Travel Trade Weekly proudly enjoys readers on average per day
NOVEMBER 2012
ISSUE 37
Travel Trade Weekly proudly enjoys readers on average per day
NOVEMBER 2012
ISSUE 37
EXCLUSIVE: MEDICAL TOURISM One region which has undoubtedly been gaining ground in the multi-billion dollar medical tourism industry is the Middle East.
Building on its economic and political stability, fastdeveloping infrastructure, and highly skilled workforce, the UAE has shown great resilience as it continues to enhance its standing as a burgeoning tourist and business hub.
03 EXPLORE: IRAQ Iraq’s tourism industry is preparing itself for a boost in infrastructure as a large number of hotels are anticipating to spread their presence in a country whose economy is expected to soar over the next few years
22 IN THIS ISSUE EXCLUSIVE: Medical Tourism
03 04 VISIT: UAE 06 ONSITE: India 20 EXPLORE: Iran & Iraq 21 LONG-HAUL: Australia & New Zealand 23 TRAVEL TALK 25 TRAVEL CHANNELS 26 INVESTIGATION: Tourism Developments 27 TOUR: Estonia 29 WHO’S MOVED 30 RENDEZVOUS 31 NEWS & EVENTS 32 MARKET UPDATE
VISIT: UAE
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Medical Tourism
Certifying Special Treatment Stefanie Saghbini
T
writes
he rise of affluent populations within developing nations creates increasing demand for access to the best hospitals, specialty clinics, and other sources of medical care, according to Raza Siddiqui, CEO, Arabian Healthcare Group, and executive director, RAK Hospital, who pointed out that this is evident in parts of the Middle East in countries such as the UAE, which has its mind set towards possessing a considerable chunk of the global USD100 billion medical tourism industry this year, as a result of its infrastructure, standard quality healthcare, and competitive pricing, just to name a few. “With rapid infrastructural growth over the last 40 years and boasting some of the best medical facilities available in the world, the UAE has naturally become a magnet for medical tourism. The country is fast taking the centre stage by increasing its market share in this ever-growing sector,” he said, adding that as an emerging destination, it is set to witness increases in the number of patients, year on year. “UAE is one of the few countries in the world which has identified medical tourism as a national industry. Over the last few years, we have seen nearly 14 hospitals in the UAE accredited by the Joint Commission International. Naturally, this foretells, the UAE medical tourism growth,” Siddiqui further noted. RAK Hospital, highly acknowledged in the region, is an 80-bed multi-specialty private medical establishment, which has developed at a steady pace since it opened in 2007, Siddiqui revealed, who proudly reported a 30 percent growth this year to date, compared to the same period in 2011. Abu Dhabi is also forging ahead with medical plans to greatly improve its healthcare industry, with the addition, earlier this year, of what is being heralded the largest private facility in the emirate; the 202bed Burjeel Hospital. Boasting world-class medical facilities with a large number of US-, UK-, and European-educated and trained doctors, offering end-to-end comprehensive clinical services in over 30 specialties, the new truly luxurious facility provides clinical excellence in all the areas of expertise offered and the highest standards of care, according to Charles Stanford, CEO, Burjeel Hospital, who further commented, “Burjeel Hospital’s aim is to change how people view health, by not just offering the best in treatment, but inculcating the concept of wellness in their lives.” With the sixth Abu Dhabi Medical Congress having recently come to a conclusion, Abu Dhabi National Exhibition Centre welcomed some 4,000 professionals working in the primary healthcare, emergency, patient safety, rehabilitation, dentistry, and nursing sectors across the region. NOVEMBER 2012
The multi-billion dollar medical tourism industry takes responsibility of the healthcare of millions of travellers each year, all of who seek the best hospitals, doctors, therapies, and healing services, and one region which has undoubtedly been gaining ground in this spectrum is the Middle East. Officially inaugurated by H.E. Zaid Al Siksek, CEO, Health Authority – Abu Dhabi (HAAD), the event, which took place on October 15 - 16, expanded from 7,000m2 in 2011 to more than 9,000m2 this year and hosted 110 exhibitors from 25 different countries and 12 Continuing Medical Education-accredited conferences. Speaking during the official tour of the event, Al Siksek, said, “The Abu Dhabi Medical Congress reflects the improvements and advancements achieved in the healthcare sector in Abu Dhabi and is an opportunity for all healthcare players in the emirate and the region to exchange knowledge and identify common challenges. Meanwhile, Arab Health, hailed as the world’s second largest healthcare exhibition, is gearing up to take place on January 28 - 31, 2013, at Dubai International Convention & Exhibition Centre for its 38th edition, where it will see the opening of a new Plaza Hall accommodating an extra 200 exhibitors. This is in addition to the 3,500 exhibiting companies already showcasing the very latest medical breakthroughs and technological developments in healthcare, as well as announcing groundbreaking new partnerships and collaborations within the Middle East healthcare sector. Moreover, the fifth edition of The International Congress in Aesthetic, Anti-Aging Medicine &
EXCLUSIVE
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Medical Spa, will be taking place on November 23 24 at Habtoor Grand Resort & Spa, located on Dubai’s Jumeirah Beach. Additionally, Informa Life Sciences Exhibitions, the organisers of Arab Health, alongside Riyadh Exhibitions Company, organisers of Saudi Medicare Exhibition for the last 15 years, recently announced the launch of the new Saudi Health exhibition and conferences, which is scheduled for May 12 - 14, 2013, at the Riyadh International Convention & Exhibition Center. This global event will offers a comprehensive multi-track congress including a diverse range of conferences covering a variety of medical disciplines. Set to further refine the world’s 2013 medical events calendar, is the forthcoming International Medical Travel Exhibition & Conferences, which will inaugurate at the Grimaldi Forum, Monaco, on March 22 – 23. Also organised by Informa Life Sciences Exhibitions in strategic cooperation with the European Medical Travel Conference, the two-day conference and exhibition is expected to provide an international platform for industry professionals to focus on the leading trends and developments, and is designed to become the world’s umbrella conference to independently represent the various country interests and different medical travel associations working around the globe for the improvement of medical travel.
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MARKET UPDATE
TRAVEL TRADE WEEKLY MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel JOURNALISTS Stefanie Saghbini Rita Kasziba Dominique Christou
IATA: Middle East Airlines Strongest Performers Middle East carriers have proven once again the strongest performers in the global aviation industry based on the International Air Transport Association (IATA)’s traffic results for August.
SALES & MARKETING Maria Demetriadou Derek Lainsbury DESIGN & LAYOUT Elena Stylianou DIRECTORS Andreas Constantinides Mary Kammitsi HEADQUARTERS T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607, Fax: +357 22 210466 WEBSITE www.traveltradeweekly.travel EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel PRINTED IN CYPRUS Cyprint Plc P.O. Box 58300, CY-3732, Limassol, Cyprus Tel: +357 25 720035, Fax: +357 25 720123 Email: info@cyprint.com.cy
MENA EXCHANGE RATES
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lobally, demand for air travel rose 5.1 percent compared with the same month in 2011, and as carriers continued to moderate capacity expansion, limiting it to a 4.1 percent improvement, load factors averaged at 82.1 percent. According to IATA, the growth was mainly driven by strong results in the Middle East, Africa, and North America, which reported increases of 11.3 percent, 10.2 percent, and two percent, respectively. In fact, Middle Eastern airlines were once again the strongest performers and continued to expand rapidly, particularly on long-haul routes. The August growth rate of 16.7 percent, however, could have been boosted by the impact of Ramadan falling
throughout the whole of August in 2011, stated IATA’s report, adding that with a capacity expansion of 13.3 percent, load factor at 78.4 percent. Meanwhile, although global freight volumes fell 0.8 percent, Middle Eastern carriers witnessed an increase of 11.3 percent. Commenting on the figures, Tony Tyler, director general, IATA, highlighted, “Passenger markets have not grown since June and global air freight volumes are below previous year levels. In the face of these adverse conditions, disciplined capacity management has kept load factors high. “There are always opportunities and some parts of the world are growing. But, overall, trading conditions are tough.”
Etihad Airways: Revenues Up 19 Percent
Accurate as of
23/10/2012 Currencies shown in red are fixed against the US Dollar
COUNTRY
CURRENCY
1USD=
UAE (AED)
Dirham
3.67
Egypt (EGP)
Pound
6.10
Saudi Arabia (SAR)
Riyal
3.75
Lebanon (LBP)
Pound
1,505.50
Bahrain (BHD)
Dinar
0.37
Jordan (JOD)
Dinar
0.71
Syria (SYP)
Pound
68.90
Kuwait (KWD)
Dinar
0.28
Qatar (QAR)
Riyal
3.64
Oman (OMR)
Rial
0.38
Tunisia (TND)
Dinar
1.56
Morocco (MAD)
Dirham
8.53
Iran (IRR)
Riyal
12,275.00
Yemen (YER)
Rial
214.61
Algeria (DZD)
Dinar
79.50
Libya (LYD)
Dinar
1.25
Etihad Airways
Etihad Airways’ third quarterly revenues reached USD1.3 billion, marking a robust yearon-year increase of 19 percent, driven by record seat factors. The surging revenues reflected the 23 percent rise in passenger numbers with 2.79 million travellers flying with Etihad Airways during the three-month period, which led to the airline’s best ever quarterly seat factors of 81.2 percent. As the rise in revenues and passenger volume continues to outperform the carrier’s growth capacity, Etihad Airways remains confident in achieving full year profitability for the second year running, as James Hogan, president, Etihad Airways, explained, “Our third quarter saw continued progress across the business, with all key indicators showing strong performance and we remain confident of delivering full year profitability based on current market conditions.” Hogan further highlighted the strong contribution of the airline’s codeshare and equity partners, a component which he believes is delivering a strong and growing revenue stream, complementing Etihad Airways’ double-digit organic growth.
NOVEMBER 2012
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UAE
UAE: The Beating Heart of the Middle East Building on its economic and political stability, fast-developing infrastructure, and highly skilled workforce, the UAE has shown great resilience against the global and regional challenges and continues to enhance its standing as a fascinating tourist destination and burgeoning business hub. Rita Kasziba writes
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n 2011, travel and tourism investment in the UAE reached AED76.5 billion (USD20.8 billion), representing 25.5 percent of the total investment, underscoring the industry’s pivotal role in diversifying the country’s economy away from its dependence on oil. “The UAE with its free economy, political stability, culture of openness, exciting calendar of business and leisure events, exceptional infrastructure
and international connectivity is witnessing a period of great opportunity in attracting travellers in large numbers,” noted Michel Noblet, president, Hospitality Management Holdings. Over the last few years, the seven emirates have attached great significance to showcasing their very own charm to build a country which Noblet described as ‘the beating heart of the Middle East.’
UAE IN BRIEF Capital: Abu Dhabi Other emirates: Dubai, Sharjah, Fujairah, Ras Al Khaimah, Ajman, Umm Al Quwain Currency: UAE Dirhams (AED) Language: Arabic
Abu Dhabi While over the past years, Dubai has stolen most of the headlines, Abu Dhabi has continued to evolve its infrastructure creating a world-class business environment and a true global city that offers a myriad of opportunities for both investors and visitors.
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s the destination continues to enhance its tourism capabilities, visitor numbers are soaring at an accelerated pace while hotel guest volume were recorded to have reached 1.55 million in the first eight months of the year, rocketing 15 percent over the same period in 2011, according to statistics released by Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi). Looking into the phenomenon behind the results, Sultan Al Dhaheri, head of tourism and corporate planning, TCA Abu Dhabi, said, “I believe that we are seeing strong overall growth because Abu Dhabi’s wider tourism proposition is more mature and more diverse than ever before, and our marketing efforts and outreach continue to develop and expand.” The emirate now has much more on offer than ever before, be it entertainment, culture, sport, or other activities, Dhaheri further noted. “The diversity of hotel
F1 Etihad Airways Abu Dhabi Grand Prix
choice is also a major factor in Abu Dhabi’s growing appeal. Enhanced competition has made the market more accessible and cost-effective, whilst the sheer choice of options from futuristic city hotels to sweeping coastal resorts and islands to desert camps and luxury escapes are all within relative short distances.” In fact, Abu Dhabi’s hotel room inventory has witnessed tremendous growth, leading to what Ahmad Araj, cluster director of sales and marketing, Cristal Hotel Abu Dhabi and Cristal Salam Hotel, described as a very competitive marketplace. Jonathan Hallmark, marketing manager, The Westin Abu Dhabi Golf Resort & Spa, elaborated, “Due to an increase in room inventory, hotel occupancy rate dropped seven percent to 65 percent. Abu Dhabi now has some 128 hotels and hotel apartments accounting for 22,079 rooms.”
