regent’s Park, attending business meetings, visiting property, shopping for the latest trends, and enjoying the rich variety of entertainment that London has to offer. Families often use managers to organise their time, with London Hilton on Park Lane’s hotel management working directly with guests to assist,” she further noted.

Moreover, Travelodge, one of the UK’s leading hotel brands, is set to benefit from a GBP223 million (USD341 million) brand investment, with the opening of 14 new hotels, which includes two properties in Spain, the creation of 420 new jobs, and the launching of a new room concept, which has been designed by its customers. “This capital expenditure will help us to grow our business, strengthen our product offering, and make Travelodge the best value hotel chain in the UK,” Grant Hearn, CEO, Travelodge, revealed.

“As part of this year’s investment, we have worked with our customers to create a new Travelodge room which offers more comfort, quality and style,” he continued, adding that this enhanced product combined with economy pricing will ensure Travelodge is the smart choice for leisure and business travellers.

Furthermore, in order to help attract new customers, Travelodge is also investing over GBP12 million (USD 18.2 million) in digital and online marketing this year, as well as over GBP1 million (USD1.5 million) in a website refresh later this year.

Heathrow Airport is hailed as the most popular gateway for travellers to the UK, recording a total of 5.18 million passengers having passed through its terminal in January alone; a record for the month which saw an increase of 0.3 percent over the corresponding month in 2012.

Meanwhile, load factors also set a record for the month under review, up 2.1 percentage points on January 2012 reaching 70 percent. Domestic traffic was down 5.8 percent, however European traffic rose 1.8 percent, and Middle Eastern traffic also climbed the trajectory level by 3.3 percent over the same month in 2012.

Moreover, Heathrow Airport recently announced GBP3 billion (USD4.6 billion) worth of investments in the airport, in addition to the GBP11 billion (USD16.8 billion), which has been invested since 2003, and these form part of the establishment’s business plans for Q6; the regulatory period which covers 2014-2019, and they represent one of the largest private-sector investments in UK infrastructure.

The plans include the completion of Terminal 2 and the early works on extending the building; the development of a new integrated baggage system; and the construction of new taxiways and stands which will allow Heathrow Airport to accommodate more of the most modern aircraft.

Colin Matthews, CEO, Heathrow Airport, commented, “Heathrow is the UK’s only hub airport and a strategically important national infrastructure asset.

Heathrow faces stiff competition from other European hubs and we must continue to improve the service we offers passengers and airlines. [...] Our plan for a further GBP3 billion (USD4.6 billion) of private-sector investment will further improve the airport for passengers. The plan represents good value for money for airlines and passengers and comes at no cost to taxpayers.”  MARCH 2013

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EXCLUSIVE

Luxury Travel

Living the Dream Luxury travel is all about making guests feel unique and privileged. It is about offering them the chance to get to know the world in extravagance and having them live above the ordinary. It is about spoiling them with opulent travel and hospitality services; something which is, without doubt, growing in size and quality.

Hotel Missoni Kuwait

 Maria Kazeli

writes

I

n late December 2012, the Association of British Travel Agents (ABTA) released its Travel Trends Report 2013, developed in collaboration with UK’s Foreign and Commonwealth Office, predicting that consumers will continue to look for good value in breaks for this year rather than cut back on their holidays.

Mark Tanzer, CEO, ABTA, stated that the majority of British holidaymakers are reluctant to give up their annual holiday under any circumstances, while strong forward bookings for the luxury and all-inclusive sectors are being witnessed.

Speaking at the 2011 edition of the annual International Luxury Travel Market (ILTM)’s Ultratravel Forum, Chris Sanderson, strategy and insight director, The Future Laboratory, a trend forecasting company, had announced predictions stating that the ‘luxurians’ of the future would not be interested in too much choice. “There is an enhanced sense of just being today’s luxury consumer rather than being surrounded by possessions,” he explained.

