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FEMALE ONLY TRAVEL Travel Trade Weekly explores claims that the Middle Eastern market offers untapped potential for exploring female only travel.
Completion of Dubai’s two latest world record breaking properties is in sight, with the world’s tallest hotel and world’s tallest building both scheduled to open within the next two months.
4 FORMULA FOR SUCCESS Experts discuss how to combine major international sporting events with tourism development strategies to ensure long-term results.
6 In This Issue Market Update Q3 Results Female Only Travel Sporting Tourism World Travel Awards Global Tourism Forecast Cruising and Airlines Accommodation News Travel Tips Travel Talk Who’s Moved Rendezvous News & Events NOVEMBER 14, 2009 ISSUE 1
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Long Way to the Top
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Welcome to the first weekly e-book issue of Travel Trade Weekly – your must-have source for the latest news and information for the Middle East and North Africa. The unique combination of our weekly news cycle and a widespread readership allow us to offer the latest news and direct exposure to tourism professionals within MENA and beyond. Travel Trade Weekly is made up of a team of experts with a wealth of experience in the industry; we’re dedicated to bringing you exclusive news every week, ensuring you are constantly up to date with the latest industry developments. Travel Trade Weekly is published in two convenient forms; a monthly hard copy edition and a weekly online e-book, published and distributed every Saturday morning. The monthly hard copy offers destination reports, feature articles, analysis of tourism trends and information to help you improve your business and increase your industry knowledge. It is distributed to travel trade professionals in Egypt, Libya, UAE, Saudi Arabia, Lebanon, Cyprus, Greece, Bahrain, Jordan, Syria, Kuwait, Qatar, Tunisia, Morocco, Iran, Yemen, Palestine, Algeria and Iraq. The weekly e-book is published and distributed every Saturday morning to travel agents and tour operators in Europe, and travel trade professionals in the Middle East and North Africa. Our choice to deliver the majority of our output electronically reflects our desire to bring you the latest news, as well as our commitment to responsible and sustainable business practices. Once more, welcome, and please enjoy the first e-book issue of Travel Trade Weekly!
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Deputy Editor Laura Warne Journalist Louis Dillon Savage Design & Layout Elina Pericleous Sales & Marketing Joy Hadjivarnava Jane Davidson Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +35722820888 Fax: +35722318958
Hyatt Floats on NYSE Hyatt Hotels Corporation opened for trading on the New York Stock Exchange (NYSE) on November 5. The initial public offering (IPO) raised USD950 million in gross proceeds. The IPO was the second largest to begin trading on the NYSE in 2009 to date, following Banco Santander (Brasil) in October. Hyatt’s IPO consisted of 38 million shares of Class A common stock at USD25 per share, sold by existing stockholders of the company. In connection with the IPO, the underwriters exercised in full their
option to purchase 5.7 million shares of Class A common stock from the company, also at USD25 per share. Hyatt expects to receive net proceeds of approximately USD127.3 million from the sale of these additional shares. Goldman, Sachs and Co acted as the sole bookrunning manager and leading managing representative of the offering, with Deutsche Bank Securities and JP Morgan Securities acting as joint lead managers.
MENA Exchange Rates Accurate as of 12/11/2009
ME Hotels Strong on RevPAR, Overtaken on Occupancy
Currencies shown in red are fixed against the US Dollar
For the first time this year, Europe overtook the Middle East in terms of hotel occupancy performance, according to data released by Deloitte and STR Global, covering the year to September. The report shows occupancy for the Middle East was at 52.8 percent in September, down 4.7 percent compared to September 2008. However, the Middle East remained the firm global leader when it came to revPAR, recording US$119.40. Europe recorded revPAR of US$80 during the same period. Year to date occupancy for the Middle East was down 11 percent compared to the same period in 2008, and year to date revPAR was 18 percent lower than 2008 figures. Several cities continued to show strong performance. Jeddah, Saudi Arabia, saw a year to date increase in revPAR of 16.1 percent compared to 2008. Year to date occupancy for Jeddah remained 0.5 percent above occupancy in 2008. Lebanon’s capital, Beirut, recorded significant decreases in revPAR and occupancy in September 2009 relative to August 2009. However, year to date figures show an increase in occupancy of 41 percent and revPAR increases of 82 percent compared to the same period in 2008.
