Travel Trade Monthly September 2012 by T.T.W. Travel Trade Weekly LTD

Travel Trade Weekly proudly enjoys readers on average per day

SEPTEMBER 2012

ISSUE 35

TOUR: MALTA Malta’s deep cultural heritage, traditional culinary experiences, vibrant nightlife, and relaxed lifestyle, prove that good things do indeed come in small packages.

It has been over four decades since Qatar opened its first five-star establishment. Since then, the tiny Gulf state’s social and economic development has gathered a rapid pace propelled by the National Vision 2030.

14 INVESTIGATION: LOW-COST CARRIERS LCCs have transformed the region’s aviation industry, giving passengers greater travel choice and gradually claiming a bigger market share.

20 IN THIS ISSUE MARKET UPDATE EXCLUSIVE: Brand Travel VISIT: Qatar EXPLORE: Algeria TOUR: Malta ONSITE: South Korea LONG-HAUL: South Africa TRAVEL TALK INVESTIGATION: Low-Cost Carriers WHO’S MOVED RENDEZVOUS NEWS & EVENTS

02 04 06 11 14 16 17 19 20 22 23 24

VISIT: Qatar

MARKET UPDATE

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

Abu Dhabi Duty Free: Positive Revenue Results Abu Dhabi Duty Free (ADDF) continues to post steady growth with sales revenues having reached a total of AED380.2 million (USD103.5 million) in the first half of the year, which represented a 29.1 percent increase compared to the same period in 2011.

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 Accurate as of

27/08/2012 Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

6.09

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

65.55

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.60

Morocco (MAD)

Dirham

8.84

Iran (IRR)

Riyal

12,275.00

Yemen (YER)

Rial

214.61

Algeria (DZD)

Dinar

80.41

Libya (LYD)

Dinar

1.26

Abu Dhabi Duty Free

his upsurge was propelled by ADDF’s record-breaking second quarter and it outperforms the recently-announced passenger traffic increase at Abu Dhabi International Airport of 22.8 percent registered in the first half of the year. Mohammed Al Bulooki, chief commercial officer, Abu Dhabi Airports Company (ADAC), said, “The continued dynamic growth of the second quarter sales is due to a combination of factors. ADAC’s core objective is to continuously invest in passenger amenities, levels of customer service, and real innovation and exclusivity within ADDF’s retail offering. ADDF continues to focus on providing value for money across its business, as well as a comprehensive product range

to meet all customers’ expectations.” In addition, Al Bulooki revealed, “Abu Dhabi Duty Free is launching exclusive products, specifically within perfume and cosmetics, and these are really paying dividends in revenue growth and customer satisfaction. The spend per passenger has grown by 8.3 percent in the first six months of the year compared to 2011 and remains one of the highest in the region. It is very satisfying that ADDF has maintained its growth above passenger growth, which is a credit to ADAC’s retail partners.” ADDF’s year-end sales forecast is over AED770 million (USD210 million) which, if reached, will represent another record-breaking year in the 30-year history of the company.

Dubai Outperforms the Region Dubai’s hotel sector closed the first half (H1) of the year with strong performance results, as the Ernst & Young Middle East Hotel Benchmark Survey revealed. Between January and June, occupancy levels in Dubai averaged at 84 percent, marking a year-on-year increase of three percent, while the average room rate (ARR) improved 8.4 percent reaching USD251, and room yield rose 12.7 percent to USD212. On the contrary, Abu Dhabi’s average occupancy remained 78 percent, while both ARR and room yield registered a drop of over 11 percent. Saudi Arabia’s hotel sector continued to witness improvements in occupancy rates, with both Jeddah and Mecca recording an average of over 80 percent. Despite an increase of 12 percent, Manama’s occupancy levels remained flat at 38 percent, while Amman closed H1 with an average occupancy of 79 percent, Beirut with 65 percent, Kuwait with 53 percent, and Muscat with 71 percent. In Egypt, Cairo’s occupancy rose 51 percent, while Hurghada and Sharm El Sheikh also registered an increase of 51 percent and 43 percent respectively.

SEPTEMBER 2012

EXCLUSIVE

Brand Travel

Delivering Well-Kept Promises

 Stefanie Saghbini

writes

aintaining and evolving a brand name is mainly based on developing more products to carry the brand name, consistently delivering the brand’s service standards, as well as regular quality audits of the brand’s standards, and keeping the brand alive by regularly updating and improving where needed, as well as effective internal and external communication, this according to Mahmoud Mokhtar, chief operating officer, Abdul Latif Jameel Real Estate Investment Company (ALJREIC). “If you follow these few steps, developing, maintaining, and evolving the brand becomes very easy with an enhanced guest experience and higher brand recognition,” he advised. ALJREIC, one of the leading real estate and development companies in Saudi Arabia, recently announced the launch of its new full service hospitality brand, Anjum Hotels, which is set to primarily operate ALJREIC’s SAR10 billion (USD2.7 billion) Jabal Al Ka’aba project in Mecca. Following the launch of the brand’s first property, Anjum Makkah, in 2013, a further 8,500 guest rooms in a cluster of hotels will be added over the next few years. “The flagship hotel of the brand, Anjum Makkah, perfectly embodies this goal and is expected to efficiently serve the needs of Hajj and Ummrah visitors when it opens in early 2013, especially given its close proximity to the Holy Haram,” Mokhtar said. According to Mokhtar, the launch of the Anjum Hotels hospitality brand comes in line with ALJREIC’s

Creating, succeeding, and keeping up a valued brand name, amid the current climate and within the region’s crowded and lucrative tourism sector, is certainly not a job for the passive, as prosperous travel companies continue to persevere in the face of everlasting surrounding factors and competition. aim of creating a Saudi-cultured and spiritual hotel experience unlike any other, which he believes is the reason the brand will stand out in the Saudi market. Another up and coming member to the Arabian hotel sector is Amari, under Thailand-based ONYX Hospitality Group, marking the group’s first step for expansion in the Middle East. “Amari is one of four brands operated by ONYX Hospitality Group and it is the brand with the longest history. We are very established in the Thai market and we look forward to introducing our Asian flair in the Middle East with our first Amari property outside of Thailand, Amari Doha,” Duncan Webb, executive vice president - chief brand and communications officer, ONYX Hospitality Group, expressed. According to Peter Henley, president, ONYX Hospitality Group, this project is a significant milestone for the group as it plans to bring to the region personalised guest services and experiences embraced in genuine Asian hospitality with a modern twist, all of which are key attributes of the Amari brand. “Every Amari property shares the flavour and texture of its setting,” Webb continued. “So whether travelling for business or pleasure, you’ll see, feel, and taste the excitement of each individual destination. We want to create a memorable voyage of discovery in which our guests share modern Asia at its finest.”

Earlier this year, Carslon Rezidor Hotel Group was also born after Carlson and The Rezidor Hotel Group joined forces. Together, the company places the majority of its branding activities into the company’s three core brands, Radisson Blu, Park Inn, and Hotel Missoni, as Stephanie AbouJaoude, regional marketing manager, The Rezidor Hotel Group, clarified. “All of our marketing and branding activities are individually created for each brand, to reflect the feel and style of each one whilst strategically targeting each brand’s key audience.” Stressing the importance of maintaining a strong brand image especially in the Middle East at the present time, AbouJaoude commented, “In locations such as Egypt, where business has been impacted by political unrest, a strong brand image and the brand promises are what people are looking for in a hotel. They are relying more than ever on the bigger brands. It is these brands where they feel safe and secure.” AbouJaoude also pointed out that it is not just the brand name but what that particular brand promises. “For example with our Radisson Blu brand we have several ‘brand standards’. Free high-speed Wi-Fi for every guest, super buffet breakfast, the ‘yes I Can!’ service ethos. All of these concepts could be classed as brands in their own right; we actively promote these concepts as they are part of the overall brand and what it stands SEPTEMBER 2012

Brand Travel for. It’s this consistency and added extras that will keep a guest returning to a Radisson Blu, anywhere in the world, time and time again,” she explained. A new era of expansion for hospitality giant, Qatar National Hotels Company (QNH), was also experienced earlier this year when it revealed its new corporate identity, Katara Hospitality. The hotel company is embarking on a new wave of strategic expansion with the twin goal of raising awareness in key targeted international markets and developing longterm businss-to-business partnerships with leading global hospitality and tourism players, all in line with the country’s National Vision 2030 plan, as Hamad Abdulla Al Mulla, CEO, Katara Hospitality, revealed an increase in the number of hotels and resorts to reach 60 worldwide by that year. FOLLOWING INSTINCTS A huge number of internationally-branded hotels are venturing into or expanding throughout the region in a bid to serve, cater to, and satisfy tourists from all walks of life, be it local, regional, or international. Meliá Hotels International is one such company, when it recently marked the Spanish hotel group’s foray into the GCC region with the soft opening of Meliá Dubai in May. Gilles Longuet, general manager, Meliá Dubai, expressed delight to having launched what he said is the first Spanish five-star hotel in the Middle East. “As Meliá opens its doors in the heart of historic Dubai, Spanish hospitality comes to the Middle East. In a sense, Meliá Dubai is home.” Auris Hotels is yet another brand which is further consolidating its presence in the region, with the anticipation of a further six properties set to be in operation or in the final stages of construction by the end of the year, this according to David Milican, corporate director of sales and marketing, Auris Hotels. “We are creating awareness through traditional methods of sales trips, road shows, and exhibitions,” he explained, adding that this year, Auris Hotels had its own stand at the Arabian Travel Market for the first time. “In addition, Auris is utilising the social media network to increase web visibility and organic traffic,” he said. Edouard Ettedgui, group CEO, Mandarin Oriental Hotel Group, recently praised Marrakech as a fantastic opportunity to extend the Mandarin Oriental brand, which is slated for opening in the city in 2014. Describing the destination as an exclusive hideaway, he honoured the city as one which has established itself as an important leisure destination for the international luxury traveller. Starwood Hotels & Resorts Worldwide recently opened Algeria’s first Le Méridien which Vincent Gillet, global brand leader, Le Méridien and W Hotels worldwide, described as a key milestone as the team celebrates the brand’s strongest portfolio and performance levels in history. “Since being acquired by Starwood more than six years ago, Le Méridien has undergone a comprehensive brand re-launch and we are proud that Le Méridien Oran showcases elements of the new Le Méridien brand direction.” SEPTEMBER 2012

