Travel Trade Monthly May 2013

MAY 2013

ISSUE 43

EXPLORE: CYPRUS Cyprus is a meeting point for East and West, Europe, and the Arab world, thus forms an idyllic source of culture and relaxation.

Lebanon’s emblematic cedars have long been a symbol of immortality, grandeur, and strength; values and characteristics that best describe the nation’s positive attitude towards a bright future.

17 IN THIS ISSUE MARKET UPDATE VIEW: Hotel Suppliers VISIT: Lebanon EXPLORE: Cyprus TOUR: South Korea ONSITE: Morocco EXCLUSIVE: Budget Travel INVESTIGATION: Private Aviation SPECIAL REPORT: Travelport WHO’S MOVED RENDEZVOUS TRAVEL TALK RENDEZVOUS NEWS & EVENTS

04 06 10 17 22 26 28 30 34 36 37 38 39 40

VISIT: Lebanon

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MARKET UPDATE

TRAVEL TRADE WEEKLY

MENA EXCHANGE RATES Accurate as of

MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel JOURNALISTS Stefanie Saghbini Rita Kasziba Dominique Christou Maria Kazeli PRESS Maria Demetriadou Pauline Shahabian DESIGN & LAYOUT Elena Stylianou DIRECTORS Andreas Constantinides Mary Kammitsi HEADQUARTERS T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607, Fax: +357 22 210466 WEBSITE www.traveltradeweekly.travel EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel PRINTED IN DUBAI Express Printing Services LLC, PO Box 10263, Dubai

24/04/2013 Currencies shown in red are fixed against the US Dollar

COUNTRY

CURRENCY

1USD=

UAE (AED)

Dirham

3.67

Egypt (EGP)

Pound

6.93

Saudi Arabia (SAR)

Riyal

3.75

Lebanon (LBP)

Pound

1,504.00

Bahrain (BHD)

Dinar

0.37

Jordan (JOD)

Dinar

0.71

Syria (SYP)

Pound

70.10

Kuwait (KWD)

Dinar

0.28

Qatar (QAR)

Riyal

3.64

Oman (OMR)

Rial

0.38

Tunisia (TND)

Dinar

1.61

Morocco (MAD)

Dirham

8.54

Iran (IRR)

Riyal

12,283.00

Yemen (YER)

Rial

214.55

Algeria (DZD)

Dinar

78.93

Libya (LYD)

Dinar

1.29

Etihad Airways: Best Ever First Quarter Etihad Airways registered its strongest ever passenger and cargo results for the first quarter (Q1) of the year.

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assenger numbers grew 18 percent to a record 2.8 million, lifting passenger revenues up by 19 percent to USD900 million, and average seat factor to 80.5 percent, well above the International Air Transport Association’s current global average of 77.1 percent.

With tonnage rising 20 percent to 101,776 tonnes, cargo revenues increased 17 percent to USD193 million.

“Our Q1 results have again outstripped global trends, with our strongest ever first quarter results for passenger revenue,” highlighted James Hogan, president, Etihad Airways, adding that this performance demonstrates that the airline’s strategy of organic growth, wide-ranging partnerships, and strategic equity investments is delivering for both Etihad Airways and its partners, as revenue from codeshare and equity partners jumped 34 percent to USD182 million, representing 20 percent of total revenue in Q1.

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Hotel Suppliers

Supply and Demand Chain  Maria Kazeli

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writes

Virtual Concierge

aturally laying great emphasis on the ways in which they can improve customers’ experiences, Middle Eastern hoteliers and management teams have become more sensitive to the needs of their

clientele and thus more conscious of the fact that they demand high-class services and ambience in every setting, this according to Ratish Pandey, general manager, India, Middle East and Africa, Bose.

Commenting on the company’s main activity, which is to provide sound for every application throughout a hotel, Pandey said, “Quality sound adds to the ambience and helps set the mood; it gets people to relax, linger, and, very often, come back. This has made the hoteliers conscious in the partners they choose for this offering.”

Another reputable supplier in the region is VingCard Elsafe, part of ASSA ABLOY Group, which provides numerous electronic locking system solutions, including traditional magnetic-strip, smartcard systems, and radio frequency identification (RFID) electronic locks.

An observation similar to Pandey’s was made

by Manit Narang, vice president, Middle East, Africa, and India, VingCard Elsafe, who concluded that the hospitality market in the region is driven both by a trend towards highly technological services together

The mechanisms and workings within the world of hospitality are important factors which directly affect customer service and the end-product presented to a hotel guest, with only a small portion of that hereby revealed by the industry’s insiders. with an increasing need for more minimalistic solutions regarding electronic locks, with a growing demand in integrating all-smart in-room applications into a single platform that offers wireless online capabilities.

Similarly, Onity is yet another global provider of electronic locking systems, which offers innovative technological solutions and services for the hospitality market, boasting products such as electronic locks, in-room safes, mini-bars, and energy management systems.

Echoing Narang’s point of view, Leire Iriberri, marketing manager, Europe, Middle East, and Africa, Onity, said, “Guests search convenience and ease of use when it comes to technology, therefore they appreciate a locking system that is ergonomic and that gives them quick access to their room.”

All-in-all, current trends in the region concern solutions focusing on economies of scale, according to Dimitris Kontinopoulos, CEO, GoldenB2B Hospitality, a business-to-business organisation headquartered in Dubai, providing advanced technology solutions and services to the hospitality industry with a focus on the areas of supply chain management.

Kontinopoulos also observed that there is an increasing pursuit of distributed and/or shared services, as well as providing consolidation and enterprise management.

Meanwhile, Jennifer Ferris, vice president, sales, Asia Pacific and Middle East, Safemark Systems, detects a distinct split in the market across the Middle East, with a segment looking for a very design-led product and others searching for a competitive package, both with the technology that provides easy management of the system and robust auditing, where authorised staff members opening safes are identified by name, guarding against potential theft and owner liability.

In addition, Reiner Kaltenbach, general manager, HARTMANN TRESORE Middle East, compared the European and Middle East markets stating that the latter requests bigger mini-bar models and top-end room safes due to high standards of the hotels in the region.

He added, “Besides that, the hoteliers in the Middle East prefer mini-bars with thermoelectric cooling technologies which are more energy efficient, environmentallyfriendly, and operate completely noise-free. Many of our clients in the Middle East also appreciate it if they can buy more than one product from one supplier, because this reduces their work load.”

GIVE AND TAKE Hoteliers have specific criteria for concluding towards the best choice and the suppliers play an  MAY 2013

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influential role in this field as Hirone Amarasena, director of information technology, The Ritz-Carlton, Doha, explained, “Suppliers must have sufficient product knowledge to deliver the right information on the product specification and a local representative is necessary in order to make after sales service easier. Skilled manpower is essential to support the growing needs of the industry.”

Regarding Internet and communication services, Amarasena commented, “Guests, especially global affluent travellers, are very demanding and technology has become a part of daily life, to be able to connect with the international community, so to meet and to be able to exceed their expectations on technology around the hotel will make their stay more comfortable.”

Similarly, Saeed Al Dashti, chief information officer, Jumeirah Group, said that when the team searches for a tender, it usually looks for a combination of technical, functional, and commercial aspects, adding that it is important to do business with companies that are like-minded and willing to invest in a mutually beneficial partnership.

Roger MacFarlaine, vice president, technology, Middle East and Asia, Mövenpick Hotels & Resorts, also attested that key elements for a service provider is flexibility, end-user satisfaction, and ease of use, along with strong presence in the region and

Hotel Suppliers experienced support staff. Furthermore, he advised, “Vendors and distributors in the region need to possess greater knowledge of the technology and service offerings they are representing or selling. [They] need to have greater presence in the region. Far too often many vendors only service certain countries in the Middle East. They need to extend their reach with more resources and offices.”

Hotel suppliers of the region owe to focus on accuracy and on time delivery, while product knowledge along with price competitiveness need to be at the forefront, according to David Hussy, director of engineering, Radisson Blu Hotel, Dubai Deira Creek.

Prasanna Rupasinghe, director of information technology, Kempinski Hotel Mall of the Emirates, listed some vital criteria in the process of choosing a service provider, such as supplier’s background; product/service offering; customisable products; quality approach; feedback from supplier’s clients; staffing and facilities.

Once more stressing the issue of accessibility, Sherif Sabry, hotel manager, The Torch Doha, suggested, “To serve better the Middle East hospitality industry, service providers and suppliers should focus more on product availability and accessibility. As major product suppliers are located outside the Middle East, their agents have to always provide accurate and specific information about their product/service range, align their prices comparatively with other GCC countries, and improve delivery times.”

GOING GREEN Energy saving and environmental consciousness is becoming an issue for hoteliers in the region, since they are under pressure from guests pushing for quantifiable commitments to going green, and corporate clients have begun to request information about hotels’ environmental practices as a business condition, as Iriberri reveals.

Kaltenbach corroborates this view, adding that energy saving, which equals cost saving, is a big topic for hoteliers in the region, while a related trend emerging is that more and more hotels implement green initiatives.

He highlighted that

this is reflected in an increasing demand for HARTMANN TRESORE’s thermoelectric mini-bars, as big savings are enabled by the use of the thermoelectric cooling technology which allows the conversion of electrical power directly into energy for cooling.

In addition, Narang explained that a new range of energy management solutions are on offer, such as Orion by VingCard Elsafe, which dramatically helps hoteliers save resources while ensuring guest comfort and promoting green initiatives.

Commenting on the environmental issue, Al Dashti said, “Helping Jumeirah’s guests to reduce their carbon footprint is important to us and we want to do this in a way that it does not compromise the luxury experience that we are known for.”

Middle Eastern hoteliers and management teams have become more sensitive to the needs of their clientele Rupasinghe agreed, suggesting that sustainability and energy-saving are important to Kempinski Hotel Mall of the Emirates, and is reflected in the way management selects and collaborates with suppliers.

Sabry added that The Torch Doha is also continuously working on green initiatives and is in close collaboration with bulbs suppliers to manage energysaving, cost-saving, and lessen heat emission.

FOCUSING ON PRIORITIES In a field of endless options, hoteliers base their choices upon their guests’ needs, and offering the best possible service to the customer has always been a top priority in the Middle East, with extras such as free Internet access or in-room entertainment as very important factors, this according to Iriberri.

In her view, times are changing and other aspects are also becoming vital; the market is becoming more price sensitive, with hotels needing to adjust costs in order to continue being competitive, and, in turn, revenue management and energy saving become imperative.