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 5.45 3.75 1501. 0.37 0.70 46.30 0.28 3.64 0.38 1.28 7.60 9880 205.5 71.87 1.20
NOVEMBER 14, 2009
Hotel Q3 Results Show Challenging Year Year-on-year comparisons show that the first nine months of 2009 have been hard for the hotel industry. Rezidor, InterContinental Hotel Group (IHG), Accor and Starwood all declared diminished returns in their 2009 third quarter reports. Rezidor reported a 18.1 percent decrease in relative revPAR over the year to September. These losses were accompanied by an occupancy drop of 5.5 percent. The lost revPAR and occupancy combined to outweigh operational costcutting by the chain, ultimately reducing revenue by 14.5 percent.
The company’s report stated that while the decline in occupancy appeared to have been checked in the third quarter, the decline in rates had worsened. Starwood announced profits of USD180 million, down from USD250 million for the year to September 2008. Year to date revPAR was also down for the group, dropping by 21 percent. IHG posted a decrease in revenue of 19 percent relative to 2008’s third quarter, mirrored by a 19 percent drop in net profits.
The group added 11,386 rooms to its 2008 capacity, with 80,000 more currently under construction. Accor experienced the smallest relative contraction in business, but still ran at a loss in absolute and comparative terms. Income from the group’s prepaid services, which include casinos and restaurants, rose by 3.6 percent, however hotel profits returned 10.7 percent less than the preceding year. Total revenue for the company fell by 8.2 percent.
Financial Reports Show Middle East Carriers Flying Ahead 2009 represented a good year for Middle Eastern carriers, with both Emirates and Royal Jordanian reporting large year-on-year profit growth.
Ahmed bin Saeed Al Maktoum, chairman of Emirates Airline & Group NOVEMBER 14, 2009
Comparatively, UK flag carrier British Airways (BA) declared large losses over the first three quarters of 2009. Royal Jordanian recorded a 16 percent revenue slump compared to 2008, yet managed to increase profits exponentially. The first nine months of 2009 saw the airline achieve net profits of JOD25.5 million (USD36 million), whereas the same period of 2008 saw the airline post a net loss of JOD3.8 million (USD5.3 million). Nasser Lozi, chairman of the Royal Jordanian board of directors, attributed diminished revenue to the slump in passenger traffic caused by the global financial downturn. Hussein Dabbas, CEO of the airline, said that increased profits were driven by decreases in fuel costs; a cost expenditure that has fallen by 50 percent against 2008 prices. He also stated that the airline continued to pursue an operational cost reduction of 20 percent and a decrease in available flight kilometres of four percent. Similarly, Emirates reported a 13.5 percent decrease in revenue, but
maintained strong profit growth against its equivalent reporting period last year. The first half of the carrier’s financial year, which starts in April, brought a 165 percent year-on-year profit increase and an 18 percent increase in passenger numbers. Two destinations were added to the airline’s network and extra flights were added to many established routes. Emirates added eight new aircraft to its fleet, and expects delivery of 10 more by April 2010. The market as a whole has not shared the success seen by Middle Eastern carriers; according to the International Air Transport Association (IATA), September was the first month to have shown positive growth in passenger traffic after a year of declines. British Airways reported an operating loss of GBP111 million (USD185 million) compared with GBP140 million (USD233 million) in profits last year. In response, BA will cut winter capacity by six percent, and reduce its staff by 3,000. 3
Room to Capitalise on Female Only Travel The Middle Eastern market offers untapped potential for exploring female only travel, according to consultancy group Euromonitor International.
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emale only leisure options have existed in the region for decades in the form of spas; female only beaches; and female only floors in many hotels. In 2007, the Middle East’s first female only hotel opened in Riyadh, Saudi Arabia, a concept that Euromonitor said was under exploited. The firm reported that there were many opportunities to market and promote female only accommodation as part of an overarching travel experience, exclusive to women. It added that the concept should be considered as part of the general marketing and promotion of the region. Euromonitor suggested that there was an opportunity for the concept to diversify into adventure and backpacking tourism; a growing market for regional travellers. Egypt, Iran and Saudi Arabia were picked as key markets, but the potential to attract western interest was also emphasised. The growth of the Middle East as a source market also means that the model has export potential.
Further, the report said the region’s mushrooming medical tourism market could attract female patients interested in gender-segregated accommodation. Euromonitor listed conservative backlash as a potential problem, but emphasised that accommodation marketed through health and wellbeing concepts could take advantage of the pre-existing spa model.