Likewise, regionally-branded hotels are making their way out of the region, in search for something a little different. Jumeirah Hotels & Resorts, earlier this year, made initial bold steps outside its home region, with the opening of its first European property in Mallorca, Spain, namely Jumeirah Port Sóller Resort & Spa. By the end of the year, Jumeirah Group plans to double the number of properties it manages and almost quadruple the number of countries in which it operates. Meanwhile, The Address Hotels + Resorts is in the planning stages of developing, managing, and/or operating five-star premium resorts across Europe, Asia, and Africa, a global expansion which Mohammed Alabbar, chairman, Emaar Hospitality Group, the group which launched the brand, described as a true testament to the success of the Dubai-based brand, as it takes strong strides.

EXCLUSIVE

resort concept in China with the upcoming launch of properties in Shanghai and Tianjin later this year. Banyan Tree Hotels and Resorts’ newest urban properties fuse the group’s signature luxury offerings with the facilities and services of a premier city-based retreat. THE SUCCESS OF BRANDING

Also endeavouring to always stand out from the rest is luxury hotel brand Fairmont Hotels & Resorts, which recently rolled out a programme focused on the evergrowing and influential Asian market.

Samer Majali, CEO, Gulf Air, stressed that all brands need to represent exactly what the company stands for and to reflect is corporate vision, long-term, with a clearly defined strategy. AbouJaoude labelled research as the key to successful brand development. “This important beginning stage cannot be overlooked; research is the foundation of all successful brand development. Part of research is incorporating previous feedback. You also need to discover what the market wants and needs; you should not just create something for the sake of creating something. Lastly, your ideas should be fresh yet simple; this is how you gain the competitive edge.” Understanding the ultimate goal of the brand prior to planning a brand development project is what Mokhtar advised. “A successful brand development project mainly compromises of a clear vision of what

With more than 77 million Chinese travellers expected to take a trip overseas this year, the hotel brand announced a new Chinese menu programme at its worldwide collection of over 60 luxury hotels. The new project, which is being phased throughout the year, will provide greater personalisation and enhanced culinary choices for Chinese guests travelling abroad, a priority in Fairmont Hotels & Resorts’ marketing strategies, as Jean Michel Offe, vice-president, food and beverage, Fairmont Hotels & Resorts, explained, “Personalisation has and always will be a hallmark of the Fairmont experience, so to that end we have taken the proactive step of expanding our food and beverage programming with authentic touches that will help make our Chinese guests feel more comfortable and welcome. The new programme is testament to our promise of anticipating the needs of our guests and delivering an experience that is both memorable and distinctive.” Also remaining dedicated to the burgeoning Chinese market is luxury hospitality operator, Banyan Tree Hotels and Resorts, which is to debut its urban

the owners of the brand want to achieve with the launch of this brand. A strategy is then developed to create the brand name; visuals, identity, tone of voice, imagery, and applications,” he elaborated. “Alongside, the brand experience is developed through the brand service standards as well as the brand service icons, which create an edge in the service area for this brand over the competition. The third important area is the brand communications, with its launch, website, advertising, collateral, media exposure, and public relations activities. And the most critical stage is the delivery of the promise, where the brand needs to deliver its promised services consistently and efficiently, to meet guest expectations,” Mokhtar added. Webb concurred, “Successful brand development requires developing a clear and cohesive strategy founded on customer insight. For a brand to maintain its relevance, it is important to know who your target markets are, what they like and value, what is important to them, and how to pleasantly surprise them, and that is an area where we commit a lot of time and effort.” 

PURSUING TRENDS

VISIT

Qatar

LET THE GAMES Begin! Khalifa Stadium, Aspire Zone

Museum of Islamic Art

QATAR IN BRIEF Capital: Doha Currency: Qatari Riyal (QAR) Language: Arabic

It has been over four decades since Qatar opened the doors to its first five-star establishment. Since then, the tiny Gulf state’s social and economic development has gathered a rapid pace propelled by the National Vision 2030 and a series of prestigious events, such as the upcoming FIFA World Cup.  Rita Kasziba writes

he National Vision 2030 strategy, impelling the nation’s fast-paced development, has been built around the idea of economic diversification, which, in turn, would transform Qatar into one of the world’s most advanced countries, capable of sustaining its own development and ensuring high standards of living for its people – and for generations to come. “Qatar is rapidly strengthening its position as a leading destination across various sectors by hosting international events from business conferences and exhibitions to world-class leisure and sports attractions which, in turn, enhances the diversity of Qatar’s economy and maximise the potential growth,” explained Fabien Chesnais, general manager, Mövenpick Hotel Doha, noting that the country has also long been committed to investing in its cultural infrastructure, attracting investors with ambitious projects. “Doha is rated as one of the top luxurious metropolitans; one of the smallest geographically yet wealthiest countries in the Middle East, and it has been setting new records in economic performance and development.” Sai Manoj, manager, Millennium Travel, added, “Among the countries in the region, Qatar has become the fastest developing Middle East destination, after opening its doors to tourism in 1989.” During the first quarter of the year, Qatar witnessed a significant 22 percent increase in the number of GCC visitors, with over 261,000 travellers heading to the state, based on data released by Qatar Tourism Authority (QTA). More than 161,500 of them hailed from Saudi Arabia, while the number of international visitors also SEPTEMBER 2012

Qatar improved and reached over 60,500, with the majority of them, nearly 36,400, coming from Asia and 10,500 from Europe. MIXING BUSINESS WITH PLEASURE According to Ahmed Al Nuaimi, chairman, QTA, Qatar has established itself as a unique tourism destination as well as playing to its strengths as a business and sports tourism hub. To utilise the country’s full potential, with QTA at the helm, the industry leaves no stone unturned to broaden the pool of the potential guests, and as Housni El Yaman, director of sales and marketing, La Cigale Hotel, suggested, tourism in Qatar is growing quickly in line with the country’s fast-paced development. “QTA plays a good role by participating in international tradeshows in order to put Qatar on the international tourism map. The industry in Qatar is still restricted somehow to individual business travellers along with the MICE sector, though a lot of efforts are being spent by QTA on attracting other sectors, such as the leisure segment.”

Qatar’s endeavours to establish the destination as a regional and international business hub has already paid rich dividends, with QTA picking up the title of World’s Leading Business Travel Destination earlier this year, and hoteliers reporting strong volumes from the business and MICE sector

As a result, the hotel sector has been developing at an accelerated pace although many hoteliers have pointed out that supply growth had outpaced demand, as Sameh Shawkat, executive assistant manager, sales and marketing, Grand Hyatt Doha, explained, “The first half of the year saw a decline versus 2011 by 11 to 14 percent led by a drop in occupancy. Increase in supply by roughly 20 percent this year has led to a broader distribution of the additional demand in many hotels. Doha is facing the same challenge as that of Abu Dhabi of excess supply which is putting a pressure on occupancy.” On the other hand, Kevork Deldelian, general manager, Oryx Rotana Doha, said, “The supply of rooms in Doha has almost doubled during the last couple of years, but at the same time we experienced an occupancy increase. The demand for quality accommodations is on the rise.” Moreover, Qatar’s endeavours to establish the destination as a regional and international business hub has already paid rich dividends, with QTA picking up the title of World’s Leading Business Travel Destination earlier this year, and hoteliers reporting strong volumes from the business and MICE sector. “90 percent of our clientele is from the corporate SEPTEMBER 2012

Aspire Zone

segment,” said Gokul K.C., general manager, Gokulam Park Doha. Reynaldo Duran, general manager, Addar Hotel, revealed a similar ratio, adding that the property’s regularly 80-90 percent occupancy is mainly driven by the representatives of companies located in Mesaieed and the Mesaieed Industrial City. Underscoring Qatar’s status as one of the region’s leading business and MICE hub, since its opening less than a year ago, Qatar National Convention Centre (QNCC) hosted over 160 events and welcomed more than 135,000 delegates. To ensure Qatar’s sustainable development, the tourism industry has long been engaged in enhancing the attractiveness of the destination. However, instead of targeting mass-tourism, Qatar strives to position itself as a business and high-end leisure destination, as well as a host of top sporting events. Located in the Aspire Zone, Doha’s sports city, one of the preferred addresses for a number of world-class sports teams, benefits greatly from the increasing volume from the leisure segment, with Anna Eisenbeiss, public relations manager, The Torch Doha, indicating that 30 percent of business comes from the leisure segment. In fact, over the last decade Qatar has embarked on a range of initiatives to encourage cul-