AUTHENTICALLY PRIVILIGED Views corroborating Sanderson’s were voiced by John McGee, research and communications manager, Artisans of Leisure, a luxury travel company specialising in exclusive customised private tours around the world. McGee believes that the primary reason his customers travel is to get authentic experiences that introduce them to the local traditions and people, while high-quality hotels encourage them to travel but are not primary incentives, further pinpointing the latter as being the interest in experiencing local

culture, cuisine, history, and lifestyle.

With reference to the Middle East, McGee noted that his agency is intrigued by places like Abu Dhabi and its considered approach to developing new museums and cultural attractions.

Defining the demands and needs of luxury travellers as being genuine and local experiences, Filip Boyen, chief operating officer, Orient-Express, said, “For luxury tourists, travel is not just about lying on a beach or by the pool anymore. It is about combining relaxation in a beautiful setting with learning and discovery. They want to come away with an experience, or having learnt something new, that they can come home and tell their friends all about.”

Boyen added that the Middle East is relatively new to the world of tourism, a place many will want to discover, and consequently this will create a demand for luxury hotels, already emerging in many parts of the region.

Travellers who spend a lot of money for their trip expect and demand the best; they need to be cared for in every step of the way, while feeling confident that they are dealing with someone experienced to respond to their requests, according to Daniel Essex, CEO, Century Travel, who also explained that many luxury travellers are looking for something small and attentive and a much more personal approach.

LET US SPOIL YOU The growing number of luxury hotels and amenities has led to an increased interest with Canadian travellers to the Middle East, according to Kathy Stewart, director of media and public relations, Butterfield & Robinson, a Toronto-based agency. Aside from authenticity, she stressed the importance of maintaining the unique qualities of the region for further development

into a luxury destination for global travellers. “Especially North Americans, who are travelling a long distance to the Middle East; they are not looking for the same experience they can get at home. They want Middle Eastern food, people, landscapes, and architecture to be an integral part of the experience.”

Hotel Missoni Kuwait benefits from a healthy luxury-demanding domestic market which represents 55 percent of its business, followed by Saudi Arabia with 13 percent, and the UAE with 10 percent, according to Alfio Bernardini, general manager, Hotel Missoni Kuwait, who said, “[At the hotel] everything contributes to the depth of the experience. Hotel Missoni is designed to be genuine and uncomplicated, offering those luxury touches that really matter because they genuinely enrich the experience of staying.”

Six Senses Zighy Bay, the indigenous village style accommodation in Oman, has observed an increase of 12 percent in occupancy levels throughout 2012, while the growth of the Middle East clientele is apparent after the development of family-specific offerings, attested Guillaume de Lasteyrie, executive assistant manager, Six Senses Zighy Bay. He believes that peace and calm is the most appreciated value of the property, while the hotel’s offerings are tempting for guests, citing the example of the saltwater pool carrying a mineral composition of 15-20 percent, comparable to the Dead Sea whose concentration is 27 percent.

Another instance of Arab opulence is Eastern Mangroves Hotel & Spa by Anantara in Abu Dhabi; a property which assures that luxury is interrelated with indulgence across all of its services offered with an acute focus on detail, which Nehme Darwiche, hotel manager, Eastern Mangroves Hotel & Spa by Anantara, reported is of utter importance. Darwiche further supports that the Middle East will not only continue to develop as a luxury destination, but will sit on the top of luxury ranks, and become a pioneer in such offerings. “The demand on luxury products will continue to increase as the tastes of sophisticated societies continues to reach new limits. Luxury will not be in big numbers but will be in the power to obtain rarity; the Middle East understands that very well and the developments planned MARCH 2013

Luxury Travel from now until 2020 have luxury travellers as their target,” Darwiche concluded.