SNTTA Targets Double-digit MICE Growth SNTTA Emir Tours has revamped its MICE division and is targeting double-digit growth in 2010. New appointments and company restructuring are underway within SNTTA’s UAE and Oman operations. David Milican, senior general manager of SNTTA, said the MICE market in the UAE held huge potential; leading 4
the company to draw up an aggressive business plan to increase its market share. “Our aim is to go beyond our core focus of incentive travel to the other components of MICE,” said Milican. “We successfully handled a major convention, GASTECH, in May 2009 and we have been commissioned to
handle the NYSORA World Anaesthesia Congress in Dubai in March 2010. “We are now concentrating on building on the success of managing such high profile events.” In addition to consolidating existing partnerships, Milican said SNTTA was exploring new partnerships in overseas markets. NOVEMBER 14, 2009
Abu Dhabi Finds Winning Formula For Sport Tourism A recent study reports that the Olympics can damage tourism growth, however industry experts say that Abu Dhabi has hit on a winning formula for avoiding sport tourism’s pitfalls.
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bu Dhabi’s occupancy and average room rates swelled during the recent Grand Prix, hitting 97.5 percent and USD606 respectively on October 31, according to STR Global data. Deloitte’s industry analysts said that Abu Dhabi’s successful Grand Prix continued a trend for emerging destinations to host international sporting events. Alex Kyriakidis, global managing partner of tourism, hospitality and leisure at Deloitte, said the event gave the emirate an opportunity to showcase its hospitality, along with new developments such as Yas Island and Ferrari World; extending its appeal to new source markets. Alan Switzer, director in Deloitte’s sports business group, added that combining global sporting events with tourism initiatives could be a win-win relationship. “Sport is being used as a way to market the host [countries] to potential new investors or tourists, whilst bringing new audiences to the sports themselves,” explained Switzer. However, the tourism benefits of large scale sporting events are not straightforward, according to a recent study of the Olympic Games, by the ETOA.
Drawing on visitor arrival data from summer Olympics between 1988 and 2008, the study demonstrated that host cities sometimes experienced a short term peak throughout the games, but always experienced a major disruption to their normal tourism market. None of the Olympic cities studied experienced any conspicuous tourism growth in the long term, according to ETOA. Tom Jenkins, executive director of ETOA, recognised that each city handled the Olympics differently, but claimed that the study showed an overall negative effect on
tourism. “We have yet to have a Games where tourism is not disrupted, and disrupted in a way that causes real harm,” he said. Kyriakidis said that while events such as the Olympics may have a depressive effect on tourism, this could be avoided by incorporating the events into the destination’s overall marketing strategy. “Abu Dhabi has chosen to differentiate itself within the region by hanging its hat on culture, sport and learning,” he said. “What you see in Abu Dhabi is a scene that is an integrated part of the whole.”
Court Decision Demasts RAK’s America’s Cup Dreams Ras Al Khaimah will no longer host the 33rd America’s Cup yacht race. The race will instead be held in Valencia Spain, in February 2010. Cup defenders, Team Alinghi, announced the emirate as their chosen venue on August 4. However, the New York Supreme Court, which administers the Cup’s charter, 6
ruled the emirate to be an illegitimate location for the race on October 27. Challenging team BMW Oracle had disputed the choice, claiming that it did not comply with the Cup’s charter, known as the Deed of Gift. The Deed of Gift stipulates that races between November and May must occur in the southern hemisphere.
Negotiations between Team Alinghi, and challenging team BMW Oracle continued until November 10 when Alinghi named Valencia as venue for the contest. Despite lying in the northern hemisphere, Valencia was deemed acceptable in compliance with previous decisions of the court. NOVEMBER 14, 2009
Middle East Wins Big At World Travel Awards
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iddle East travel professionals took home some of the industry’s most coveted titles at the 2009 World Travel Awards, held in London on November 8. Major winners from the region included: Etihad Airways, World’s Leading Airline; Dnata, World’s Leading Travel Management Company; and Regency Travel and Tours Qatar, World’s Leading Travel Agency. The Middle East dominated the airline categories, with Etihad also taking out the World’s Leading Airline First Class award, Qatar Airways following up with the World’s Leading Airline Business Class award and Abu Dhabi-based Royal Jet Group taking the World’s Leading Private Jet Charter award. Other Abu Dhabi winners included Aldar’s Yas Island, World’s Leading Tourism Development Project; Abu Dhabi Tourism Authority, World’s Leading Tourist Board; and Emirates Palace, World’s Leading Conference Hotel. Dubai was awarded a string of titles, including World’s Leading Airport; World’s Leading Cruise Port; World’s Leading Hotel, Burj
NOVEMBER 14, 2009
Etihad Airways team
Al Arab; World’s Leading Serviced Apartment Hotel, Grosvenor House Dubai; World’s Leading Beach Resort, Le Royal Meridien Beach Resort and Spa; and World’s Leading New Hotel, InterContinental Residence Suites Dubai Festival City. The Monarch Dubai was awarded World’s Leading Luxury Business Hotel and World’s Leading Suite. Also in Dubai, Illusions Online took out the award for World’s Leading Travel Technology Provider. Elsewhere across the region, Six Senses Hideaway Zighy Bay, Oman, won World’s Leading New Resort and Doha, Qatar, won World’s Leading Emerging Business Destination. Votes for the awards were cast by industry professionals from 183,000 travel agencies, tour and transport companies and tourism organisations in more than 160 countries.