Along the same lines, Rupasinghe believes that the hospitality industry has changed dramatically over the past few years and in an increasingly complex and competitive environment, hotels are forced to achieve greater customer advocacy, retention, and loyalty, which translates into improved financial results and sustainability.

“In our industry, there is a relative lack of thirdparty providers who can deliver comprehensive solutions. […] The resulting fragmentation of systems and vendors has imposed significant costs and inefficiencies on hotel operators. At the property level, it requires high levels of management effort and resources to manage the multi-system, multi-vendor environment,” Rupasinghe added, concluding that effective inter-vendor cooperation and global systems integration standards would certainly benefit the industry.  MAY 2013

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Lebanon

UNDER THE SHADE

OF CEDARS Byblos

Cedars

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

Lebanon’s emblematic cedars that have inspired poets, artists and unusual experiences for centuries, have long been a symbol of immortality, grandeur, and strength; values and characteristics that best describe the nation’s positive attitude towards a bright future.  Rita Kasziba writes

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oasting a unique charm that appeals to both Arab and international travellers, Lebanon has long established itself as one of the Middle East’s most popular destinations, which at the same time, has also proven to be one of the most vulnerable states in the region, in terms of tourism, with visitor volumes declining from over 2.17 million in 2010 to 1.66 million in 2011 and 1.36 million in 2012.

Challenging is the word that best describes the year 2012; a challenge that has extended into the current year as well, as Rana El Khoury, general manager, Le Gray Beirut, noted, saying that the significant drop in tourist arrivals has greatly affected the Lebanese tourism industry.

Along parallel lines, Maha Bourachi, director of sales and marketing, Mövenpick Hotel Beirut, noted that although 2012 started on a positive note, following political incidents and travel warnings out of the GCC countries in May 2012, Lebanon has witnessed a major downturn in business results.

In order to keep occupancy levels on a healthy level, some hoteliers opted to offer more competitive prices, as Ghassan Naaman, general manager, The Monroe Group of Hotels, explicated. “The first five months of 2012 were good, after that […] business dropped significantly and the price war started among the hotels to try to get business to survive.”

Revealing a similar scenario, Mohammad Zein, director of sales and marketing, Golden Tulip Galleria, Beirut, said, “The hotel occupancy was good for the first six months, then the whole destination was affected by the situation in Syria, which also  MAY 2013

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affected our business for the second part of the year since Syria and Jordan are our main feeder markets.”

Further delving into the main reasons behind the weakening figures, Mona Fares, head of promotion department, Ministry of Tourism, Lebanon, explicated that the decrease in arrivals is strongly associated with a steep decline in tourist flow, particularly from the traditionally strong Jordanian market, across the land border passageway at Al Masnaa on the Lebanese – Syrian frontiers.

Similarly, Daniel El-Nouni, general manager, Casa d’Or Hotel, Beirut, attributed the negative figures to the setback in arrivals from markets that mostly used land transport to cross the border, including Jordan and the Gulf nations, and to travel warnings issued by the US and numerous European countries advising travellers to refrain from visiting Beirut.

Illustrating the scale of the challenges faced by the Lebanese tourism industry, Maya Abi Karam, sales manager, Le Bristol Beirut, pinpointed that November 2012 witnessed the lowest occupancy rates in the capital city since May 2008, at around 35.1 percent, after figures began to plummet in the second half of the year.

SHIFTING FOCUS “Lebanon is positioned globally as a leisure destination,

Lebanon

so in the absence of safety and security, travellers will not come,” said Bassam Bou Sleiman, deputy general manager, Riviera Hotel, Beirut, highlighting the country’s heavy dependence on leisure travel which has thwarted Lebanon from weathering the challenges, reinforcing, at the same time, the corporate and events sectors’ crucial role.

“Leisure travel is the sector that got mostly affected while business travel continues to thrive; that is why we noticed that drop in the Gulf markets and stability in the others with a lot of attractions in Lebanon still offering European and American investors [opportunities] in the fields of construction and development in the country’s infrastructure as well as in [projects related to] the recent oil and gas ambitions,” remarked El-Nouni.

Correspondingly, hotels relying on corporate and MICE business were able to maintain healthier performance levels with Zein stating that besides leisure groups, Golden Tulip Galleria Hotel has developed a strong base of corporate accounts, and also continued to attract international incentive organisations as well as crews, taking advantage of the property’s close location to the airport.

As Janet Abrahams, cluster director of sales and marketing, Phoenicia Beirut and Le Vendôme Beirut, InterContinental Hotels Group, also noted, despite a

drop from the GCC markets after May 2012, a rise in corporate and meeting business, for which Pheonicia Beirut is well-positioned, has helped uplift occupancy levels and bottom line sales. “The impact was felt during the seasonal GCC holiday periods over the year. Increases from corporate business and meetings business during the same period were reflected in a change of nationality mix with increases from Europe and the region,” explicated Abrahams.

In a bid to position the destination as a prime business and MICE destination, travel and tourism professionals have been busy developing new partnerships and markets, as Eddy Chahine, director of sales and marketing, Le Commodore Hotel Beirut, explained, saying that the hotel’s tactical sales initiatives and tactical approaches have helped compensate for the losses. “Our team and sales force in particular are being pro-active whilst in the field to assist in identifying leads from different corporate segments which represent the core business for this period,” he said.

The change in market dynamics has been apparent both across sectors and geographically, with the focus shifting towards new markets, after visitor numbers from the traditionally strong feeder markets dipped with Naaman announcing a 90 percent decline in business volumes from the Gulf countries, and El Khoury revealing a 55 percent drop in guest 

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numbers from the Gulf and Arab countries.

Reporting similar trends, Bourachi remarked on a shift in tourist flow from the GCC countries to markets such as Iraq, Turkey, as well as Syria, adding that Russia is another market with promising potential.

“These are key markets for Lebanon as they have not imposed travel bans on the country and there no visa restrictions whatsoever for them,” she clarified.

El Khoury also shed light on the importance of aiming for new clientele altogether, and reaching out to a wider audience, as she highlighted, “We have recently begun to target new markets such as Asia and Eastern Europe, where we have attended, for the first time, the Moscow International Travel Trade show in March.” She further revealed that following the hotel’s participation in the World Travel Market in São Paolo in April, the management hopes to tap into the similarly lucrative South American market, as well as the Turkish luxury traveller which is equally viewed as a potential to the hotel.

El-Nouni corroborated that penetrating new markets is crucial if the industry is to regain some of what has been lost, and North Africa, Iraq, Iran, Turkey, and Russia are also among the markets that hold promise for the future.

Similarly, after losing a notable share of the highend GCC, European, and Asian markets, Rana Younes,

Lebanon

marketing manager, Coral Beach Hotel & Resort, considers Syria and Iraq as the hotel’s main feeder markets and by having a strong presence at a number of prestigious international exhibitions, the management aims to exploit new markets, especially in Europe, as Younes explained.

Hadi Akl, general manager, Bella Riva Suite Hotel, further elaborated on the European market’s potential as well as Syria, explaining that by offering special rates for long-stay guests, the hotel received significant interest from the neighbouring country. “We are also involving ourselves in the European market through online booking systems offering and displaying a variety of discounts and promotional offers to keep ourselves steady in this hustling competition,” he stated.

Highlighting the vast Lebanese expatriate market’s vital role, Abrahams added, “In leisure markets, we saw an increase from Lebanese living outside the country and specialist small groups looking to discover a new destination from Europe and Asia.”

Likewise, despite the overall drop in business volume, the industry has continued to benefit from strong demand from the domestic market, as well as the buoyant expat segment, as Joanne Zarifé, marketing communications manager, Eddé Sands Hotel & Wellness Resort, suggested, revealing that while in 2011, the Lebanese market represented 50 percent of the hotel’s total guest volume, in 2012 this figure shot up to 90 percent. “Eddé Sands was able to compensate the lack of tourists through its focus on the local market. [...]

We are also working on attractive packages targeting the expat community working in the Middle East, including Europeans, Americans as well as Australians,” added Zarifé.

Travel professionals, however, remain confident that once security is restored, Lebanon should regain its former glory as one of the most preferred destinations among Arab travellers, therefore Lebanon, as Fares explained, remains committed to its strategy of penetrating new markets, rather than relinquishing certain areas in the favour of others.

“In line with our policy of opening new

promising markets, we have entrusted a public relations company with the task of studying the European markets. We have began with France and Italy and we are also working on the Russian market by introducing Russian press delegations and travel agents in Lebanon,” Fares further disclosed, adding that in a bid to tap into the equally lucrative Latin American market, the Ministry has already conducted two roadshows, and also participated at the World Travel Market Latin America 2013 in Brazil last month.

“There is also a plan to organise roadshows to the Arab states again, in addition to countries with Lebanese emigrants in Africa, as well as Australia and Canada,” he revealed, describing the expatriate Lebanese market as an everlasting reserve for the country’s tourism sector. “The fact is that the Lebanese expatriate is a generous tourist who does not care about circumstances, nor does he consider the image of the country which is his native country.”

50/50 The industry’s fast recovery is indeed crucial to Lebanon’s socio-economic development, as it currently accounts for 9.3 percent of the country’s GDP and supports over 120,000 jobs, based on the World Travel & Tourism Council’s data.

Currently, the World Economic Forum (WEF) ranks Lebanon as the world’s 69th destination in terms of travel and tourism competitiveness, and the eighth in the MENA region, outperforming a number of other popular regional holiday spots such as Egypt or Morocco. Demonstrating the significant volume of economic activity associated with the industry, the Lebanese people’s positive attitude towards foreign travellers, and the appreciation of the value of the country’s attributes for tourism, Lebanon topped WEF’s latest list out of all the 140 countries for its affinity for travel and tourism.

Fares reassured that the Ministry remains committed to promoting the country and to projecting a positive image both regionally and internationally.

“The best way to improve the tourist flow to Lebanon resides in the amelioration of the country’s image. [...]

We are exerting continuous efforts to reflect a positive and secure image of Lebanon through active participation in international events and conferences.”

In a bid to revive the industry, earlier this year the Ministry, in partnership with some of the country’s most prominent companies, rolled out a campaign offering 50 percent discount on airfares, hotels, and car rentals, as well as at restaurants, shopping outlets, and various other services for 50 days for visitors from 13 different countries from the GCC region, Europe, as well as Latin America. The initiative, which received a broad interest both regionally and internationally, is set to become a permanent feature on the Ministry’s agenda, as Fares explained.