An upcoming superior property in the region is Waldorf Astoria Ras Al Khaimah, set to open in May. Rudi Jagersbacher, president, Middle East and Africa, Hilton Worldwide, explained that the hotel, as an upscale property, will have to deliver on two counts; experiences and expectations. Observing that travel behaviour has changed in the past years and placing emphasis on value for money, he further noted “[Waldorf Astoria Ras Al Khaimah] is palatial, exclusive, and will offer the highest level of service as well as stateof-the-art amenities, but that is not enough. We have to ensure that our guests consider their experience as an investment worth repeating and sharing.”

The peak of extravagance is reached with a variety of private jet services throughout the region which cater for business and leisure travellers alike. Mark Hardman, operations director, ExecuJet Middle East, pointed out that the company’s clientele is as diverse as the region’s population, but private aviation offers valued features such as time efficiency, security, privacy, and convenience.

He admitted that the most popular destinations for Dubai-based ExecuJet are in the Middle East, with Riyadh, Jeddah, Beirut, and Baghdad occupying the top spots, while Geneva, London, and Nice are the favoured European hubs.

MARCH 2013

Similarly, Hardy Sohanpal, director, NasJet, agreed that Middle East travellers use private jet services for efficiency, flexibility, and privacy, while he accurately underlined that through emphasising the luxury benefits, many private jet users build relationships with their key business contacts and staff by giving them access to private aircraft.

ON THE RISE Providing her own view, Stewart reiterated that it is important not to overdevelop and retain authenticity of the Arab culture in the region.

Along parallel lines, Essex believes that the majority across the region always had the opinion that big is beautiful, but this is not enough, he further stressed, as the industry professionals in the Middle East need to consider the boutique options. However, he lauded Abu Dhabi’s development on Saadiyat Island and the introduction of cultural arts which, he believes, will attract the international and discerning travellers.

Boyen deems that the region will experience advancement and will emerge as a luxury destination; something he attributes to improved air connectivity.

“Definitely, with new airline routes from the Middle East launching all the time, such as Etihad Airways’ new routes to Washington and São Paulo, which are

EXCLUSIVE

23

launching this year, the destination is bound to develop further,” he continued.

Sharing the same opinion, that the expansion of airlines and airports lead to such positive developments, Bernardini claimed that despite the fact that the Middle East will develop further to become a destination for high-calibre tourists, not all countries in the region have the capacity and the stability to do so. However, he further explained, a few hotspots will enjoy this blessing, due to the money available in this part of the world, which will result in the building of super high-quality hotels and thus attract a good number of luxury travellers.

De Lasteyrie pointed out that even though the region was under the spotlight for some time, the future will see even greater lavish suggestions, andmaintaining that “The Middle East has been since years a luxury destination to the eyes of many, though the pinnacle of luxury is yet to come. Smaller and personalised service hotels and resorts from around the world are now willing to implement themselves in untouched locations creating a new momentum.

Much of the Middle East is still in the first tiers of luxury, based on opulent luxury and the glitz and glamour that first come with wealth. We are now beginning to see affluent luxury and more distinguished spending on art, collectibles, and sustainability.” 

24

SPECIAL REPORT

Waterparks

In for a Ride Waterparks are a popular attraction among locals and tourist in the Middle East. With promising weather throughout most of the year, waterparks offer visitors a fun family outing, in addition to an array of promotions and events.

Travel Trade Monthly explores what makes waterparks the perfect attraction.

Yas Waterworld, Abu Dhabi

 Dominique Christou writes

F

rom fun rides, food and beverage outlets, and retail offerings, to gaming outlets and social events, waterparks offer a safe, fun, and friendly environment for the family, groups, and events planners from all walks of life.

Wild Wadi Waterpark, Dubai is a good example whose team is committed to providing a fun-filled service that will make a lasting impression, according to Chris Perry, general manager, Wild Wadi Waterpark, who added that there is a major focus on using every opportunity to ensure that the guests’ decision to visit is rewarded with plenty of time to play, less time to queue, and more time on the rides.

Meanwhile, Ice Land Water Park, Ras Al Khaimah is receiving full promotional support from the emirate’s government and especially by its tourism body, this according to Vagelyn Federico, deputy director, Ice Land Waterpark, who added that it has been highlighted as one of the major destinations in the UAE by all concerned tourism entities.