VISIT

tural, sport, and leisure tourism to complement the destination’s already firmly established business profile, as Miet Saelens, director of public relations and marketing communications, Renaissance Doha City Center Hotel, also noted, “Qatar is investing heavily in transportation infrastructure such as metro system and the new airport. It is focusing on becoming a cultural and educational hub with Qatar Foundation and Educational City, as well as investments in the arts and new museum openings.” Pierre-Marie Vasseur, general manager, Grand Heritage Hotel Group, also believes that Qatar is fast emerging as an attractive holiday destination within the region, as he explained, “At Grand Heritage Doha Hotel and Spa the leisure market is mainly from the GCC, especially from Saudi Arabia, as we are on the way from the border, and we have a big affluence during their vacation season.” Since opening its doors in March, St. Regis Doha has also witnessed encouraging volume from the leisure segment. “Corporate and group business represent the core of our clientele, however, we also welcome a lot of leisure guests on the weekends, especially from the local and regional markets,” Tareq Derbas, general manager, St. Regis Doha, revealed. Concurring that the leisure business reaches its peak during weekends, vacation periods, and 

VISIT

public holidays, Wissam Suleiman, general manager, Kempinski Residences & Suites, said, “The leisure segment in Qatar is strong but certainly needs improvement, especially the incoming leisure tourism coming from outside the region. We are happy that constructive moves are being designed by QTA and Qatar Airways that are developing the 48-hour stopover programme for Doha.” Joydeep Ghosh, director of sales and marketing, Mövenpick Tower & Suites Doha, also remarked on the industry’s joint efforts and the national carrier’s pivotal role. “There is a segment which transits Qatar and thanks to Qatar Airways for making the passengers off loads the plane and experience the hospitality of Qatar.” THE SKY IS THE LIMIT Qatar Airways has certainly been witnessing rapid growth over the last one and a half decades, as the it currently operates a fleet of 110 aircraft and boasts orders worth over USD50 billion for more than 250 aircraft. “Qatar Airways set out on a mission 15 years ago when we launched to be the world’s best airline and spread the airline’s quality brand to all corners of the world,” said Akbar Al Baker, CEO, Qatar Airways.

Qatar

Doha

Praising the airline’s contribution to the industry’s growth, Saelens said, “Qatar Airways’ continued growth ensures that Qatar is easily accessible and their nonstop flights are preferred by international travellers, further adding to the influx of visitors to Doha.” “The fast growing national airline and the upcoming state-of-the-art airport are going to transit millions of travellers through Qatar,” indicated Manoj, calling on the industry to realise this potential and focus on capitalising the anticipated traffic by converting these transit passengers into visitors. In line with Qatar Airways’ fast-paced development, Doha International Airport has over the past few years doubled its annual passenger volume from 9.46 million in 2007 to over 18.02 million in 2011, and the figure is likely to touch 20 million by year end after already reaching 10.38 million in the first half of the year. To facilitate the steady growth in incoming tourism, the New Doha International Airport is envisaged to facilitate the state’s aviation needs for the next 50 years. Demonstrating the growing demand for flights to and from Qatar, Rizon Jet, the Dohabased private services provider, also closed a successful half year, as Hassan Al-Mousawi, CEO, Rizon Jet, noted, emphasising the opening of the new VIP terminal in Doha as a particular highlight of the airline’s operation, progressing towards its goal of becoming ‘the’

prèmiere business aviation company in the Middle East. Al-Mousawi attributed Rizon Jet’s success to the company’s travel solutions and business aircraft services specially tailored to today’s time-pressed traveller. “We have our award-winning passenger terminal in Doha […] but we are also the only Middle East operator to have an equally luxurious and wellequipped facility in London at Biggin Hill Airport. It has been a busy first half of the year for all areas of the business, and we expect that trend to continue as Rizon Jet’s reputation builds in both the Middle East and Europe,” Al-Mousawi said. SHAPING THE HOSPITALITY LANDSCAPE Also looking to grow its business regionally as well as internationally is Katara Hospitality, formerly known as Qatar National Hotels, which was among the first companies to be part of the Qatari tourism industry’s genesis. “Since its creation over 40 years ago, Katara Hospitality has undergone considerable change and growth, from the management of a single hotel to the largest luxury collection in Doha and an increasing international portfolio,” noted Hamad Al Mulla, CEO, Katara Hospitality. The company currently owns and manages more than 5,000 rooms through its local and international properties, including those expected to open within the next four years. Revealing details on the company’s latest project in Qatar, Al Mulla confirmed that the Lusail Foxhills Hotel Project is in the design stage at the moment. “It is forecasted to be a four-star hotel with approximately 160 units and expected to open in 2017. Additionally, three properties have been purchased from Barwa Real Estate, two of them being due to open in 2013,” he said. Another highly anticipated project, the Lusail Marina Tower, is set to become an iconic hospitality symbol of the 21st century. Boasting a spectacular architectural design, the property will hold over 1,000 luxurious rooms, including hotel rooms, residence apartments, offices, recreational facilities, boutiques along with a number of restaurants, and is aimed to be operational by 2016.  SEPTEMBER 2012

VISIT

“Over the last four decades we have shaped the hospitality landscape in Qatar,” Al Mulla continued, listing many of the company’s iconic developments. KICK-OFF The ambitious projects attracting a soaring number of visitors to the country benefit the whole industry, as it is well demonstrated in Al Muftah Rent a Car’s growth over the past four decades. “From the humble beginning in 1971, the company has grown into one of the largest car rental companies in Qatar,” explained Naresh Gakhar, senior manager, sales and marketing, Al Muftah Rent a Car, adding that after satisfactory first half year results, the award-winning company is to add two new branches to its operating six locations, and Gakhar strongly believes that the ongoing developments and the upcoming events will pave the way for further growth for all kinds of tourism-related businesses. “Being a car and coach rental company, the 2022 FIFA World Cup will be a huge opportunity for us,” said Gakhar. With one decade to go until one of the world’s most widely viewed sporting event, the industry has already been benefitting from the build-up of the tournament. As developers and representatives keep pour-

Qatar

ing into the country, La Cigale Hotel welcomes guest from new companies on daily bases, according to El Yaman who said, “Our neighbouhood started to host major companies related directly to the developments of the projects affiliated for 2022. Heading to 2022, several sectors in tourism will be developed and will be able to assist the major producing sector at this stage. We do believe that 2022 will put Qatar on the real map of the leisure destinations and it is our role to be part of the planning of the future.” Gokul K.C. concurred, noting that apart from being a matter of pride for any nation, the FIFA World Cup also involves a lot of planning and infrastructure, which, both in the short- and long-term, should be of great benefit to the hotel sector and the industry as a whole. “A lot of infrastructural development is happening to meet the requirements of the event, leading to an increase in business for hotels as more and more corporates enter the market; a demand has been created, and hence the supply is following.” Preparations for the FIFA World Cup are already well underway, and as home to one of the 12 stadiums hosting the tournament, Aspire Zone, plays a pivotal role in further consolidating Qatar’s position as a leading sporting destination. Since its establishment in 2003, AZF has continued to make significant impact in the local, regional, and international sporting arena having played host to a range of prestigious sporting events, and was, earlier this year, recognised as the World’s Leading Sports Tourism Development Project. SHIFTING TACTICS In fact, the upcoming event has already put the spotlight on the country, contributing greatly to the ongoing economy boom, it is, however, not the only development factor. “Although the FIFA World Cup is a significant accomplishment for the country and an exciting event to be a part of, it does not drastically change our expansion strategy,” noted Mark Willis, area vice president, Middle East and SubSaharan Africa, Carlson Rezidor Hotel Group. “A long-term vision for Doha takes into account the country’s economic base, cultural and sports events as well as a potentially