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Silk Road Show Dubai Department of Tourism and Commerce Marketing (DTCM) has aggressively targeted the Chinese market, staging Dubai roadshows in three major Chinese cities.
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eld in Beijing, Shanghai and Guangzhou, the roadshows exposed Chinese tour operators to major industry players from Dubai, including Emirates Airlines; Jumeirah; and Arabian Explorers. The Dubai roadshows are part of a push by UAE tourism authorities to capitalise
UNESCO Inclusion May Boost Tourism in UAE and Iraq The UAE and Iraq have been elected to the World Heritage Committee of the United Nations Educational, Scientific and Cultural Organisation (UNESCO). The committee administers UNESCO’s world heritage list. The list currently incorporates 890 sites, however none are based in the UAE. Awadh Saleh, of Abu Dhabi Authority for Culture and Heritage (ADACH), said membership on the committee would improve the UAE's chances of securing its first inclusion on the world heritage list. According to UNESCO, acceptance to the heritage list can increase tourist interest in the site by raising its international profile. Al Ain officials have been seeking inclusion for the city and surrounding oases since 2003, and have resubmitted an application for adjudication in 2010. Saleh indicated that the UAE would continue to work on more applications for the future, including a multi-nation bid to recognise the sport of falconry as an example of intangible cultural heritage. 8
on the country’s recent designation as an approved destination by the Chinese government. The UAE was accorded approved destination status (ADS) effective September 15. The ADS agreement, finalised in August, allows the UAE to be promoted as a tour destination by official operators within China.
Saleh Al Geziry, DTCM director of overseas promotions said that in 20092010, DTCM’s efforts will be to reach out to the travel industry in China and make Dubai more attractive to Chinese visitors. China is expected to become the largest source market in the world by 2020, according to the UN World Tourism Organisation (UNWTO) and DTCM.
Global Tourism Forecast for 2010 The World Travel and Tourism Council (WTTC) has released its global 2010 forecast for the industry, predicting a flat market to follow the global declines seen throughout 2009. However, trend growth of four percent is forecast over the coming decade, proving that the industry will be a key engine of long term expansion. WTTC’s report shows that globally, international air passenger traffic contracted by six percent in the first eight months of 2009. The US economy was hit by the joint effects of the global economic situation and the outbreak of swine flu, prompting a 9.5 percent decline in visitor arrivals and 16.5 percent decline in visitor spending in the first half of 2009. UK visitor arrivals were down 8.5 percent in the same period, with visitor spending down 26.5 percent in USD terms. India and China, despite showing more resilient economies, both saw declines in visitor arrivals and visitor spending. The Russian market was hit particularly hard, with a slump in commodity prices and business activity. Visitor arrivals to Russia were down by 11.2 percent in the first half of 2009 and visitor spending sank by 23.7 percent in USD terms during the first quarter of 2009. The Middle East, while not a focus of WTTC’s report, did show strong performance in air passenger travel. WTTC concluded that government policies must be delivered to support, not hamper the travel and tourism industry as it attempts to rebound from the 2009 slump. NOVEMBER 14, 2009
CRUISING & AIR TRAVEL
Costa Cruises to Name New Flagship in Dubai
Happy Birthday Jazeera On October 30, Kuwait-based Jazeera Airways celebrated its fourth birthday and announced plans for future growth. Marwan Boodai, CEO of the airline, publicised a broad action plan, including further expanding the carrier’s fleet and network. The birthday celebration marked the close of a successful year for Jazeera, which observed a 22 percent increase in passenger numbers over 2008. The increase in passengers accompanied a fleet size increase and the launch of a business class.
Terminal Wellness in Turkey Italy’s Costa Cruises will officially name its new flagship, The Costa Deliziosa, in Dubai next year.
