Middle East and North Africa Edition
EASYJET SPLIT Stelios Haji-Ioannou, the founder and largest shareholder of UK based low cost carrier easyJet, has stepped down from the board of directors amid controversy over half yearly results from the airline. The split has caused speculation over the future of the brand.
Religious tourism is expected to rise by 25 percent in Saudi Arabia over 2010, with pilgrims from Egypt and Morocco leading the charge.
8 ONLINE VISAS Emirates will offer ticket holders the option of booking tourism visas for the UAE online, as part of a partnership with VFS Global – the operator of Dubai Visa Process Centre.
11 In This Issue Market Update Accommodation News International News Air Travel News Cruising News Travel Tips Travel Talk Who’s Moved Rendezvous Events MAY 22 , 2010
ISSUE 28
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Dubai World Secures Support for Restructuring Proposal According to Dubai World, the co-ordinating committee established to review its restructuring scheme has given unanimous, in-principal support to the proposal.
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he co-ordinating committee represents approximately 60 percent of Dubai World’s creditors. Support has been given to the major points of the restructuring plan proposed by Dubai World in March, which was backed by a commitment from the Dubai government to support the foundering company. The government will maintain ownership of the company, but convert USD8.9 million of debt and claims into equity and provide an interest facility of USD1 billion. Selling, general and administrative expenses will also be covered by the government, up to USD500 million. Following the restructure, Dubai
World’s debt would be divided into two tranches of USD4.4 billion and USD10 billion, with respective maturities of five and eight years. Aidan Birkett, chief restructuring officer of Dubai World, said in-principal support was an important step towards revitalising the company. “This is an important milestone and reflects our efforts to achieve the best possible solution for all stakeholders,” he said. “The proposal puts the company on a sound financial footing and reflects the continued support of the government of Dubai and its lenders. “It offers the company the ability to maximise the value of its assets over the medium to long term.”
Emirates and DHL Partner for Security MENA Exchange Rates Accurate as of 19/5/2010 Currencies shown in red are fixed against the US Dollar COUNTRY UAE (AED) Egypt (EGP) Saudi Arabia (SAR) Lebanon (LBP) Bahrain (BHD) Jordan ( JOD) Syria (SYP) Kuwait (KWD) Qatar (QAR) Oman (OMR) Tunisia (TND) Morocco (MAD) Iran (IRR) Yemen (YER) Algeria (DZD) Libya (LID)
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CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar
1USD= 3.67 5.62 3.75 1501 0.37 0.70 46.9 0.29 3.64 0.38 1.51 9.01 9953 226.4 75.28 1.33
Emirates has signed a memorandum of understanding with DHL to establish a strategic security partnership, with the aim of enhancing air cargo security and consumer confidence in the Middle East. The two companies will work together in areas of security training and education, threat mitigation and reduction of company risk. Abdulla Al Hashimi, divisional senior vice president for Emirates Group Security said the partnership’s motive was relevant to various areas of the aviation industry. “Whether you work for an airline, airport, civil aviation authority or other AVSEC service provider, understanding the threats and risks to
security and how to manage them is crucial,” he said. “Sharing of best practices and exploring synergy in training and education among major players are important aspects of producing comprehensive and practical approaches to combating threats in the aviation industry.”
MAY 22, 2010
Egypt and Morocco Lead Pilgrim Surge to Saudi Arabia Religious tourism is expected to rise by 25 percent in Saudi Arabia over 2010, with pilgrims from Egypt and Morocco leading the charge.
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Ziyad Ahmed Bin Mahfouz
Tourism for religious goals has become a vital sector
MAY 22, 2010
his ambitious projection has been made by Ziyad Ahmed Bin Mahfouz, CEO of Elaf Group, a collection of travel, tourism and hotel companies based in Saudi Arabia. According to Mahfouz, recent activity has shown strong growth in Hajj and Umrah pilgrims this year. In addition to Egypt and Morocco, religious tourists have been flocking to Saudi Arabia from Algeria, Libya, Nigeria, Sudan, Turkey, Indonesia, Tajikistan and South Africa. As a result, Elaf Group is boosting its
services and facilities in order to meet demand. “We have positive expectations for this year as we have engaged in new contracts that will improve the delivery of our services and offerings to our clients and associate travel agents,” said Mahfouz. “We are committed to exerting extra effort to ensure that our services adhere to international quality standards and meet expectations of Hajj and Umrah pilgrims looking for a unique experience. “Tourism for religious goals has become a vital sector for the Kingdom of Saudi Arabia and we are keen to play a key role in its further development.”