growing leisure business.” Having said that, the group has recently entered the market with the launch of the 583-room Radisson Blu Hotel Doha. “Now that we have established a footprint with our core upscale Radisson Blu brand, we are keen to tap into the mid-scale segment with Park Inn by Radisson,” Willis said, revealing that the company considers more properties for the brand in a quest to fill the gap in the mid-market segment. “In addition, we have also recently signed a Hotel Missoni to develop a lifestyle hotel in the heart of Doha.” Rotana is also to expand its Qatari portfolio, as Deldelian revealed, “Rotana is observing the potential that we believe Doha presents for the hospitality industry and we are driving our expansion plans and are working on having all brands represented in the capital in the near future.” InterContinental Hotels Group’s latest property in Qatar, Crowne Plaza Doha – The Business Park, just opened its doors in August, while Amari Doha of ONYX Hospitality Group is slated to launch in October, and City Centre Rotana is due to welcome its first guests in the second quarter of 2013. Four Seasons Hotel Doha – at the Pearl is due to open in 2014 as well as Premier Inn’s new property. “Premier Inn Doha Education City will have 219 rooms, restaurant, coffee lounge, swimming pool, meeting room and gym. It is currently in the detailed design stage and is scheduled to open in the first quarter of 2014,” said Darroch Crawford, managing director, Premier Inn Hotels, Middle East and Africa. Furthermore, Kempinski’s second hotel in Qatar, currently referred to as Kempinski Marsa Malaz Hotel, is expected to welcome its first guests at the end of 2014, while Accor is set to debut its Pullman and MGallery brands in the country in 2014 and 2015, and Le Méridien Doha, the brand’s flagship hotel in the capital, is to be unveiled in 2016. Judging from the number and scale of developments in the country, the regional and international community place great confidence in Qatar’s long term prospects, and industry professionals strongly believe that the destination will reap rewards for the projects and the aftermath of the FIFA World Cup well beyond 2022, which Duran believes will provide people all over the world with knowledge and ideas of Qatar. According Ghosh, the new look of Qatar bolstered with proper marketing in key destinations and the easing of visa regulations would give the state a new boost, opening up new markets from all around the globe. And reflecting Qatar’s commitment to showcase its full potential, despite having been turned down for the 2016 and 2020 events, the country is to bid to host the 2024 Summer Olympic Games, which according the professionals, would consolidate the gains earned from the World Cup, with Shawkat saying that, “I think that after the World Cup, we will see a drop in the performance but if we manage to host another event like the Olympics right after the World Cup that will keep the market performance high.”  SEPTEMBER 2012

EXPLORE

Algeria

Taking a Qualitative Leap Officially recognised as the largest country in Africa, after neighbouring Sudan was formally divided in two in July 2011, Algeria boasts 1200km of Mediterranean coastline which washes onto centuries of deeplyrooted history where archaeological sites remain scattered across every city throughout the rapidly-recovering North African destination.  Stefanie Saghbini

Tassili-n-Ajjer

writes

ALGERIA IN BRIEF

lgeria recorded a tourist flow estimated at 1,498,000 in the first half of year, according to Smail Mimoune, minister of tourism and craft industry, Algeria. These figures follow a somewhat troubled 2011, when only 1.8 million visitors travelled to the destination throughout the year, 1.3 million of whom opted to visit the capital, Algiers, according to an indepth study carried out by Euromonitor International with the support of official statistics provided and in collaboration with trade associations, trade press, company research, trade interviews, and trade sources. In comparison to 2010 levels, this totalled a decrease of eight percent believed to have been a cause of the surrounding deteriorating political situation, which instigated a series of protests and a number of violent riots, and combined with turbulence having also come from within the country, the globe’s perception of Algeria as a safe country to visit, plummeted, as Euromonitor International’s study further revealed. Inbound and outbound tourism were said to have been equally affected particularly by the crisis in bordering Tunisia, resulting in the introduction of a crucial cooperation programme with a focal point on boosting ‘joint’ tourism to both Algeria and Tunisia, such as packages for round trips, triggering an enhancement in tourism flows between both markets with the hope that Algeria will fully recover by the end of this year, Euromonitor International’s research publicised. Another factor said to have had a negative impact on arrivals in 2011, was the renewed economic strife in Europe, notably in Spain, which saw a strong decline of tourists; down from 25,600 in 2010 to just 7,800 in 2011, equivalent to a decrease of 70 percent. In fact, the number of international tourists visiting Algeria has been declining for the past three consecutive years, according to figures, pointing to a difficult and challenging environment which Euromonitor International has declared as rather unfavourable to the promotion of leisure tourism to country. SEPTEMBER 2012

Capital: Algiers Currency: Algerian Dinar (DZD) Language: Arabic

Djemila Arches

ON A POSITIVE NOTE Thankfully, arrivals from Turkey shot up by 85 percent, almost doubling its number of visitors from 2010, making it Algeria’s fastest-growing source market in terms of tourism figures. From 9,800 Turkish tourists in 2010 to 18,100 in 2011, this growth is said to have been attributed to Turkey’s policy to strengthen its ties with the Arab world, as well as the dually-agreed introduction to exempt visa requirements to land on each other’s soil. Visitors from France also continued to escalate throughout 2011, resulting in an increase over 2010 levels of approximately 61,000 visitors to reach some 200,000, equivalent to a 44 percent growth, making it the North African destination’s second best market with reference to tourism statistics. The Tunisian market contributed immensely to Algeria’s inbound tourism figures, with 225,000 tourists coming from the neighbouring country, while 16,300 visited from bordering Morocco, 12,500 from

Libya, 11,500 from Syria, 7,000 from Egypt, 4,100 from Saudi Arabia, and 3,200 from Lebanon. Despite a negative 2011, Euromonitor International has placed encouraging results on the horizon with the number of trips taken to Algeria expected to progress at a compound annual growth rate (CAGR) of six percent to reach 2.4 million by 2016, although this does not sit in line with the government’s ambitions for 3.5 million tourists by 2015. The fastest-growing source market during the forecast period is expected to be China, which will see a CAGR of 13 percent, equivalent to a total of 36,200 visitors by 2016, according to Euromonitor International’s predictions, thanks to positive underlying economic indicators and Chinese businesses’ growing interest in investing in the MENA region. In addition, competition from neighbouring Tunisia should remain strong during the forecast period, Euromonitor International’s research further illustrated, as this market recovers from its crisis which is likely to see healthy growth leading up to 2016. FROM GOOD TO BETTER The country’s hotel sector is forging ahead with developments and upcoming openings, while others in operation progress with marketing initiatives parallel to fruitful times ahead. Hilton Algers certainly showed strong dedication to its guests, when it recently organised Kheima Ramadhan, a traditional feast with folklore music which took place throughout Ramadan, at the hotel’s Fi Quaâdes Lanbab ballroom, as Mohamed Amine Ouldali, hotel manager, Hilton Algers, informed. According to Ouldali, this cultural event was 

A BLEND OF CULTURES WE ARE HERE

The Renaissance Tlemcen Hotel is located on the Plateau Lalla Setti, overlooking the city in northwestern Algeria, near the Moroccan border, backed by the cliffs of the well-watered Tlemcen Mountains lying at an elevation of 2,648 feet (807 meters). The hotel is only 25 kilometers away from Tlemcen/Zenata Airport and 140 kilometers from the city of Oran (new East-West highway).

ESSENTIALS

HOUSE FLAVOR

RENAISSANCE TLEMCEN HOTEL PO Box 420/K Plateau Lalla Setti Tlemcen, 13000 Algeria t: +213 43 401111 f: +213 43 401212 renaissancetlemcen.com

ME, MYSELF & I

THE ROYAL TREATMENT

LOCAL TREASURES

FRESH THINKING

2,500 square meters of flexible event space on two floors | Two ballrooms with 685 and 682 square meters each dividable into 3 sections | High speed internet access in all meeting room | State-of-the-art audiovisual equipment supported by in–house experts.

Algeria organised in line with the hotel’s strategy to diversify its services by adding a ‘leisure and relaxation’ concept to what is already a well-recognised business address. Further revealing the hotel’s marketing initiatives to attract targeted markets, which also include medical and blue chip companies, as well as airlines, and petroleum, and to highlight the importance of remaining a leader in pleasuring guests, Ouldali said, “As a hotel of the Hilton Worldwide brand, our first destination is customer satisfaction. ‘HHonors Loyalty Program’ and ‘Customers Really Matter’, Hilton Worldwide’s programmes, are the heart of our marketing strategy. However, the customers’ loyalty does not stop at the Hilton Worldwide programmes. We have our own programmes that we propose to local customers such as corporate companies. “So, our goal this year is to make that number increase, which will enable us to fulfil our aim of 100 percent daily occupancy. Also, our goal for the coming year is to position ourselves on the top of the list of the internationals hotels in Algiers, in terms of market share and average revenue. To do this, the analysis of the concurrency will be our main instrument.” Overall, the hotel has so far this year seen an increase of 25 percent in occupancy figures over 2011 levels, according to Ouldali, who explained that a lot of business was generated by a large number of new clients coming from the European market throughout 2011, and in particular from France, UK, Spain, and Turkey. Starwood Hotels & Resorts Worldwide opened its first Le Méridien property in Algeria on June 6 this year, with the debut of the Le Méridien Oran & Convention Centre. Owned by Sonatrach, the hotel, which is located on Algeria’s north-western Mediterranean coast, nestled on a cliff offering panoramic views of the sea, is part of a mixed-use development, which includes an adjacent conference and exhibition centre, and a seafront esplanade. “We are proud to partner with Sonatrach as we introduce the Le Méridien brand to Algeria,” expressed Roeland Vos, president, Europe, Africa, and Middle East, Starwood Hotels & Resorts. “This spectacular new hotel allows us to showcase Le Méridien brand’s contemporary lifestyle and sophisticated origins in the city of Oran and further underlines our commitment to continued expansion in the region,” he added. Designed by Rockwell Group Europe, Le Méridien Oran & Convention Centre features 254 guestrooms and 42 suites, combining contemporary design with Algerian heritage and Le Méridien brand amenities. The hotel comprises a signature spa, an all-day dining restaurant, a lounge bar with sea views, an authentic Italian restaurant, and more. Le Méridien Oran Hotel & Convention Centre is said to house the largest meeting facilities in North Africa, boasting some 2,800m2 of flexible meeting and event space, including two ballrooms, a prefunction area, and 23 meeting rooms. Equipped with state-of-the-art technology, the convention centre comprises an auditorium, which can seat up to 3,000 guests and features the largest SEPTEMBER 2012

mural fresco in the world. Starwood Hotels & Resorts Worldwide now has three hotels in Algeria including Sheraton Oran Hotel & Towers, Oran, and Sheraton Club des Pins Resort & Towers, Algiers. InterContinental Hotels Group (IHG) is also making its way into Algeria, having recently signed its very first hotel in the capital, namely Holiday Inn Algiers-Cheraga Tower. The property, which will be located to the west of the city just half an hour from Houari Boumediene Airport, will offer international guests travelling inbound from major European cities, such as London, Paris, Milan, Frankfurt, as well as Istanbul, easy access to the hotel.