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uring the winter of 2009/2010, Costa expects its guests to contribute USD21 million to the region. A total of 32 calls by three ships, including the Costa Deliziosa, Costa Luminosa and Costa Europa, are anticipated to bring 140,000 passengers
to Dubai throughout the winter. The naming ceremony will be the first such event held in the Middle East, according to Costa, and will take place on February 23, 2010, during the ship’s inaugural cruise. Along with sister ship, Costa Luminosa, Costa Deliziosa will then operate from Dubai, offering seven day cruises of the Arabian Gulf.
Istanbul’s Sabiha Gökçen International Airport (SAW) opened its second terminal on October 31. The new terminal will increase the airport’s capacity to 25 million passengers per year, a figure which is expected to be reached by 2023. The airport currently handles up to five million passengers annually. The new terminal cost USD727.4 million and took India-based airport operator, Limak-GMRMAHB, 18 months to complete. Flights commenced from the terminal on November 9.
New Website for Air Arabia Air Arabia unveiled a major upgrade of its website on November 10. The new version of Airarabia.com adds features such as booking modification; online check-in from Sharjah Airport; meal and seat selection; meet and assist services; and lounge access. Ak Nizar, head of Air Arabia’s commercial department, pointed out that the internet was the airline’s main source of business. “Currently, a majority of Air Arabia passengers book their tickets online and we continue to witness significant year-on-year increases in the percentage of customers who take advantage of this service,” he said. NOVEMBER 14, 2009
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ACCOMMODATION
It’s a Long Way to the Top Completion of Dubai’s two latest world record breaking properties is in sight, with the world’s tallest hotel and world’s tallest building both scheduled to open within the next two months.
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otana Hotels will make history in December with the opening of Rose Ryahaan, the world’s tallest hotel. Daniel Mathew, general manager of Rose Ryahaan, said that pre-opening marketing strategies, including GCC visits and a stand at the recent World Travel Market had shown positive feedback on the property. “We have already started receiving bookings for 2010 from the different online channels,” said Mathew. The 72-storey Rose Rayhaan will reach a height of 333m, offering 481 rooms, suites and penthouses. It will also include a range of F&B outlets, meeting rooms, business and leisure facilities. The hotel will be the second in the Rotana Group to operate under the alcohol-free Rayhaan brand, after the Al Marwa Rayhaan in Makkah, Saudi Arabia. Omer Z Kaddouri, senior vice president of Rotana, said Rose Rayhaan was on track for its soft opening in midDecember. Mathew added that the hotel would be in
full operation 20 days after the soft opening. Burj Dubai Opening Postponed The highly anticipated Burj Dubai, the world’s tallest tower, was scheduled for inauguration on December 2, but has been postponed and is now expected to open on January 4, 2010. Mohamed Ali Alabbar, chairman of Emaar Properties, said the new date was selected to coincide with the anniversary of the day that Sheikh Mohammed bin Rashid Al Maktoum became ruler of Dubai. The final exterior cladding panel for the Burj Dubai was installed on September 30, marking a total of 24,348 cladding panels and a total exterior glass area of 103,000m². The mixed-use development will feature the world’s first Armani Hotel and Armani Residences, along with corporate offices, restaurants and an observation platform.
Marriott’s New Middle East and Africa HQ
Pop-up Hotels Here to Stay
Marriott International has formed a Middle East and Africa department, which will be headquartered in Dubai. The company also announced the signing of five new hotels for the region, including its first properties in Algeria, Ghana and Morocco. These properties, to open by the end of 2015, will add 1,126 rooms to the 10,800 rooms currently in Marriott’s pipeline for the Middle East and Africa. Ed Fuller, president of international lodging for Marriott, said the new regional headquarters recogised the dynamic nature of tourism in the Middle East and the emergence of Africa as a destination for business and leisure travel. “The Middle East appears to have weathered the global economic storm and we’re beginning to look forward to rising occupancies through the end of this year into next,” said Fuller. “We expect the Middle East and Africa as a whole to play an increasingly important role in the future.” The five hotel signings include Algiers Marriott and Algiers Marriott Executive Apartments, Algeria; Sahl Hasheesh Marriott Beach Resort, Egypt; Accra Marriott, Ghana; and Marrakech Marriott Palm Golf Hotel, Morocco.
The emerging trend for pop-up hotels may not be as temporary as the structures themselves, according to the 2009 Euromonitor International and WTM Global Trends report. According to the report, pop-up hotels – temporary, portable accommodation structures that are often used for festivals, sports and outdoor events – offer affordable, high quality and unique hotel experiences. M-hotel, based in the UK, is one pioneer of the pop-up hotel concept. Tim Pyne, creative director of M-hotel, said there were opportunities to construct pop-up hotels in underdeveloped areas. “The design permits for those structures to be easily dismantled, moved and relocated around the world,” said Pyne. Elquidomos, in Chile, is a more targeted example of a popup hotel concept, specialising in astronomy. The hotel comprises temporary dome structures based on platforms, including a bathroom, living room and raised bed area. According to the Euromonitor report, construction time on temporary hotels can be reduced by 50 percent compared to traditional building methods.