On the same note Rabih El Hayek, assistant director of sales, Sofitel Abu Dhabi Corniche, added, “The market is facing an excess in supply compared to the current demand. Therefore, hotels are competing to get their market share by dropping their rates.” Expressing similar views, Rima Rawass, group marketing manager, National Corporation for Tourism & Hotels (NCT&H), admitted that the high occupancy levels and good average room rate at the company’s upscale hotels came after ‘a bit of sacrifice in average daily rate.’ Referring to the emirate’s executive summary of hotel statistics, Philippe Harb, hotel manager, One to One Hotel – the Village, further explained, “Between January and August, hotel establishment occupancy stood at 63 percent, a decrease of seven percent when compared to the same period in 2011. NOVEMBER 2012
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Hotel apartments continue to achieve healthier occupancy rates at 75 percent [which] may be reflective of the nature of accommodation and longer staying guests.” In fact, the length of stay has proven to be a major and positive factor in the emirate’s hotel sector, with Stuart Deeson, general manager, Park Hyatt Abu Dhabi Hotel and Villas, stating that overseas guest often tend to enjoy the hotel’s hospitality for seven to 14 days. CLAIMING A SLICE Looking to obtain a fair share of the destination’s flourishing tourism industry, which saw hotel guest nights improve 10 percent, totalling 4.39 million, in the first eight months of the year, according to TCA Abu Dhabi, hotel companies are keen to further extend their presence in the emirate. V Five Continents Hospitality Management recently opened its third property, the 120-room V Continents Executive Suites. Commenting on the capital’s fast-maturing supply of hotels, which he stated may need a few years to balance with demand, Tarek Elsherif, managing director, V Five Continents Hospitality Management, said, “Abu Dhabi is growing very fast […] and has achieved a very high level of recognition in the past few years, attracting more investors.” NCT&H’s Danat Residence is to due to open in the first quarter of 2013 while The Ritz-Carlton gears up to reveal its new luxury hotel by the end of this quarter, Pep Lozano, general manager, The Ritz-Carlton Abu Dhabi Grand Canal, revealed. Meanwhile, Yas Island also continues to further enhance its offering, whose developer Aldar Properties has delivered a significant number of projects since 2010 including seven hotels, the Yas Marina Circuit, Yas Links Golf Club, and Ferrari World, while Yas Waterworld Abu Dhabi is scheduled to open at the end of the year, and Yas Mall slated to be launched in 2013. Ferrari World Abu Dhabi has also launched several new attractions such as ‘Viaggio in Italia, a technologically-advanced simulator ride, alongside a new lineup of interactive games. “Ferrari World Abu Dhabi has proved its appeal with plenty of visitors over two years of successful operations and we aim to continue along the path,” Bruno Wiley, director of sales, Ferrari World Abu Dhabi explained. On Sir Bani Yas Island, Desert Islands Conference Centre is due to be revealed before the end of the year, as well as the Desert Islands WaterSports Centre, according to David Garner, regional director of sales and marketing, Middle East, Anantara Hotel, Resorts and Spas, who added that Anantara Al Yamm Villas on Sir Bani Yas Island is to start receiving guests in the first quarter of 2013 and Anantara Al Sahel Villas in the second quarter of 2013. Dusit Thani Abu Dhabi is also to be completed in the first quarter of 2013, Diane Ionescu, marketing communications manager, Dusit Thani Abu Dhabi, revealed, describing Abu Dhabi as one of the most prosperous and vibrant economies in the Middle East. “The stable environment encouraged the development of new projects that leads to a growth in the
UAE
business and leisure travel,” she explained. SEIZING THE OPPORTUNITY The destination has indeed once again claimed its place on the tourism map with regards to business and conferences, as Shaun Parsons, general manager, Le Royal Le Méridien Abu Dhabi, expressed, saying that this resulted in a healthy influx of visitors that was sourly missed in previous years, starting a somewhat chain reaction. “When things are good in the business sector, it automatically reflects on the leisure one as the destination
Heritage Site status, the headline attractions over the next decade are likely to be the world-class museums planned for Saadiyat Island. The Lourve Abu Dhabi is due to open in 2015; a year later the Zayed National Museum will open while Guggenheim Abu Dhabi will launch in 2017.” In addition, the capital is set to further consolidate its status as a regional and global business hub as well, as Mouna Ouni, public relations and marketing director, Grand Millennium Al Wahda, noted. “Abu Dhabi’s vision is focusing on MICE business and to create awareness about its facilities, and with the new Al Maraya Island, which will become the business district, Abu Dhabi will be known as the best business destination.” BUILDING THE HUB
Etihad Airways
keeps coming up in reports and the media. TCA Abu Dhabi has been key to such success,” Parsons added. Similarly, Manfred Simons, vice president of operations, Middle East and Africa, Millennium & Copthorne, which operates three hotels in the city, said, “Abu Dhabi is the capital of the UAE and strong efforts have been undertaken to improve business levels in all areas. Exhibitions, sports events, concerts, and cultural events, and of course the development of Abu Dhabi’s islands have contributed to all commercial activities.” The task now, therefore, is to maintain the momentum, Al Dhaheri further noted. “We will continue to look at both our traditional source markets and expand new ones, especially in the Arabian Gulf, Eastern Europe, and the Far East,” he noted, pointing out that China and India, which is already the second largest producer of hotel guests in the emirate, are now among the main priorities for Abu Dhabi. In the first eight months of the year, the strongest growth in terms of hotel guests was recorded from Asia, followed by the GCC and Europe, with improvements being witnessed across all key markets apart from North America, which despite the slight drop, remains a priority for TCA Abu Dhabi, Al Dhaheri further explained. The list of the top growth markets also includes Russia, as a result of the significantly improved air links between the two destinations, he added. To cater to the broadening audience, TCA Abu Dhabi lays great emphasis on diversifying the destination’s offering, as Al Dhaheri clarified, “Culture and heritage will form an ever increasing role in our tourism portfolio. In addition to Al Ain being awarded UNESCO World
Over the past few years, Abu Dhabi has emerged as a major aviation hub and based on OAG’s recent data, its market is now outgrowing not just the global aviation segment but also the Middle Eastern market, with its seat capacity set to increase to 9.9 million this year, marking a 12 percent increase, as opposed to the projected six percent regional growth, over 2011 figures. These figures come as no surprise considering Etihad Airways’ fast-paced growth, which currently boasts a route network spanning five continents served by a growing fleet of 67 Airbus and Boeing aircraft. “For the remainder of the decade, we will have an excess of 90 aircraft delivered, including 10 Airbus A380s, the world’s largest passenger aircraft,” indicated James Hogan, president, Etihad Airways. “In 2013, we will take delivery of 14 aircraft,” he added, revealing that within the next year, new services are set to commence to Washington D.C., São Paolo, the airline’s first destination in South America, and Ho Chi Minh City. Codeshare partnerships and equity stakes have also long been a significant part of the airline’s expansion strategy, and further commenting on this, Hogan said, “Etihad Airways now has almost 40 codeshare partners in addition to the equity partnerships with airberlin, Aer Lingus, Air Seychelles, and Virgin Australia. By building on the success of the organic growth achieved in our first seven years of operation, these codeshares and equity acquisitions are intended to give us the scale to compete on a global playing field.” In accordance with the airline’s expansion, hoteliers are keen to respond fast to meet the needs of the new markets, with Amer Ammar, general manager, Premier Inn Abu Dhabi Capital Centre, expressing faith in the launch of Etihad Airways’ new routes, which he believes will certainly create new potential future business through tourists, corporate travellers, and even stop-over passengers. Describing air travel as an essential factor for the destination’s substantial growth, Andreas Kohn, regional director of sales and marketing, Yas Viceroy Abu Dhabi, said, “Travellers are continuously looking for new destinations that offer a different experience compared to what they are used to. The destination Abu Dhabi fits right into that niche traveller profile.” NOVEMBER 2012
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Dubai Dubai’s fast-paced development is a visible example of the hard-work and dedication infused into the emirate’s infrastructure, as professionals charge head on to further enhance its reputation of excellence and remain ahead of competition. Rita Kasziba writes
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n the first six months of the year, over five million hotel and hotel apartment guests experienced the sights and sounds of this burgeoning destination, marking a year-on-year increase of 10 percent. Meanwhile, based on data compiled by the Department of Tourism and Commerce Marketing (DTCM), guestnights climbed 18 percent, to over 19.2
NOVEMBER 2012
million, and average length of stay swelled eight percent to touch 3.8 nights, resulting in a sound revenue improvement of 21 percent. As Dubai continues to gain reputation as a prime leisure destination both regionally and globally, the number of visitors is increasing day by day, Wael El Behi, general manager, Ramada Downtown Dubai, noted. In fact, considering the rapid expansion of the emirate’s hotel inventory, these positive results underscore the destination’s ever-growing popularity in both traditional and emerging markets, as it gradually turns into, what Janet Fitzner, general manager, Radisson Blu Hotel, Dubai Deira Creek, described as a must-visit destination. “Dubai has benefitted greatly as a business hub and a safe destination and continues to be an attractive destination for both business and leisure,” Fitzner added, noting that the steadily increasing number of events and conferences held in the emirate has also been vital to the positive results. Delving deeper into the main factors behind Dubai’s undisputed success, Hussein Hachem, cluster general manager, Al Bustan Rotana Dubai & Al Murooj Rotana, also remarked on the great significance of the destination’s impressive marketing campaigns splashed across the globe, from both the government and the private sectors, as well as the hospitality segment’s excellent reputation. “Accessibility and con-
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venience are key factors as well,” Hachem highlighted. Craig Senior, regional director of sales and marketing, Maydan Hotels & Hospitality, attributed much of Dubai’s success to its air services. “The flight network and routes offered are excellent, and provide the traveller with superb direct connections to the country from around the world.” FLYING THE FLAG Demonstrating the destination’s growing appeal, over the past few years, monthly average passenger volume at Dubai International has skyrocketed from just 2.9 million in 2009 to over 4.5 million this year, turning the airport into the world’s fourth busiest hub for international passengers and cargo traffic. In July, passenger figures surpassed, for the first time, the five million mark, meaning that an average of 112 passengers passed through the airport every minute of every day, pushing the year-to-date volume, by the end of August, to over 37.8 million, up 13.4 percent over the corresponding period in 2011. The non-stop growth is a true testament to Dubai’s attractions to tourists and business around the world, according to Paul Griffiths, CEO, Dubai Airport, who expects that by 2018, average passenger volume would soar just under 170 travellers per
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minute, hence the reason USD7.8 billion is being invested in the future of the airport, he continued. Having long realised the industry’s potential to drive economic growth, Dubai’s government has been investing heavily in the airlines and the associated tourism infrastructure, highlighted Ghaith Al Ghaith, CEO, flydubai, who also revealed the low-cost carrier’s intention to double its fleet over the next four years and focus on further extending its network, primarily in Russia, Central and Eastern Europe, and the GCC. Hailed one of the world’s fastest growing airlines, Emirates has, this year, already added over 10 destination’s to its network, as it continues to connect Dubai with top business and leisure destination from all around the world. CHAIN REACTION Dubai’s tourism sector relies greatly on Emirates’ and flydubai’s continuous growth, especially these turbulent times in the traditional markets, as David Thomson, chief operating officer, JA Resorts & Hotels, explained, “We do keep a careful eye on what is happening in Europe as there is still talk of further recession, which could impact our business here.” According to Thomson, the increase of flights can only benefit the industry with travellers looking
