Middle East and North Africa Edition
LEGAL BATTLE Iraqi Airways’ first service to London in 20 years was met will a UK High Court order, freezing the company’s global assets in response to an unpaid debt of USD1.2 billion to Kuwait Airlines.
ARMANI OPENS
Balloon Adventures Emirates has suspended flights during an investigation by the UAE General Civil Aviation Authority, after one of its hot air balloons crashed in Al Ain, killing two passengers. Managing director Peter Kollar talks to Travel Trade Weekly about the ongoing impacts of the crash.
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After several delays, the first Armani hotel opened in Dubai on April 27, inside the recently opened Burj Khalifa. Armani Hotels and Resorts has announced a further 10 resorts within the next 10 years.
5 In This Issue Market Update Accommodation News Air Travel News International Travel Tips Travel Talk Who’s Moved Rendezvous Events MAY 1 , 2010
ISSUE 25
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www.traveltradeweekly.travel
Jones Lang LaSalle Predicts MENA Hotel Investment Boom in 2010
TRAVEL TRADE WEEKLY Deputy Editor Laura Warne Journalist Louis Dillon Savage
Jones Lang LaSalle’s quarterly review of hotel investment in the MENA region has predicted investment volumes could increase by up to 40 percent in 2010.
Design & Layout Elina Pericleous Sales & Marketing Jane Davidson Marianna Tsiamas Danielle Bragg Tina Georgiou Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +35722820888 Fax: +35722318958 Website www.traveltradeweekly.travel Emails info@traveltradeweekly.travel editorial@traveltradeweekly.travel sales@traveltradeweekly.travel
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otel investment in the region fell to below USD2.9 billion in 2009, reflecting a 63 percent decrease compared to 2008 figures and the lowest level of investment in the region since 1990. According to the report, a boost to investment in 2010 could be driven by improving economic conditions, bolstered investor confidence and greater availability of stock on the market. The report speculated that investment in 2010 could reach as high as USD4.1 billion. Jones Lang LaSalle noted that a preference among regional lenders for collaboration over foreclosure had minimised the number of distress sales among hotels in the Middle East. Jones Lang LaSalle reported that in contrast to the UK, where banks were seeking to offload distressed assets, MENA banks would not be the main sellers of
SCTDA Chair Flags Greater Public-Private Sector Co-operation in Arabian Gulf
MENA Exchange Rates Accurate as of 28/4/2010 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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hospitality stock. Indeed, the ongoing behaviour of bankers of was flagged as pivotal to the region’s recovery, with investment expected to be driven by those institutions. The report also revealed a preference for investing in Europe or the US among many MENA investors, leaving much of the investment within the region to external interests. Further, although rates and revenue in the MENA region remained relatively high in 2009, many investors were deterred by the decline in the tradable value of stocks. Saudi Arabia was picked as a high potential market for hotel investment, being the most mature hotel market in MENA, according to Jones Lang LaSalle. Jones Lang LaSalle suggested that Investment in the kingdom could be encouraged by the amenability of the country’s old hotels to value improving initiatives such as rebranding, resizing or repositioning.
1USD= 3.67 5.54 3.75 1501 0.37 0.70 46.75 0.28 3.64 0.38 1.43 8.44 9903 206.65 73.76 1.27
Sheikh Sultan bin Ahmed Al Qassimi, chairman of Sharjah Commerce and Tourism Development Authority, has flagged increased emphasis on tourism development by Gulf governments. He said he expected large increases in spending on tourism by Arab states, predicting an increase from the USD6.8 trillion spent in 2008 to USD13.3 trillion by 2018. Qasimi noted that the world travel market was undergoing a challenging period and said increased co-operation between public and private enterprises would be necessary to enhance the promotion of Arabian destinations. He said that such initiatives would allow Middle Eastern countries to improve their position in an increasingly competitive market. “The great challenges faced by the tourism sector due to the global economic crisis calls for coordinated efforts and the utilisation of all capabilities to reach our targets,” he said. MAY 1, 2010
Balloon Adventures Suspends All Flights, Despite Strong Demand On April 25, a hot air balloon operated by Balloon Adventures Emirates crashed near Suwahan in Al Ain, injuring one and killing two.
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eter Kollar, managing director of the company, said despite media coverage of the accident and an ongoing investigation by the UAE General Civil Aviation Authority (GCAA), consumer demand for flights remained high. Kollar told Travel Trade Weekly he felt devastated, empty and very sad in the wake of the accident. He said that despite the tragedy, he had continued to receive regular calls from customers seeking to book future flights, but was turning them away while the GCAA investigation continued. “We do not expect a long term impact on
MAY 1, 2010
business, but we do expect very serious short term impacts,” he said. “And we expect the authorities to take the investigation extremely seriously.” He said his company’s strong reputation within the industry had sustained faith in its services, despite the accident. “We have five years of untroubled operation behind us,” he said. “Last year we flew more than 6,000 passengers.” According to Kollar, the accident was a result of an unexpected high wind, which dragged the balloon across a sand dune as it attempted to land. Fatalities included oneFrench and one Indian national.