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ACCOMMODATION NEWS
Capital Centre to Include Three Rotana Hotels Three new Rotana properties will be included in Abu Dhabi’s Capital Centre, following an agreement between the hospitality firm and the developers of the project.
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apital Centre Rotana, a four star, 300 room hotel, and Centro Capital Centre, a 300 room budget hotel, will
launch in 2012. The 200 key Capital Centre Arjaan apartment property will follow in 2012. According to Abu Dhabi National Exhibition Centre (ADNEC) extra hospitality supply has been green lit to cope with the increase in visitors to ADNEC, with which Capital Centre is affiliated. Figures from ADNEC show that the
exhibition centre hosted 119 events in 2009, an eight-fold increase over 2005, when 14 events took place during the year at the previous exhibition facility. Simon Horgan, group CEO of ADNEC, said the centre was seeking to establish itself as the world’s foremost lifestyle exhibition destination. In addition to the traditional exhibition centre fare of meetings and tradeshows, ADNEC caters to consumer facing offerings such as concerts and weddings. Proximity to major Abu Dhabi tourism attractions such as Sheikh Zayed Mosque; Yas Island; Abu Dhabi Golf Club; Al Raha
Beach; and the Corniche has also been tipped to benefit the properties. Upon completion, ADNEC’s USD2.2 billion Capital Centre will comprise 23 residential, commercial and mixed use towers, adjacent to the exhibition centre. ADNEC
City Seasons Announces Four New Hotels Dubai based City Seasons Group has revealed plans for four new hotels in the Middle East within the next three years. The first, five star City Seasons Muscat, will open in Oman in the fourth quarter of this year. Another, under the Royal City Seasons brand, will open in Abu Dhabi in 2011, followed by City Seasons Park Abu Dhabi in 2012. City Seasons Bur Dubai is also scheduled to open before the end of 2012, though the exact date has not been specified. City Season Hotel
Thomas Tapken, group general manager of City Seasons Group 4
MAY 22, 2010
ACCOMMODATION NEWS
Strong Showing at the Hotel Show The Hotel Show has reported strong attendance at this year’s event, despite acknowledging the difficulties faced by all exhibitions in the wake of the global financial crisis.
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xhibitors from 35 countries attended the event this year, according to Ray Tinston, sales manager for The Hotel Show. “This year has been exceptionally tough for our international exhibitors, especially those from recession hit countries such as Portugal, Ireland, Italy, Greece, Spain and the UK,” he said. “However their commitment to
The Hotel Show
participate at The Hotel Show 2010 highlights how effective the event is as a platform to reach out to regional buyers.” Brice Ortole, project manager of the French pavilion, said the exhibition had remained strong because of its importance to the regional hospitality industry. “Visitor attendance has been steadily growing year-on-year and no other show can draw such a large proportion of visitors from surrounding countries,” he said.
UAE Accounts for More Than One Quarter of Gulf Hotel Investments in 2010 According to a study by Proleads, commissioned by The Hotel Show, USD1.17 billion will be spent on hotel development across the Middle East in 2010. The largest expenditure will occur in the UAE, which will account for USD463.8 million alone. Oman comes in second (USD269.2 million), followed by Saudi Arabia (USD245.5 million), Qatar (USD100.3 million), Bahrain (USD65.3 million) and Kuwait (USD31.7 million). In the longer term, Proleads’ latest study indicates that there are USD7.8 billion worth of developments region wide that are expected to mature by 2013. On this longer timescale, the UAE continues to lead, accounting for USD4.34 billion. However, Saudi Arabia, Qatar and Bahrain will all increase their share, at USD1.74 billion, USD923 million and USD463 million respectively. Oman and Kuwait trailed in terms of long term investment, at USD300 million and USD90 million each, over the next three years. Dubai skyline
MAY 22, 2010
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Oman Sets Sail for New Image on World Stage Oman is leveraging sport in an attempt to reposition the country as a high profile business and leisure destination.