UAE
for more choice when it comes to location and value for money, and hoteliers seeking to tap into newly emerging markets. The soaring visitor volumes from Eastern Europe, the CIS countries, the Indian subcontinent or Asia are prime examples of how the airlines’ expansion benefits the whole industry, while according to Fitzner, Brazil and China have also illustrated the advantage Dubai has gained through new air routes. James Wilson, general manager, Dusit Thani Dubai also expressed an interest in visitors from the airlines’ new destinations, which have already began to pour into the emirate, adding that with the multiplying flight links over the coming months, more travellers are expected to visit Dubai or make a stop-over, thus making these markets pivotal in balancing demand and supply. “Dubai is a very competitive destination but there is business in everyone,” indicated Wilson. “Airlines are continually expanding their destinations bringing new visitors to Dubai.” Expressing similar optimism, El Behi added, “This integration with new markets will definitely boost the travel and tourism industry with the added advantage to the hospitality sector. The guest flow to Dubai will automatically see a visible increase which will impact on our hotel occupancy as well.” Leonard Theng, director of sales, Pullman Dubai Mall of Emirates, further noted, “These are important markets to grow and develop for the future. Along with such new routes and service, we have also strategised an action plan to target these markets for future business,” Theng said, adding that they will also further diversify Dubai’s portfolio. DTCM is also working hand in hand with the airlines, as Eyad Abdul Rahman, executive director, media relations and business development, DTCM, explained. “The new routes help us in attracting more tourists from that destination in which we also organise workshops and other events.” DTCM also lays great emphasis on further boosting cruise tourism with plans for a multiple entry UAE visa for cruise passengers long having been in discussion, according to Rahman. This comes as Dubai prepares to welcome 110 ships and over 400,000
passengers this year, and expects to further boost these figures to 125 ships and 475,000 passengers by 2015. Following the substantial gains of the hotel sector, Dubai aims to replicate the success in the cruise tourism sector as well, bringing even more travellers to the emirate, which would benefits the whole sector, including car rental. Budget Rent A Car, which moved its new headquarters to Dubai Investment Park earlier this year, currently holds a market share of around 30 percent in car rentals at airport locations, according to Salim Damji, senior general manager, Budget Rent A Car, UAE, who added that the company plans to expand its network aggressively across the UAE by increasing its branches, hotlines, and micro links. Moreover, Big Bus Tours has also experienced phenomenal growth since launching in Dubai a decade ago, as Mike Lees, general manager, Big Bus Tours, Dubai, explained, “Big Bus Dubai has grown to keep pace with the rapid development of Dubai, launching with just six buses and 20 staff in May 2002. Big Bus now boasts a fleet of over 20 buses and 100 staff serving all major sights and landmarks in the city.” Also building on the recent consolidation, Chapman Freeborn Aviation, which provides specialised air charter services for both passenger and cargo movements, is looking forward to the ever-evolving Middle East aviation market, as Eliska Mundell, general manager, UAE, Chapman Freeborn Aviation, revealed, praising the company’s immense change in structure over the past 13 years, which has seen it become one of the main long term players in the regional market, especially in cargo charter brokering. “On the Passenger brokering side, Chapman Freeborn has developed a dedicated team of professionals in the last few years, who have grown to be highly respected within the Middle East. This market is highly competitive, which makes our success all the more remarkable,” she further denoted. STANDING TALL Building on the positive market trends, Dubai’s tourism industry is set for further growth embraced in the support of DTCM and the constant new promotions of the emirate, placing confidence in hoteliers, such as Gilles Longuet, general manager, Meliá Dubai, that the remainder of the year and 2013, will be strong, as she expressed. Habib Khan, general manager, Arabian Countyard Hotel & Spa, echoed identical sentiments, “Dubai’s performance looks healthy and we are quite positive that in 2013 it will increase further. […] We do agree that the competition is stiff but every hotel is able to manager its fair share.” Despite the stiffening competition, professionals believe that Dubai is a destination, which will be able to create demand to balance supply, having always been, what Patrick Antaki, complex general manager, Al Maha Desert Resort and Spa, described as a hotspot for tourists, with an increasing number of hotels set to create new attractions, which will, in turn, lure in more markets for the emirate’s tourism industry to cater to. NOVEMBER 2012
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Ajman Despite being the smallest among all seven emirates, Ajman not only dares to think big but is gradually challenging its sister emirates. Rita Kasziba writes
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ncompassing an area of just 260km2, Ajman accounts for only 0.33 percent of the total area of the UAE, yet with its strategic location and authentic charm, it is continuously gaining significance in the country’s tourism scene. Enchanted by the destination’s intimate atmosphere, an increasing number of visitors choose to continue their journey beyond the borders of the larger sister emirates. “Overall, Ajman is booming and we are soon getting two more five-star beach properties,” explained Iftikhar Hamdani, general manager, Ramada Hotel & Suites Ajman, revealing that in
UAE 2011, the property sold over 100,000 room nights, while year-to-date occupancy levels have reached as high as 94 percent, and considering the destination’s growing popularity, the trend is expected to continue in the long-run. Reporting similarly encouraging results, Adnan Ashraf, marketing communications manager, Kempinski Hotel Ajman, described the past nine months as quite successful with the hotel outperforming all previously set targets. One of the latest additions to Ajman’s hotel inventory, the 210-room and suite Crown Palace Hotel recorded a year-to-date occupancy level of 60 percent along with a decent average room rate, as Nehal Rizvi, general manager, Crown Palace Hotel, revealed, describing the property’s target customers as longstaying guests and holiday makers, especially from the domestic markets, visiting Ajman for relaxing weekend getaways. Also emphasising the great contribution of the GCC sector, Arun Kumar, general manager, Tulip Inn Royal Suites Ajman, further remarked on the increasing importance of the CIS countries, as well as the emerging Asian markets. In fact, Ramada Hotel & Suites Ajman reported a 200 percent increase in guest volume from the CIS countries and Central Asia, since the hotel’s participation in the Kazakhstan International Tourism Fair earlier this year, Hamdani revealed. Ashraf also described Russia as one of the most important international markets of the property, followed by Germany, however the hotel continuously strives to develop new markets within the GCC as well as India and Scandinavia, as it is of great importance for all parties of the industry to take part in the destination’s promotion, especially until a tourism board and its strategy is put in place, he explained, nevertheless expressing optimism towards the destination’s future growth. “There is definitely a positive growth pattern expected in the next few years. The planned development of Ajman’s Tourism Board will definitely help in positioning it positively in the mind set of travellers and generate awareness on an international level,”
Ashraf said, adding that announcements of the new projects such as Ajman Marina and Ajman Ring will definitely bring in new investments. Sharing similarly positive views, Kumar added, “With the economy getting better and the inflation kept under control, the coming years should see positive growth not only in the hotel industry but across other sectors as well.”
The planned development of Ajman’s Tourism Board will definitely help in positioning it positively in the mind set of travellers and generate awareness on an international level Highlighting Ajman’s great strategic location on the UAE map, Rizvi further noted, “We have Ajman Free Zones along with Hamriya Free Zone and Sharjah Free Zone just a few minutes drive from the hotel hence we get a good share of corporate clients. We have a great tourism boost from the major destination management companies as most of the Dubai hotels are sold out during the major exhibitions and general tourists have to shell out a lot of money to stay during that period. So we act as a cushion for them, giving them decent accommodation at a very affordable price.” In line with Ajman’s aim to further enhance its offerings, Fairmont Ajman is scheduled to welcome its first guests in early 2013, following the launch of the highly anticipated Ajman Palace, Hospitality Management Holding’s latest property, which is set to open in the first weeks of December. These upcoming openings come as the emirate’s industry eagerly awaits the Ajman Tourism Development Department to reveal its long-term strategic plans. NOVEMBER 2012
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Sharjah Sharjah has long earned its place as one of the most authentic and serene emirates, boasting a prosperous blend of tradition and modernity, just a short drive from the bustling streets of Dubai, however, what really put Sharjah on a rapid growth trajectory is its people and their vision and commitment to succeed. Eye of the Emirates
Rita Kasziba writes
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ver the past few years, Sharjah has firmly established itself on the world tourism map, attracting an average of 1.5 million visitors annually, having grown from strength to strength, keeping pace with the latest trends and practices in the global tourism industry, according to H.E. Mohamed Ali Al Noman, chairman, Sharjah Commerce and Tourism Development Authority (SCTDA). Further noting that this year has been yet another success story with a significant upsurge in visitor volume, Al Noman highlighted the neighbouring Gulf countries, especially Saudi Arabia, Oman, Qatar, and Kuwait, as the strongest inbound markets to the emirate. As a matter of fact, following a challenging year in 2011, over the past months, the industry has gradually rebounded, as Mohammed Al Kilany, general manager, Al Sharq Hotel, explained, attributing the encouraging results, apart from the destination’s unique character and peaceful atmosphere, to SCTDA’s vigorous work, which has certainly not been overlooked by the industry. Boasting sound promotional campaigns, both regionally and internationally, the authority has opened up a range of new markets, developing new business channels for the industry and Sharjah’s economy as a whole, Jan Siddiqi, director of sales, Ramada Plaza Jumeirah Beach Residence and Ramada Sharjah, highlighted. “The efforts of SCTDA and its participation in international exhibitions will surely benefit Sharjah as a destination and Ramada Sharjah in particular,” Siddiqi further noted. Keen to continue its mission, SCTDA endeavours to bolster the industry’s development and open up new markets, hence has this year paid greater attention to marketing Sharjah internationally by conducting roadshows in the Middle East and Central Asia as well the CIS countries, and most recently in India, NOVEMBER 2012
which Al Noman described as another major emerging market for Sharjah. “The chief objective of the road shows is to showcase Sharjah’s unique charms and reach out to a huge and fast expanding tourism and investment markets in these countries,” he explained, adding that Europe and the Middle East remain the two main feeder markets of the emirate, with Europe representing over 40 percent, driven by strong volumes from Russia and Germany. In 2011, visitor volume from Russia totalled over 200,000, as a direct result of Air Arabia’s increased operation between the countries, as Al Noman reported, remarking the airline’s pivotal role in connecting the destination with new markets. In fact, to facilitate the ever-growing customer demand, Air Arabia has inaugurated a number of new services over the past months, linking Sharjah with new destinations primarily in the Gulf region and Eastern Europe, including Ukraine and Russia, having already experienced increasing volumes from these regions.