Oran

Managed by IHG and developed by Ramdane Group, which has been operating in Algeria for 40 years, Holiday Inn Algiers-Cheraga Tower is guaranteed to fill a significant gap in the market as there are no internationally-branded mid-scale hotels in the capital, this according to Brice Marguet, director of development, France and North Africa, IHG. “Holiday Inn Algiers-Cheraga Tower will provide much needed international standard midscale accommodation for international and local business travellers. Holiday Inn offers the things that matter most to guests; great beds, great showers, and fantastic service, with an upto-date look. Guests can expect a consistent experience at an affordable price just like any of our Holiday Inn hotels around the world,” he assured. At 75m high, the 25-storey hotel is designed to become one of the tallest buildings in Algiers and will feature 500m2 of meeting space, a restaurant, a spa with an indoor swimming pool and fitness facilities, and an outdoor pool. Internationally-acclaimed Marriott International recently announced the development of a number of hotels in Algeria in 2014, following the opening of the group’s first hotel in the country, Renaissance Tlemcen, which was launched in 2011. Five more Marriott International properties are slated to come on board, four of which will be located in one complex, namely Algiers Marriott, Algiers Marriott Executive Apartments, Courtyard by Marriott Algiers, and Residence Inn by Marriott Algiers. The 198-room Courtyard by Marriott Setif will fol-

EXPLORE

low in the same year, under management agreement with ownership group Prom-Bati SPA. Commenting on the upcoming property, Rachid Khenfri, president, Prom-Bati SPA, said, “We liked the Courtyard brand in particular for this location because of its modern look and feel, its understanding of the business traveller, and its comfortable and efficient accommodations.” The hotel will be part of the Park Mall mixed-use development which includes a shopping mall, an office tower, residential apartments, and underground parking facilities, located in the heart of Setif, southeast of Algiers. “We are thrilled by the continued expansion in Algeria and are excited that when Marriott Setif opens, we will be represented in the country with six hotels and five brands,” said Ed Fuller, president, international lodging, Marriott International. Leading hotel group Accor, also opened two properties earlier this year, in the renowned old city of Constantine, which is endowed with rich history and heritage before a natural backdrop. Novotel Constantine and ibis Constantine share a brand new purpose-built establishment in the heart of the country’s third largest city, also referred to as the ‘city of suspended bridges’. Novotel Constantine features 117 rooms, food and beverage outlets, a fitness centre, and corporate facilities, while ibis Constantine offers guests 172 rooms. According to Sébastien Mary, director of operations, Algeria and Tunisia, Accor, the anticipation around the ibis brand is also unfolding across the country, and with the upcoming ibis megabrand project, set to begin before the end of the year, alongside the construction of yet another Novotel/ibis combo boasting 240 rooms in Setif in the summer of 2013, this eagerness is certainly escalating. ALL AROUND THE WORLD Algeria’s national flag carrier, Air Algérie, is marching on with confident developments after it recently confirmed six new worldwide destinations most of which will be commencing services as of 2013 and five of which will operate non-stop. Amsterdam, Netherlands, will be served onboard Air Algérie’s Boeing B737-800 aircraft, while New York, US; Johannesburg, South Africa; Shanghai, China; and Munich, Germany, will be operated onboard the airline’s Airbus A330-200. Buenos Aires, Argentina, will also soon be added to the airline’s route destination network via Rio de Janeiro, Brazil. Another airline dedicated to serving the budding tourist hub, is EGYPTAIR when in November 2011 it increased its flights to Algeria to seven per week. According to Gehan Hassan, regional manager, EGYPTAIR, this move was taken to manage the evergrowing number of travellers from Cairo to North Africa’s largest country, which she described as one with many potential tourists. The airline company also accomplished healthy outbound results in 2011, having carried some 6,000 Algerian pilgrims onboard 30 flights to Saudi Arabia. 

TOUR

Malta

The Small Island of Wonders As Malta progresses with plans to attract visitors back to its shores, after it was mildly affected by surrounding social and economic uncertainty, its deeply-rooted cultural heritage, traditional culinary experiences, a vibrant nightlife, and overall relaxed lifestyle, goes to show that good things do indeed come in small packages. MALTA IN BRIEF Capital: Valletta

 Dominique Christou writes

Currency: Euro (EUR)

Language: Maltese, English

alta’s strength lies in its small size and the diversity of product that it offers, this according to Carlo Micallef, group head, segments marketing, Malta Tourism Authority, who goes on to state that anyone visiting the destination will be getting more for his/her money and also much more for their limited holiday/travel time. “With the Maltese Islands’ small size, one does not use up valuable holiday time reaching the hotels from the airport, nor does anyone need to use up a day travelling to visit UNESCO World Heritage sites like the Archaeological Temples, Valleta, or the beautiful greener sister island of Gozo,” he said. BOOSTING TOURISM A report released by Malta National Statistics Office states that in the period between January and June this year, there was a drop in departing tourists by 2.1 percent when compared to the same period in 2011. “Having said this, I must highlight that 2011 was a record year and that the first six months of the year were influenced by the happenings in Libya; this year, tourism performance till the end of June was 10 percent up on the same period in the last ‘normal’ year 2010,” noted Micallef, thus the slight decline in the first six months of the current year in comparison to 2011 is perfectly explained by the fact that a large majority of visitors who travelled to Malta were expatriates leaving Libya during February and March for a one-night stay before returning home, he further noted. Moreover, Micallef attributed the loss in overall tourism to the country during the first half of the year to the social and economic uncertainty surrounding Malta’s main source markets, which include MICE and other business and non-holiday traffic, which resulted

in European companies having to limit costs either by cancelling conferences and incentive trips altogether, or by choosing to organise these events closer to home. Thus, actions are being taken to lure visitors back to the island with the MENA segment playing a key part of the plan, which contributed to some 70,000 tourists in 2011, according to Micallef. Malta’s Consul General in Dubai, which represents the country’s tourism authority’s interests in the UAE, is implementing marketing initiatives such as familiarisation trips for tourism trade, business and consumer media, tour operators, travel agents, and MICE group organisers, as well as organising travel seminars and workshops in Dubai and Abu Dhabi. “MENA travellers to Malta are mostly travelling for leisure but a good percentage, estimated at around 30 percent, combine business with days off of leisure. The MENA region has been identified as a region which can offer Malta a significant growth in the long

term, allowing Malta Tourism Authority to diversify the tourism nationality and travel trends mix even further,” Micallef further revealed. He welcomed the MENA tourist to join in and mix with the Maltese to soak in the atmosphere of the country’s rich cultural heritage, village festivals and feasts, the relaxed Mediterranean lifestyle, tasty traditional dishes, and also nightlife. “For the more adventurous, the Maltese Islands offer some of the top diving sites in the world, offering a variety of dives on scuttled shipwrecks, underwater grottos and caverns in clear blue waters,” Micallef added. A MALTESE WELCOMING On the hotel front, performance levels have remained somewhat stable despite harsh surrounding factors, while the outlook for the upcoming season looks promising. John Messina, sales and marketing manager, San SEPTEMBER 2012

Malta Antonio Hotel and Spa, announced very good results for the first half of the year, which in fact superseded expectations. “The remaining six months of the year should be good, achieving the same occupancy percentages that were achieved in 2011, however with a better average room rate.” Kyle Borg, director of sales and marketing, Luna Holiday Complex, also revealed promising results, as he explained, “Luna’s business model is slightly different than other hotels in Malta, as we only operate for six months of the year, from May 1 to October 31. In the second quarter (Q2) of the year, we saw a nine percent increase in occupancy from 2011. If we look at RevPAR, we had an overall increase as well of around 12 percent in Q2.” Despite the current economic and market situation, Hilton Malta is also making positive headway, according to Melanie Deguara, marketing manager, Hilton Malta. “Business trend was mainly last minute, but thanks to internal marketing and sales strategies, applied business levels picked up very well. The remainder of the year does look promising as well and picking up at a good pace.” Furthermore, according to Edward Gauci, director, Hotel Argento, Q2 exceeded forecasts in terms of occupancy with August being somewhat of a surprise, especially following a good spring and with re-