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NOVEMBER 14, 2009
Get Your Head in the Clouds Cloud computing – using internet-based applications, rather than investing in software that is installed on your local PC – is big business, but remains underutilised by travel agents, according to Faisal Memon, CEO of Dubaibased travel technology provider Illusions Online. “Cloud computing means the applications, hardware and software traditionally used by travel agents can be avoided, so all the work is done over the internet and agents pay only for resources that they use,” said Memon. “Cloud computing is not a new idea in the global sense, but it is not as widely recognised in some sectors of the developing travel industry regionally.” Memon said cloud computing was particularly useful for the travel industry, because of its security features and automatic online updates, which can cut down on the expense of upgrading systems. It can be as simple as using web-based email or calendaring systems, but can also include more complex CRM and bookings software. “Travel technology, because it works on a pay-as-you-book basis, can work out cheaper for companies during the financial crisis; it will be perceived as the way forward and this is something that we are closely observing nowadays,” Memon said. Companies of all sizes are exploring the potential of cloud computing. Google is one high-profile pioneer of the concept, while global software giant Microsoft recently intensified its competitive activity in the sector, slashing prices for its web-based business suite Microsoft Dynamics CRM Online.
Put Yourself On The Map The complexities of navigating a rapidly growing city can confound even the most up-to-date, GPS armed motorist. In October, Media One Hotel in Dubai Media City pioneered a novel approach to familiarising taxi drivers with its location. As part of their pre-launch preparations, Media One invited Dubai taxi drivers to visit the hotel for free coffee and croissants over a two day period. Cora De Conceicao-Stuart, general manager of Media One Hotel, said it was a worthwhile experience to ensure the taxi drivers knew the hotel’s location. “By embracing them as part of our business we really feel that taxi drivers now know who and where we are,” said De Conceicao-Stuart. “So often drivers are coping with identifying new hotels, venues and roads; and they cannot expect to know every single location across Dubai without our help.” 12
Catch The Bug: Medical Tourism Agents can capitalise on increasing numbers of Middle Eastern medical tourism patients, according to organisers of Dubai’s Healthcare Travel Exhibition and Congress. Organisers list India, Cyprus, Thailand, Jordan, Iran, France and Germany as medical tourism hotspots, saying these countries offer affordable healthcare and complex medical treatments that may not be readily available in other countries. Dubai is also planning to position itself as a medical tourism destination, with phase one completion of Dubai Health Care City expected in 2010. The UAE Ministry of Health is seeking to maximise Dubai’s visibility as a healthcare destination with its new DoctorDubai.com website. The site provides a searchable database of Dubai healthcare providers, including detailed profiles of more than 1,500 professionals within the emirate. “Dubai is expected to be the favourite destination for most amongst the expected 11 million medical tourists to the UAE by 2010 and we are playing our part in establishing Dubai as the city that cares for your wellness,” said Layla Moufid, cofounder of Doctor-Dubai.com. According to a recent report by investment bank Alpen Capital, the growing GCC healthcare industry is expected to reach a market size of USD47-55 billion by 2020. The growing popularity of medical tourism has been attributed to rising healthcare costs in industrialised nations; long waiting lists for surgery; the ease and affordability of international travel; favourable currency exchange rates; and international accreditation of foreign hospitals. The Healthcare Travel Exhibition and Congress will run from November 15 to 17 at the Al Bustan Rotana Hotel in Dubai. NOVEMBER 14, 2009
This week in Travel Talk, we bring you first-hand insight from World Travel Market, some optimistic predictions on the future of the hospitality industry in the Middle East and an exclusive comment from the general manager of the soon to be opened Rose Rayhaan – the world’s tallest hotel.
Guy Barnes
Daniel Mathew
Major Accounts Manager for EAME, IDeaS Revenue Optimisation With WTM this year, we have to look at it in a positive light, given the current uncertainty. It has been extremely busy, with plenty of footfall. You know you have a good WTM when three or four tubes [London metro trains] go by before you get in.