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he country has developed a new tourism brand, complete with logo, which will be used to promote the country in co-operation with Oman Sail. Brand Oman Management Unit (BOMU), responsible for creating and managing the country’s image, has signed an agreement with the sailing team that will see the Omani logo displayed on the sails of their competition vessels. Alya Al Hosni, representative of BOMU, said using sports for national promotion was a well established strategy. “Historically, countries have used events like the Olympic Games and the World
Cup to push business, inward investment and tourism agendas,” she said. “What we're doing with Oman Sail is leveraging their participation on the global sailing circuit. “They've been tremendously successful and this tie-up has all the ingredients of an outstanding partnership.” Oman Sail is preparing to compete in the Extreme Sailing Series Europe 2010, which will run from May until October this year. Sayidd Faisel, chief operating officer of BOMU, said the Omani brand had been developed to reflect the country’s history and attractions. “The new national brand mark embodies
the sultanate's maritime history, our outstanding topography and marine life and the frankincense that is so much a part of our unique cultural heritage,” he said. “It's a visual representation of our national DNA.” The new branding is part of a bid by Oman to change the way it is perceived in as a destination. “This important partnership will help us reposition the sultanate,” Faisel said. “Through Oman Sail's involvement in the Extreme Sailing Series we want people to think of the sultanate whether they're doing business or looking for a new holiday destination."
Abu Dhabi is Ideal, Say Japanese Japanese travel agents have described Abu Dhabi as an ideal destination for their market, following recent promotions by Etihad Airways and Abu Dhabi Tourism Authority (ADTA). Rina Sakai, from Japanese Tourism Board World Vacation, said the city presented a blend of historic sites alongside entertainment, culture and heritage attractions. “This is a clean, very well planned and beautifully landscaped city,” said Sakai. “[Sheikh Zayed Grand Mosque] is very impressive and I expect it to draw a large number of Japanese tourists.” There was a one percent increase in Japanese tourists to Abu Dhabi in the first quarter of 2010, with 2,228 Japanese nationals staying in hotels across the emirate during that time. Despite this seemingly small increase, Japanese visitors to ADTA’s Visit Abu Dhabi consumer website rose by 26 percent in the same period. Ahmed Hussein, deputy director general of ADTA, said a Japanese version of the website would soon be finalised, in order to better reach the market. “Our research shows that Abu Dhabi has the right product for Japanese tourists who want a destination where they can engage with local culture and heritage – and of course, which benefits from superb golf courses,” said Hussein. 6
MAY 22, 2010
INTERNATIONAL NEWS
EasyJet Founder Quits Board to Lead Shareholder Revolt Stelios Haji-Ioannou, the founder and largest shareholder of UK based low cost carrier easyJet, has stepped down from the board of directors amid controversy over half yearly results from the airline.
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aji-Ioannou formerly served as the non executive director of the company, which he founded in 1995. He was accompanied in his secession by Bob Rothenberg, another board member. Both men also represent easyGroup, the investment vehicle that owns the easy family of brands, putting the continued use of the easy name by easyJet in jeopardy. EasyGroup is a 26.2 percent stakeholder in easyJet plc, in addition to the 38 percent stake held by Haji-Ioannou.
Haji-Ioannou said his resignation was prompted by an ongoing policy by the airline of expanding its fleet without increasing its share price, which he attributed to outgoing CEO Andrew Harrison. “The inescapable fact is that this airline used to make a bigger absolute profit using far fewer aircraft,” Haji-Ioannou said. “The low cost airline model is maturing, and management needs to now adopt different priorities to take the business forward.” Haji-Ioannou has declared his intention to call a shareholder meeting, with the potential for leading a revolt against the existing board.
“I may ask shareholders to join with me in demanding that the board renegotiate the contract with Airbus and use whatever other means possible to keep the number of aircraft in the fleet at current levels the next three to four years,” he said. “I am convinced this strategy will produce higher profits in absolute terms than [continuing to increase] the fleet size for the sake of it.” The board of easyJet issued a response, claiming that fleet expansion and other strategies had been unanimously approved by all members, including Rothenberg and Haji-Ioannou.