Holiday Inn Sharjah also witnessed a very strong start of the year with big volumes of business coming from the CIS market, according to Mohamed Said Khalil, hotel manager, Holiday Inn Sharjah, who expressed his anticipation to see increased business coming to
UAE the emirate from the newly opened markets as well as Germany, another key target of the hotel. As the industry looks to further stretch its edge over its competitors and tap into new markets, it also greatly relies on Sharjah Tourism Development and Investment Authority (Shurooq), the emirate’s other leading organisation extending the destination’s reputation worldwide. “With Shurooq’s vision to enhance Sharjah’s position as a leading tourism and investment destination in the world, the authority is keen to develop and further strengthen ties with various countries across the globe, especially China, Malaysia, Hong Kong, and the Far East,” explained H.E. Marwan bin Jassim Al Sarkal, CEO, Shurooq, who described the countries as emerging markets with multifarious opportunities for trade and business, and with the potential for unprecedented growth and development. “The main aim of Shurooq’s meetings with economic leaders in these countries is to allow them to explore the numerous economic and investment opportunities in Sharjah,” added Al Sarkal, revealing that the Authority is also keen to further strengthen economic ties with Turkey, Greece, Germany, and Singapore. “With flexible and business-friendly legislative laws that offer stability and growth to investors, Sharjah, over the past few years, has developed itself as UAE’s industrial hub, which manufactures around 33 percent of the country’s total production,” he continued, highlighting that being located between Europe and the Far East, Sharjah is the only GCC hub with direct access to the Arabian Gulf and Indian Ocean, offering a gateway to two billion people in 160 countries. After the unprecedented success of Shurooq’s Al Majaz Waterfront and Al Qasba projects, which received over 1.3 million visitors in the first half of the year, work is now underway on The Chedi Khorfakkan Resort, which Al Sarkal described as a brilliant combination of two concepts; a Fort, which will be open to the public, and a 106-suite five-star resort for guests, with the hotel due to open in 2015. “The hotel, at a cost of AED420 million (USD114 million), has been planned to become one of the most important destinations in the region,” added Al Sarkal. Work is also progressing on the The Heart of Sharjah development, hailed the largest heritage project in the region, which aims to develop the emirate’s heritage area while preserving its national historic landmark and the five-phase project is envisioned to be completed in 2025. “Being designed in the centre of the emirate, it is an effort to restore the traditional heritage areas of Sharjah seeking to reflect what the emirate was like over half century ago and covers an areas of about 35,000m2,” explained Al Sarkal. Al Hisn Island, the latest leisure and tourism project is also well underway with the objective to develop the Eastern region of Sharjah, in order to create another project that serves the interests of citizens in these areas, spur economic growth, and attract investment that help create jobs and generate added NOVEMBER 2012
economic value to the emirate,” concluded Al Sarkal. These world-class developments, bolstered alongside the authorities’ widespread initiatives, have helped Sharjah establish its status not only as a prime tourism destination but also as a business hub, with Expo Centre Sharjah welcoming over 212,000 visitors so far this year, and hosting an array of events, such as an education show, edutainment show, Green Middle East, International Automobile Show or Halal Food Middle East, just to name a few, as Saif Al Midfa, director general, Expo Centre Sharjah, explained. “We have recently added two new halls to the existing four, thus the centre now offer 26,000m2 of indoor exhibition space along with 16,000m2 outdoor space. In addition, we have also set up a new exhibition complex, the Expo Khor Fakkan, which is the only such facility in the eastern region of the UAE and boasts a strategic location due to the natural deep water port,” Al Midfa further noted. Despite laying great emphasis on further improving its infrastructure and business facilities, Sharjah also remains committed to preserving its cultural and historical heritage. Sharjah Museums Department (SMD) currently manages 16 sites, and its three main goals include providing a learning environment through a diverse collection for all, developing new museum projects and training UAE nationals in the field of museum studies, Manal Ataya, director general, SMD, explained. “Our various museums are essential in delivering and supporting two very important aspects which are education and Emiratisation in the cultural sector,” Ataya added, further remarking on SMD’s vital role in positioning Sharjah, which was already been recognised as Arab capital of Culture in 1998 and has been named Islamic Culture Capital for 2014. “Cultural tourism is one of the fastest-growing global tourism markets. Culture is increasingly being used to promote destinations and enhance their attractiveness. Therefore, Sharjah is actively developing our cultural assets, to have a competitive edge in the tourism marketplace, and to create local uniqueness,” Ataya concluded. As Sharjah continues to garner reputation globally, SCTDA makes
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sure that the emirate gets all the attention it deserves from both tourists and investors. “As an international tourism destination, Sharjah has it all; world-class tourist infrastructure, a truly welcoming, friendly, and safe environment, and offering the best of everything from shopping to leisure to adventure,” Al Noman said. “Thanks to its rich culture, monuments, and numerous museums and cultural events, it is designated and celebrated by the UN as the Cultural Capital of the Arab and Islamic world. All that we need to do is to promote it right and effectively. “During the past five years, several new hotels, malls, and entertainment and cultural projects have come up. The emirate has introduced several cultural and tourism events and festivals like the Sharjah Water Festival, Sharjah Light Festival, Sharjah Biennial and many, many others,” he said, adding that there are still two major events in this year’s calendar, including the much anticipated Sharjah Water Festival and the Formula One Powerboat World Championship, which are expected to attract hundreds of thousands of visitors to the emirate. In conclusion, Noman praised Sharjah as an attractive destination for both tourists and investors with a booming market, and a happening place in every sense.
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Fujairah Rita Kasziba writes
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ujairah is an increasingly popular destination among tourists visiting the UAE, as Ashraf Helmy, general manager, area business development manager, Iberotel Miramar Al Aqah Beach Resort, noted. Based on data released by the Fujairah Tourism & Antiquities Authority (FTAA), the number of tourists visiting the emirate has increased 20 percent so far this year. “The result might come from the desire to expand the number of international exhibitions in which FTAA participated this year,” Mouza Al Yammahi, hotel classification manager, FTAA, speculated, adding that these figures come in response to the recently emerged demand from new markets. “The main source markets for FTAA are the German, Russian, and European markets, [but this year] we also participated in Chinese and Ukrainian exhibitions. In addition, for the first time, FTAA has also been involved in a roadshow, one of the main channels
UAE Fujairah is considered the most naturally picturesque emirate which has made a rapid progress, over the past few years, towards establishing itself as a highly attractive destination for visitors and investors alike. through which we would like to promote Fujairah.” Over the past five years, tourism in Fujairah has been witnessing growth with the number of hotels and resorts having increased 27 percent between 2007 and 2011, while the emirate’s room inventory improved 33 percent, and guest volume rose 36 percent, as Al Yammahi explained. “Fujairah is growing year by year with many new hotels opening in the near future,” commented Satish Gujaran, duty manager, Sandy Beach Hotel. Describing the emirate as one which attracts tourists from all around the world, he revealed that the main source markets at the hotel are predominantly European and CIS countries. Meanwhile, Helmy accentuated the German and Scandinavian markets’ increasing contribution, and said, “Fujairah’s tourism sector is doing great and growing rapidly by attracting new people.” Also conveying his confidence in the emirate’s progression, Patrick Antaki, complex general manager, Le Méridien Al Aqah Beach Resort, portrayed Fujairah as an international and competitive destination which is on the rise, particularly with the new express highway which, he says, has halved the travelling time between Dubai and the emirate and has boosted intra-regional tourism and increased local and international visitor numbers. Further commenting on the emirate’s growing appeal in various segments, Mohamed Fekry, general manager, Concorde Hotel Fujairah, highlighted the increase in business witnessed from corporate clients and government activities, includ-
ing UAE residents, in addition to the contribution from foreign travel agency websites. “Newly established infrastructures help travellers to visit Fujairah in easier and faster ways,” Fekry indicated, also noting that these recent developments lay a firm foundation on which to build more promotional campaigns, as well as the industry’s optimism. Meanwhile, Iberotel Miramar Al Aqah Beach Resort is already in the process of building a new conference and wedding hall, Helmy revealed. “The reason behind this development is the amount of demand we are receiving for meeting facilities,” he said, adding that management is also in the process of finalising drawings for the second phase of the property, which will become a 60-villa resort instead of 353-room hotel. Fujairah is increasingly seen as a perfect stop-over destination for visitors seeking a place to unwind and reenergise themselves, from the larger emirates like Dubai and Abu Dhabi, according to Imran Siddiqui, general manager, Emirates Springs Hotel Apartments. who added, “It is far from being busy and noisy [and] is a developing emirate for investors with lots of opportunities.” In a bid to enhance these offerings and the emirate’s status as a fast developing destination, FTAA is working closely with the private sector and is in the process to release the Fujairah Hotel Establishments Ranking Outline, so as to maintain consistency in the highest quality of services for guest accommodation, food services and facilities, Al Yammahi explained. Further fuelling the hoteliers’ anticipation to see more visitors, Rotana Jet recently inaugurated new domestic flights between Fujairah and Abu Dhabi, making travelling easier and convenient to tourists, according to Siddiqui. Moreover, in a bid to facilitate this anticipated growth in demand, minor refurbishment projects are being implemented at the airport, Hajdu further explained, emphasising the great importance of attracting new businesses to the emirate’s gateway.
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Ras Al Khaimah With its fast developing infrastructure, continually enhanced offerings, world-class projects, and effective marketing and promotional activities, Ras Al Khaimah well deserves the title of ‘the rising emirate’. Rita Kasziba writes
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ince its inauguration in May 2011, Ras Al Khaimah Tourism Development Authority (RAK TDA) has positioned the emirate as a global affordable luxury destination for leisure and adventure not only on the local and regional but also on the international levels, as Victor Louis, chief operating officer, RAK TDA, explained. “We have initiated many new hospitality projects and hotels and as a result of the continuous investments [...] in tourism projects, we have already received the demand of increasing the room inventory by various channels including international tour operators,” said Louis, attributing the emirate’s soaring popularity
to its firmly established image and ease of accessibility. In fact, Ras Al Khaimah’s convenient location in the north of the UAE, just a 45-minute drive from Dubai International, has merited a well-earned place on the global tourism map, resulting in a diverse pool of source markets with Germany, the UAE, Russia, UK, and the Czech Republic leading the list. Summarising the Authority’s main objectives, Louis said, “RAK TDA has been assigned a budget of USD500 million until the end of 2013, to develop Ras Al Khaimah into a global brand and an affordable luxury destination.” He further noted that the number and volume of hospitality ventures and support programmes as well as other initiatives to entice foreign investment into the emirate, not only add to the inventory of luxury accommodation available but also help further develop the destination’s offerings of tourism attractions and infrastructure. CREATING A BUZZ Since its re-launch over two years ago, RAK Airways has been committed to connecting the emirate with diverse destinations, having carried over 250,000 passengers in 2011. The airline also recently celebrated the inauguration of its first domestic services to Abu Dhabi following a codeshare agreement with Etihad Airways, which, according to John Brayford, CEO, RAK Airways, has already created a buzz in the marketplace. “We are delighted with the high level of interest shown and this augurs well for the future success of the Abu Dhabi route,” he expressed, emphasising that for an airline of the quality and prestige of Etihad Airways to choose RAK Airways as a codeshare
partner shows how far the carrier has advanced since its re-launch in 2010. “At RAK Airways, we believe in putting the customer at the centre of everything we do and, with this exciting partnership, we are able to offer residents of Ras Al Khaimah and the Northern Emirates a much wider choice of destinations and also, for the first time, a direct link to the capital city, Abu Dhabi.” To facilitate the anticipated growth, Ras Al Khaimah International Airport has outlined plans to boost terminal capacity by 140 percent, build seven new departure gates, create a 40 percent increase in retail space, launch a food court and a business lounge, add to the parking facilities, and open new duty free shops. ENHANCING REPUTATION As part of its vital role in attracting visitors and encouraging investors, RAK TDA is engaged in a range of proactive campaigns that include participation in the major travel trade events, and forging relationships with international partners; initiatives which, according to Louis, have already paid rich dividends. Demonstrating the benefits of such partnerships, Louis further highlighted that following the Authority’s partnership with German Tour Operator, Reise Service Deutschland and Dubai-based World of Travel, the launch of charter flights linking the destination with German and Austrian cities resulted in an additional 55,000 visitors to Ras Al Khaimah, while another partnership, formed in 2011 with Swedish tour operator, Apollo, brought some 5,000 visitors to the emirate. Building on the already proven success of such co-operations, RAK TDA has recently entered into an agreement with Russian tour operator Natalie Tours, in cooperation with Alpha Tours, in a bid to bring with the new charter services an additional 7,000 visitors to the destination. To further facilitate all tourism and hospitality investment opportunities and position the emirate as a potential investment destination, the Authority, earlier this year, launched the ‘Ras Al Khaimah Investors Guide’. “This guide introduced to the investors, the available investment opportunities including 35 plots within the Al Marjan Island, where Rixos Bab Al Bar, DoubleTree by Hilton, and Crowne Plaza Ras Al Khaimah will take place as scheduled. The highlight of ‘Ras Al Khaimah Investors Guide’ was a section where the investors were provided with complete 10year plans and feasibility studies of the different hotel capacities in Ras Al Khaimah,” said Louis, continuing with an endless list of developments. The 627-unit Rixos Bab Al Bahr, hailed the first ‘all inclusive’ property of this magnitude in the UAE, is scheduled to open its doors in the first quarter of 2013, as Basek Erel, senior vice president, brand management, Rixos Hotels revealed, describing the rising emirate of Ras Al Khaimah as one which is fast becoming a strong contender within the global hospitality market. The property will take a prime location on the Al NOVEMBER 2012
UAE Marjan Island, the first man-made island that consists of a cluster of five coral-shaped islands extending over 2.7 million m2 worth over USD1.8 billion. Revealing further developments in the emirate, Louis said, “The 340- key DoubleTree by Hilton Resort, Marjan Island, is scheduled to open in 2014, and the 442-room Crowne Plaza Ras Al Khaimah is due to be revealed in 2015 on the Al Marjan Islands.” The ultimate Desert experience, Bassata Village, which opened in October, has introduced its visitors and guests to the Arabian experience with Bedouin shows and entertainment, Louis explained, adding that the recently revealed 30.5m sailing boat Prince of Sea offers sailing trips along the emirate's waters. One of the most popular destinations in the Ras Al Khaimah, Al Hamra Village, has also seen a substantial increase in occupancy over the past few months, according to Mark Hawkes, group chief financial officer, Al Hamra Group, who added that in an effort to promote the emirate as a popular sailing destination, Al Hamra Marina joined ‘Destinations’, the famous ART Marine Marinas network. “The current projects include the Waldorf Astoria, Ras Al Khaimah, which will be the first Waldorf-brand-
ed property in the UAE, scheduled for opening in the first quarter of 2013. The Al Hamra Mall will be expanded to include a number of additional attractions such as activities for children and a cinema complex. “The Al Hamra Fort Hotel is in the process of being renovated and will re-open as a Hilton Resort property during the course of 2013. Al Hamra Marina has recently signed a significant partnership which will result in the launch of a new sailing academy, which will help develop local talent and will promote Ras Al Khaimah as a sailing destination,” explained Hawkes. Leading and overseeing the hotel sector’s undisputed development is the Ras Al Khaimah Hospitality Group. “This government entity was launched to support and develop the emirate’s hospitality industry with the aim to diversified food and beverage concept offerings to the local residents and tourists as well as to increase the emirate’s total hotel and resort room inventory to 10,000 keys by the year 2016,” explained Louis, noting that since its establishment less than a year ago, the group has been playing an active role in introducing new hospitality projects. Continuing with the wide array of developments, Louis added, “As for upgrade projects, we are working
Umm Al Quwain
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on the enhancement of the Al Hamra Marina and Yacht Club and already started the extensive upgrade of Banyan Tree Al Wadi, where the villa complex is being extended and the selection of wildlife is being expanded. Furthermore, Ras Al Khaimah Country Club is an ongoing project, which will be launched at end of the year as an exclusive equestrian club in the emirate.” Looking into the main factors behind Ras Al Khaimah’s success, Ali Kasapbashi, group general manager, Bin Majid Group, whose portfolio includes four hotels in the emirate, said, “Ras Al Khaimah offers a luxurious yet reasonably-priced getaway for both leisure and business travellers. Tourism in Ras Al Khaimah is presently in full swing as the emirate looks forward to exciting projects and developments. The tourism industry will continue to develop over the next few years as the emirate is working on marketing itself as a tourist and business destination,” he continued. In fact, between January and August a total of 725,544 visitors got a glimpse of the rising emirate, representing 68 percent of the destination’s annual goal of 1.1 million, and placing Ras Al Khaimah well on track to achieve its goal of 1.2 million visitors by 2013.