Although hoteliers agree that such initiatives play an accelerating role in re-invigorating the industry, security remains the key word, as Bou Sleiman explained. “Like other hotels, we at Riviera have  MAY 2013

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participated in this campaign, but due to the political and security instability in the country the campaign did not give a boost to the tourism industry. Such campaigns need proper environment of safety and security to achieve a remarkable effect,” he said.

Sharing similar views, Zarifé further highlighted that as tourists become more price-conscious, they base their decisions mostly on the quality of the product, price and overall security of the country. “Nevertheless, whatever effort made to promote Lebanon as a destination will create a positive dynamic that will end up motivating hospitality professionals and developers,” she stressed.

Bourachi agreed, claiming that such campaigns encourage travel to the destination hence should be continued.

Praising the Ministry’s efforts, El Khoury further noted that the campaign helped Lebanon as a destination to offer full discounted packages and gave an exposure, along with the marketing campaign, targeting the destination’s main markets. “This initiative is a valuable tool to keep Lebanon on the tourism map and assist in communications to potential travellers that Lebanon is a safe destination that still offers the best service in the region,” asserted El Khoury.

Besides raising awareness, these campaigns are expected to bring long-term benefits to the country,

Lebanon

as Chahine, highlighted, and Akl concurred, adding that projecting a positive image of the destination assists both the tourism industry and the country as a whole. “This does not only help for the time being but since we are being noticed and considered [...] this will possibly encourage people to pass the word to others and increase interest.”

BACK TO THE FUTURE Some of the country’s most prestigious hotels and resorts have already embarked on major renovations, including Le Bristol Beirut, which, as Abi Karam informed, is expected to complete the project by the end of the year.

Others plan to add new facilities and upgrade their existing offerings in order to capture a larger share of the regional tourism sector as the industry continues to tackle the challenges in a bid to reinstate investors and developers’ trust.

Warwick Pangea Beach Resort & Spa is set to welcome its first guests on May 1, with the property expected to become fully operational early June. Located on the coast of Jiyeh, a special vacation area south of the city, the resort will offer 57 rooms, six spacious suites and 22 private bungalows, further to a plethora of services and amenities, including a variety of water sports and an on-site spa, just to name a few.

“The resort caters for all types of clientele, [be it] leisure, corporate, government, diplomats, honeymooners, couples or families,” explained Ali Serhan, general manager, Warwick Pangea Beach Resort & Spa. The seaside town has also been chosen

by Golden Tulip MENA to launch its new property, with the 152-unit Golden Tulip Jiyeh Marina Resort due to open its doors on June 1.

“Our ambition is nothing less than to create the best hotel and resort in Lebanon,” stated Paul Diab, director of operations, Golden Tulip MENA, who expressed confidence in the outstanding property and its experienced team which, he believes, will deliver.

Moreover, managed by locally-based Landmark International

Hotels (LIH), Veer Boutique Hotel & Resort is slated for opening in May. Labelled as an avant-garde luxury property, it encompasses 21 suites, four villas, four underwater bungalows, nine beach villas, and a Royal Suite, in addition to a variety of food and beverage and leisure facilities. Firas Mneimneh, president, LIH, described this novel property’s target market as the high-end clientele which wish to experience something that has not been available in the region yet.

“Our expectations are very high,” he stated, further expressing his confidence in the project’s capabilities and success.

Similarly, professionals working across the various sectors under the tourism umbrella agree that once the same circumstances of 2010 are ensured, the industry should be able to return to the growth path.

During 2012, Rafic Hariri International Airport welcomed over 5.96 million passengers, compared to 5.6 million in 2011, and so far this year, passenger volume has exceeded 2012’s performance levels with figures for the first two months of the year reaching 867,970 versus 809,562, as Middle East Airlines continues to bring in travellers from all over the world.

Voicing her confidence for the season ahead, Fares said, “[The Ministry] expects the total number of tourists this summer to reach 1.5 million.”

Hoteliers working across the country expressed cautious optimism, with business levels projected to remain under 2010 levels, although, as Bou Sleiman noted, the upcoming elections in June are hoped to foster stability and give a boost to the country’s tourism industry.

Addressing her fellow colleagues, Younes said, “Our message for all our colleagues is that Lebanon remains a safe, diversified, and discoverable destination. The country has so many things to offer from ecotourism to religious tourism, nightlife tourism, and beach tourism. We count on your support to have a great year.”

Similarly, Akl anticipates a seven to 10 percent improvement in arrivals and remains hopeful that the coming months will deliver figures beyond expectations.

Conveying similar views, Zarifé added, “After all, we Lebanese may approach every season with a lot of angst and uncertainty but we are always ready and prepared for a high tourist flow as the situation always ends up better than expected.”

Citing the past as an example, El Khoury noted that given the complexity of the Lebanese market, improvement can occur overnight. “The country witnessed a surge in business back in May 2008, following the Doha agreement, occupancy rates jumped back then from 30 to 90 percent within one week. [...]

The key is to remain sustainable and be ready for the sudden surge in business.”

On behalf of the Ministry of Tourism, Fares concluded, “Our message is that Lebanon remains the country of tolerance, diversity and human wealth.

It is a country that creates in us a permanent dream and wishes to return and visit it again. So welcome to Lebanon.”  MAY 2013

Cyprus

Crossroads of Culture  Maria Kazeli

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ccording to data provided by the Cyprus Tourism Organisation (CTO)’s Middle East and Arabian Gulf Office, the island received 60,370 visitors from the MENA region in 2012, surpassing the 60,000 range for the first time in the island’s history. The overall increase reached 7.3 percent compared to 2011, while the main growth was observed from Lebanon, which registered a rise of 18 percent year-on-year.

Vassilis Theocharides, director, Middle East and Arabian Gulf Office, CTO, expects these numbers to boost this year, with additional charters being launched from Lebanon, attributing this optimistic prediction to the country’s highlights. “The main trigger is still our fantastic clean beaches which lure the Middle Eastern traveller, as well as the family aspect of Cyprus and the proximity,” he said.

CTO’s branches across the Middle East have been active in showcasing the island by launching various initiatives, with a promotional road show to the UAE in late

MAY 2013

Boasting some 300 days of sunshine, along with sea and mountain views of unparalleled beauty, Cyprus is a meeting point for East and West, Europe, and the Arab world, thus forming an idyllic source of culture and relaxation.

CYPRUS IN BRIEF Capital: Nicosia

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have been successful in producing steady year-on- year returns; traffic from Lebanon increased through charter flights to Paphos; the Iranian market, which CTO was also targeting, contributed to the overall visitation figures; and the civil marriage segment, one which CTO has had its sights set on since 2007, also proved beneficial.

Middle East visitors are coming to Cyprus because it is safe, and security is a main concern for them especially for family vacations, claimed Yiannis Michaelides, director general, Association of Cyprus Travel Agents (ACTA).

He further commented that the sun and sea product, together with the mild climate, and the fact that Cyprus is the nearest European country to the Middle East, with some common cultural characteristics, are crucial factors that draw visitors from the region.

INLAND HOSPITALITY

Currency: Euro (EUR) Language: Greek

March among its latest effort. The 10-strong delegation of travel industry professionals covered Dubai and Abu Dhabi, while Cypriot presence was reinforced at the Gulf Incentive Business Travel & Meetings (GIBTM) exhibition held in Abu Dhabi between March 25-27.

According to Theocharides, the authority’s efforts

“The hoteliers of our island, primarily of the higher categories, are catering very adequately for the needs of Middle East travellers in all respects, as they have demonstrated so in the last decades. This is also verified by the fact that the percentage of repeat holidays to our island from the Middle East region has been growing in the recent years, a trend that also explains the increasing frequency of flights to our island, especially from the UAE,” elaborated Zacharias Ioannides, 

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director general, Cyprus Hotel Association.

Echoing Theocharides’ comments, Ioannides referred to the increase in arrivals from Lebanon stating that the potential of that market should not be underestimated.

Hilton Cyprus, situated in downtown Nicosia, is a favoured hotel for all the business travellers from the Middle East, according to Claire Sirrieh, business development manager, Hilton Cyprus, who explained that this segment is expanding with future potential, especially after the gas prospective, adding that the Middle East is already an important market for the country with high-end leisure and business clientele.

Another property enjoying the advantages of being at the heart of the capital is Cleopatra Hotel, located within walking distance from governmental offices, major commercial, cultural and entertainment establishments, next to trendy shops, bars, and restaurants, as Christiana Iacovidou, general manager, Cleopatra Hotel, explained.

She went on to analyse the Middle East segment saying that it is a traditional market for the hotel and one that has potential for the future, due to the close proximity to the island and the business relations created with Cyprus’ neighbouring countries.

Iacovidou revealed that the Middle East market currently contributes to 10 percent of the property’s revenue, and stated that this figure could rise, as she described Cyprus as a tourist escape for short breaks or

Cyprus

long holidays, as well as a business harbour for travellers from the region.

Semeli Hotel, Nicosia, reached its peak in November 2012, with occupancy levels reaching 75 percent, according to Nicolas Nicolaou, general manager, Semeli Hotel, who admitted that even though the Middle East is not a main source market, it is a promising one since the management gradually builds more corporate relationships that can lead to the segment’s contribution to the property’s annual occupancy.

“I definitely believe that the Middle East can evolve as an important market for Cyprus’ tourism industry both in terms of business as well as leisure travellers. Cyprus’ geographical location can definitely attract more investments from the growing Middle East market and Cyprus culture and natural beauties will definitely attract more guests for leisure,” he proclaimed.

PROMOTIONAL EXPERTISE In its first year of operations into the region, Melody Travel welcomed 500 tourists from the Middle East, originating from the leisure, weddings, business, and family holiday segment, according to Michalis Panagiotou, general director, Melody Travel, who added that good weather, hospitality, value for money, and friendly people are Cyprus’ major assets attracting the Arab clientele.

Antonis Orthodoxou, group marketing director, Orthodoxou Group, revealed that 2012 saw 5,000 visitors from the Middle East, with the majority being from the leisure segment. Aside from the usual reasons sited by many as Cyprus’ attractions, Orthodoxou explained that many Arab visitors come to the island for real estate investments. “We must offer cheaper packages and, most importantly, we must enrich our tourist product with quality hotel units and services in order to meet their needs,” he advised, adding that there is a demand for entertainment venues and the recent bill forwarded in the parliament for creation of a casino is a positive development.

The need for additional leisure facilities was also stressed by Astero Efstathiou, senior manager tourism, Louis Travel, who said, “In my opinion creating further family attractions such as amusement parks, golf courses, and developing the mountains tourism industry more (infrastructure and hotels) will definitely help to attract more tourists from Middle Eastern countries. Weddings and honeymooners is also a segment that can be developed further.”