BA Strike Saga Continues British Airways’ (BA) ongoing dispute with its cabin crew has hit renewed turbulence, with both parties in court over the latest round of strikes. Cabin crew members, represented by the Unite union, were set to down tools on May 24 in the second of a series of multiday strikes. However, BA obtained an emergency court injunction preventing the action, which was announced by Unite on May 17. Unite has declared its intention to appeal the ruling, but has ordered all representatives to relay the strike cancellations to all staff. Industrial action has been an ongoing threat to BA operations since it announced an overhaul of airline staffing policies at the end of 2009. The airline, which recorded massive losses in that year, sought to cut costs by revising its crew quotas and rostering practices, in a move that sparked the anger of its unionised staff. Negotiations have been held sporadically throughout the dispute period and one previous strike was also cancelled after being ruled illegal by the courts. Following the latest injunction, Unite has called for a return to negotiations with BA, which has claimed that it had already met the demands of the Union in a previous offer. 8
MAY 22, 2010
UK Aviation Officials Reform Volcanic Ash Safety Regulations In the wake of further airport closures caused by the Eyjafjallajökull volcano, civil aviation officials in the UK have introduced a new system for regulating flight safety in ash affected zones. The move has met with approval from airlines and IATA, the latter of which has been vociferous in criticising the policy of blanket air-space closures that prevailed through the initial eruptions. The UK has introduced a new flight zone category to its risk assessment framework, which will allow aircraft to fly through more ash, provided they only do so for a short time. According to the UK’s Civil Aviation Authority (CAA), the adapted system was developed in consultation with manufacturers of aircraft and aircraft engines. Andrew Haines, CEO of CAA, said that the changes would allow areas that would previously have been classified as no fly zones to open, but said the difficulties posed by the volcano should not be underestimated. “The standard default procedure for aircraft that encounter ash, to avoid it completely, doesn't work in our congested airspace,” he said. “Secondly, the world's top scientists tell us that we must not simply assume the effects of this volcano will be the same as others elsewhere.” Giovanni Bisignani, CEO of IATA, welcomed the changes but criticised regulations elsewhere that he said were based on outdated abstractions. He pointed out that theoretical models had predicted ash in many zones which were then shown to be clear by aircraft flying through. “Numbers show that the current system is flawed,” he said. “We must back the theory with facts gathered by aircraft to test ash concentration.” Bisignani pointed to the UK model as an example, but said European governments ultimately needed to look to the US for inspiration. “The US has well-established, safe and effective procedures for tracking the hazards of volcanic ash,” he said. “In recent years, the industry had no recorded safety incidents from volcanic activity in US airspace.” The US government deals with volcanic activity by mandating a no-fly zone in heavily affected areas, then delegating the responsibility for flying through lower concentrations of ash to the airlines. MAY 22, 2010
Florida Tourism Impacted by Oil Spill The recent oil spill in the Gulf of Mexico, near the US coast, is already impacting tourism in Florida. Though the slick has not yet made contact with any of the state’s beaches, damaging perceptions of the disaster have already deterred visitors. Kathy Torian, media spokesperson for the Florida tourism office, said she had received reports from tourism operators indicating that holidays had been cancelled as much as three months in advance. She said that tourism was the number one industry for the coastal state and pointed out that its 663 miles (1066km) of coastline made beach tourism a significant draw for the state. Torian said that it was impossible to predict how the crisis would unfold, or what impact it would have on Florida’s tourism in the long term. “Do we think all of our 80 million annual visitors will stop coming?” she asked. “No, but how do you begin to even guess what percentage we will lose?” The Florida Department of Environmental Protection, which is responsible for monitoring and forecasting the impact of the spill, is currently issuing projections with a 72 hour horizon. Torian said that for this reason, future developments were impossible to predict.
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AIR TRAVEL NEWS
Etihad Signs Up With MASDAR for Carbon Credits Etihad Airways has agreed to purchase carbon credits from MASDAR, the Abu Dhabi Future Energy Company, for the airline’s voluntary offset programme.
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ASDAR will source Etihad’s carbon credits from a range of alternative energy programmes and energy efficiency initiatives. The airline is currently working on methodologies to calculate the carbon footprint of its operations, including those from ground facilities and transportation.
James Hogan, CEO at Etihad, said the airline was committed to reducing its carbon emissions. “There are a number of world class carbon reduction projects on offer in the Middle East region and the carbon credits that Etihad purchases through MASDAR will make a considerable contribution to these activities,” said Hogan.
Etihad and MASDAR have an existing cooperation agreement, which led to the launch of a sustainable bioenergy research project in January 2010. The project, which is supported by Boeing and Honeywell’s UOP, will investigate the use of integrated saltwater agricultural systems to support the development and commercialisation of biofuel for aviation.