Umm Al Quwain is yet another example of how each of the emirates embrace their own identity and complements each other to create the ultimate destination.
Rita Kasziba writes
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ith its mangrove lagoon and sandy shoreline stretching along the Persian Gulf, Umm Al Quwain is considered the place to visit for all water sports enthusiasts, as well as for families looking to enjoy the waves while also injecting just the right amount of adventure into their holidays. The emirate offers tranquility and fun in equal measure, a unique blend, that, according to Ghassan El Kesti, park manager, Dreamland Aqua Park, is one of the main drawing powers of the destination. Hailed as one of the largest waterparks of the region, El Kesti invites visitors to pump up their adrenalin levels on a variety of water rides and then immerse themselves in a refreshing drink at the pool bar. “[Overall], the leisure and entertainment markets have shown signs of recovery compared to 2011, with an increase in footfall of 30 percent in visitor volume,” El Kesti noted, adding that the recently launched new promotions in partnership with hotels and tour operators have generated a new stream of business. “Our camping facilities are also gaining popularity, especially for school and group outings as well as corporate team building events,” he continued. As the emirate continues to garner recognition, hoteliers are experiencing brisk business, as Arun Menon, NOVEMBER 2012
resort manager, Flamingo Beach Resort, explained, reporting steady improvements over the past months, thus indicating the tourism sector’s revival following the past years’ submissive performance. “[So far this year] business at the resort was better compared to the same period in 2011, and so was tourism in general in Umm Al Quwain,” Menon highlighted, adding that after a shift in travel trends and tourism patterns, Eastern Europe and the CIS countries, as well as China, have now all earned a place among the resort’s main source markets, along with the traditionally strong domestic market. “Our largest contributor and yield maker market is domestic, […]. We also understand that apart from Europe, Eurasia and the Asian markets are also rapidly growing and hence, they have now become our target markets.” Expressing similar views, El Kesti also listed the UAE and the CIS countries as the most significant feeder markets of the
attraction, adding that the recently launched new promotion for the remaining months of the year is expected to further drive business. Considering the global scenario, regional developments alongside the growth prospects of the UAE, Menon also remains confident, as he concluded, “The UAE acts as a ‘double gateway’ connecting East and West, where rapid growth is inevitable and hence, the proportion of growth of tourism and travel industries in the UAE shall supersede any other part of the world.”
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India
Aiming for Gold Dominique Christou writes
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ver the next decade, direct contribution of travel and tourism to India’s GDP is forecast to rise by 7.7 percent per annum (pa) to reach INR3,805.2 billion (USD70.6 million) in 2022, according to reports released by World Tourism & Travel Council (WTTC). In 2011, direct contribution of travel and tourism to GDP was INR1,689.8 billion (USD31.3 billion), representing 1.9 percent of the country’s total GDP, and this figure is expected to rise by 7.6 percent this year. In par with positive forecasts on the horizon, India welcomed some 4.6 million foreign tourists between January and September, 5.9 percent more than that which was recorded during the same period in 2011, according to WTTC statistics, while September alone saw 415,000 foreign tourist arrivals, an increase of 13,000 over the same month in 2011. With India’s middle-class set to rocket by some 400 million to reach 600 million by 2025, alongside investments underway in the country’s infrastructure,
INDIA IN BRIEF
Foreign tourist arrivals to India have so far recorded healthy figures and alongside a robust increase of accommodation options proliferating across the country and a growing middle-class population expected to entice domestic travel, India is, once again, proving itself to be a true touristic inspiration.
Capital: New Delhi Currency: Indian rupee (INR) Language: Hindi, English
domestic travel therefore demand in affordable and modern accommodation are expected to be spurred, according to Simon Barlow, president, Asia Pacific, Carlson Rezidor Hotel Group. Carlson Rezidor Hotel Group already boasts a number of hotels in the pipeline in India, and through a strategic partnership with Bestech Hospitalities, the two companies plan to invest USD42 million to develop two mid-scale hotels; Park Inn by Radisson Gurgaon Sector 88, and Park in by Radisson Chandigarh, Mohali. By 2024, the country will be home to 49 Park Inn by Radisson hotels across its north and central regions. Moreover, Hyatt Hotels Corporation recently announced the opening of the 201-room Park Hyatt Chennai, marking the 30th hotel in the Park Hyatt collection and the first Park Hyatt hotel to be introduced to the city known as the gateway to southern India. Commenting on the development, Yann Gillet, general manager, Park Hyatt Chennai, said, “The hotel is truly a reflection of this great city with the art and design thoughtfully encompassing Indian heritage and culture. We are thrilled to join the Park Hyatt portfolio as the 30th hotel and look forward to providing guests with an ambience of sophistication with service that is gracious and truly personalised.”
Adding to the group’s development pipeline, a Hyatt Hotels Corporation affiliate recently signed a management agreement with Unity Infraprojects Limited for a 125-room Hyatt Place hotel in Nagpur expected to open in 2016, which marks the 24th Hyatt Place property under development in the country and brings the total number of upcoming Hyatt-branded hotels to 57. “The development of the Hyatt Place hotels in India reflects our commitment to offering this select-service brand in one of the world’s fastest-growing markets,” said Ratnesh Verma, senior vice president, real estate and development, Asia Pacific, Hyatt Hotels & Resorts. “We are focused on creating preference by enhancing distribution of the Hyatt Place brand in both new and established markets in India where our guests are increasingly travelling.” Moreover, Banyan Tree Hotels & Resorts is gearing up to debut the group’s first property in India which will be located in Kerala and slated for opening in 2013.
In par with positive forecasts on the horizon, India welcomed some 4.6 million foreign tourists between January and September, 5.9 percent more than that which was recorded during the same period in 2011 Propelling the country’s tourism even further, particularly from the Middle East, Air Arabia has announced the expansion of services to the Indian capital, New Delhi, to twice-weekly. Commenting on this addition, Adel Ali, group CEO, Air Arabia, said, “The rapidly expanding aviation sector in India is one of the country’s major economic drivers. We are confident that the expansion of service between Sharjah and India’s capital will further enhance the air travel options for the residents of both states and positively contributes to the economic development of both countries.” Further reflecting the ever-growing appeal for flights between the two regions is Emirates which carried some 4.7 million passengers on its services to Indian cities, according to Andrew Parker, senior vice president, public, industry, international, and environmental affairs, Emirates, who described India as a central pillar in the airline’s global network. NOVEMBER 2012
Iran
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Remaining Strong Dominique Christou writes
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orld Travel & Tourism Council’s report for Iran has shown that in 2011, direct contribution of travel and tourism to GDP was IRR116,461 billion (USD9.5 million) representing 2.4 percent of the country’s total GDP. This figure is forecast to rise by 3.6 percent this year, and to grow by four percent per annum over the next 10 years, to reach IRR178,990 billion (USD14.6 million) in 2022. Meanwhile, Kish Island, part of the Hormozgan province, this year witnessed an increase in visitor numbers of 18 percent, in comparison to 2011, at the Kish Summer Festival which was held between June 17 and August 5. According to Alireza Ameri, CEO, Kish Free Zone Organisation, 290,000 tourists travelled to the resort island, 90 percent of which travelled through the airport while the remaining 10 percent entered via the sea port, to enjoy various programmes of the event. Although figures, to a certain extent, seem encouraging, professionals across the country’s tourism sector have reported contradicting results, including outbound tourism flow, largely blaming external factors. On a positive note, Dina Cheraghvand, international marketing manager, Dornagasht Tour & Travel Agency, has reported increases in business so far this year, compared to 2011, although, she said, unfortunately Iran itself has negative growth. “For the remainder of the year, if all goes on like this, we will have worse conditions and we are just trying to prove ourselves by taking part in different international exhibitions despite our current economical poor situation,” she explained. To further boost tourism to the region, Cheraghvand indicated that Iran is going to have one of the country’s first literature tourism conferences, which she believes can attract many tourists in the close future. “Iran is so rich in this field by having the great poets like Hafiz , Ferdowsi , Molana , Khayyam, and Saadi. We are, nowadays, trying to focus on the festivals that we have. We may not be able to have a special pre-planned package for them now, however when the occasion comes for our pre-planned tours, we will include them for sure,” she said. Meanwhile, Aref Dashtban, manager, Khosroparvaz Travel, recorded business as usual for the first half of the year, dealing mostly with tours to the Far East and, to a certain extent, Europe. “Again, in the first half of the year, there were good business to some Middle East and North African destinations, such as Lebanon and Tunisia. Travel to the UAE has been less affected because many Iranians have second homes and own businesses in Dubai,” he NOVEMBER 2012
Iran’s tourism sector has recently been showing signs of improvement in the face of external obstacles somewhat affecting inbound figures, as professionals across the industry remain determined to continue improving these levels by conveying positive messages about the country to the world. IRAN IN BRIEF Capital: Tehran Currency: Iranian Rial (IRR) Language: Persian
explained, praising Iran as a destination which offers a lot to the MENA market in terms of historic and holy sights, as well as pilgrimage travel, which has always attracted a great number of tourists. This steady trend, however, declined sharply mostly due to the devaluation of the Iranian Rial, according to Dashtban, who views that these trends are set to trickle into the remaining months, unless, he added, there is a breakthrough in the political situation. “There is little that can be done with the current heavy sanctions that is imposed on Iran to boost international tourism. The foreign exchange rate is so high that outgoing tourism is at a standstill. The exchange rate is very favourable for incoming business, but travel to Iran is being discouraged by the media and some foreign governments,” he continued. On a positive note, Iran’s cultural office in Belarus recently mounted an exhibition displaying a collection of 60 photographs depicting contemporary Iran while also introducing its historical, natural, and cultural attractions to the people of the Eastern European destination. Visitors were also offered the chance to become more familiar with scientific developments and potentials of Iranian experts. Further promoting its wonders, Iran attended
Matta Fair in Kuala Lumpur, one of Malaysia’s international tourism exhibition, which took place on September 7 – 9, to introduce its tourism potentials, cultural heritage sites, and different handicrafts, as well as the considerable tourism investment opportunities available in the country.