COASTAL SPLENDOUR Boasting a record year in 2012, with the highest occupancy to date, St Raphael Resort, the five-star 

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seaside property in Limassol featuring its own marina, recently celebrated its 25th year anniversary.

Farah Shammas, business development director, St Raphael Resort, advised that it is important for the Gulf region to view Cyprus as a destination for longer holidays as well as weekend breaks and also recognise the great potential in visits to the island throughout the whole 12 months of the year, as the weather is wonderful with much on offer at various periods in the year.

Shammas reiterated, “I think that the Middle East has always been an important market for Cyprus and will remain one. I hope that over time, more travellers from the Middle East will visit the island for longer holidays and also over the beautiful winter months when the temperature is actually ideal for touring the island and air fare is more reasonable.”

Meanwhile in Paphos, Thanos Hotels’ properties include the five-star Almyra and Annabelle, alongside the latest addition, Anassa; a five-star deluxe property occupying a secluded spot on the edge of Akamas cape, all of which have family areas, kids clubs for all ages, areas for services or prayer rooms which can be arranged upon request, as well as specific food requirements, this according to Sophia Liveras Atallah, sales manager, Thanos Hotels. “[Cyprus is] the perfect short stay spot, with flight distances ranging from 22-minute to four-hour with

Cyprus

daily direct flights. We have great weather all year round, without the intense heat of many Middle Eastern countries, our culture is hospitable, friendly, and non-intrusive to the individual; a safe island where families and women can walk around at any time, feeling totally safe with no sense of danger. We have cultural areas, night life areas, and an increased number of shopping areas too [...],” she assured.

Another property catering to discerning travellers is Ayii Anargyri Natural Healing Spa Resort, set in a valley of mature trees, offering guests an exclusive unique retreat with the opportunity to enjoy thermal healing waters, suites or classic rooms, dedicated spa facilities, a swimming pool, and conference facilities.

Nafsika Michael, sales manager, Z&X Group, an affiliate company which handles marketing issues for the resort, revealed that Ayii Anargyri Natural Healing Spa Resort is becoming more popular with locals and foreigners, due to its unique services, having recorded approximately up to 5,500 bed nights in 2012, with its main markets hailing from Cyprus, UK, Germany, and Netherlands. She hopes that this year the resort will also welcome clients from the Gulf region. “Middle East is not one of our main markets yet, but this is something that we do aim to happen. We started co-operation with some tour operators and travel agents and we will start participating in various exhibitions,” Michael continued.

ENHANCEMENTS An exclusive waterfront development in Cyprus is Limassol Marina, designed by a worldrenowned team of architects and engineers.

Just a stroll away from the heart of Limassol, it combines elegant residences and a state-ofthe-art marina with exclusive restaurants and shops. With the turn of the year, Nereids Residences, the first luxury apartments at Limassol Marina, were delivered to their owners, marking the beginning of the project’s operation.

“Limassol Marina offers something incredibly unique, in a destination that is both familiar and easily accessible to the Middle East. Unlike other markets, the interest in our product from the Middle East shows a great appeal for both living in Limassol and cruising in the Mediterranean.

We seem to be attracting yacht owners who are also drawn to the concept of owning a property in a European city in close proximity to their yacht,” elaborated Sophia Paraskeva, public relations officer, Limassol Marina, who further expects the Middle East to play a vital role in the country’s tourism industry, which, as a result of large scale projects like marinas and golf resorts, is improving in calibre and has a positive impact on the local tourist product.

Furthermore in the nautical field, Cyprus’ Department of Fisheries and Marine Research (DFMR), in line with its overall marine strategy, is planning to enrich four areas on the island’s coastal perimeter with artificial reefs in order to enhance fish stocks by increasing habitats and protecting the surrounding aquatic environment.

According to Giorgos Bayadas, fisheries and marine research officer A’, Marine Environment Division, DFMR, the project is expected to serve objectives such as diving tourism, snorkelling, awareness raising, environmental education, and scientific work, while it is scheduled for completion this year. “The flow of tourism and visitors in general, is a factor that we have seriously considered.

Our intention is to raise awareness among stakeholders and encourage other potential interested organisations to take advantage of the artificial reefs,” he concluded.

Moreover, Zening Resorts Elia Village Latchi is a new wellness resort set to launch this month. According to Vaida Rickute, marketing director, Zening Resorts, the GCC and Middle East are extremely important markets to the resort, for expats as well as sophisticated Arab travellers who seek new experiences, suggesting that the wellness concept has strong appeal to the specified markets.

In addition, Limni Bay at Polis Chrysochous is another ambitious project in the Mediterranean country, which will consist of two 18-hole signature golf courses with one clubhouse for each, an international chain luxury hotel, a wellness centre, independent villas, and other residential units.

CONNECTING THE SKIES The island’s flag carrier, Cyprus Airways, serves a network covering over 20 destinations in Europe and the Middle East and Gulf areas, further connecting destinations in the neighbouring region, including Abu Dhabi, Bahrain, Beirut and Dubai, in cooperation with its Middle Eastern codeshare partners.

In September 2012, Gulf Air announced the expansion of its existing codeshare agreement with Cyprus Airways, whereby passengers of Bahrain’s national carrier can benefit from better and faster connections via Larnaca.

Moreover, Etihad Airways optimised the CyprusUAE flight schedule in October 2012, with the airline operating three weekly services between Larnaca and Abu Dhabi, in a two-cabin Airbus A320 aircraft offering 816 seats a week.

In a more recent development, Emirates upgraded its aircraft size to a larger Boeing 777-200 in January, in order to meet the growing demand on the Dubai-Cyprus-Malta service. Emirates currently flies daily to Larnaca.  MAY 2013

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TOUR

South Korea

Topping Tourism Levels  Dominique Christou writes

F

igures released by World Travel & Tourism Council (WTTC) show that the entire region of Asia led the global travel and tourism growth in 2012, with a 7.3 percent year-onyear increase in Southeast Asia and a rise of 6.3 percent in Northeast Asia, while South Asia saw a jump of four percent, compared with a contribution to GDP of just 0.4 percent in Europe.

South Korea certainly felt the influx of tourism to and throughout the region during 2012, having welcomed over 11 million international tourists, following what David Scowsill, president, World Travel & Tourism Council (WTTC), described as a difficult 2011, in which it saw a drop in the number of people travelling from Japan due to the earthquake and tsunami.

“In the G20 nations, South Korea outperformed all others in 2012, with total travel and tourism growth in contribution to GDP of 10 percent and an increase in total visitor spending of 38 percent,” Scowsill illustrated, attributing its rising international profile to

South Korea is home to a number of World Heritage Sites which attract numerous visitors throughout the year, in addition to its traditional culture, offering visitors from all around the globe a plethora of activities and exciting tours to experience.

SOUTH KOREA IN BRIEF Capital: Seoul Currency: South Korean Won (KRW) Language: Korean

some of the world’s leading global organisations and to major events including the 2012 Formula 1 Korean Grand Prix and Expo 2012 Yeosu.

According to Korea Tourism Organization, the East Asian country saw the arrival of over one million international tourists this March, topping the one million mark for the second time in its history; the first instance having been reported in July 2012.

Strong contributors were seen from the Chinese, Thai, and Singaporean markets with the former swelling 50 percent compared to March 2012.

With prospects for these results to excel well into the remainder of this year, WTTC is holding its regional Asia Summit in the capital Seoul on September 1011, which will bring together travel and tourism leaders from around the world to engage in lively debates around current issues and future trends.

“The summit will have a pan-Asian focus and address economic and travel-related issues, which are of vital importance to one of the world’s most important travel and tourism regions. Leaders in the region are really keen to stay ahead of tomorrow, and see how countries can find innovative ways to help increase tourism benefits and work together to facilitate sustainable growth,” Scowsill said, stressing that due to the 

Seoul

In the G20 nations, South Korea outperformed all others in 2012, with total travel and tourism growth in contribution to GDP of 10 percent and an increase in total visitor spending of 38 percent MAY 2013

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TOUR

country’s success in tourism results in 2012, Korea is the perfect place to host the event.

REMAINING POSITIVE Jade Kim, marketing communications manager, Hyatt Regency Jeju, feels positive this year, in terms of performance figures for the property, although this may be influenced, she warned, by South Korea’s current political climate with North Korea.

She further noted that about 80 percent of Hyatt Regency Jeju’s guests used to be domestic tour

South Korea

groups organised by travel agencies, but indicated that the recent GDP growth and changes in consumer behaviour have rapidly increased the number of individual family-orientated tourists.

“Hyatt Regency Jeju has something to offer families, social events, business meetings, banquets, and seminars,” she said.

In addition, she mentioned that the Jeju government has been actively attracting various domestic and international events, and that currently there are many large-scale events taking place in the province, with Hyatt Regency Jeju hosting various international MICE groups.

“We have a large size Regency Ballroom and Terrace Ballroom where one can enjoy the views of the ocean. Hyatt Regency Jeju’s banquet facilities are ready for all types of events with its state-of-the-art equipment and various services for all different type of events,” she added.

Moreover, with its ideal location just five minutes from Jeju International Convention Centre and 15 minutes from Seogwipo World Cup stadium, the property wins the hearts of both free independent travellers (FIT) and businessmen alike, Kim pinpointed, revealing that the hotel has been developing various package products targeting FIT domestic tourists in order to create more consumer demand and increase its brand

value and preference.

Furthermore, Bernhard Brender, general manager, Grand Hilton Seoul, highlighted a particularly slow start to the year for the hotel in comparison to 2011, mainly down to media speculation regarding the Korea crisis, affecting the hotel’s overseas customers.

Despite the downfall in international arrivals, Brender optimistically commented, “Our local guests are still very loyal and we maintain the same, if not a higher, standard of service. For the remainder of the year it is hard to tell what to expect at this moment because we have many things planned and on the books, but things can change at any time at the moment. We are staying positive and planning for the future hoping that nothing happens with out northern neighbours.”

In order to keep visitor levels positive, the hotel

The East Asian country saw the arrival of over one million international tourists this March, topping the one million mark for the second time in its history has renovated its 396 guest rooms and now, as Brender pointed out, has the most luxurious and comfortable rooms in the world. “Our strategy for this year is to focus on the MICE market, targeting the Middle East and North Africa regions,” Brender continued Anticipating what he described as a strong second half to the year, despite witnessing a challenging period so far, is Deepak Subbaiah, director of operations, Millennium Seoul Hilton, who indicated that in order to boost the country’s tourism, hotel operators can work with the national tourism board and MICE organisations to increase visibility in current and potential markets, in addition to investing in infrastructure and services catering to niche market segments.