All flights by Balloon Adventures Emirates have been suspended pending the findings of the GCAA probe.
Balloon Adventures Emirates balloon in flight
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ACCOMMODATION NEWS
Jumeirah Names New Lifestyle Hotel Brand Dubai based hospitality company Jumeirah Group will launch a new contemporary lifestyle hotel brand, VENU Hotels, later this year.
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he announcement of VENU Hotels coincided with reports of high occupancy figures for Jumeirah’s Dubai properties between February and April. Dubai beachfront properties, including Jumeirah Beach Hotel and Madinat Jumeirah, registered occupancy of 92.5 percent in April, with an average of 89 percent in February and March. Jumeirah Emirates Towers reported 75 percent occupancy during February and March.
Jumeirah currently operates 11 hotels, but has 32 management agreements in place for properties across the world. At least 10 new hotels are expected to open in the next 18 months, including properties in Frankfurt, Kuwait, Maldives, Abu Dhabi, Al Ain, Dubai and Shanghai. The group growth strategy calls for 60 hotels to be signed up by 2012. Locations for the new VENU Hotels brand are currently being confirmed; Jumeirah is negotiating with developers interested in the Middle
East, North Africa, Eastern Europe and Asia Pacific. Gerald Lawless, executive chairman of Jumeirah Group, said the group’s high occupancy rates had cemented plans to launch the new brand. “VENU Hotels will, when launched, fulfil a clear market need and one that is highly complementary to the Jumeirah Hotels and Resorts brand,” said Lawless. “We are looking forward to a busy and exciting period opening new hotels, attracting new guests and introducing a new hotel brand concept to the world.”
ADTA Claims Increased Arrivals Despite Shrinking Occupancy STR Global figures have shown consistently negative performance for Abu Dhabi in key hospitality measures across the first quarter of 2010. Nevertheless, Abu Dhabi Tourism Authority (ADTA) has claimed a large increase in the number of guests staying in the emirate. According to STR Global, occupancy levels in the emirate sank by 27.1 percent in January, 31.2 percent in February and 24.2 percent in March. STR figures also showed large contractions of revenue per available room (revPAR) and average daily rate (ADR) for Abu Dhabi, with revPAR in the emirate dropping by 40.5 percent in January, 58.7 percent in February and 45.2 percent in March. Mubarak Al Muhairi, director general of ADTA, said the shrinkages could be explained by a knock on effect from large increases in the emirate’s hotel room inventory. Muhairi said Abu Dhabi was targeting a net 10 percent increase in arrivals by the end of the year, and said the first quarter figures showed that the emirate was on track for that goal. “Results have to be judged in light of Abu Dhabi’s growing accommodation inventory, which has gone to 17,600 rooms in the first quarter of this year, from just under 13,000 this time last year,” he explained. 4
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ACCOMMODATION NEWS
Armani to Open 10 Hotels in 10 Years Armani Hotels and Resorts plans to open at least 10 resorts within the next 10 years, the company has revealed.
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oinciding with the opening of the brand’s first as levels 38 and 39. hotel, Armani Hotel and Resorts has released Armani Hotel Dubai also incorporates the first Armani spa and details of a number of upcoming properties. a range of Armani branded retail options. Armani’s second hotel will open in Milan, Italy (L-R) Designer Giorgio Armani with next year and will be followed by a regular Mohammed Alabbar, CEO of Emaar Properties schedule of further openings. These include the first Armani resort, underway in Marrakech; as well as plans for hotels in London, New York and Tokyo. The first Armani hotel opened in Dubai on April 27, inside the recently opened Burj Khalifa. According to Emaar Properties, the developer of the hotel, Giorgio Armani oversaw every aspect of the hotel’s design, dedicating five years to the project. The hotel occupies a total of 11 floors within the Burj Khalifa, including the concourse level through to the eighth floor, as well
Up + Coming Properties Accor’s luxury Sofitel brand has raised its sixth flag over Morocco. The property, dubbed Sofitel Rabat Jardin des Roses (garden of roses), is located in downtown Rabat, the capital of Morocco. Sofitel Rabat Jardin des Roses has been operating under a soft opening for several months, but was officially launched on April 15. The hotel is Sofitel’s first golf resort in the country and incorporates the Royal Golf Dar Es Salam course. Five food and beverage outlets have been integrated into the hotel, including outlets for both Moroccan and French cuisine. Of the 229 rooms offered by the hotel, 37 are suites. Ramada Jumeirah has been scheduled for launch in the final quarter of 2010, according to Ramada Worldwide. The property is owned by Mohamed and Obaid Almulla LLC, and will be managed by the company’s hospitality subsidiary, Abjar Hotels International LLC, under a franchise agreement with Ramada. Ramada Jumeirah will be a 252 room four star property, located near Jumeirah beach, Dubai, at the intersection of Al Mina and Al Dhiyafa roads. According to Abjar Hotels, construction on the property is nearly complete and the interior design of the hotel has entered its final stage, with both business and leisure travellers considered as end users. MAY 1, 2010