Abu Dhabi Airports Need to Focus On Human Capital According to Gulf Centre for Aviation Studies (GCAS), Abu Dhabi airports need to invest in personnel development to keep pace with growing demand in the emirate. Speaking at the Middle East Business Aviation Conference (MEBAC), Dr Othman Al Khouri, managing director of GCAS, presented Abu Dhabi Airport Company’s case study of Al Bateen airport. Al Bateen Airport, which services private aviation, recently reported a 30 percent increase in traffic in the first quarter of 2010. Al Khouri said his organisation’s involvement with the airport had provided valuable insight into airport and aviation practices in Abu Dhabi, and concluded that training was imperative to the sector’s future.
Dr. Othman Al Khouri 10
MAY 22, 2010
AIR TRAVEL NEWS
Emirates Offers Online UAE Tourism Visas Emirates Airline has partnered with VFS Global, part of the Swiss company Kuoni Travel Group, to deliver an online visa purchasing option for business or leisure tourists visiting Dubai.
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FS Global operates Dubai Visa Process Centre (DVPC) in 11 countries. The new feature will be available to all Emirates ticket holders, regardless of whether the booking is made online, at an Emirates office or via a travel agent. Visas will be available for either 96 hours or 30 days and will be delivered to ticket holders via email within four international working days. Richard Vaughan, divisional senior vice president of commercial operations worldwide for Emirates said the move was a simplification in the travel process.
“I’m delighted Emirates is advancing travel convenience by allowing its customers to apply, purchase and track their UAE visa online – another initiative in a series of self-service tools that offer more convenience, flexibility and control to passengers,” said Vaughan. “The timely introduction of this feature ahead of the summer rush will facilitate travel for scores of tourists visiting the emirate during the Dubai Summer Surprises.” The new feature will also cater to groups and families, allowing multiple requests of up to nine people if they are on the same booking.
The initial phase will be rolled out in 35 countries in the Far East, India, Middle East, Africa, Europe and the Americas. A second phase, due in the coming weeks, will target offline markets that do not have Emirates services, but connect to nearby gateways of the airline.
UAE Air Traffic Defies Global Trend Air traffic in the UAE remained buoyant in the early months of 2010, in contrast to massive disruptions to European airspace caused by Iceland’s volcanic activity. The UAE’s General Civil Aviation Authority (GCAA) has reported that though air traffic fell globally in April, when the ash cloud’s disruptive influence was at its widest, business at UAE facilities increased by 10.6 percent. GCAA indicated that positive growth had been a consistent throughout the first four months of this year, averaging 11.5 percent over that period. Dubai ranked first for number of flights in April, accounting for 47 percent of traffic to the UAE. Transit flights were the next largest segment (22 percent), followed by Abu Dhabi (14.6 percent), Sharjah (10 percent) and intra-UAE movements (6.4 percent). Other airports, such as Al Ain and Ras Al Khaimah accounted for 1.1 percent of traffic together. Saif Mohammad Al Suwaidi, Director General, GCAA said the UAE had benefited from its position and preparedness throughout the volcanic interruption. “[Growth] is attributed to the diverse operations with no focus on one region, the ability to find appropriate alternative in emergencies and the advanced legislative and legal framework in relation to aviation security, air safety and regulation of air traffic in the UAE,” he said. MAY 22, 2010
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CRUISING NEWS
UAE Yacht Charter Group Launches Lebanese Services Eden Yachting, a newcomer to the yacht charter business, plans to capitalise on growing tourism in Lebanon by adding Beirut to its list of charter destinations.
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he UAE based agency was launched in 2009 it offers chartered sailing and motor yachts to 25 destinations throughout the world. Philippe Saad, managing director of Eden Yachting, said that the yachting industry was on its way up in Lebanon, with USD1 billion already spent on marinas and seafront developments along the coast. However, he added that there was a long way to go in terms of development.
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“The yacht charter industry is particularly underdeveloped in Lebanon, however as the country enjoys a 220 km coastline, 300 days of sunshine and borders the Mediterranean, I believe there is great potential in this market for chartering,” said Saad. “Of course there are limitations in the sense that there are not many public marinas outside the Beirut area, however this just means that it is currently a day charter market. “The Lebanese like to socialise and they
love the sea, so what better way to enjoy themselves than to charter a crewed yacht for a day and take a group of friends cruising up the coast.” Yacht sales in 2009 grew by 14.5 percent and the industry is predicting further growth of 20 percent in 2010. In addition to international charter locations, Eden Yachting also operates charters from a range of Middle Eastern destinations, such as Abu Dhabi, Dubai, Ras Al Khaimah, Mussandam, Muscat and the Red Sea.