“They can also make the effort to understand cultural differences and preferences when attempting to attract tourists from a certain potential market,” Subbaiah concluded.

Moreover, Hyatt Hotels Corporation recently opened of Park Hyatt Busan, the 10th Park Hyatt property in Asia Pacific and the second Park Hyatt hotel in Korea, following Park Hyatt Seoul. “This opening is a true reflection of the ways in which Hyatt continually aims to become the most preferred brand in every segment we serve, and it also shows the thoughtful growth of the Park Hyatt brand into areas in which we know our customers are travelling,” said Larry Tchou, group president, Asia Pacific, Hyatt Hotels Corporation.

As the second largest city in Korea, Busan is a wellknown international hub in Northeast Asia, boasting what Tchou described as a booming hotel scene thanks to its increased international conventions and festivals. “We look forward to welcoming travellers to Hyatt’s luxury brand that offers sophistication, style, and intimate experiences,” he concluded.  MAY 2013

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ONSITE

Morocco

A Land of Wonders

MOROCCO IN BRIEF

 Dominique Christou writes

Language: Arabic

I

n 2012, Morocco received some 10 million tourists while 4,000 new rooms were added to the country's hotel room inventory, this according to Camille Geha, chief operating officer, Amphitrite Palace & Resorts Spa, who brought to light the destination’s resistance to the decrease in global travel trends, thanks to a growth of 3.5 percent in national tourism during the year under review.

The total contribution of travel and tourism to the country’s GDP in 2012 reached MAD158.2 billion (USD18.5 billion), as published in World Travel & Tourism Council’s Economic Impact Report 2012; a figure which is expected to increase by 6.7 percent this year, and to reach MAD287 billion (USD) by 2023.

SPOILT FOR CHOICE The beginning of the year for Amphitrite Palace & Resorts Spa was quite challenging, however, as Geha depicted, due to what she said was a decrease in

Capital: Rabat Currency: Moroccan Dirham (MAD)

market figures from the property’s European feeder market volumes as a result of the economic situation and cuts in flights from Spain and the UK. “We expect a lot from the second part of the year though, with key feeder markets such as Morocco, France, the Middle East, and new niche markets like Russia and Scandinavia,” Geha stated, adding that for the coming summer season, the hotel is anticipating a growth of the MENA market to reach close to 50 percent of its clientele.

Alternatively, Hyatt Regency Casablanca has witnessed great hotel performance year-to-date, as Yassin Bourou, concierge, Hyatt Regency Casablanca, denoted, “Our guests come from all around the world and performance levels have been very good so far and we expect it to continue to be this way throughout the year. At present, we have full occupancy which is great.”

Similar to Geha, Camelia Belouchi, sales manager, Pullman Mazagan Royal Golf & Spa, is also looking forward to healthy summer performance results, especially in May and June, after the property re-opened in October 2012, following a full renovation of rooms,

Morocco is home to a number of outstanding beaches and contemporary accommodation options, surrounded by an extensive array of historical and cultural attractions, which lure in travellers to experience the region’s hospitable and traditional atmosphere, guaranteeing a wide variety of unforgettable experiences across each city. restaurants, and common public spaces.

With a strong clientele base hailing from France, Germany, and the UK, Belouchi noted that due to its location just an hour away from Casablanca, the hotel attracts a positive number of travellers and now

MAY 2013

Morocco

Casablanca

boasts what she expressed is the most beautiful golf course in Morocco. “We now organise golf events and tournaments to attract more visitors to the hotel. We have a range of complete products for tourists, which is great,” she revealed.

Further adding to Morocco’s vast options of hotel accommodations is the upcoming opening of a Hyatt Place hotel slated for 2014, under a management agreement between a Hyatt affiliate and

MAY 2013

Société d’Aménagement et de Promotion de la Station de Taghazout.

The 150-room property is the second Hyatt-branded hotel under development in Morocco, and will be part of a master-planned project, namely Taghazout Bay, whose construction on the first phase of development has commenced and which comprises a Moroccan spa, a retail centre, an 18-hole golf course, a golf clubhouse, and a surf camp, all of which are expected to open in late 2014.

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“We believe that the Hyatt Place brand and the location of the hotel in the Taghazout Bay Resort, near the city of Agadir on Morocco’s Atlantic coast, will have strong appeal to business and leisure travellers visiting the city,” said Peter Norman, senior vice president, real estate and development, Europe, Africa, Middle East, Hyatt Hotels & Resorts.

Alongside the country’s burgeoning tourism figures and escalating hotel room inventory, Palais Namaskar, Marrakech, also recorded positive results during its first year in operation, since it launched in April 2012, and according to Jihane Douazi, communication and marketing manager, Palais Namaskar, the property’s first anniversary, on April 6, has been the occasion to celebrate a year of success. “In just one year of operation, the hotel has already received the most coveted awards in the tourism industry,” she announced.

The property, which opened as part of the Oetker Collection, hosted 11.43 percent of its guest from Africa, North Africa, and Middle East, this year so far, according to Douazi, and 36 percent from the UK and France.

Douazi pointed out that Morocco’s highlights lie in its location, just three hours by plane from Europe’s main cities, its sunny weather throughout the year, and its full range of things-to-do, which include desert, mountain, and beach activities, to name only a few. 

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EXCLUSIVE

Budget Travel

The Win-Win Situation  Rita Kasziba writes

A

s Chetan Sethi, general manager, easyHotel Dubai, noted, some may not be able or willing to spend large amounts, but wish to discover the world, and with the proliferation of economy-tier hotels and lowcost carriers across the region, travelling on a budget has become a reality and a burgeoning business.

“There is a factor of thrill and excitement in budget travel. Living without a budget is similar to travelling across the country without a road map.”

According to Atta El Dessouky, general manager, ibis Styles Dahab Lagoon, Egypt, e-booking along with advance booking and discount offers have considerably spread in the past years and smart deals are expected to continue to gain ground.

Based on the definition of John George, sales manager, ibis Salmiya & Sharq Hotels, Kuwait, a budget traveller is one who is looking for the best value for his money. “Budget travel is about making the smartest choices not the cheapest deals,” he stressed, shedding light on

Hotel chains, airlines, and service providers are increasingly looking to diversify their products, filling a longidentified gap in the market. the often misinterpreted or overlooked aspects and potential of this growing market segment.

Clearing another misconception, Sebastian Vincent, general manager, ibis Muscat, highlighted that today’s budget travellers are far from their often misrepresented image. “[They] are no more backpackers looking for a cheap place but rather very conscious persons willing to get the best out of their investment for their holidays and have a full experience of the destination.”

Exemplifying the concept, Vincent implied that cutting cost does not mean compromising on quality. “[Budget travellers] are much more demanding, more meticulous in the process of selecting the destination, hotels, airlines, and other services. […] The hotel today is seen as the base of their stay and not anymore the place to be.”

“Budget properties are not ornate or luxurious, and

the same holds true for our homes as well,” reaffirmed Hossam Nabil, cluster director of sales and marketing, Holiday Inn Express Hotels, Dubai, who noted that despite many assuming that the higher the cost the better the experience, it certainly does not hold true in the hospitality sector, and, in fact, economy tier hotels are gradually gaining momentum among both leisure and business travellers.

As Mary Jane Fronda, sales coordinator, MAF Hotels & Central Services, explained, due to the unstable economic situation, many people prefer to stay in reasonably priced hotels either for leisure or business. “Budget hotels are gaining popularity since the majority of travellers look for cheaper hotels unless there is no availability [and] that is when they opt for the next category.”

Sachin Harrison, group business development manager, Astoria & Ambassador Hotel, Dubai, futher attested, “Nowadays everybody is a budget traveller be it leisure or corporate, nobody wants to spend an extra penny out of their budgets,” he said, remarking on how the gloomy financial climate has prompted travellers to cut the unnecessary expenses.

Sharing similar views, Nabil also noted that as a result of the the economic uncertainties, not only leisure but also corporate travellers had to tighten their belts and become more cost conscious.

Sethi added, “In the past years, a number of budget

MAY 2013

Budget Travel hotels have entered the country looking to address the gap in the market. These hotels are looking to attract large numbers of business travellers, as many companies have instructed their employees to trade down from five-star hotels when taking a business trip.”

Citing the region’s leading destination as a prime example, Darroch Crawford, managing director, Middle East and Africa, Premier Inn Hotels, said, “You only have to look at Dubai to see what the effect of affordable accommodation and airlift has been. Dubai’s visitor numbers have never been stronger, because the emirate is now affordable to a much wider range of visitors than ever before.

It is only a matter of time before other major cities in the region see the benefit of investing in budget.”

Echoing similar views, Nabil remarked on the recent endeavours to brand Dubai away from its former luxury-only image. “The concept of budget hotels is fast becoming popular in the Middle East. There is a move towards budget and mid-scale hotels, which have been springing up in the city for the past five years,” explained Nabil, adding that after years of developing high-end luxury hotels, Dubai and other Middle Eastern destinations have started to invest into lower-tier brands and the opportunity now lies in midmarket budget hotels with international standards.

“The right quality for a reasonable price is a smart way to sell and buy. For this segment to grow, much

MAY 2013

emphasis must be given to maintain the quality of the products on offer and the services that come with it,” stressed George, who, similarly to other professionals, predicts a bright future for budget travel both within the Middle East and internationally.

Demonstrating the economy tier hotels’ rise within the MENA region, Vincent remarked on how the brand’s regional portfolio has grown to 11 hotels, since the launch of the first ibis property in 2003 in Dubai, at that time when, he claimed, no one would have thought it would be such a success story.

Likewise, Crawford, looked back at 2008, when the brand’s first hotel outside the UK opened at Dubai Investment Park, and, as he explicated, at a time when more and more people began discovering that low cost does not equal low standards.

“Quite the reverse; in fact Premier Inn hotels are scoring higher on TripAdvisor than many of the fivestar hotels in the emirates. Despite offering almost 300 rooms, Premier Inn Dubai International Airport achieved over 97 percent occupancy in 2012, proving that if the service/value equation is right, budget hotels are fulfilling a much wanted need,” Crawford added, shedding light on the economy segment’s investment potential.

“The smart investors in the region are beginning to wake up to the excellent returns driven by budget hotels,” he asserted, pointing out that due to the

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significantly lower construction and operation expenses, lower-tier hotels have the potential to generate higher returns. “The hotels are much more efficient in design so plots are smaller, build costs are lower and operating costs a fraction of those required in a fivestar hotel. [...] Our value for money pricing also drives higher occupancy, so it is a winning formula all round,” Crawford continued, further demonstrating the segment’s exponential growth potential by revealing that the company recently decided to treble the size of its development team to cope with the large number of opportunities presented by the region.