Yas Waterworld, Abu Dhabi is the latest entry into the region’s proliferating world of waterparks and according to Mike Oswald, general manager, Yas Waterworld Abu Dhabi, it rivals the world’s best waterparks, offering 43 rides, slides and attractions. “It has been an incredible journey to this point and unbelievably satisfying to watch the people’s reaction to what has been created. We are

confident that people will have seen nothing like it before and we look forward to the waves of visitors expected to arrive now that the park is officially open.”

Yas Waterworld, Abu Dhabi which inaugurated on January 19, is built around a central character named Dana whose crew won the battle in its quest to restore a pearl to its rightful place, which has ensured prosperity to the mythical Emirati village and marked, what is expected to be, a successful start to Yas Waterworld Abu Dhabi’s commercial operations.

Set across 15ha on Yas Island, the park offers thrills for the whole family and visitors will experience fun and adventure on rides and attractions such as the world’s longest, fastest tornado waterslide, the region’s first looping waterslide, and the world’s first interactive water and laser rollercoaster. According to Oswald, Yas Waterworld, Abu Dhabi is expected to welcome a total of 700,000 in its first year of operation.

CALLING ALL THRILL SEEKERS During 2012, waterparks across the region experienced a healthy increase in visitors across a variety of markets.

“The waterpark performed better in 2012 compared to our first year in 2011, when it comes to statistics in various nationalities, locally and internationally, through the

support of the tourism body in Ras Al Khaimah,” Federico stated.

In the summer, major visitors to the waterpark hail from Asia as well as locally, whereas during the winter months, the CIS market plays a big role in promoting the park with its tourists in the UAE. In order to boost visitor arrivals to the waterpark, Federico pointed out that during the winter, the team is currently working for a family barbecue night with some other attractions to lure in more families.

Moreover, she indicated that the months ahead seem even more vibrant, as she further demonstrated, “This year will be more promising as we strengthened our ties with more travel operators, inbound and outbound. Additionally, we are currently working with different airlines, travel operators, hotels, and other tourism entities to promote Ice Land, giving them also more benefits in promoting us to different market segments.”

Giving something more to visitors, the waterpark’s team is currently working with skilled games and other dry rides for people to enjoy at the facility after park operations. “We are also a preferred venue for concerts as we have the perfect place to accommodate up to 6,000 people in one area. Ice Land Water Park is just one of the offerings of WOWRAK and we are currently working with other expansions such as resorts, ice skating, cinema complex, hypermarket and other amusement activities which are planned to open in the next few years,” concluded Federico.

Likewise, Perry also announced continuous growth over the years for Wild Wadi Waterpark, with 2012 proving very successful. He attributed this achievement to events, such as ladies nights, Ramadan nights, and the new Jumeirah Sceirah, which launched in September 2012, having proved to be a favourite amongst thrill seekers, whereby one drops through a trap door from a height of 32m into the waiting water tunnel and races down the slide at 80km per hour.

“We aim for this trend to continue this year as we have a variety of new attractive promotions and events, to suit all our guests’ needs,” Perry further informed. “We also launched our online ticketing system this month to offer faster entry to our guests,” he added, guaranteeing guests with a faster entry process, allowing all those with a printed ticket to jump the queue.

Wild Wadi Waterpark is open all year round and caters to guests from all over the world. “During the hot summer months (May-October), most of our guests come from the GCC countries, whereby during the colder season, (November-April) our guests are mainly from Europe.

“The park is also a popular destination for UAE residents since we periodically offer discounts to all residents as well as annual/season passes that allow them to visit as many times as they want for a cheaper rate,” he said.