MAY 22, 2010
Rois Travels Opens First Dubai Office Rois Travels, an Italian brand, has opened a branch servicing the UAE, Oman, Italy and other selected destinations around the world.
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orrado Chairentin, managing partner of Rois, said the travel agency would provide a collection of unique, luxurious and different vacation ideas with a selection of hotels and resorts aimed at individual treatment. “With a highly qualified and experienced
team of Italian professionals, Rois Travels wants to be a trendsetter in the travel and tour industry by introducing a high level of customer interaction, bespoke tour packages and personalised holiday planning for personal, leisure and business travel,” said Chairentin. Rois Travels is actively involved in several industry associations, including Pacific
Asia Travel Association (PATA), United Federation of Travel Agents’ Associations (UFTAA) and IATA.
Rois Travels wants to be a trendsetter in the travel and tour industry
Bliss Takes Top Honours at First Middle East Spa Awards The winners of the inaugural Middle East Spa Awards have been announced, with Bliss Spa at W Hotel Doha claiming the Best Spa award. Other categories included Spa Personality, awarded to Dr Deepa Dharjekar, general manager of Thai Privilege Spa; and Signature Body Treatment, taken by The Spa at The Palace, The Old Town for its One Desert Journey treatment. Sonette van Rensburg, one of the judges of the competition, said the awards were an important development for the regional spa industry. “The introduction of the Middle East Spa Awards is very important and an excellent way of recognising and awarding spas that are providing professional and exceptional services, quality products, innovative treatments and outstanding client care,” she said. Rensburg said Bliss had been chosen to win because of its individuality.
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MAY 22, 2010
Key Points for Successful Group Tourism European Tour Operators Association (ETOA) recently launched a charter for group tourism in cities, in co-operation with several industry and government representatives. While this charter was designed specifically for the European market, it has outlined 10 key points that are relevant to the tourism industry across the world. Tom Jenkins, executive director of ETOA, pointed out that group tourism is socially, economically and environmentally sustainable, but is an often misunderstood segment of the tourism industry. These 10 tips can be used to improve the quality of group tourism: 1. Group tourism is valuable business: according to ETOA, groups are professionally managed and easy to handle. They often give a better return on marketing efforts and represent a large opportunity from emerging markets. Furthermore, group tourism is booked in advance. 2. Group tourists should feel welcome: facilities should suit both group and individual visitors, and poor facilities will reflect badly on the city or attraction. 3. Manage capacity: provide facilities that cope with peak visitor volume, provide sufficient coach pick-up and drop-off zones, as well as accessible parking. ETOA also suggests developing incentives for off-peak visits.
MAY 22, 2010
4. Ensure accessibility: provide easy access to key sites and hotels, as well as proper access for the elderly and travellers with disabilities. 5. Support the professionals: provide group entry points, create practical meeting points for local guides, ensure that signage is clear and multi-lingual and ensure that tour guides can communicate freely with groups in public. 6. Create intelligent systems: align booking systems with retail and wholesale group business patterns, minimise regional variation in coach permit systems, streamline ticketing processes and provide online systems.
7. Plan ahead: publish significant changes to coach access, new requirements, restrictions on visitor numbers, increases in charges, or new facilities at least 18 months in advance. 8. Balance costs and benefits: costs should be matched by services and infrastructure; increased costs without corresponding benefits deters tourism. 9. Work together: city authorities should work closely with tourist boards and other stakeholders, including cities, attractions and tour operators. 10. Secure future success: group tourism must change as consumer behaviour and preferences change.
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Steven Mueller
Peter Hill
Director of Front Office, Media One Hotel Dubai
CEO, Oman Air “Oman Air's new routes will significantly extend the choice for customers. Oman Air is continuously working closely with the Ministry of Tourism and hotels in Muscat to put together special packages and marketing campaigns to boost traffic during off-peak times - weekends and the summer months - as well as targeting niche groups such as honeymooners, sports enthusiasts and adventure tourists.”
“We wanted to establish why our roles have changed and found that due to the downturn, front office personnel have to multi-task a lot more. We also found that because there are fewer levels of management, it is easier to see who the superstars are.”