Crawford clarified, however, that despite the recent openings, the region remains under-supplied with value for money accommodation options, and that the internationally-branded budget sector is almost entirely unrepresented, especially outside Dubai and, to a lesser extent, in Abu Dhabi, thus offering a huge opportunity for growth, particularly in Saudi Arabia, one of company’s key focus areas.

Sharing similar views, Sethi predicted, “Overall the budget hotels and travellers are in trend all over the globe and the segment’s future is very bright and promising.”

Vincent conluded, “The demand is there and increases year over year. Travellers have realised that they could go beyond borders and reach destinations they would have never dreamed.” 

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INVESTIGATION

Private Aviation

Lavishly Adorned  Stefanie Saghbini

T

writes

he global private aviation market is set to continue growing this year, according to David Macdonald, director, private jet sales, Air Partner, an air charter broker company with over 50 years in the industry.

Macdonald, who stated that these developments are expected amongst corporate users in particular, where significant renewed levels of interest has been seen, confirmed that this prediction is reiterated by a recent JP Morgan research paper, which anticipates an eight percent growth in business jet delivery for this year; an increase of seven percent on 2012’s figures.

Meanwhile, Rob Wilson, president, business and general aviation, Honeywell Aerospace, one of the four main business units of Honeywell International, noticed a changing trend towards larger cabin aircraft, stating that ever-increasing range expectations and advanced avionics continues to be reflected in the company’s 21st annual Business Aviation Outlook report, which presents its global forecast for the niche segment over the current year.

“As a full spectrum supplier to the industry, Honeywell has been successful in building strong content levels on most of the more popular super mid-size and larger aircraft in production or scheduled to enter service over the next few years,” Wilson explained.

To be precise, Honeywell International’s data shows that levels of global purchase plans will remain steady while demand for larger jets will continue to build as it paves the way to command the lion’s share of value billed over the next decade, accounting for some 70 percent of all new jet expenditures and 40 percent of aircraft delivered.

All-in-all, Honeywell International predicts that some 10,000 new business jet deliveries worth USD250 billion will be made globally by 2022, representing an approximate two percent increase in total expected industry sales value compared to the prior ten-year horizon the company predicted in 2010.

AIMING FOR CHANGE Having delivered a confident forecast for the business aviation market in the MENA region, at the fifth edition

Opulent amenities, elegant interiors, and lavish services gracing the world’s private jets, have long been catering to the needs of the affluent elite, whose contributions continue to be the forerunner of what seems to be a prosperous decade ahead for the private aviation sector. of what is being hailed as the largest Middle East Business Aviation (MEBA) show since its inauguration in 2004, which took place between December 11-13, 2012, Ali Ahmed Al Naqbi, founding chairman, Middle East Business Aviation Association (MEBAA), stressed that the regional sector’s traffic had risen 12 percent since December 2011 and that its installed fleet will expand from the current 500 to 1,300 by 2020.

Thus, he believes that there is huge growth potential in this aspect and has, therefore, spurred the growth with moves towards regional regulation of the sector, whereby MEBAA is to collaborate with 23 authorities to help draft what Al Naqbi called a much-needed regional business aviation policy, with Saudi Arabia and the UAE targeted in the first development phase.

MAY 2013

Private Aviation Hassan Al-Mousawi, CEO, Rizon Jet, concurred, “The Middle Eastern private aviation sector in general may need more combined efforts of operators, trade associations, and civil aviation authorities. In particular, we see the grey market as an obstacle where the local civil aviation authorities will need to work closer with MEBAA and the charter operators to come up with mechanisms of identifying and prosecuting the grey market operators.”

One such vital step was seen with US-headquartered General Aviation Manufacturers Association (GAMA); a partnership whose objective is set to transform the regulatory environment by encouraging civil aviation authorities in the region to adopt a common set of principles to facilitate business aviation operations.

According to Al Naqbi, this move comes at an opportune time when the region is on the threshold of rapid business aviation expansion yet the potential is held back by the lack of a dedicated regulatory environment for the sector. “It is a step in the right direction to synergise the experience of both associations for the orderly growth of this industry in the region that is still in the developing phase,” he said.

Along parallel lines, Pete Bunce, president, GAMA, stated that the two organisations share a strong sense of purpose and expressed his anticipation to be closely collaborating on this new initiative with whom he referred to as ‘our friends at MEBAA’, given their vital

MAY 2013

role representing the business aviation operators’ community in this important part of the world.

Bunce brought to surface the growing importance of the MENA region for the business aviation segment and expressed his determination to ensure that it develops to its full potential. “It is important we combine our efforts to ensure business aviation is treated fairly with proportional rules implemented across the region,” he added, describing the lack of an appropriate regulatory framework tailored to the particular needs of business aviation as the single biggest obstacle to the full development of business aviation in the region. ”Through this partnership, we aim to change that,” he asserted.

THREE DECADES OF SUCCESS Celebrating its 30th anniversary this year, UK-based Gama Group currently operates 80 business aircraft around the globe and boasts 25 operating bases across Europe, the Americas, Asia, and the Middle East.

With its Middle Eastern base located in Sharjah, the private aviation company announced plans in December 2012 to further extend its operations and facilities at Sharjah International Airport, in a bid to establish itself as the preferred gateway to the emirate, as well as to Dubai and the Northern Emirates, as Dave Edwards, managing director, Middle East and Asia, Gama Aviation,

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indicated. “With our significant investment in personnel and infrastructure, together with the shared vision we have with the [emirate’s] airport authority, Sharjah International Airport is rapidly becoming a perfect fit for operators seeking a fast and efficient service in Dubai and the Northern Emirates,” he commented.

Carried out on the backbone of significant growth in business and general aviation movements during the nine months since Gama Aviation signed the exclusive concession agreement for the provision of fixed-base operator (FBO) services at the emirate’s international airport, these decisions also come hand-in-hand with the company’s 40 percent year-on-year increase recorded in business and general aviation movements in December 2012.

Proudly commenting on Gama Aviation’s continuous expansion and growing reputation, Edwards said, “We are delighted with the response from our clients to our services at Sharjah and particularly pleased that we are being recognised by the likes of Universal Weather and Aviation [a leading global business aviation trip management company, whose team] recently recommended Sharjah to its customers as the transit airport of choice for flights between Southeast Asia and Europe.”

Overall, 2012 was, as Edwards depicted, a good year for Gama Aviation, during which it introduced additional members to its global fleet, developed its aircraft maintenance services throughout North 

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INVESTIGATION

America, Europe, and the Middle East, launched new offices in Jeddah, Saudi Arabia, as well as Hong Kong, and opened a new base at Al Bateen Executive Airport, Abu Dhabi.

A SHOW OF STRENGTH Also having concluded 2012 with flying colours, with revenue increases exceeding six percent for Boeing Business Jets and 27 percent for Gulfstreams, in terms of aircraft usage and block hours, Abu Dhabi-based international luxury executive flight services company, Royal Jet, witnessed a year of stability and persistent growth overall, from both an operational and financial standpoint, as Shane O’Hare, president, Royal Jet, emphasised.

The private air services company, which celebrates its 10th year in operation this month, announced a 17 percent year-on-year increase in first quarter (Q1) revenues in 2012, hailed the best Q1 performance in the company’s history and this was followed by what is being heralded the most successful summer performance to date, with a 19 percent increase in flying hours over the same period in 2011.

O’Hare believes that the private air services company will continue to set benchmarks in the private aviation sector this year, as it remains adamant to deliver its strategic vision for Abu Dhabi through the vision of

Private Aviation H.H. Sheikh Hamdan bin Mubarak Al Nahyan, chairman, Royal Jet, and the support of its shareholders.

Signifying the consistent and continuous upward growth that the private jet industry has experienced in the last five years, as O’Hare illustrated, Royal Jet and Abu Dhabi Airports Company signed a memorandum of understanding (MoU) on the sidelines of the Abu Dhabi Air Expo in March, which was hosted by Al Bateen Executive Airport; a move that will offer support for Royal Jet’s operational growth by providing all line maintenance facilities and, in turn, facilitate the expansion of operations into the dedicated private jet gateway.

“This [MoU] supports the double digit growth and the overall aviation strategy, and is in line with Abu Dhabi’s 2030 Vision. Additionally, it complements our FBO facility at Abu Dhabi International Airport, customer demand, and industry needs,” O’Hare commented, adding that having joined hands with an airport which, he expressed, also provides bespoke service to the private aviation industry, is a show of strength.

Another move likely to deliver what is believed to be the only full service ultra-luxury tour operator in the region, with a full length and breadth experience of the luxury travel portfolio, according to O’Hare, is the launch of Royal Jet’s travel division Royal Jet Luxury Vacations in Seychelles; a new partnership with one of the UK’s largest independent luxury travel providers, Eden Luxury Group.

FINE ART OF FLYING Also fortunate to enjoy success in 2012 on a number of fronts, as it matures into its second full year of business, is Rizon Jet whose growth has been steady across its bases and various parts of the business, according to Al-Mousawi.

So far so good for the private air charter services company, which saw a great start into the year, Al-Mousawi explained, who anticipates this trend to continue over the next few years, in accordance with Rizon Jet’s flourishing reputation in both the Middle East and Europe, as he further portrayed, “We see the market growing significantly over the coming years, especially in the Middle East region.

This, of course, presents a good opportunity for Rizon Jet, but at the same time we face some tough

competition from operators throughout the region.

“For Rizon Jet, we see that the way to maximise the potential of this growth is to find a good combination of service and price. Some private jet customers are sensitive to prices, but what is important for us is adding value. We provide excellent service for a fair price and it is this service/price combination that positions Rizon Jet at the forefront of the market.”

Al-Mousawi admitted that the team at Rizon Jet cannot and does not take its successes for granted and is constantly striving to further improve the services offered, as he explicated, “As you would expect, like all successful businesses, we are always keen to grow, and we constantly look at and evaluate new opportunities for business development, but at all times keep ‘The Fine Art of Flying’ at our core,” he assured.

GREAT EXPECTATIONS Arab Wings is yet another regional private jet company which performed very well in 2012, having exceeded expectations, according to Manal Obeid, head of sales and marketing, Arab Wings, who also revealed what she described as very good figures for Q1.

“We believe that the company performance will be better during the coming summer period,” Obeid further stated, adding that the private aviation sector will continue to grow especially in the region, despite the current political instability in some countries, and that in general, the trend is towards an increase in demand for aircraft charter.