SEPTEMBER 2012

gards to booking during the first week not being consistent. “One would have expected the momentum of the previous months to continue. However, after the initial hiccup, business recuperated the moment and is on track. The outlook for autumn seems on track meaning good but winter is still unclear. This is expected since we are seeing more late minute pickups,” he explained. With regards to the MENA market, six percent of the clientele base derives from the region, Gauci added, explaining that the 74-key property, which is located in St. Julian’s, attracts clients from all parts of the world and for different reasons. “We try to meet each client’s expectations by understanding their individual need. However, I cannot specify what that is since it always depends on the client’s needs,” he concluded. According to Borg, a large portion of tourists from the MENA region visit the island mainly for medical and cosmetic purposes, which Borg praised as being prominent and one with safe and high standards; something which he said appeals to MENA travellers. Furthermore, Adrian Attard, general manager, Radisson Blu Resort, St. Julian’s, describes Malta as an ideal travel destination for MENA clients, as it boasts a great deal of history, good shopping opportunities, and connectivity from Egypt, Libya, and Tunisia, as

TOUR

well as from Dubai with two flights per week. “Three percent of our guests are from the Middle East, primarily from North Africa,” he said, informing that Libya is the top producer out of these. “We offer halal food options and are able to satisfy Ramadan requests due to having a 24-hour dining option.” ARRIVING ON THE ISLAND Emirates offers daily flights from Dubai to Malta, with the airline in the planning process to deploy a larger aircraft on the Malta-Cyprus-Dubai route as of October 1, when the Airbus A340-200 is set to begin operations with a three-class configuration. Furthermore, Royal Jordanian Airlines, Etihad Airways and Gulf Air also offer flights to Malta from the MENA region. The country’s flag carrier, Air Malta, operates nine weekly flights between Malta and Libya, and plans to increase frequencies to countries in the MENA region in the near future, this according to Philip Saunders, chief commercial officer, Air Malta, who added, “Most of Air Malta’s passengers to the region travel on business however you may find a number of these that travel to Libya to visit relatives and friends. The MENA region provides Air Malta with a good opportunity for potential growth over the matured European market.” 

ONSITE

South Korea

A Spark of Character SOUTH KOREA IN BRIEF Capital: Seoul Currency: South Korean Won (KRW) Language: Korean

Seongsan Sunrise Peak

Temple in Seoul

Upon entry into South Korea, travellers are immersed into a deep historical journey complemented by unsurpassed hospitality and a vibrant ambience, as the country’s tourism sector presses on with promotional campaigns, mega events, and hotel developments, with aspirations to deliver an overall healthy travel infrastructure.  Dominique Christou writes

ver a million foreign tourists visited South Korea in July alone, marking the first time the monthly figure has topped the one million mark, indicated Seung Hyun Hwang, regional director, Korea Tourism Organisation (KTO), Dubai, further noting that the country is expected to receive more than 12 million foreign tourists for the entire year, as was the plan when the Visit Korea Year Campaign 2010-2012 was launched. Overall, there were 104,163 visitors from the Middle East in 2011 marking a 16.7 percent jump from 2010 figures, with the GCC countries reaching an overall of 12,655 tourists, and these numbers are expected to rocket into the near future, as Hwang revealed. “We expect Middle Eastern visitors to Korea will increase with double digits for at least five years. The cooperation in the economy and cultural exchange between Korea and the Middle East will increase steadily.” In addition, KTO has set three visions for 2020; taking the top spot as the most competitive tourism industry in Asia, attracting 20 million tourists during that year, and increasing the period of domestic travel to 30 days per person, this according to Kwang, who explained, “To achieve these goals, KTO has not only improved travel infrastructure to accommodate foreign tourists but has also performed overseas

promotional activities to attract the attention of people around the world. In addition, the KTO has formed various plans to boost domestic trips like the refreshing vacation campaign.” Encouragingly, the country is in the planning process to host a number of large-scale events such as the 2014 Incheon Asian Games and the 2018 Pyeongchang Winter Olympics, following the recent 2012 Yeosu Expo, which took place between May 12 and August 12, guaranteed to generate an influx of tourists over the next six years, as Hwang confirmed. KEEPING IN GOOD SHAPE According to Greg Findlay, general manager, W Seoul, although the MENA market is not among the hotel’s most popular clientele, tourists from the area to Korea are increasing fast. “We are expecting more and more to come and visit us,” he said, indicating that the number of tourists from the Middle East to the country in 2011 was more than double than that of 10 years ago. Furthermore, Sunhwa Lee, public relations manager, The Shilla Seoul, revealed a similar outcome from the region for 2011. “Upon our geographical position, guests from the MENA region are yet to take a considerable part of our entire customers other than those from the Asia Pacific,” Lee said. Nevertheless, the hotel is looking at a strong growth year after year, both ADR and occupancy wise, Lee continued, attributing these positive

predictions to continuous efforts for service and product enhancement. “In that sense, we expect our performance to be likewise in a good shape in the latter half of the year,” she added, announcing that the hotel is planning a grand renovation starting in 2013, in a bid to further boost its appeal to travellers. In addition, Lee informed that particular requests from different guests are carefully handled with consideration upon availability. Similarly, Jungki Kim, director, public relations and new business development, Millennium Seoul Hilton, also guaranteed clientele from the MENA region with services upon request. “We are conscious of their religious and cultural sensitivities. For this reason, we offer special services that cater to our Middle Eastern and North African guests. In the first half of the year alone, we had several hundred guests from the MENA region. Of these guests, the majority were from the UAE, Saudi Arabia, and Iran.” Starwood Hotels & Resorts Worldwide recently announced the first Aloft hotel to open in the country in 2014, namely Aloft Suwon, to be located in Yeongtong-dong, in the heart of historical Suwon. Commenting on the upcoming development, Stephen Ho, president, Asia Pacific, said, “We are pleased to partner with Youngshin Hrd to bring the Aloft brand to South Korea for the first time. While Starwood has maintained a long-standing presence in South Korea since the opening of the Westin Chosun Busan, this signing marks an important milestone in our overall growth strategy to expand the Aloft brand. Aloft Suwon will add to 10 existing Aloft hotels in exciting cities throughout the Asia Pacific region.” EASY CONNECTIONS The national flag carrier of the country, Korea Air, which serves routes to and from Cairo and Dubai, posted operating income of KRW3,119 billion (USD2,747 million) for the second quarter of the year, a year-on-year increase of 9.9 percent. International passenger and cargo businesses remained the major revenue contributors for the airline, accounting for 56.8 percent and 25.1 percent of the operating revenue respectively. In conclusion, Emirates operates daily flights to Seoul from Dubai using its state-of-the-art fleet including the Airbus A380, while Qatar Airways and Etihad Airways also operate to Korea.  SEPTEMBER 2012

South Africa

LONG-HAUL

Natural Born Leader South Africa is known worldwide for its outdoor magnificence where paradises of natural wonders grace the land upon which wildlife experiences, exceptional lodging, and incomparable facilities, await on their mark to get set and go.

 Dominique Christou writes

he Cape Town tourism industry experienced positive growth when compared to recent previous years, remaining buoyant even under the strain of the global financial crisis, indicated Mariëtte du Toit-Helmbold, CEO, Cape Town Tourism, who further revealed a steady year-on-year increase in tourists since 2010. “For example, total passenger numbers for January this year marked a healthy eight percent growth compared to January 2011,” Toit-Helmbold explained. With reference to the Middle Eastern market, which Toit-Helmbold believes is a strong segment, she praised Cape Town as a city with a long-standing reputation for religious and cultural tolerance, making it a very attractive destination for visitors from the region. “This market also shows great potential for business travel to the Cape as the city offers worldclass meeting facilities with great up-market leisure activities at competitive prices. Scenery, wildlife, and shopping facilities are another draw card for travellers from this segment. The beauty of Cape Town is that the city offers leisure activities within the city limit so travelling businessmen and their families also make use of tourist attractions and activities.” SOUTH AFRICA IN ALL ITS GLORY Michael Nel, deputy general manager, 12 Apostles Hotel & Spa, noted that the hotel’s performance in the first half of the year has been promising and generally better than 2011, however the next quarter of the year is looking much softer and demand has not shown positive signs, as such. “The Middle Eastern business has been marginal to the 12 Apostles but is seen as an important region to penetrate due to the high net worth clientele. Unfortunately, North Africa has not been a priority to date and more focus has been given SEPTEMBER 2012