General Manager, Rose Rayhaan by Rotana “Since the beginning, the hotel [Rose Rayhaan] was meant to be the tallest hotel in the world. Rose Rayhaan is indeed the latest addition to Dubai landmarks. The alcohol free concept will position Rose Rayhaan by Rotana within Dubai and will give it a niche market. The alcohol free concept is an entirely new proposition in the region, and the local market for that matter. With research indicating this category’s huge potential due to its inherent appeal in the Middle East, Rayhaan is set for incredible growth in the upcoming years.”
You know you have a good WTM when three or four tubes go by before you get in From an industry point of view, we’re seeing pockets where business is returning and there are green shoots, but there is still lots of confidence to be regained. In the Middle East our clients say things have been challenging, particularly over the summer period, but it is improving as the busy season starts up again. We are getting interest from businesses who are setting themselves up for 2010, so that they are ready to maximise their opportunities when business picks up. Hotels have an increased focus on pricing. Rate parity continues to be a necessity across all channels, including GDS, travel agents, online bookings and direct bookings, in order to maintain consumer confidence.“ Travel Talk is your space – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel NOVEMBER 14, 2009
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Germinal Garcia
Andrew Oldfield
Germinal Garcia has been appointed as Andrew Oldfield has been appointed by Tourism Queensland, Australia, as its general manager for the pre-opening of new representative in the GCC. the Salalah Marriott Resort in Oman. Garcia has 25 years of hotel experience and has held several executive positions at Marriott properties throughout South America and Mexico. In 2007, he won the regional general manager sales leadership award for Guatemala City Marriott Hotel.
The Dubai-based role will see Oldfield promote the state’s tourist attractions to the GCC market. Queensland Premier Anna Bligh flagged the appointment in October, after conducting several meetings in Dubai and Abu Dhabi. "The Middle East is one of Queensland's smaller international source markets, but
it is a high priority to my government given its significant long-term potential," said Bligh. Bligh added that Tourism Queensland was working closely with Tourism Australia and Gold Coast Tourism to continue its successful relationship with the Middle Eastern market.
Muhammad Asif Muhammad Asif has joined the preopening team of the Salalah Marriott Resort in Oman as director of finance. Asif previously worked at the JW Marriott Kuwait and Courtyard by Marriott Kuwait. He has more than 20 years of experience in the hospitality industry, having worked in Kuwait, UAE, Pakistan and Kazakhstan.
Samer Majali Samer Majali, CEO of Gulf Air has been re-elected to the board of governors of the International Air Transport Association (IATA). Majali served as chairman of the board for the 2008 to 2009 period, and has been replaced in this capacity by Tony Tyler, CEO of Cathay Pacific. 14
NOVEMBER 14, 2009
Q&A with Alex Kyriakidis Consultancy firm Deloitte is a leading analyst of tourism trends. Alex Kyriakidis, global managing director of tourism, hospitality and leisure shares his insight on the global tourism market. Travel Trade Weekly: How is Middle Eastern tourism faring compared to the global market? Alex Kyriakidis: To answer that question you need to step back a little and look at how hospitality travel and leisure have fared as a whole. Asia took the hardest knock, with airline travel down 10 percent. RevPAR was also strongly affected, going down by between 20, and up to 40 percent in the case of Beijing. Then you have the US which saw softened airfare and hospitality indicators of 18 percent. Europe was very similar at about 18 to19 percent. The Middle East’s performance was outstanding, relatively speaking. Obviously the whole world has been impacted but we could say that the Middle East has been least impacted. Unfortunately these days you have to measure the hospitality industry in terms of negative growth, but the Middle East has fared well with negative growth of only 11 to 14 percent. Travel is actually up in the region, which you would place in the best performing quartile in travel, hospitality and leisure worldwide.
Travel Trade Weekly: Why has the Middle East performed so well? Alex Kyriakidis: The first reason is that a number of major countries have been very conservative. The notable example is Egypt, whose banking system took a conservative approach to finance and was thus less affected by the global financial downturn. The second major reason is the economies in the region. Many of the oil producing nations, such as Saudi Arabia, have invested NOVEMBER 14, 2009
heavily in their economies and have continued to do so, drawing on the huge surpluses they have built up from exploiting their oil reserves. They have not had to resort to borrowing money, and have maintained a state of relative stability. You also have the trend of intraregional travel, where cost conscious consumers have decided that they cannot afford to travel outside the region and are spending their money locally. Finally, the big Middle Eastern airlines have been marketing the regional destinations very aggressively, being very aggressive on fares and spending a lot of money on advertising. All of this has helped to keep the region strong. Of course, it is down on revPAR, but revenue per passenger kilometre is actually up.