Front office personnel have to multi-task a lot more
Peter Hill
Special packages and marketing campaigns boost traffic during off-peak times
Shane O'Hare CEO, Royal Jet "If you factor in other airline cost implications for any regional business trip involving several senior executives, a private jet will almost always be more cost effective than conventional travel when taking into account the value of wasted executive time.”
[For some customers] a private jet will almost always be more cost effective than conventional travel
Shane O'Hare 16
MAY 22, 2010
Dollar Thrifty Expands in Qatar Dollar Thrifty Automotive Group has opened two new car rental counters in Qatar, in a move that will capitalise on the state’s increasing number of tourists.
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he newly commissioned Barwa City was chosen as the location for the new counters, according to Sam Eltibi, executive director of Dollar Thrifty for MENA and Asia Pacific. “We hand-picked our locations so we can cater to the growing number of visitors in Qatar,” he said. “Most of our rentals come from business travellers and visitors for the numerous events that take place in Doha, which have significantly increased over the past year. “Our rapid expansion into Qatar has caused us to embark on an intense recruitment drive for counter staff and chauffeurs.” Eltibi added that Qatar had contributed significantly to the growth of Dollar
Thrifty’s regional business. “Car rentals are the preferred mode of travel tourists and visitors to the Middle East, especially during the hot summer months,” he said. “With the number of business travellers preparing for post-summer events in Qatar, we will see car rentals surge in the next few months.”
Car rentals are the preferred mode of travel tourists and visitors to the Middle East, especially during the hot summer months
We will see car rentals surge in the next few months
Sam Eltibi MAY 22, 2010
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Maher Salman Al Musallam
Khawla Salem Al Badi Etihad Airways has appointed Khawla Salem Al Badi as head of business strategy development in the information technology (IT) department. Al Badi will be responsible for aligning the airline’s IT strategic work programme with its business strategy in areas relating to pricing, crew planning, flight operations, in-flight catering and business intelligence. Al Badi holds a master’s degree in business and management and a bachelor’s degree in computer sciences. She has more than 15 years of experience in the IT field and most recently worked as assistant vice president of treasury and capital market business development at Mashreq Bank.
Khawla Salem Al Badi
Maher Salman Al Musallam
Gulf Air has appointed Maher Salman Al Musallam as deputy CEO of the airline. Al Musallam has 35 years of experience in the Royal Bahraini Air Force. Current Gulf Air CEO, Samer Majali said Al Musallam would be involved in all aspects of the company, including the rapid implementation of Gulf Air’s new operational strategy.
Thomas Norberg
Abdul Aziz Al Raisi
Emaar Hospitality Group has appointed Thomas Norberg as general manager of The Address Dubai Mall. Norberg has spent more than 20 years in the hospitality industry and has worked for Ritz-Carlton, Fairmont and The Plaza Hotel in New York.
Oman Air has appointed Abdul Aziz Al Raisi as chief officer of management affairs at the airline. Al Raisi has been employed with Oman Air for more than 26 years, beginning as an engineering trainee and moving on to become an aircraft engineer. He has since held the positions of senior engineer, hangar supervisor, senior manager of base maintenance and most recently senior manager of technical projects. In his new position, Al Raisi will be involved in all technical projects involving all new aircraft acquired by Oman Air.
Thomas Norberg
Ali Al Balooshi Global distribution system (GDS) provider, Travelport, has appointed Ali Al Balooshi as regional business development manager. Al Balooshi will cover Travelport’s distributor and operator markets in the Middle East, Pakistan and Turkey. Al Balooshi has a strong sales and marketing background within the GDS and hotel industries, having worked in Bahrain, Saudi Arabia and Yemen. 18
Ali Al Balooshi
Abdul Aziz Al Raisi MAY 22, 2010
Q&A with Faisal Memon Illusions Online is a major enterprise software provider, based in Dubai. Faisal Memon, CEO of the company spoke to Travel Trade Weekly about the importance of technology in difficult times. Travel Trade Weekly: Please tell me about what Illusions offers its customers and who your product is for? Faisal Memon: Our main offering is something called Illusions Enterprise; which is essentially a complete suite of tools for tour operators and wholesalers, for managing every aspect of the business. In the Middle East region there is a very grey area between travel agents, tour operators and wholesalers, but our dealings are very much with the brick and mortar kind of operation. However, even though we work with realworld businesses, we allow these businesses to be online and compete in that market.