Although figures, to a certain extent, seem encouraging, professionals across the country’s tourism sector have reported contradicting results, including outbound tourism flow, largely blaming external factors
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EXPLORE
Iraq
Untapped Tourist Potential Iraq’s tourism industry is preparing itself for a boost in infrastructure as a large number of hotels in the pipeline are anticipating to spread their presence in a country whose economy is expected to soar over the next few years. Dominique Christou writes
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raq has been placed second out of 10 nations in terms of showing the most promising growth prospects for the period 2010 – 2015, where a yearly increase in GDP of 11.7 percent is predicted for the five-year stretch, according to Citibank, the consumer banking arm of financial services of giant Citigroup. Evidence of these optimistic prospects can be seen in the USD186 billion placed in 2010 under Iraq’s National Development Plan to set the country on course to become a diverse and competitive economy dominated by the private sector, by 2014. These figures have translated into a similar sanguine feeling among global hoteliers who view
IRAQ IN BRIEF Capital: Baghdad Currency: Iraqi dinar (IQD) Language: Arabic, Kurdish
Iraq as an emerging and important destination and one in which a large number of international hotel groups are spreading their presence. Michel Noblet, CEO, Hospitality Management Holdings (HMH), expressed great confidence in Iraq as an emerging hospitality hub and one which he believes is an amazing destination to which the Coral Hotels & Resorts family will be welcoming the upcoming Coral Boutique Hotel Baghdad. Operated by the hotel brand under a management agreement with United Iraqi Trading Company, the 80room and suite property aligns perfectly with HMH’s strategic growth plans in the region, according to Noblet. “Coral Boutique Hotel Baghdad embodies the distinctive experience that our guests expect from Coral along with the rich local culture and warmth,” he said, adding that he hopes the hotel will play a significant role in the emergence of Baghdad as a leading economy in the Middle East. Bearing resemblance to this positive attitude towards the country and its cities is Dave Horton, global head, Hilton Hotels & Resorts, who described Iraq as a significantly new market for the brand, which recently signed a management agreement with Mihtab Group to develop a 300-room Hilton Erbil Hotel & Spa, slated to open in 2016. “We are thrilled to be able to offer visitors to Erbil the consistent high brand standards that guests experience in over
80 countries worldwide. Hilton Erbil Hotel & Spa is set to be an outstanding, landmark property and we look forward to welcoming guests to one of the most beautiful and unexplored areas of the Middle East,” he further commented. Echoing similar sentiments, Rudi Jagersbacher, president, Hilton Worldwide, Middle East and Africa, said, “We are tremendously excited to introduce our second property to Erbil and welcome the opportunity to become part of its energetic and thriving city community. Establishing a strong presence in Kurdistan supports our ambitious strategy to open a further 40 hotels in the Middle East & Africa within the next four years.” Also grabbing hold of the opportunities available in the country is Tangram Hotels, a member of global hotel alliance, which officially opened Tangram Hotel Erbil in April. According to Doaa Amin, general manager, Tangram Hotel Erbil, whose clientele range mostly from the Middle East and Africa region, primarily Iraq, Jordan, Lebanon, Egypt, Morocco, Qatar, and the UAE, the last quarter of the year will prove much stronger due to the major fairs taking place in the country. Moreover, Peacock International Hotel Management recently announced that it is to manage the new five-star Highcrest Hotel, Sulaimaniya, a city where Ghassan Jaber, CEO, Peacock International Hotel Management, believes there is an increasing demand for quality. “This has encouraged us to expand our services to Sulaimaniya which is witnessing a growing need for accommodation facilities to meet all the standards and requirements of all tourists and visitors,” he added. The region’s airline sector has also been demonstrating great commitment to Iraq, with companies such as Air Arabia and Qatar Airways having both recently expanded their route networks to the country. Air Arabia is gearing up to launch its services to Basra, its third Iraqi destination, which according to Adel Ali, group CEO, Air Arabia, reflects the commitment the airline places to the Iraqi market. “This new service will further strengthen our current flights to Iraq and offer customers wider choice of affordable air travel; and at the same contribute to the trade and tourism ties between the UAE and Iraq,” he further commented. Moreover, Qatar Airways is continuing its Iraqi network expansion with the announcement of scheduled flights to Najaf, its third route in the country, effective January 23, 2013, bringing the airline’s frequency to Iraq from eight weekly flights to 12. Akbar Al Baker, CEO, Qatar Airways, expressed delight for the boost in services to Najaf, a city which he stressed boasts major infrastructure development and vast untapped tourist potential, as well as the country as a whole. “Iraq is proving to be an important market for Qatar Airways. We currently operate four-flights-a-week between Doha and the cities of Baghdad and Erbil. We are confident that Najaf will prove to be a popular destination for our passengers, especially those from the Middle East, Africa, and Asia Pacific and those returning to visit their homeland. NOVEMBER 2012
Australia
Claiming Centre Stage Dominique Christou writes
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irect contribution of travel and tourism to Australia’s GDP was AUD34.7 billion (USD35.8 billion) in 2011, and this is forecast to rise by 0.8 percent this year, according to data released by World Travel & Tourism Council (WTTC). By 2022, the country will have earned AUD45.8 billion (USD47.3 billion) directly from travel and tourism to the thriving destination, an increase of 2.7 percent per annum, WTTC’s country report on Australia has stated. With the main markets for inbound tourism to the region coming from China and other Asia markets, the past year has also shown a return to growth in traditional markets such as Japan and the US, this according to Andrew McEvoy, managing director, Tourism Australia, who further noted that the Middle East market also continues to post increases. “The overall outlook for the remainder of the year is positive and suggests we are on track to achieve the Tourism 2020 goal to double over night spending to AUD140 billion (USD144.6 billion) by the end of the decade,” he commented. Launched in Australia’s fastest-growing and highest-value visitor market, China, on June 4, was the first ever Tourism Australia overseas campaign, namely There’s Nothing Like Australia. According to McEvoy, the campaign aims to ensure continued demand for Australia by leading with the country’s distinctive high quality tourism products and experiences that are amongst the finest in the world. With regards to the Middle Eastern market, McEvoy pointed out that more than 80 percent of visitors from the Gulf are expatriates working in the region, with the largest volume hailing from Dubai. “The Ramadan period is impacting on long-haul travel globally from the Middle East not just to Australia. We expect this situation to chance when Ramadan moves out of the summer peak outbound period in 2014,” he said, further noting that the latest visitor arrivals show there were 67,400 tourists to Australia from the MENA region, an increase of 2.9 percent for the January - July period. A major contributor to Australia’s inbound tourism and a vital part of the national economy are business events, this according to Ton van Amerongen, CEO, Sydney Convention and Exhibition Centre, one of the country’s leading venues comprising three major buildings with more than 30 meeting rooms, which can accommodate up to 3,500 people. Commenting on the highly successful venue, van Amerongen revealed that the centre hosts an average of 600 events per year thus caters to one million people annually, thanks to its ideal position in Australia’s NOVEMBER 2012
gateway city, a major business centre in the rapidly growing Asia-Pacific region. In line with these prosperous outcomes, the government of New South Wales has embarked on a AUD1 billion (USD1 billion) plan to redevelop Sydney’s convention, exhibition, and entertainment facilities. The project, intended for completion in 2016, will create some of Australia’s largest and most advanced facilities in a world-class venue. Moreover, indicative of Australia’s rapidly developing tourism sector especially from the Middle East is the growth in airline capacity between the two regions, particularly over the past five years, this according to Simon McGrath, CEO, Accor Pacific, who added that Qantas’ new global alliance with Emirates and the massive proposed increase in capacity from Dubai scheduled for 2013, places the Middle East as one of Australia’s most promising growth markets. Subject to regulatory approvals, it is anticipated that the partnership arrangements will take effect in April 2013, as of which both airlines will give customers a seamless international and Australian network,
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Australia has long been a global hotspot for tourists travelling from near and far, as it expands promotional tourism initiatives outside home soil for the first time, devotes some USD1 billion to upgrade its MICE facilities, and forges ahead with enhancements on major air route networks. AUSTRALIA IN BRIEF Capital: Canberra Currency: Australian Dollar (AUD) Language: English
Sydney
The overall outlook for the remainder of the year is positive and suggests we are on track to achieve the Tourism 2020 goal to double over night spending to AUD140 billion (USD144.6 billion) by the end of the decade
exclusive frequent flyer benefits, and world‐class travel experiences. Under the agreement signed by Tim Clark, president, Emirates, and Alan Joyce, CEO, Qantas, the Australian airline will move its hub for European flights from Singapore to Dubai and enter an extensive commercial relationship with the Middle Eastern carrier. Further sharing its growing network, Emirates recently signed a global marketing deal with Tourism Australia aimed at boosting visitation from key markets including Europe and New Zealand. Under the new memorandum of understanding, both companies intend to collectively spend up to AUD14.3 million (USD14.8 million) over the next three years on a range of joint marketing activities focusing on some of the country’s leading inbound visitor markets such as the UK, Germany, and New Zealand, in addition to France and Italy. The arrangement will feature joint campaigns on traditional and digital media platforms as well as event and sponsorship activities. “Emirates’ partnership with Tourism Australia takes the airline’s investment in destination Australia to the next level. This is the largest investment Emirates has ever made with a global tourism body, highlighting our commitment to Tourism Australia’s strategy for attracting global travellers,” commented Salem Obaidalla, senior vice president, commercial operations, Far East and Australasia, Emirates.