Perry also pointed out that during the month of May, the waterpark offers its very popular family-only mornings every Friday, at discounted rates so that they can enjoy the full facilities of the park when it is not too busy, and of course when it is more safe and secure; a factor which, he assured, is of the highest priority.  MARCH 2013

26

INVESTIGATION

Visiting Friends & Relatives

Unconventional Travellers Many prefer to spend their holiday visiting their friends and relatives in their home country, if they are expatriates, or some other destination in order to spend time with their loved ones. The focus of the travel is not cultural sightseeing and luxury accommodation, but low airfare and budget lodgings.

ing the Relationship between Two Global Phenomena, compiled by UNWTO, the two concepts are analysed by stressing that growth in international tourism and mobility has given rise to tourism-led migration, with examples including the movement of male labourers from South Asia to meet the construction demands of the tourism boom in the UAE. The research states that migration has led directly and indirectly to significant growth in tourism to both origin and destination countries through increased visibility, especially in the VFR sector, and to the development of new tourism infrastructure and transport routes in and between countries.

UK’s Civil Aviation Authority (CAA) also lays emphasis on the importance of the specific market, having published an in-depth study on air passengers visiting friends or family. The investigation report titled International Relations – The Growth in Air Travel to Visit Friends or Relatives, indicated that the robust growth in VFR reflected trends such as labour mobility and migration, while predicting that due to these trends, the country’s GDP will affect future VFR passenger traffic.

VISITING MENA

 Maria Kazeli

T

writes

he annual review for 2011 by the World Travel & Tourism Council (WTTC) attributes social and cultural benefits to tourism, indicating that the industry directly helps to keep or bring families and social networks together.

With special regards to the visiting friends and relatives (VFR) segment, the review supports that a significant proportion of all international trips, which reaches up to a third of all arrivals for some large developed markets, are made in order to visit friends and/or relatives.

Globalisation has caused people to spread all over the globe, but returning back home occasionally is a necessity. The World Tourism Organization (UNWTO) draws direct links between migration and travelling to visit relatives, and in the 2009 Executive Summary entitled Tourism and Migration – Explor-

At the 6th UNWTO/Pacific Asia Travel Association Forum on Tourism Trends and Outlook, held in October 2012 in China, it was revealed that 36 percent of the Middle East’s outbound market constitutes the VFR segment.

Some insights on inbound VFR trends concerning the hotel industry in the region were provided

by Darroch Crawford, managing director, Middle East and Africa, Premier Inn Hotels, who highlighted that this market is highly important, but also very difficult to measure as bookings of this nature come through different channels. His estimations on guests travelling to visit family members in the region and residing in Premier Inn properties amount to seven percent of the total clientele. Crawford further indicated that the largest Middle Eastern feeder markets for the brand are Lebanon, Syria, and Jordan.

Meanwhile in Saudi Arabia, domestic tourism has been the primary focus of tourism development policy in the Kingdom and according to Saudi Tourism Outlook, issued by the Tourism Information and Research Centre, part of Saudi Commission for Tourism & Antiquities, which analyses July 2012’s figures, the local segment contributed to 1.14 million overnight trips in the month under review, out of which 39.8 percent hailed from the VFR segment. In addition, 29.3 percent of the 1.71 million outbound trips taken from Saudi Arabia during July 2012, were categorised as the VFR market.

The Statistical Service of Cyprus disclosed that according to the latest data available concerning September 2012, the island received 335,352 visitors out of which 9.7 percent were VFR. The same data for the

year in review, which covers up to September 2012, reveals that the highest figures for the VFR segment appeared in January 2012, with 26.7 percent of 47,610 incoming tourists being reported as VFR. Egypt’s outbound travel market linked to VFR occupies a major part of business for travel agencies, Feryal El Gohary, general manager, Bahi Travel, explained, adding that almost half of the agency’s clientele are VFR. She also expressed the view that this market is a growing force for airlines and hoteliers alike, while the latter, she pinpointed, will succeed only if they create a new strategy of very advantageous attractive long-stay offers.