“At the moment, Arab Wings is exploring the possibility of setting up a satellite operation in another country,” she divulged, reaffirming that the company continues to provide diversified services including aircraft management, sales, charter, handling, maintenance, and contracts with major companies, as well as medical evaluation services.

THE ROUTE TO SUCCESS Despite the improved conditions in the global private aviation sector overall, Macdonald anticipates more foreclosures of asset-heavy aircraft operations within the private aviation sector, as he explicated, “Aviation suppliers carrying debt continue to struggle and some major players have gone out of business in the last few months alone. It seems that no one in our industry is too big to fail. However, business models that remain free of both debt and depreciating aircraft assets, and have long term track records of financial stability, will continue to be attractive to business jet users.”

He further explained that in order to remain a leader in luring in the targeted clients and excel in this market, air charter brokers need to embrace innovation in their products, maintain high levels of personal service, be creative in finding the best solution for the client, and provide financial stability in a sometimes fragile supplier market, where private and corporate users continue to seek the best value for money, amid tight budgets, without compromising on the desired quality of service.  MAY 2013

34

SPECIAL REPORT

Travelport

Empowering the Travel Industry  Rita Kasziba writes

A

s a leading innovator in travel technology and solutions, Travelport continues to advance business success by enabling providers and agents to sell what they want and how they want it.

The recently introduced Travelport Merchandising Platform is the outcome of the company’s steady investment in industry-leading technology over the past 40 years, and is set to transform the way airlines distribute and retail their full suite of products and services, including fares and ancillaries to travel agency customers, allowing them to achieve greater brand consistency, deliver a compelling user experience, and maximise return on investment, or as Will Owen Hughes, senior director, airline services, Middle East and Africa, Travelport, said, “ [Travel trade experts will] go to market with all their products in the right place, at the right time, in every channel.”

Correspondingly, Travelport’s travel agency customers gain access to a full range of airline products in their already familiar and integrated workflow,

With over four decades of expertise in developing innovative solutions, Travelport continues to empower the travel industry, and with the recent launch of the Travelport Merchandising Platform, the company is set to pave the way for significant changes. enabling them to demonstrate deeper product expertise to customers, reduce training times, and achieve higher levels of productivity.

At the point of sale, the merchandising platform comprises three components: Travelport Aggregates Shopping, which includes new screens for both the classic desktops and Smartpoint App interfares; Travelport Ancillary Services, which enables agents to sell airline ancillaries within their existing workflow; and Travelport Rich Content and Branding, which will be available later this year, allowing airlines to communicate the value of their content to and through the agency community.

“The concept is simple; we enable the industry to work in any way they want,” highlighted Ian Heywood, head of global supplier strategy, Travelport, explaining that the goal is to be able to accommodate any potential solution or approach on an airline CEO’s mind.

NEW HORIZONS Matthew Powell, director, product, Middle East and Africa, Travelport, described the new platform as the way forward, pointing out that with the airline industry changing both regionally and globally, Travelport’s aim is to be capable of working across all airline business models, enabling carriers to promote and sell their content with the freedom of packaging, unbundling, and promoting their product in their own way, while at the same time, allowing travel agency customers to achieve better service and productivity, leading

to improved efficiency and levels of customer service.

In fact, as Powell highlighted, with online channels, smartphone applications, and social media rapidly gaining ground in the region, Travelport constantly looks for ways to provide travel agency customers with cutting-edge tools that help enhance their competitiveness and revenue channels.

With travellers becoming more tech-savvy, Travelport is also working on utilising the power of social media and smartphones, and the upcoming introduction of new applications will enable travellers to make the most of their holidays by providing them with a broad range of information on available services and nearby attractions at their fingertips, opening yet another revenue channel for their travel agencies.

Africa also remains a key market for the company, and, as Mark Meehan, managing director, Africa, pinpointed, since 2009, Travelport has made significant efforts to increase its presence in the continent and provide the industry with advanced technology that enhances service levels and business performance. The recent launches in Tunisia and Morocco, or the growth in Algeria, are prime examples of how ’incredibly technology-hungry’ North Africa embraces technology, and Travelport’s main objective remains to fulfill the need of every stakeholder, by investing in marketing education, and introducing adequate products to the market.

Since the inauguration of the company’s Dubai office in 2009, Travelport has brought tremendous changes to the region’s travel industry, and as Rabih Saab, president, Middle East and Africa, Travelport, asserted, the launch of the new merchandising platform is the result of the past years’ continuous developments.

“Technology is the catalyst of the travel industry,” he said, noting that the growing Internet penetration across the region continues to drive demand for ground-breaking products, and at the same time, continues to challenge developers to create platforms and applications that enable them to discard information that clouds real content and affects efficiency and productivity.

Other global trends, including the rise of the LCCs, the growing significance of online platforms, or the future prospects of social media and smartphone applications, are all dynamics that Travelport understands and aims to utilise, especially in the Middle East where a young and savvy population, with high disposal income, expects consistency and flexibility.

As Saab explained, innovative solutions, such as the Travelport e-Pricing, one of the most commanding fare shopping and booking solutions; or Travelport Rapid Reprice, which puts an end to the inconveniences associated with manual ticket reissues; or Travelport Developer Network, where developers from all over the world are able to gain full access to Travelport’s resources and enjoy dedicated support, manifest Travelport’s commitment to empower the travel industry of the changing times both globally as well as in the Middle East and Africa.  MAY 2013

36

WHO'S MOVED

YASSER ZAID Yasser Zaid has been promoted to hotel manager at Al Nawras Hotel Apartments, Dubai.

Zaid brings more than 10 years of hospitality experience to the role, having previously served a number of international companies, including Banyan Tree Hotels & Resorts and Le Méridien Hotels & Resorts.

He joined Al Nawras Hotel Apartments as front office manager at

the establishment’s pre-opening and in recognition to his hard work and dedication to the success of the property, he was soon promoted to operations manager, his most recent position.

Zaid joined Al Nawras Hotel Apartments as front office manager at the establishment’s pre-opening

SIMON STAMPER Simon Stamper has been promoted to regional general manager for Egypt and Lebanon at InterContinental Hotels Group (IHG).

Stamper, who has been with IHG for 23 years, previously held the position of executive assistant manager at Semiramis InterContinental, Cairo, as well as a number of managerial roles with IHG properties across Europe, UK, Mediter-

ranean, and the Middle East.

Prior to joining InterContinental Cairo Citystars, he served as area general manager at InterContinental Abu Dhabi.

In his capacity, he will continue to lead the InterContinental Citystars complex and he will also support the company’s teams across Egypt and Lebanon to drive performance and growth.

MAY 2013

RENDEZVOUS

37

Q & A with Victor Louis Since its establishment in May 2011, Ras Al Khaimah Tourism Development Authority (Ras Al Khaimah TDA) has embarked on a number of initiatives in order to position Ras Al Khaimah as a global affordable luxury destination, and here Victor Louis, chief operating officer, Ras Al Khaimah TDA summarises the past two years.

Travel Trade Monthly: How would you describe the past two years?

Victor Louis: During the two years since the establishment of Ras Al Khaimah TDA as part of the government of Ras Al Khaimah’s commitment to invest USD500million in tourism and hospital development projects by end of this year, we have made great strides in positioning the emirate as a global affordable luxury destination for leisure and adventure travel on the international tourist map. […]

Visitors of Ras Al Khaimah have increased tremendously from 600,000 visitors in 2010 to 1,105,191 visitors in 2012, exceeding the targets laid down on the establishment of Ras Al Khaimah TDA. […] We have also made significant steps towards our ultimate goal of raising the tourism sector’s total GDP contribution from two percent in 2010 to five percent in 2012.

Since our establishment, Ras Al Khaimah TDA has developed and implemented a cohesive marketing, promotional, business development and investor relations programme to promote Ras Al Khaimah as the ‘rising emirate’ and to generate and encourage investment opportunities in its tourism sector.

to Ras Al Khaimah from the end of October 2012 to the end of April this year.

Another key milestone over the past two years has been the establishment of Ras Al Khaimah Hospitality Group in November 2011 to support and develop the emirate’s hospitality industry by managing government owned hotels, hospitality, tourism and

Victor Louis Chief operating officer, Ras Al Khaimah Tourism Development Authority

Travel Trade Monthly: Please tell us about the authority’s main projects.

Victor Louis: Throughout 2012, Ras Al Khaimah TDA launched a number of tourism projects with the aim to increase the tourism facilities and accordingly increase the number of the visitors. Projects have included the Prince of the Sea excursion yacht, Ras Al Khaimah Sailing Academy, Bassata Desert Camp and Ras Al Khaimah Country Club.

In the fourth quarter (Q4) of 2012 we introduced the AMASI BEACH brand, created by Ras Al Khaimah TDA, to promote nightlife entertainment and beach parties from October until December 2012. […]

In 2011, Ras Al Khaimah TDA introduced two new charter flights from Germany and Sweden, which brought an additional 55,000 visitors to the emirate until June 2012 and increased the hotel revenue to AED139 million (USD378million) in Q4 2011 – a 39.6 percent increase compared to Q4 2010.

In August 2011, we signed a new agreement with Natalie Tours, the largest Russian tour operator for UAE destinations, in cooperation with Alpha Tours to introduce twice weekly charter flights from Moscow

MAY 2013

leisure assets as well as measuring quality and performance of all hotels and restaurants and facilitating further investment of premium and international brands. […] Ras Al Khaimah Hospitality Group is also managing the upgrade of dining outlets and restaurants in Al Hamra Marina and Yacht Club as well as in Al Hamra Golf Club.

Travel Trade Monthly: How many visitors do you anticipate this year?

Victor Louis: For this year we have increased the annual target, aiming to receive 1.2 million visitors, which we anticipate will continue to come largely from our primary source markets of Germany, UAE and Russia.

The year has had a strong start with a high number of visitors in the first two months. The total visitors to Ras Al Khaimah in January and February recorded at 194,983 visitors, generating a revenue boost of USD27.538 million and putting us on track to

comfortably exceed 2012 numbers.

Travel Trade Monthly: At the beginning of the year, the emirate’s room inventory was close to 3,000 rooms and this number is set to reach 10,000 by 2016.

How can the authority help generate demand?

Victor Louis: Ras Al Khaimah TDA is responsible for establishing the emirate as a premier affordable luxury destination for leisure and adventure travel on local, regional and international levels, promoting it as the ‘rising emirate’. We also support the tourism sector in generating demand by creating and implementing the branding, marketing and promotion of Ras Al Khaimah’s tourism destinations, products, and services.