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LONG-HAUL
New Zealand
Harnessing its Full Potential Stefanie Saghbini
writes
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rowth in international visitor arrivals to New Zealand has, once again, been maintained with 2,635,570 inbound tourists, equivalent to a total increase of 5.6 percent for the year ending August, according to results released by New Zealand Tourism Board. Kevin Bowler, CEO, Tourism New Zealand, indicated that this improvement shows the industry’s resilience during what is traditionally a low season. “While total arrivals for the month of July were down 1.4 percent, there continues to be positive indicators from key markets with arrivals from China up 24.9 percent and Australia up 0.4 percent,” he said. Figures released by Tourism Strategy Group, Ministry of Economic Development, New Zealand, Australia led the international market share of the country’s tourism industry, as it welcomed some 1.64 million visitors from its neighbour to its shores, during the eight month period. Meanwhile, tourists from the UK came in second, while numbers from the US, China, and Japan came in third, fourth, and fifth respectively. Although New Zealand witnessed slight dips in visitation figures from the UK (by four percent), US (minus one percent), and Japan (down seven percent), the Chinese market rocketed some 34 percent between January and August, in comparison to the same period in 2011. In addition, Tourism New Zealand reported that over 50.6 million stay days were generated by international arrivals, which recorded an increase of 1.2 percent compared to 2011, 12 million of which were contributing by Australian visitors, equivalent to 24 percent of total stay days in the past year. As the largest single proportion of total stay days, Bowler stressed that these figures reiterate the importance of this market to New Zealand’s tourism industry. On the other hand, Bowler brought to the light the challenges being faced from traditional longhaul markets, such as the US and the UK, as well as European countries, following research conducted by Tourism New Zealand in Germany, as he explained, “The research shows that as a result of the current uncertainty, many international travellers are looking for less expensive holidays and options that are closer to home, thus weakening demand for long-haul holidays to destination such as New Zealand.” Therefore, Tourism New Zealand and Qantas, Australia’s flag carrier, kicked off a joint venture campaign in Germany, early September, aimed at boosting visitor arrivals from the European hub into New Zealand during the upcoming summer season. OPENING THE SKIES The capital city’s gateway, Wellington Airport, re-
Cable Car in Wellington
NEW ZEALAND IN BRIEF Capital: Wellington Currency: New Zealand dollar (NZD) Language: English, Maori
Certainly not a new member to the world of tourism, New Zealand is blessed with a striking backdrop of naturally parading colours, comfortably imposing themselves on the never-ending rugged mountainous terrain, and ever-flowing lakes, rivers, and seas, which surround the country’s continuously-developing cities, ceaselessly enhance the offerings available to the annually growing number of visitors. leased its latest audited annual report for the year ended 31 March, with figures showing yet another strong year having been recorded. Earnings before interest, tax, depreciation, amortisation, and fair value adjustments resulted at NZD75.5 million (USD61.5 million), equivalent to an increase of NZD5.2 million (USD4.2 million) over the previous year, excluding subvention payments. Aeronautical revenue increased overall by 7.3 percent for the 12-month stretch, with strong growth on the international market, which witnessed an increase in passenger figures of 9.7 percent, thanks to an upsurge in capacity and attractive fares provided by the Air New Zealand - Virgin trans-Tasman alliance, and Qantas. Meanwhile, the country’s second largest airport,
Christchurch International Airport (CIAL), catered to 5,592,529 passengers in 2011, a reported decrease in passenger movements of some 450,000 over the same period ending December 31, 2010. According to Jim Boult, CEO, CIAL, the events over the past two years, which included a number of earthquakes which rattled the city and the surrounding province of Canterbury, have inevitably taken a toll on passenger numbers, which have dropped some 7.5 percent since the 2010 financial year. On a positive note, since December 2011, CIAL has been showing signs of improvement having recently reported a profit of NZD19.6million (USD16 million) which, after tax, was equivalent to NZD15.5 million (USD12.6 million), 30 percent ahead of budgeted expectations. Meanwhile, NZD28.2 million (USD23 million) of the company’s total capital expenditure of NZD63 million is currently being spent on the new terminal constructions which is due for completion in March 2013. HOME AND AWAY Martin Snedden, CEO, Tourism Industry Association New Zealand (TIA), has stated that travel by New Zealand’s two most important visitor markets, New Zealanders and Australians, is set to increase by Jetstar’s plan to boost its services between the country’s three largest cities, this month. Some 600,000 additional seats will be offered annually onboard services between Auckland, Wellington, and Christchurch. Commenting on these improvements, Snedden said, “New Zealanders travelling within their own country contribute AUD36 million (USD36.9 million) in economic activity every day of the year. Offering them more good-value options for flights between the main centres will definitely help boost that figure.” In addition, direct services will also be enhanced from Queenstown to Sydney and Melbourne when Jetstar’s fleet will be introduced with a ninth Airbus A320 aircraft on November 15, further increasing capacity by up to 50,000 extra seats every month which will serve up to 36-weekly return flights to its domestic and trans-tasman routes. “Jetstar is now firmly established in New Zealand and these additional services follow strong growth for Jetstar services. The ninth aircraft continues our investment in our Kiwi operation,” David Hall, CEO, Jetstar, Australia and New Zealand explained, adding that these changes are set to contribute significantly to the country’s tourism industry with the airline currently possessing a domestic flying market share of 20 percent. Sharing similar sentiments, Snedden, who welcomed the airline’s increased flights between the two countries, indicated that they will help grow New Zealand’s largest source of international visitors adding that the flow-on effects of the increased Jetstar services will benefit TIA members around the country, including attractions, activities, accommodation, and transport providers. NOVEMBER 2012
TRAVEL TALK
NOVEMBER 2012
DEBBIE NGOSHI Marketing coordinator, Sofitel Bahrain Zallaq Thalassa Sea & Spa.
and modern goods. And yes for the first time ever, I tasted roasted camel meat sold on the roadside. These are just some of the many attractions that I managed to explore and still feel as though that was just a drop in the ocean to the vast landscape waiting to be explored. Oman displays itself as an attractive and unique tourism destination, embraces its local culture and heritage, and proudly presents them to the world. I am by far the biggest fan of Oman; next trip to Muscat is in the horizon.”
travel talk is your space
“My most recent trip was a five-day visit to the Dhofar region of Oman which I decided to take to celebrate my birthday in mid-September. Oman is exactly the kind of destination that appeals to me. It has a diversity of interestingly natural ecosystems and physical beauty with an interesting history and culture complemented by very accessible and hospitable people. My first and second days were spent enjoying the facilities of [Salalah Marriott Resort Hotel]. On my third day, I took a day trip to see Mirbat and the surrounding area, dubbed ‘Magical Dhofar’. I visited the great frankincense port at Khor Rori Samhuram along the road from Taqah to Mirbat. I also visited coconut groves and banana plantations passing through Arzat springs where natural fountains, which flow between the rocks, come together in a pond which then flows into the sea. Along the way, I also visited Taqah and Mirbat castles and forts, and picturesque bays where fishing is the main source of income for many locals. Worth to mention is the 200m anti-gravity spot between Taqah and Mirbat road where one can find a lot of people stopping their cars and releasing their breaks; the car will start moving uphill, defying the laws of gravity. Salalah has many other attractions; gold and handcrafted jewellery souqs as well as souqs for traditional
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TRAVEL CHANNELS
One Billion Tourists by the End of the Year Despite concerns over the global economy, international tourism demand continues to show resilience with the number of international visitors worldwide having increased five percent between January and June, compared to the same period in 2011, as the one billion forecasted to cross international borders remains well on track.
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mid the current economic uncertainty, tourism is one of the few economic sectors in the world growing strongly, driving economic progress in developing and developed countries alike and, most importantly, creating much-needed jobs,� Taleb Rifai, secretary general, World Tourism Organization (UNWTO), said at the opening of the Global Tourism Economy Forum in Macao. Although a slight slowdown in growth can be expected for the remaining months, international arrivals are forecast to exceed one billion by the end of this year, with the need to ensure that the tourism sector
is supported by adequate national policies and that it works towards reducing existing barriers to the expansion of the sector, this according to Rifai. Across Asia and the Pacific region, international arrivals were up eight percent over 2011 figures while Africa, with an overall seven percent expansion, witnessed the return of tourist flows to Tunisia, which jumped 11 percent, and to Egypt which rose 0.7 percent. Meanwhile, Sub-Saharan Africa also continued to show strong results with an upsurge of six percent. Furthermore, Europe, heralded the world’s most visited region, consolidated its record growth in 2011 with a four percent increase in international visitation
figures for the six-month period despite continuing economic volatility in the Eurozone. Meanwhile, the Americas grew in line with the world average, with Central America and South America recording the strongest results. In terms of outbound markets, and among the top 10 countries by expenditure on travel abroad, growth was significant in China (+30 percent), the Russian Federation (+15 percent), the US (up nine percent), Japan (up eight percent), Germany (up six percent), and Canada (up six percent). On the other hand, growth was comparatively slow or negative in the UK, Australia, Italy, and France.
NOVEMBER 2012
Tourism Developments
Reshaping the Region Stefanie Saghbini
T
writes
estament to the robust number of upcoming and operating tourism developments across the region, Cityscape Global, Dubai, which was held at the Dubai International Convention and Exhibition Centre, between October 2 - 4, welcomed a 25 percent increase in exhibitor and visitor numbers, over 2011, this according to Chris Speller, group director, Informa Exhibitions Middle East, organisers of the event. “By reconfirming the positive trends we have witnessed this year, Cityscape Global will certainly have convinced many investors that now is the right time to invest in real estate. Following the positive response to the range of projects launched at the event [...] further announcements will undoubtedly be made in the next few months,” Speller further commented. Hitmi Ali Khalifa Al Hitmi, chairman, Barwa Real Estate Group, Qatar, described the positive responses and interest received from investors and other officials as truly overwhelming, adding that Cityscape Global is an ideal platform which also opens new positive prospects for future cooperation with others. Meanwhile, Majid Al-Futtaim recently released its financial statements for the first half (H1) of the year, showing a buoyant 15 percent year-on-year increase in gross revenue over 2011, reaching AED10.7 million (USD2.9 million). Boasting a successful year so far, with the launch of the group’s 11th shopping mall in Fujairah this April already claiming full retail occupancy, while tenant sales over the six-month period also increased in Egypt by 44 percent, Bahrain by 23 percent, and both the UAE and Oman by 13 percent, Iyad Malas, CEO, Majid Al-Futtaim, revealed, “Our shopping mall strategy remains focused on strengthening our regional presence with developments in both Lebanon and Egypt moving forward and strategic opportunities in the Kingdom of Saudi Arabia, Abu Dhabi, and Azerbaijan under review.” In July, Nakheel announced the financial results of its operations for H1, which saw the company generate a net profit of AED767 million, equivalent to an increase of 36.5 percent compared to the net profit of AED562 million earned in H1 2011. Earlier this year, Nakheel signed a contract worth AED27.5 million (USD7.5 million) for the construction of Jumeirah Park Community Centre, which recently launched its residential complex, Legacy Type. Neighbourhood malls are also a key part of the business plan, according to Sanjay Manchanda, Acting CEO, Nakheel. Meanwhile, an extension to one of the group’s shopping centres, Dragon Mart (DM), was recently announced which will see the existing complex more than double in size. Upon completion, the development will boast a 240-room Dragon Mart Hotel and NOVEMBER 2012
The Middle East is in no need of an introduction with regards to the mammoth tourism developments expected to come onboard across the region in the coming months and next few years, as highlyrespected companies forge ahead with projects which will undoubtedly impose a considerable boost to the region’s tourism and economy. a nine-screen grand cinema complex, among others. Additional projects in Nakheel’s pipeline as such include the AED25 million (USD6.8 million) The Palm Mall, slated to open in 2014, and the soon-to-open 136,000m2 restaurant, retail, and entertainment hub, Pointe, on the iconic Palm Jumeirah. Furthermore, Aldar Properties is gearing up to launch its iconic-Emirati themed waterpark, Yas Waterworld Abu Dhabi. “Yas Waterworld has entered the final phase of development and is set to welcome guests in the fourth quarter,” commented Mike Oswald, general manager, Yas Waterworld Abu Dhabi. In addition, Aldar Properties’ Central Market, more commonly known as World Trade Center Abu Dhabi, is currently undergoing a few finishing touches on a number of phased elements including the office tower, which is on schedule to open this season, and World Trade Center Mall, which will open its doors at the start of 2013. Concurrently, the company’s Yas Island retail development, Yas Mall, which is expected to attract millions of visitors to the manmade island, is also gradually coming along with aims to open its doors at the end of 2013. Another two UAEbased real estate giants,
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Al-Futtaim Group and Emaar Properties, recently announced a EGP5 billion (USD818 million) joint venture agreement to develop Cairo Gate, said to be the largest lifestyle and entertainment development on an Emaar Misr property, which will span some 647,500m² across prime land on the Cairo-Alexandria desert highway. The company’s three mega and fully integrated developments consist of Uptown Cairo, Marassi, and Mivida, a development in New Cairo featuring a central park in addition to 898,402m2 of small parks and landscape, all currently under construction. Emaar Properties also recently announced the launch of Emaar Square, a ‘city within a city’ development within Uptown Cairo. Among major investments in the company’s retail and real estate sector is the iconic Cairo Festival City, featuring internationally-renowned hotels alongside residential communities and prime office spaces, which will pride itself in Festival Centre; Egypt’s first indoor/ outdoor shopping and entertainment destination. Jordan is also well on track with the upcoming Abdali Project, which, according to George Amireh, CEO, Abdali Investment and Development, will consist of a number of sub-development constructions, set to be functioning within the span of 2013, and will play a vital role in reshaping Amman into its new position as a regional hub for the Levant.