Tarek Moshref, managing director, Pronto Tours, an Egypt-based tour operator, supported that the VFR market is the third largest segment after holiday and business, and for this reason local travel agents and operators should improve their services in order to capture and develop its potential, by offering new options and programmes.

Stressing the cost-driven aspect of the VFR market, Adel Taha, general manager, leisure travel, Kimidar Tours, an Egyptian travel agency, destination management company, and ground handler, said that VFR travellers aim at low travel expenditures in order to spend their money on leisure activities at the destination and not on transportation. With regards to the accommodation factor, he added, “Most of the travellers, whether leisure or VFR, would tend to seek hotel accommodation in order to benefit from services provided such as room cleaning and meals, instead of selfserved apartments. However, we can say they still seek low-cost accommodations with some specifications.”

VFR IN THE SKIES Commenting on the results of the British CAA’s study, Harry Bush, group director, economic regulation, UK CAA, had said that air travel played a key role in enabling people’s relocating, principally through the emergence of low-cost air travel and that the resulting VFR passengers are increasingly important consumers of air travel. According to an aviation analysis report by CAPA - Centre for Aviation, a provider of independent aviation market intelligence, the Middle Eastern low-cost carriers are trying to adapt their model to the regional situation with their higher density configurations targeting migrant workers and VFR traffic flows from North Africa and South Asia into the Gulf region.

Major airlines have taken this trend into consideration and cater for this market, by tailoring their offers. Paolo De Renzis, area commercial manager, Middle East and Central Asia, British Airways, said, “The VFR segment is extremely important to British Airways, particularly in the Middle East where a large number of our customers are VFR travellers. This is a region where families are extremely close, and this tight-knit family culture means that we see a lot of VFR traffic across our Middle Eastern routes. We also have a large expat community in the UAE, which contributes significantly to this segment.”  MARCH 2013

28

WHO'S MOVED

ANDREW ABRAM Andrew Abram has been named general manager at Raffles Dubai.

Abram joins the property’s team from Mandarin Oriental Hotel Group, where, over the past decade, he has held various positions.

He joined the company in 2003 as resident manager of The Excelsior Hotel Hong Kong, and went on to lead the renovation and reopening of Mandarin Oriental Jakarta, holding the role of general manager for eight years. He most recently served as general manager

of Mandarin Oriental Dhara Dhavi in Chiang Mai, Thailand.

Having also held the position of corporate director of sales and marketing at Jumeirah Group in the Middle East, where he was responsible for the branding and launching of several projects, Abram brings an insider’s knowledge to Raffles Dubai.

Abram brings an insider’s knowledge to Raffles Dubai

KONSTANTINOS KOUROTSIDIS Konstantinos Kourotsidis has been named general manager at Radisson Blu Martinez Hotel, Beirut.

Kourotsidis started his career in the hospitality industry in 1996 in food and beverage at Copthorne Hotel Hanover.

In 2000, he joined The Rezidor Hotel Group, where he held various positions across Europe and the Middle East, including at Radisson Blu Hotel, Hanover, Radission

Blu Hotel & Spa Galway, Radisson Blu Resort Schloss Fleesensee, Radisson Blu Resort, El Quseir, Radisson Blu Hotel, Alexandria, and Radisson Blu Resort Sharjah.

After several task force assignments in Egypt, Libya and UAE, Kourotsidis was promoted to general manager at Radisson Blu Al Mahary Hotel, Tripoli. Most recently, he worked as acting general manager at Radisson Blu Resort, Fujairah.

MARCH 2013

MARCH 2013

TRAVEL TALK

travel talk is your space

30

LEON SALINEL

WAEL EL BEHI

Executive assistant manager of sales and marketing, Dusit Thani Dubai.

General manager, Ramada Downtown Dubai.

“2012 was a very successful year for us. We were not only successful in meeting our key performance indicators, most notably by exceeding both our gross operating profit and gross operating revenue. Working with Investors in People throughout the year also ensured that we performed highly in our employee satisfaction survey; we even ranked at the top of our group in this regards. […] We are now drawing to a close on our rooms renovation and have just welcomed our new general manager, so it is an exciting year to come for us which will see some change.”