We conduct regular research and analysis of future tourism projects and current trends and our investor relations programme identifies and encourages tourism investment into the emirate and highlights partnership opportunities.

Ras Al Khaimah TDA has and will continue to represent and promote the Ras Al Khaimah tourism industry by participating in numerous overseas travel shows, conferences and exhibitions such as ITB Berlin 2013, Riyadh Travel Fair 2013 and Arabian Travel Market 2013 in Dubai.

As well as working to increase Ras Al Khaimah’s visitor base from within our primary source markets of UAE, Germany and Russia, we are also placing a greater focus on attracting more visitors from within the GCC, particularly Saudi Arabia, and a number of new source markets. The number of visitors to Ras Al Khaimah from India is increasing, so we hope to see a continuation of this trend. This year we will be taking part in a travel exhibition in Kazakhstan, and a road show in Holland in May under the umbrella of the National Council (Holland and Germany), both of which we hope will increase visitor numbers from these countries.

We currently have six new hotel openings scheduled to open over the next two years which will increase the emirate’s room inventory by 2,488 rooms. These openings include the Waldorf Astoria, Rixos Bab Al Bahr Resort, Marjan Island Resort and Spa, Santorini Hotel, followed by the DoubleTree by Hilton Resort and the first Crowne Plaza Resort in 2015. As our room inventory increases, demand is also on asteady rise with occupancy levels higher now than ever before, so we are confident that we can continue to attach the investment and partners to reach our goal of 10,000 rooms.

TRAVEL TALK

travel talk is your space

38

CHETAN SETHI

TORSTEN OBERMANN

General manager, easyHotel Dubai, Jebel Ali.

Resident manager, JA Oasis Beach Tower.

“Budget travel is all about making the most of what and who you know [...]. easyHotels creates a very good opportunity for a budget traveller with a clean and comfortable room at a very affordable price. [...] We have also experienced an increase in the popularity of value for money options and packages all over, in the day to day living and especially in the hospitality industry. Hotels often offer free breakfast packages with room booking or buy two nights and get the third night free options. We, at easyHotel in Dubai, also offer such value added packages to our customers with some of them being tailor-made and customised.”

“We are constantly striving to offer unbeatable services to our guests and I am delighted that we have been recognised once again by TripAdvisor [as one of the Top Ten Hotels for Families in the Middle East]. To be accredited with these awards alongside other leading hotels in the Middle East is wonderful, but it is the recognition from our guests that we value most. [TripAdvisor awards] are the only recognitions based purely on the reviews and opinions of millions of travellers, and winning one is a significant accomplishment; a genuine acknowledgement from guests of a property’s unbeatable service and hard work in running a successful business.”

MAY 2013

RENDEZVOUS

39

Q & A with Glenn de Souza As Best Western International (BWI) continues to further consolidate its presence in the region, Glenn de Souza, vice president, international operations, Asia and Middle East, BWI, elaborates on the Middle East’s growing significance in the company’s growth strategy and reveals details of the world’s largest Best Western branded hotel.

Travel Trade Monthly: BWI earlier outlined plans to expand its Middle Eastern portfolio to 23 hotels by 2015. At what point does the company currently stand and how do you see it growing in this region over the next two years?

Glenn de Souza Vice president, international operations, Asia and Middle East, Best Western International

Glenn de Souza: The Middle East is a key area of expansion for Best Western International. Currently, we have eight hotels operational in the region but with a further 16 hotels in the pipeline, our Middle East presence will more than triple in the next few years.

In 2012, we debuted in Oman, Jordan, and Saudi Arabia, and this fast expansion will continue this year.

We will launch in Kuwait in the second quarter and expect to open the first of two luxury BEST WESTERN PREMIER hotels in Iraq before the end of the year.

And, of course, Saudi Arabia is a huge area of focus for us; having launched in Riyadh and Al Khobar in 2012 we now expect to add hotels in several other cities over the next two years. Overall, we plan to offer more than 3,800 hotel rooms in the Middle East by 2015.

Travel Trade Monthly: With the opening of BEST WESTERN PREMIER Muscat, the company is now present in the region with all three of its brands, including the midscale BEST WESTERN, the upscale BEST WESTERN PLUS, and the luxury BEST WESTERN PREMIER. Which brands will lead the company’s regional expansion in the short and long term, and why?

Glenn de Souza: Our upscale and luxury brands, BEST WESTERN PLUS and BEST WESTERN PREMIER, are gaining fantastic momentum in the Middle East region. We find that Middle Eastern customers appreciate a higher-end product tailored to the needs of family groups, which is what our two new brands are able to provide. It was no coincidence that we entered Saudi Arabia with our BEST WESTERN PLUS brand, offering a series of suite rooms on the Al Khobar corniche. And, as you correctly mentioned, we launched our luxury BEST WESTERN PREMIER brand in Oman, and we will continue to expand this in Iraq and Saudi Arabia.

Travel Trade Monthly: Following its debut in Saudi Arabia in Al Khobar, the company revealed plans to add at least 10 further properties to its Saudi portfolio by the end of 2014. Could the Kingdom

MAY 2013

nationwide portfolio to 15 hotels by 2015, with new openings in Al Ahsa, Mecca, Jeddah, and Al Qissim.

Clearly, the religious tourism market is a big draw and we plan to open more than 1,900 hotel rooms in the Holy City of Makkah in the coming years. But Saudi Arabia is only part of our Middle Eastern growth strategy. The GCC region, especially Bahrain and Qatar, is just as important, and we also see strong potential in Iraq, Oman, Jordan, and other markets.

Travel Trade Monthly: As Best Western’s Middle Eastern expansion continues to gather pace, which destinations are you planning to focus on and why?

become the main focus in the company’s regional expansion?

Glenn de Souza: Saudi Arabia certainly plays a major role in our Middle Eastern expansion. We currently offer two hotels in the country but plan to expand the

We find that Middle Eastern customers appreciate a higherend product tailored to the needs of family groups

Glenn de Souza: As I mentioned, Mecca is a key city for us. So much so that we will launch the world's largest Best Western hotel there in a few years’ time, with 1,200 rooms. Erbil is also booming and will see two Best Western hotels open in the next two years.

Dubai is clearly an interesting market, as is Abu Dhabi. I think that as an international hotel company, we definitely need to have a presence in Dubai and we are currently in discussions over the possibility of establishing our brand there in the near future.

Travel Trade Monthly: Could you please tell us about this year’s openings?

Glenn de Souza: We will debut in Kuwait in the second quarter of the year with the launch of the 96room BEST WESTERN Mahboula. Also this quarter, we expect to open our first hotel in Mecca, the 180-room BEST WESTERN PLUS Bakkah Awan Hotel. Following this in the third quarter, we will launch the 80-room BEST WESTERN PLUS Al Ahsa Grand Suite & Studios, and by the end of the year, we also expect to have opened a BEST WESTERN hotel in Jeddah and a BEST WESTERN PREMIER in Erbil.

Overall, it is clear that the Middle East is one of our strongest growth regions. There are few other areas of the world that have so warmly embraced Best Western’s concepts; not only our three hotel brands, but also our Bhuvana Spa products. Demand for the quality international hotel accommodation in the region will only continue to grow, and we have immense confidence in the future potential of the region. We look forward to establishing strong and lasting relationships with our partners in the region.

40

NEWS & EVENTS

Millennium Airport Hotel Dubai Reveals Expansion Plans Millennium Airport Hotel Dubai's impressive eight-storey expansion project is being implemented in several phases with the additional 225 rooms scheduled to be unveiled this summer.

The hotel, located just two minutes from Dubai International, has also recently launched its new Oasis Pool & Bar, adding yet another vibrant venue to its facilities with a temperature-controlled swimming pool, stylish sundeck, and swim up bar. Offering an extensive beverage menu and a variety of pool snacks, the new spot promises to become a 'place to be' this summer.

Ideal for parties as well as corporate events, the pool and the garden area boasts a capacity of up to 500 guests in a party setting, and from social engagements to business lunches, the staff can accommodate any type of occasions and requirements.

"Whether you are here to enjoy Friday brunch, sample the beverage menu, or spend time with your family by the pool, there is something for everyone. Due to its close proximity to the airport, the hotel is also an ideal stopping point for visitors enjoying a short stay in Dubai," highlighted Simon Moore, general manager, Millennium Airport Hotel Dubai.

With the addition of three new restaurants, namely Gozo, an all-day dining venue; a bar at the grill, and a seafood and grill restaurant, the expansion project will also take gastronomic experiences to a whole new level, while the introduction of the latest audiovisual meeting and conference facilities, slated for completion by the end of the year, will cater to all kind of events.

The ongoing refurbishment at the property is set to keep Millennium Airport Hotel Dubai ahead of the competition, and with passenger numbers growing at a double-digit rate at Dubai International and strong levels of business coming through electronic channels, the management expects positive business results, as it also looks to tap into new markets, including China and India.

Speaking with regards to the corporate social responsibility initiatives, Simon Moore explained that as one of the preferred business hotels, the management lays great emphasis on considering the society in all its business practices. "We respect the environment and the community and pride ourselves as role models for the hospitality industry," stressed Moore, adding that the team at the property aims to begin within the hotel's community, with employees being moulded into socially responsible citizens.

Oasis Pool & Bar

EVENTS

Sponsored by

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

The Americas Incentive, Business Travel & Meetings Exhibition (AIBTM) Chicago, US, June 11 – 13, 2013 (www.aibtm.com) A three-day event focusing on the Americas’ meetings and events sector, where no time is wasted and where deals get done.

IMEX 2013 Frankfurt, Germany, May 21 – 23, 2013 (www.imex-frankfurt.com) A show that innovates, inspires, and presents new opportunities for the global meetings industry.

Beijing International Tourism Expo (BITE) Beijing, China, June 21 – 23, 2013 (www.bitechina.com) One of Asia’s leading travel and tourism events, which will showcase a range of destinations, tourism attractions, travel packages, and services.

International Luxury Travel Market Asia (ILTM Asia) Shanghai, China, June 3 – 6, 2013 (www.iltm.net/asia) A leading ‘by invitation only’ event for the luxury travel community of the Asia Pacific, presenting the world’s most sought after collection of luxury experiences.

The China Incentive, Business Travel & Meetings Exhibition (CIBTM) Beijing, China, September 2 – 4, 2013 (www.cibtm.com) CIBTM provides the ultimate platform for the world’s leading suppliers to the MICE industry to meet top level buyers with strong purchasing power.

MAY 2013