Travel Trade Weekly: Has there been a lot of interest in enterprise software in the Middle East? Faisal Memon: The interest has been huge; however, where the issue lies is that because we are offering an enterprise product, we focus on enterprise customers, which means the big boys in the market. The barrier is the cost of the product, which can be up in six figures. We have obviously tried to be very creative in the way we have priced the product, through user licensing and other initiatives, but it can still be difficult to convince smaller players to make the investment. On top of which, it has always been a challenge to get people to adopt new technologies.
Travel Trade Weekly: Is there a particular resistance to new technologies in the Middle East? Faisal Memon: Oh yeah. You are bang on there. What you have to remember is that a lot of these travel companies, particularly the big ones like Kanoo or Al MAY 22, 2010
Faisal Memon
Understanding of the benefits of technology has not yet become widespread Rais, have been around for a long time. These big players, many of them have boomed and grown because of the boom in the region. For example, a couple of years ago in 2007 and 2008, these companies did not have to work too hard because there was so much going on in the area and everyone just rode the wave. At that time, we would go into offices and try to convince managers to spend six figures on a new program - well, you would see a lot of eyebrows. You would usually get shown the door, too! I think the actual understanding of the benefits of technology has not yet become widespread and this is something that can be seen in the travel industry around the world.Sure, in the US you have companies like Expedia and Orbitz, but this is a very different business model and traditional tour operators have remained very slow on the uptake when it comes to new technology. So yes, although things are changing, there is definitely big resistance.
Travel Trade Weekly: How are things changing now? Faisal Memon: We have seen a shift recently, as the market has not been as rosy and people have to work hard for pennies these days. The biggest cost for travel enterprises is human resources, and our product is about automating procedures that would otherwise take up the time of staff. What this means is that in hard times companies can operate with fewer employees and when things get better they can either manage greater loads with the same number of staff, or redirect staff to work on more complicated, high revenue business. Another thing that is driving interest at the moment is that we are seeing the old school hand over the reins to the new school. As the fathers in the big family businesses that are our main clients hand over the management to their sons, we are seeing a lot of new interest coming in. 19
Dubai Prepares Tourism Contingent for IMEX 2010 Dubai Department of Tourism and Commerce Marketing (DTCM) will be joined by 46 co-participants from Dubai’s tourism industry for the upcoming IMEX – Worldwide Exhibition for Incentive Travel, Meetings and Events. Held in Frankfurt, Germany, from May 25 to 27, IMEX is expected to attract 3,500 exhibitors from 157 countries. The exhibition is now in its eighth consecutive year.
Dubai’s stand will contain 34 booths – up from 28 in 2009 – and will measure 353m², according to Ali Abdul Wahab, head of east and west Europe region at DTCM’s overseas promotions and inward missions department. He added that DTCM would also be hosting Dubai road shows in Frankfurt and Munich on May 27 and 28, along with 14 co-participants. DTCM operates a representative office in Frankfurt; Dubai hotels received 283,319 German guests in 2009.
Imex
Events IMEX Frankfurt, Germany, May 25-7 (www.imex-frankfurt.com) Major international exhibition for the meetings and events industry.
International Travel Expo Hong Kong Hong Kong, Jun 10-13 (www.itehk.com) Travel industry event for Chinese region, supported by more than 96 countries.
Global Travel and Tourism Summit Beijing, China, May 25- 27 (www.globaltraveltourism.com) High level gathering of travel industry chairs and CEOs.
Destinations World Bengaluru, India, June 11-13 A comprehensive exhibition for the travel and tourism industry in the Indian region.
World Travel Fair Shanghai, China, May 27-29 (www.worldtravelfair.com.cn) Annual travel fair for global travel professionals. Iran Food and Hospitality Tehran, Iran, May 30 (www.iran-foodhospitality.com) Trade show for food, beverages and hospitality in Iran. International Holiday Festival Tehran, Iran, June 10-12 (www.expokish.com) Festival showcasing local food, traditions, tour organisers, hotels and accommodation providers to extend the range of foreign and domestic travels.
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Asia Luxury Travel Market Shanghai, China, June 14-17 (www.altm.com.cn) Sister event to ILTM, focusing on senior Asian luxury travel buyers. Business Travel Market London, UK, June 16-17 (www.businesstravelmarket.co.uk) Conference and exhibition for meeting corporate travel buyers, suppliers and intermediaries – expected to attract more than 4,000 delegates and 500 of Europe’s top travel buyers.
MAY 22, 2010