“I am very pleased to be appointed as executive board member [of the Tunisian Business Council]. I will do my best to be of service to my fellow Tunisians in the UAE and contribute in the council’s cultural and economic progress in [the current year]. I hope to play a part in creating strong community bound by camaraderie, accord and reliance among Tunisian nationals in the UAE.”

I will do my best to be of service to my fellow Tunisians in the UAE and contribute in the council’s cultural and economic progress

KARIM NAHAS General managar, Rose Rayhaan by Rotana.

“2012 was a record year for Rose Rayhaan; total revenue growth was almost 17 percent versus 2011. […] The hotel continued to focus on the GCC markets, with the Saudi market on the top list, and strong performance of the UK, France, and Russian markets were witnessed.

UAE local market, in both leisure and corporate segments, also performed very well. We are planning to focus on new emerging markets like South Africa, Brazil, and Turkey. Competition will be indeed stiffen this year, however, I guess there will be business for everybody.”

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 MARCH 2013

RENDEZVOUS

31

Q & A with Rana El Khoury With her recent appointment, Rana El Khoury, general manager, Le Gray, Beirut, became one of Lebanon’s first women to hold such a high position at a five-star hotel, and here she shares her views on the future prospects of the Lebanese hotel sector.

Travel Trade Monthly: How would you describe 2012 in a few words?

Rana El Khoury: The best way to describe 2012 would certainly be ‘challenging’; a challenge that could be called survival until we see better days.

Controlling costs while maintaining superior service quality and competitiveness is key to our continuous success in the Lebanese market. The hotel performance could be rated as fair for 2012, greatly impacted by high level of business during the first five months of the year. This has allowed us to stay ahead of the game for the remainder of the year, although November 2012 was the toughest month since the opening of the hotel in 2009. Despite all, Le Gray has managed in 2012 to retain its number one position in occupancy and RevPAR in the Lebanese market.

Rana El Khoury General manager, Le Gray, Beirut

Rana El Khoury: The hospitality industry is very challenging and requires sacrifice on all levels.

What I can say is that women have their own specificity and they can bring a different vision and new perspectives to the hospitality business. The advice I would give young women ready to climb the corporate ladder is to take the time to deepen their knowledge every step of the way in the different positions they fill throughout their careers; this can only make them stronger and certainly more credible when they reach executive level positions.

Travel Trade Monthly: Over the past few years, the Lebanese tourism industry has faced a number of serious challenges. What are your expectations for the current year?

Travel Trade Monthly: The hotel will soon embark on a major extension project. Tell us a little bit about this.

Rana El Khoury: Le Gray is preparing to kick off its extension that will include a larger lobby with a lobby lounge, a chocolate room, banquet space, a 35seat movie theatre and an additional 18 rooms. The project should reach completion by end of 2014.

Travel Trade Monthly: Prior to your appointment, you served as hotel manager. How does your new position differ from your former role?

Rana El Khoury: My previous position as hotel manager was focused on the operations aspect of the hotel; as general manager, my responsibilities enclose a more general view of the hotel, including the administrative and strategic side of the hotel as well as the link between the owning company and management company.

My priorities for the coming year is diversifying our target markets on the international and local scene to maximise hotel occupancy, and to strengthen the positioning of Le Gray on the local market as a destination for its restaurants and bars, whilst building on the existing strong team at Le Gray and getting the right people together to move forward with positivity and vigilance to counter these challenging times.

MARCH 2013

Travel Trade Monthly: Your appointment makes you one of the first Lebanese women to hold this position at a five-star hotel. How challenging is it to hold such a high position at an already wellestablished hotel?

The advice I would give young women ready to climb the corporate ladder is to take the time to deepen their knowledge, every step of the way, in the different positions they fill throughout their careers

Rana El Khoury: Lebanon has always been a preferred destination attracting tourists from the Arab and Gulf countries, and with increasing stability and security we do see a solid recovery.