Travel Trade Weekly: What projections can you make for 2010? Alex Kyriakidis: All that we can say confidently is that 2010 will be marginally worse than 2009. There will be bright spots, such as the Middle East, and South America is looking to be a bright spot also, but there will remain continued pressure within the system. The only way is to look country by country, region by region to build up the whole picture.
Travel Trade Weekly: What advice can you offer travel professionals going forward?
Alex Kyriakidis: The danger is far from over when it comes to breaching long held covenants. The number one thing hitting the industry is that lots of enterprises of all sizes have borrowed money and are finding it difficult to stay within the covenants of their debt agreements. So, cash is king; manic focus on cash flow is the way to overcome these difficulties. Secondly, maintaining the brand promise is the heart of coming out of this crisis a winner. The consumer is value conscious, but they are also very interested in the brands that they are consuming. The cost of maintaining the brand promise has become a real problem for many companies, however, enterprises should be focused on delivering that promise. Finally, keep people. Everyone is downsizing in the industry, and headcount is way down, but when you do this the investment that goes into your people is lost. You must focus on those people who go towards delivering your brand promise and retain them. You risk not only losing talent, but helping your competitors if they end up hiring your former employees. So in summary, my advice is to maximise cash flow, maintain the brand promise, and retain talent. 15
IMEX America Launched IMEX Group has announced IMEX America, a new US trade show for incentive travel, meetings and events. The show, which will be held in Las Vegas in October 2011, aims to attract top meetings and incentives buyers from across the US and the world, according to Ray Bloom, chairman of IMEX Group. Bloom predicted 1,500 hosted buyers for the first show and announced large-scale visitor marketing campaigns to promote the event.
New Green Conference for Abu Dhabi Abu Dhabi will host the inaugural World Green Tourism Congress (WGTC) in 2010. WGTC will comprise a conference and supporting exhibition, providing a forum for industry leaders to discuss environmental challenges facing the tourism industry. It will also highlight green initiatives, technologies and solutions. WGTC is supported by Abu Dhabi Tourism Authority’s (ADTA) Advantage Abu Dhabi incentive programme, launched earlier in 2009 to source and develop new business tourism and meetings concepts. The event, to be held December 6-8, 2010, is being organised by Streamline Marketing Group (SMG), in partnership with ADTA. Rich Theobald, of SMG, said there was currently no dedicated event of this nature in the region. “With the Middle East as a crucial tourism and business destination, and specifically with Abu Dhabi leading the way in environmental and cultural initiatives, the congress has enormous potential to become the recognised platform for the overall green tourism industry,” said Theobald. David Lim, product development director of ADTA, said WGTC reflected the core values of the Abu Dhabi government’s 2030 plan, which identified tourism as a key economic driver. “With the event aiming to influence the integration of eco-tourism principles into the operations and policies of tourism industry players it has huge synergies with the authority’s overall vision of becoming an outstanding, globally recognised and sustainable destination of distinction,” said Lim. SMG anticipates 200 conference delegates, 100 exhibiting companies and 1,500 visitors to WGTC in its first year.
Events Dubai Expo Casablanca Morocco, Nov 4-16 (www.ofec.co.ma) Showcasing the attractions of Dubai to a regional market. Index, Interior Design Show Dubai, UAE, Nov 14-17 (www.indexexhibition.com) Well established interior design exhibition. Healthcare Travel Exhibition & Congress Dubai, UAE, Nov 15-17 (www.healthcare-travel.com) Brings together healthcare and tourism professionals and highlights medical travel destinations. Meetings and Incentive Travel Market Havana, Cuba, Nov 18-19 (www.mitmamericas.com) For MICE buyers to meet with US suppliers of travel products. Hotel Technology Middle East Dubai, UAE, Nov 15-18 (www.hoteltechnologyme.com) Delivering next generation, intelligent hotel solutions and strategies.
Luxury Travel Expo Las Vegas, USA, Dec 1-3 (www.luxurytravelexpowest.com) Exhibition for luxury travel professionals. EIBTM Barcelona, Spain, Dec 1-3 (www.eibtm.com) Global event for the meetings and incentive industry. International Luxury Travel Market Cannes, France, Dec 7-10 (www.iltm.net) Annual business-to-business event for the global luxury travel community. Nation Branding Seminar Dubai, UAE, Dec 10 (www.nationbrandingevents.com/nationbranding/middle-east) Advising governments on ways to better manage investment, tourism, trade and talent. Travel Turkey Izmir Izmir, Turkey, Dec 10-13 (www.travelturkey-expo.com) Travel Turkey Izmir Tourism Fair and Conference.
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