SOUTH AFRICA IN BRIEF Capital: Cape Town, Pretoria, Bloemfontein Currency: South African Rand (ZAR)) Language: Afrikaans, Zulu, English, Xhosa

to Southern and Central African countries.” Commenting on the importance to focus on the hotel’s key source markets, Nel pinpointed the UK, US, and Europe, in particular Germany, France, Italy, and the Netherlands, as the ones to target, in addition to countries of interest for future business growth which include China, India, and South America. Furthermore, according to Danny Bryer, director of sales, marketing and revenue, Protea Hospitality Group, the hospitality industry in South Africa, as much as the rest of the world, still finds itself in an extremely challenging business environment as the remainder of the year will continue to be tough, due to the challenging economic situation in Europe and the decreasing seat inventory that is being made on some established routes available into South Africa. “That said, hotels that are geared correctly from a financial and service point of view will sail through this period and emerge better for it when the global economic climate eases,” Bryer continued. Moreover, Susanne Faussner-Ringer, managing director, Greenways Hotel & Ashton’s restaurant, noted slight improvement over the first half of the year over the same period in 2011, thus expressed increasing performance levels of 10 to 15 percent. “The season 12/13 should be a better one than the previous three summer seasons,” she stated, adding that guests from the Middle East and in particular the UAE and Qatar travel to the capital during their very hot summer. Also remaining dedicated to the MENA guest, is One&Only Cape Town, which recently hired an Arabic-

speaking concierge from South Africa, as a result of an increase in tourists from the region over the past two years. “The GCC is a growing market for One&Only Cape Town and we would like to be able to make them feel as much at home as possible,” commented Clive Bennett, managing director, One&Only Cape Town. Renowned for its outstanding safari lodging and facilities, South Africa is parading on with wildlife opportunities of a lifetime for any tourist to enjoy, as visitors from the MENA region also seem adamant to experience the country in all its natural glory. Trevor Hewett, managing director, African Pride Tours, records some 1000 guests from the MENA region per year setting off on safari trips organised by the travel company. Furthermore, he noted that most guests want a good safari experience at an affordable price, and a lot of pre-planning is required to guarantee they receive exactly what they ask for. “The buzzword on safari is the ‘Big 5’, and most first-time visitors hope to see these animals; lion, leopard, rhino, elephant, and buffalo. However, careful selection of a lodge can greatly increase the chances of success in terms of ‘Big 5’ sightings.” Business tourism also largely contributes to the country’s travel industry, with a huge array of facilities serving the MICE segment. According to Joey Pather, chief operating officer, Cape Town International Convention Centre (CTICC), over the last financial year alone, the venue had bookings for 265,000 delegates to attend 38 international conferences. Furthermore, Pather mentioned that South Africa was largely seen as a leisure destination only a decade ago when this trend changed and the country rapidly became a widely popular business hub in conjunction with leisure. With plans to further boost business tourism in South Africa, the expansion of the CTICC, a ZAR4.5 billion (USD535 million) project, will see the centre doubling in size over the next few years. GETTING THERE Emirates serves South Africa from Dubai 42 times a week including three daily flight to Johannesburg, twice-daily to Cape Town, and a daily flight to Durban. In addition, Qatar Airways, Etihad Airways, and South African Airways, also offer flights between the two regions. 

TONY TYLER

PAUL GRIFFITHS

CEO, International Air Transport Association.

CEO, Dubai Airports.

“Governments around the world are recognising the important role of tourism in driving economic growth. Aviation is the backbone of the industry. On average, some 50 percent of international tourists arrive by air. To benefit the most from tourism, governments need comprehensive and internally coordinated policies. Today, the industry supports some 57 million jobs and USD2.2 trillion in economic activity. The challenge is to get all ministries on the same page with policies to facilitate sustainable aviation growth that will drive further benefits across local, regional, and national economies.”

WAYNE PEARCE CEO, Oman Air.

“We are delighted to welcome our customers into [Majan Lounge, the new lounge at Muscat International Airport] and to set new standards for airport hospitality. Our sustained aim is to continue delivering an unmatched passenger experience and to provide a stress-free and enjoyable experience even before they commence their flight. Majan Lounge, conceived by the same firm which designed other Oman Air premium lounges, will offer an exceptional standard of hospitality and comfort, all within a uniquely modern design, but retaining the key elements of the Omani culture and heritage.”

TRAVEL TALK IS YOUR SPACE – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel SEPTEMBER 2012

“Our record first half had some interesting story lines, highlighted by the launch of 12 new routes, the addition of four new airlines, and a surge in traffic on routes to Saudi Arabia, US, Qatar, and Australia. On the service side, we boosted our “May I Help You?” staff compliment to 500 people. We expanded our transfer areas and we launched new high-tech information zones and a new downloadable app. The addition of Concourse 3 during the first quarter of 2013, is well timed to boost our capacity to 75 million while upping the game on our already high levels of customer service.”

travel talk is your space

TRAVEL TALK

INVESTIGATION

Low-Cost Carriers

Low Costing, High Flying Since the inception of the Middle East’s first low-cost carrier (LCC) almost a decade ago, LCCs have utterly transformed the region’s aviation industry, giving travellers greater choice and control over managing their flights, gradually claiming a bigger market share.

Air Arabia

 Rita Kasziba writes

ver the past decade, since the introduction of the LCC phenomenon in the Middle East in 2003, the region’s LCCs, Air Arabia and its two subsidiaries, Air Arabia Maroc and Air Arabia Egypt, Jazeera Airways, nasair, and flydubai have steadily increased their prominence in the skies, not only attracting a growing number of passengers but also connecting the region with previously untapped markets. Still, LCC penetration remains relatively low in the region when compared to other parts of the world. Based on the Centre for Asia Pacific Aviation’s (CAPA) latest data released in August, within the Middle East, LCCs account for 8.5 percent of all seating capacity, underscoring the low-fare concept’s explosive growth rate over the past years, remaining, however, well below the average of many other regions. In comparison, worldwide LCCs secured a market share of 26.5 percent in August. Moreover, in Europe, LCCs’ intra-regional seating capacity share reached 37.9 percent, in North America 30 percent, and in Asia-Pacific 24.6 percent. FROM STRENGTH TO STRENGTH Due to their higher exposure to domestic and regional, as well as leisure and visiting friends and relatives traffic, LCCs have been particularly affected by the Arab Spring, according to CAPA. Along with the improvement of the regional situation however, their performance and financial results have also returned to positive levels. In July, nasair, posted its second consecutive month of net profit for the first time since its launch. Furthermore, Air Arabia’s net profit for the second quarter of the year even exceeded analyst forecasts,

as Adel Ali, CEO, Air Arabia, explained, attributing the encouraging figures partly to the success of the carrier’s newly introduced routes. The airline’s extensive network alongside its flexible offers, attracted a total of 1.3 million passengers during the three-month period, marking a significant 15 percent surge over the same quarter in 2011, and demonstrating, according to Ali, the single most strength of Air Arabia; its sound value-for-money product. Likewise, Stefan Pichler, CEO, Jazeera Airways, described the first half of the year as another successful period for the airline. flydubai prides itself on a ‘simple model’ where customers only pay for services they want to receive. This, coupled with a range of additional optional services and other innovations, enables the carrier not only to compete with the comfort offered by legacy airlines, but also to keep costs down and pass the savings onto passengers through lower fares. “At flydubai we have a passion for making travel less complex and more costeffective,” explained Ghaith Al Ghaith, CEO, flydubai. In a bid to improve customer choice, nasair earlier this year introduced a new range of fares for customers to choose from to book their ticket according to their needs, Francois Boutellier, CEO, nasair, commented. “As the Saudi national carrier, we understand our customers are individuals with different needs. Some are simply seeking the lowest fare while others are looking for flexibility with regards to change, cancellation or additional baggage,” he added. BEYOND THE BORDERS With their flexible offers, LCCs have long been considered as the preferred choice for holidaymakers and foreign workers, with their fast-paced expansion, while they have also been gaining popularity among business travellers. “Jazeera Airways today caters to all market

segments, from business and frequent travellers looking for flexibility, easy and fast services, to families searching for value fares, baggage allowance and great destination,” indicated Pichler. Hailed as the world’s fastest growing start-up airline, flydubai has also long been committed to link the UAE and the region with previously untapped markets, and since pioneering the low-fare concept in the Middle East, Air Arabia has also continuously expanded its reach through its three hubs, Sharjah, Alexandria, and Casablanca, across the region and beyond. “Our markets target strategy will remain in line with what the airline has achieved to date: focusing on markets that are most appealing to our customers, ensuring that we are where they want us to be,” explained Ali. Since its establishment in 2006, Jet4You, Morocco’s private low-cost airline, has also continuously expanded its network including to France, Belgium, Spain and Italy. Building on its success, the airline, which was integrated into Jetairfly in January, has outlined plans to further extend its reach, as Claude Perignon, CEO, Jetairfly Morocco, explained, “Jetairfly has a business model based on the transportation of package travellers and seat only passengers. Thanks to the very modern fleet and the professionals of the crew, Jetairfly is able to offer a perfect service for a very competitive price.” A number of European LCC’s have also extended their reach to the Middle East such as NIKI, which operates flights to a range of destinations within the MENA region including Morocco, Egypt, Tunisia, Jordan, UAE, and Saudi Arabia, and for the Austrian tourists, Egypt, which has long been one of the most important holiday destinations, as Thomas Krutzler, director of sales, marketing and network planning, NIKI, explained. “After a setback in 2011, resulting from the Arab spring, NIKI destinations in Egypt have been performing well in the current year,” Krutzler said. Likewise, TUIfly, which offers services from Germany to Egypt and Morocco, reported positive trends on both routes, noted Jan Hillrichs, press officer, TUIfly. Pegasus Airlines, which prides itself on operating a flexible pricing policy, offers a wide range of services between Turkey and the Middle East, and has, since having launched these routes, carried 150,000 passengers.  SEPTEMBER 2012

WHO'S MOVED

DENIS DERNAULT Denis Dernault has been appointed general manager of two properties in Egypt, namely Radisson Blu Resort, Sharm El Sheikh, and Park Inn by Radisson Sharm El Sheikh Resort. Since starting his career in 1980, Dernault has gained extensive knowledge in the hospitality industry, particularly with resort properties. Over the past two decades, he has held various food and beverage-related positions around the

world, from Bora Bora to Algeria and Ethiopia. He first moved to Egypt in 2006 and took on his first general manager role in late 2009 at Stella Di Mare Beach Hotel & Spa, his most recent position prior to joining Carlson Rezidor Hotel Group. Dernault graduated from Lyceé Hotelier de Paris with a degree in hospitality management. He also holds several certificates and accolades from Cornell University.