Given the complexity of the Lebanese market, improvement can occur overnight. As seen in May 2008, following the Doha-agreement, occupancy rates jumped back then from 30 to 90 percent within one week.

This year remains uncertain due to the volatility of the political situation in the region; the key is to remain sustainable and be ready for the sudden surge in business.

Le Gray, Beirut

32

NEWS & EVENTS

Sharjah Reopens Car Museum Following a refurbishment to better present the historical phases of the emirate’s auto manufacturing sector, Sharjah Classic Cars Museum, originally launched in 2008 by H.H. Sheikh Sultan Bin Mohammed Al Qassimi, ruler of Sharjah, reopened in January by Sheikh Essam bin Saqr Al Qassimi, chairman, Sharjah ruler’s office.

On the opening day of the event, Manal Ataya, director general, Sharjah Museums Department, said, “The aim of refurbishing this museum was to allow us to re-evaluate the previous design and interpretation and improve it significantly.”

She further pointed out that the museum now helps visitors to appreciate the aesthetic and historical value of classic cars in a space that integrates a new children's interactive area and a gallery space for temporary exhibitions.

The museum boasts 85 classic cars, two motorcycles, and five bicycles, as well as a model of an old car and an engine to allow visitors to familiarise themselves with parts of an engine and their function, while it is divided into five sections and features an area for activities and interactive games.

AOPA UAE to Hold Meeting with International Colleagues

EVENTS

Following the launch of the UAE branch of the Airline Owners and Pilots’ Association (AOPA) at Abu Dhabi Air Expo 2012, Yousif Al Hammadi, president, AOPA, UAE, has invited representatives from international AOPA branches to attend a workshop dedicated to discussing and debating general aviation issues in the region.

The meeting, the first of its kind, will run parallel to this year’s Abu Dhabi Air Expo and will take place at the Gulf Centre for Aviation Studies, Al Bateen Executive Airport on March 6.

It is anticipated that up to 30 representatives from AOPA US, AOPA UK, AOPA Germany, and AOPA France, will meet with their colleagues from the UAE during the one-day event, to share knowledge and debate a variety of topics including air space regulations, aerial non-commercial operations, certification and maintenance issues, and pilot licensing.

AOPA members will also be able to maximise their time by attending the Air Expo exhibition, the Middle East’s only dedicated general aviation event, to meet pilots from the region and learn about the latest trends.

Gulf Centre for Aviation Studies

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ITB Berlin Berlin, Germany, March 6 – 10, 2013 (www.itb-berlin.de) A business-to-business platform for trade visitors which provides the possibility to discover the whole world within a few hours.

Saudi Travel & Tourism Investment Market (STTIM) Riyadh, Saudi Arabia, March 31 – April 4, 2013 (www.sttim.com.sa) The event covers all travel and tourism investments aspects in the Kingdom through a combined conference and exhibition.

MITT Moscow Moscow, Russia, March 20 – 23, 2013 (www.mitt.ru) Russia’s leading and largest travel exhibition with over 3,000 participating companies and 197 destinations, a key meeting place for industry professionals.

International Destination Expo (IDE) Dubai, UAE, April 4 – 7, 2013 (www.asta.org/events) Organised by the American Society of Travel Agents, IDE is a destination training programme where participants can meet local suppliers and built profitable longlasting relationships.

The Gulf Incentive, Business Travel & Meetings Exhibition (GIBTM) Abu Dhabi, UAE, March 25 – 27, 2013 (www.gibtm.com) A leading event for the meetings, incentives, and business travel industry in the GCC region, which can truly unlock all participants’ business potential.

Arabian Travel Market (ATM) Dubai, UAE, May 6 – 9, 2013 (www.arabiantravelmarket.com) The travel and tourism event unlocking business potential within the Middle East for inbound and outbound tourism professionals.

MARCH 2013