Estonia
Reaching Wide and Far Recent statistics have illustrated the ongoing improvements in Estonia’s tourism sector which showed early signs of healthy figures during the first half of the year, and in line with the budding international segment, the country’s tourism board is adamant to serve every traveller, without exception. Dominique Christou writes
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or the third consecutive year, Estonia greeted the first four months with positive figures, having welcomed some 430,000 foreign tourists through its hotel doors, recording an increase of 9.6 percent over the same period in 2011, according to statistics revealed by Estonian Tourist Board. During the first four months, an increase of 11 percent was recorded on foreign overnights for leisure purposes while overnights on business trips rose by seven percent. These encouraging results can be attributed to the factors contributing to the substantial growth already seen in 2011, according to Eero Raun, head of destination marketing, Estonian Tourist Board, who listed these starting from the increase in the number of direct flights to Tallinn, especially low-cost, the extensive media coverage of the European Capital of Culture as well as of the abundance of cultural events, the active promotion of Estonia by the public and private sector, and the growing inbound European segment.
Estonian Air made history this June when it announced that it served 100,000 passengers for the month Moreover, Raun highlighted this year as one which has been focused on Estonian nature tourism while 2013 will be dedicated to wellness and health services. He further pointed out in the field of incentive tourism, the country has also proven itself as a fresh and positively surprising choice. Raun also noted that the most outstanding place to visit for foreign travellers is the old town of Tallinn, Estonia’s capital, with its unique gothic architecture, as well as Saaremaa and other islands of the country’s western region. With international visitors on the rise, particularly from Russia which recorded the biggest increase in NOVEMBER 2012
ESTONIA IN BRIEF Capital: Tallinn Currency: Euro (EUR) Language: Estonian
inbound tourism to the Baltic country of 35 percent, Enterprise Estonia has launched a multilingual virtual travel planner with hopes to increase the number of incoming tourists and repeat visits from foreign travellers, while directing visitors more out of Tallinn and increasing the interest of locals to travel within and throughout their homeland, as well as to give tourism companies a better chance to present their products and services. Available in seven languages, the travel planner is designed to make holiday arrangements easier for travellers by allowing them to put together an itinerary that takes all of their interests and wishes into account. In addition, it produces a detailed route map with recommendations on places to visit complemented by photos and videos, provides instructions on how to get from one point to the next, shares information on the latest events, active recreation opportunities, attractions, and places to eat, and lists special offers available at the time. This application allows for travel plans to be saved and revised for future reference, where users can create their own accounts, and tools can be shared with friends. “Not only is the idea of the travel planner itself unique in Estonia, but so is the technology we are using for it, among similar international applications,” explained Tarmo Mutso, marketing director, Estonian Tourist Board, Enterprise Estonia. “The majority of similar tools on offer are ‘bookmark-based’, meaning users have to know exactly what they are looking for, do their homework in advance, look up information, and put everything together themselves. “But the travel planner
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comes up with options itself based on users’ interests, opening times, and the popularity of tourism sites, and you can set preferences yourself when it comes to what you are most interested in. If you Google something, you have to know what you are looking for first, but someone who is thinking of coming to Estonia will not necessarily know all there is to see and do here,” he explained. The country’s national carrier, Estonian Air, made history this June when it announced that it served 100,000 passengers for the month, almost double the amount from June 2011. ”This is an alltime record,” commented Rauno Parras, chief commercial officer, Estonian Air. “Also the load factor of our flights has increased significantly at 78 percent this June whereas the same period in 2011 recorded a load factor of 66 percent,” he continued. In spring, the airline opened new destinations such as Helsinki, Riga, Jyvaskyla, Hannover, Vienna, Joensuu, Kajaani, and Tbilisi. Additionally, with regards to the MENA market, which is in cooperation with the Ministry of Foreign Affairs following the process of economic growth and interests of consumers in MENA countries, according to Raun, visitors from the region can benefit on services offered by Etihad Airways, Emirates, and Royal Jordanian Airlines.
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WHO'S MOVED
MAZEN ABU SAKHA Mazen Abu Sakha has been appointed general manager of Holiday Inn Resort Dead Sea, Jordan. Over the past 30 years, Abu Sakha has gained well-rounded experience through various positions with the InterContinental Hotels Group family including financial controller of InterContinental Riyadh; regional financial controller in Saudi Arabia; regional general manager for the
guests and conference palaces in Saudi Arabia; director of finance and business support for InterContinental, Crowne Plaza, InterContinental Residence Suites and Golf Club at Dubai Festival City; regional director of finance and business support in Jordan, Lebanon, Egypt, Palestine and Libya; general manager of Al Waddan Hotel; and head of operations in Libya.
WOLFGANG M. NEUMANN Wolfgang M. Neumann has been appointed president and CEO of The Rezidor Hotel Group, effective January 1, 2013, succeeding Kurt Ritter. The internationally experienced hotelier will build on the company’s strengths as an industry leader, while also focusing on revenue generation and profitable growth. After completing his studies at Institute of Hotel and Tourism Man-
agement in Klessheim, Austria, he attended INSEAD Management School in France, and Cornell University in the US. During his 20-year tenure with Hilton Hotels & Resorts, he held various operational and corporate positions, and prior to joining The Rezidor Hotel Group, Neumann served as the CEO of Arabella Hospitality Group in Germany.
NOVEMBER 2012
RENDEZVOUS
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Q & A with Ken Dunlap Over the past decade, maintaining the highest standards in air safety and security has become evidently and significantly more challenging, and here Ken Dunlap, director of security, International Air Transport Association (IATA), takes the wraps off only some of the things which globetrotters are set to face and ultimately applaud on their future journeys.
Travel Trade Monthly: Billions of dollars are being spent every year to keep levels of aviation security at their highest, but passengers are still being faced with inconvenience when travelling. How difficult is it to combine heightened levels of security with passenger convenience? Ken Dunlap: There is no doubt that aviation is far more secure today than it was prior to 9/11. However, this additional security has brought with it a huge increase in passenger inconvenience and concerns over privacy, and also at immense costs; airlines spend more than USD8 billion per year on security. Checkpoint of the Future aims to streamline and improve the process by taking a risk-based approach to security that eliminates much of the hassle people now associate with the travel experience. At the same time, we know that risk-based strategy is superior to the one-size-fits-all approach that has characterised the approach since 9/11; it is more efficient and allows governments to put their focus where it is most needed. Furthermore, we expect more than 700 million new travellers between 2011 and 2015. But average checkpoint throughput has declined from around 350 passengers per hour, prior to 9/11, to 149 today. Without a major change to how we handle airport security, it is clear that we cannot handle the expected increases in traffic without greatly expanding the number of checkpoints, which is not possible at many airports and which would raise costs even higher, or by accepting even longer lines than today; this is unacceptable from a customer service standpoint as well as from an airline operations standpoint.
Additionally, expert groups have been established to make sure that those with broad experience in airport processes and security equipment can provide input. The goal is to ensure that we have a broad representation so that all views are heard. Initial tests of Checkpoint of the Future components are being conducted this year. Additional processes and technologies will be tested in 2013 to
Ken Dunlap Director of security International Air Transport Association
create a menu of options, and 2014 will see the first prototype checkpoint. Travel Trade Monthly: How was the project received and what was the feedback? Ken Dunlap: The project has been extremely wellreceived with support from more than 15 countries including the US, China, and the European Commission, as well as Interpol. Our stakeholder community consists of more than 100 members participating on advisory and expert groups to help in the development. This is truly an industry-wide initiative. Travel Trade Monthly: Giovanni Bisignani, director general emeritus, IATA, mentioned that major changes may be seen over the next two to three years just through repurposing what exists today. What are these changes? Ken Dunlap: It is very clear that significant gains can be achieved by repurposing existing checkpoints. For example, the introduction of ’Known Traveler’ programmes can boost checkpoint efficiency by as much as 30 percent. Under Tony Tyler, director general, IATA, the industry is taking a staged approach. IATA, the UK, Canada, the Netherlands, and Airports Council International have put forward a roadmap establishing key milestones for the evolution in checkpoints.
Travel Trade Monthly: What are the latest developments and changes regarding the Checkpoint of the Future project? Ken Dunlap: This is a very exciting time for the Checkpoint of the Future project as it moves from concept into reality. Among important steps that have been undertaken is the creation of a Checkpoint of the Future advisory group which is composed of a cross-section of stakeholder interests including airlines, airports, security equipment manufacturers, and governments.
NOVEMBER 2012
Checkpoint of the Future
NEWS & EVENTS
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ATM Gears Up for 20th Edition
ADAC to Host Second Abu Dhabi Air Expo Following the success of this year’s inaugural Abu Dhabi Air Expo in March, which drew more than 100 exhibitors and sponsors and over 10,000 international and local visitors, Abu Dhabi Airports Company (ADAC) will be playing host to the show again, between March 5 - 7, 2013, at Al Bateen Executive Airport. “Abu Dhabi is witnessing significant growth in the commercial aviation industry across all sectors including general aviation, which, in turn, supports the emirate’s air transport strategy in building a strong and sustainable aviation environment,” commented Yousif Hassan Al Hammadi, chairman, organising committee, Abu Dhabi Air Expo, and deputy general manager, Al Bateen Executive Airport.
EVENTS
As Arabian Travel Market (ATM) begins preparations for its 20th edition in 2013, the region’s expanding aviation sector is once again driving the hospitality industry resulting in a steady rise in hotel RevPar rates across many of the GCC countries and a burgeoning hotel development pipeline. “The predicted growth of the regional hospitality sector is linked to the continuous growth of the region’s major airlines and improved regional connectivity with low-cost airlines, such as Air Arabia and flydubai. Emirates, Etihad, and Qatar Airways, all continue to outpace their international counterparts with high passenger volume loads and ever-expanding networks, which is having a positive effect on the region’s hotel construction pipeline,” said Mark Walsh, portfolio director, Reed Travel Exhibitions, the organisers of ATM. Parallel to Walsh’s comments, OAG, a UK-based aviation analyst, reported that in August, flight operations to and from the Middle East grew by seven percent to 64,252 while seat capacity increased by eight percent to reach 14.2 million which represents nearly 4,000 more flights and more than a million more seats offered than in August 2011. “Air travel will be one of eight major vertical sectors at 2013’s show, alongside budget travel, careers, health and wellbeing, luxury, shopping, sports, and cruise and water-based travel. We are making it even easier for exhibitors and visitors to plan their appointment schedules by guiding visitors directly to the industry sector they are looking for using sponsored floor trails, allowing them to fast track their way around the show, managing their time more effectively,” concluded Walsh.
Sponsored by
World Travel Market (WTM) London, UK, November 5 – 8, 2012 (www.wtmlondon.com) A must-attend business-to-business event presenting a diverse range of destinations and industry sectors.
The Hotel Show – Saudi Arabia Jeddah, Saudi Arabia, November 17– 19, 2012 (www.thehotelshowsaudiarabia.com) A full spectrum event for the region, bringing leading manufacturers and qualified buyers for the hospitality, catering, and food and beverage industries together.
PURE Life Experiences Marrakech, Morocco, November 12 -15, 2012 (www.purelifeexperiences.com) A premier travel trade exhibition serving one of the hottest high-end travel sectors at the moment – experiential travel.
EIBTM Barcelona, Spain, November 27 – 29, 2012 (www.eibtm.com) A leading global event for the meetings, incentives, events and business travel industry, held in a vibrant business and tourism destination.
International Golf Travel Market Algarve, Portugal, November 12 -15, 2012 (www.igtm.co.uk) The premier event for the golf travel industry with over 600 golf tourism suppliers and 350 pre-qualified buyers.
India International Travel Mart Hyderabad Hyderabad, India, November 30 – December 2, 2012 (www.iitmindia.com) India’s premier exhibition for the travel, tourism, hospitality, leisure and other related sectors.
NOVEMBER 2012