DONALD BREMNER Donald Bremner has been named hotel manager at Jumeirah Creekside Hotel in Dubai. Bremner joined Jumeirah in 2006 as director of front office services at Jumeirah Essex House in New York. He then moved to Dubai to serve as director of development, and later as asset manager for Longwing Asset Management, a subsidiary of Jumeirah Group, before joining the pre-opening team of Jumeirah Creekside Hotel. Prior to his move to the group, he

worked in various positions including operations analyst for Six Continents Hotels, New York, and worked for The Barclay, also in New York, as well as InterContinental San Juan Resort & Casino, Puerto Rico. Bremner received a Bachelor of Science from Aberdeen University in Scotland. As hotel manager, he will oversee the overall success of all major departments such as front office, housekeeping, and food and beverage.

JAVIER CID Javier Cid has taken over the position of director of operations at Bin Majid Beach Resort. Cid has more than a decade of extensive experience under his belt, having previously worked at properties in the Maldives, Cuba, Spain, and Peru. Prior to his appointment, he served as a hospitality consultant in Spain, where his responsibilities included a hotel opening and a boutique hotel project as well as managing a luxury restaurant. In his new position, Cid will be

overseeing and directing all aspects of the hotel operational departments which include the front desk service, food and beverage, and kitchen, housekeeping, engineering, security, purchasing and other relevant operating departments. His main goals include maximisation of hotel revenues and profits, minimisation of operating cost, and ensuring that the highest level of customer satisfaction is achieved.

ADRIAN HEARN Adrian Hearn has been appointed regional director of sales at Mandarin Oriental Hotel Group, the owner and operator of some of the world’s most prestigious hotels and resorts. Based in Mandarin Oriental Hotel Group’s regional sale office in Dubai, Hearn will head up the group’s sales strategy and efforts in the Middle East building on his extensive 20-year hotel industry experience. Having spent the past nine years

in the region, Hearn has gained deep knowledge and built up an excellent client base in the GCC market. Hearn, a graduate of University of Central England, joins the group from Hyatt Capital Gate Hotel in Abu Dhabi, where we worked as director of sales and marketing. Prior to that, he served The RitzCarlton for over six years, holding various positions in regional properties namely in Doha, Bahrain, and Dubai.

SEPTEMBER 2012

RENDEZVOUS

Q & A with Abdin Nasralla Translated from Arabic, Meydan means ’a meeting place’, conveying the company’s commitment to creating places where guests can come together and unwind in superb surroundings. Abdin Nasralla, vice president, Meydan Hotels & Hospitality, shares his views on the evolving guest’s expectations and the main factors behind the company’s success.

Trave Trade Monthly: What are the core values and principles of the brand? Abdin Nasralla: Meydan Hotels & Hospitality personifies warm, authentic yet modern Arabian hospitality; it also represents luxury, elegance, space, style, sporting action along with serenity. Whether it is a meeting of minds at a board meeting or a meeting of hearts at a wedding reception, The Meydan has unrivalled venues that makes it the perfect place to meet. One dynamic location , many possibilities, with facilities to host from 20 to over 4,500 in the flexible contemporary setting of The Meydan Grandstand.

desert landscape. The resort provides guests a unique traditional experience that is true to the culture and heritage of Dubai and the UAE. Al Hadheerah desert restaurant incorporates traditional Arabic fare amid the backdrop of rolling sand dunes. The recently enhanced and added heritage museum provides the mood of old Arabia, and blends perfectly with our range of exquisite outdoor dining experiences from slow-cooked Indian dishes to the

Abdin Nasralla Vice president, Meydan Hotels & Hospitality

Travel Trade Monthly: Located in the epicentre of what is considered one of the world’s most exciting destinations, The Meydan Hotel offers an ideal base for businessmen and holidaymakers alike. What aspects and unique facilities do you thinkmake the property stand out from the competition? Abdin Nasralla: The Meydan is a destination hotel, situated at the heart of the city, a few minutes away from every important aspect that travellers and businessmen need. We are 15 minutes away from Dubai International Airport, Dubai International Convention & Exhibition Centre as well as Dubai Mall, one of the biggest shopping malls in the region. In addition, the hotel’s great facilities include conference rooms and halls with great IT facilities, overlooking the golf course and Dubai city on the other side, easy access and bigger parking space that can cater to as much as 10,000 cars, a business centre at a luxury end, sporting games needed by a businessman such as 9-hole floodlit golf course, tennis academy, IMAX theatre, shooting stimulator, fitness club, and many more. Travel Trade Monthly: Which are the most popular facilities and the main markets of Bab Al Shams Desert Resort & Spa, the company’s other property? Abdin Nasralla: Bab Al Shams Desert Resort & Spa is an exclusive low-rise resort, offering the ultimate luxury hideaway and retreat destination. It is designed and built in a traditional Arabic fort setting, and is surrounded by gentle sloping dunes amid the natural

SEPTEMBER 2012

mouthwatering aroma of Arabic cuisines, provided from the live cooking stations. Here the mood of old Arabia is captured perfectly through the lively entertainment of belly dancers, henna artists, live bands, and falcon displays. The resort features a host of leisure facilities and activities, including a Satori Spa, with outdoor and indoor treatment rooms, a kid’s club, gym, various pools, horse and camel riding, and desert safari opportunities. Furthermore, guests can also enjoy table tennis, golf, croquet, La Petanque, archery, falcon shows, bicycle tours as well as kite flying. The main markets for the resort include the UAE and the GCC in general, furthermore Germany, UK and Asia. Travel Trade Monthly: With a large number of hotels and resorts in the development pipeline, the competition for guests continues to intensify in the UAE. What do you think are the main tangible and intangible factors that can make the difference for guests? Abdin Nasralla: The Meydan is a destination hotel, providing an array of leisure and sport activities, and Bab Al Shams Desert Resort & Spa is an award-winning unique, luxury hideaway retreat. Meydan Hotels & Hospitality prides itself on service and attention to detail, and it is imperative, these days, to stay one step ahead of your competitor, and provide an all-round experience for your guests. Travel Trade Monthly: Dubai is considered one of the most ‘cosmopolitan’ cities in the region, attracting visitors from all walks of life. Which are your main target markets and how do you intend to reach out to a wider pool of potential guests?

Meydan Hotels & Hospitality prides itself on service and attention to detail, and it is imperative in these days, to stay one step ahead of your competitor, and provide an all round experience for your guests

Abdin Nasralla: We work very closely with the Dubai Department of Tourism and Commerce Marketing, and attend the main trade and roadshows around the world. The UAE provides a wealth of vacation options for the luxury traveller, and is well-positioned to maintain its ‘must visit destination’ status. Leading shopping malls, highly recognised sports events along with top class hotels and fine dining options ensure the destination’s position on the global tourism map. Dubai is not only a superb stand-alone vacation option but it can also be combined with a trip to the Indian Ocean or Asia.

NEWS & EVENTS

DTCM Welcomes German Agents As part of its ‘Dubai Expert Programme’, the Department of Tourism and Commerce Marketing (DTCM), Dubai, organised a mega famtrip for agents from 100 German tourist companies. During their stay, the participants, who have already successfully completed DCTM’s e-learning course for marketing Dubai in Germany, received first-hand information about the destination while discovering the most interesting parts and attractions of the city, and visiting luxurious downtown hotels, as well as beach properties. Other than expanding their knowledge about Dubai, the visit also helped the participating agents to strengthen their sales and project planning, benefit from exclusive offers, get information on Dubai events and promotions, and be qualified for the Dubai Expert certificate.

Doha GOALS to Debut in December Doha GOALS (Gathering of All Leaders in Sports) Forum, the new initiative designed to develop the use of sport as a driver for social and economic change, is to be held in the Qatari capital on December 10-12. Government leaders, Olympic legends, and some of the world’s biggest sport sponsors gathered at Bayt Qatar, London, during the London 2012 Olympic Games for the launch of the initiative, developed by Aspire Zone Foundation and Richard Attias & Associates, which is aimed to build a community of hundreds of key influencers from all spheres of life who believe sport is a crucial vehicle for social and economic development. The Doha GOALS pre-forum in January was already a great success, and in December, heads of state, policymakers, innovators, non-governmental organisations and foundations, sports scientists, federation heads, corporate executives, and athletes are expected to arrive to Qatar for the event which will include plenary sessions, debates, and focused taskforces to facilitate constructive brainstorming. Through joint engagement and dialogue, delegates aim to build initiatives and partnerships for social improvement through sport.

EVENTS

Bayt Qatar, London