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AIR TRAVEL NEWS
Iraqi Airways’ London Return Dampened by Asset Freeze
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raqi Airways (IAC) launched its first service to London in 20 years on April 24, flying to the UK capital from Baghdad via Sweden. However, lawyers for Kuwait Airways (KAC) preempted any potential celebration plans, obtaining an order from the UK High Court to freeze IAC’s global assets. The freezing order was a response to IAC’s repeated refusal to pay USD1.2 billion in compensation to KAC for aircraft and spare parts stolen during the 1990 invasion of Kuwait and subsequently integrated into IAC’s fleet. Chris Gooding, of law firm Fasken Martineau, has spent 20 years representing KAC in its legal action
against IAC. He said the case, which has become the longest running commercial dispute in British legal history, had been severely hampered by continued perjury and forgery by IAC. Legal efforts were renewed in 2008, after IAC announced that it was investing in fleet upgrades estimated at more than USD5 billion, despite claiming it did not have the funds available to pay the USD1.2 billion debt to KAC. Fasken Martineau, acting on behalf of KAC, has since launched an action in Canada to prevent the delivery of the new fleet to IAC. However, Gooding said the dispute in Canada centred on the question of whether the aircraft had been bought by
the Iraqi state on behalf of Iraqi Airways, or by the Iraqi state independently. The recent Baghdad to London flight was operated by Swedish charter group Tor Air, thwarting KAC’s plans to seize the aircraft as payment towards the debt. Despite this technicality, Gooding insisted that he would continue to pursue the airline in any new market that it attempted to fly into. “Iraqi Airways has to face up to its responsibility – this case is not going to drift away,” said Gooding. “It was unrealistic of IAC to think that it could start flights to a jurisdiction where it owes USD1.2 billion without consequences.” Despite efforts to contact Iraqi Airways, the airline was unavailable to comment.
Safi Airways Flags Expansion and Rebrand Afghanistan’s Safi Airways will boost its current route network with new flights to Beijing and New Delhi this summer. The introduction of services to Moscow is also on the cards, with an expected launch date of 2011. Safi Airways saw growth of 400 percent in ticket sales during 2009, compared with 2008; the launch of its Kabul to Frankfurt service in June 2009 marked the first nonstop scheduled flight linking Afghanistan and Europe for more than 30 years. The airline’s primary hub destinations are Frankfurt, Germany and Dubai, UAE. Safi currently has interline agreements with Lufthansa, Emirates, Qatar Airways and United Airlines, and has recently signed new agreements with Delta Air Lines, Air China and Hainan Airlines. Claus Fischer, chief commercial officer at Safi, said further growth was expected from the new destinations. “Our expansion over the past 18 months has been very encouraging and we are aiming to almost double the number of destinations we serve over the next 12 months,” said Fischer. Safi is expected to release detailed expansion plans and rebranding at Arabian Travel Market. 6
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AIR TRAVEL NEWS
Oman Air Adds Al AinFlights, Appoints GSAs Oman Air will launch services between Muscat and Al Ain on May 3, offering daily flights to its fourth UAE destination.
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eter Hill, CEO of Oman Air, said the new flights would expand on current UAE services to Dubai, Abu Dhabi and Ras Al Khaimah. “With this addition to the Oman Air network, we are sure many new markets will open up,” he said. Oman Air has also appointed general sales agents (GSAs) in three of its other upcoming destinations: Malaysia, Tanzania and Nepal. The carrier will begin flights to Kuala Lumpur, Malaysia, in May and will follow
this launch with flights to Dar Es Salam in Tanzania and Kathmandu in Nepal from June 1 and June 17 respectively. In Malaysia, Oman Air has appointed the multinational corporation ABDA Aviation Sdn Bhd as its GSA. In Tanzania, The Rickshaw Travel Group (RTG) will represent Oman Air. Amravati Travels has been appointed as GSA for Nepal. Commenting on the appointment, Abdulrazaq Alraisi, general manager of worldwide sales for Oman Air, said the GSAs were expected to bring in a range of new business.
Peter Hill
“We are sure that both inbound tourism and outbound tourism between Oman and these countries will prosper greatly,” said Alraisi.
Makkah to Receive First International Airport The holy city of Makkah, Saudi Arabia, will soon be accessible by air for the first time. An international airport – infrastructure previously missing from the city – has been approved by the Shura Council of Saudi Arabia, according to the Saudi Ministry of Hajj. The airport will be constructed outside the Muslim-only hamra zone that surrounds the city, allowing for the transit of both Muslims and non Muslims through the facility. Current arrangements require thousands of annual pilgrims to Makkah to fly to Jeddah international airport and drive the remaining 70km. Makkah
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Dubai Takes Cautious Stance on Olympic Future Dubai may never bid for the Olympic Games, Sheikh Mohammed Bin Rashid Al Maktoum, ruler of the emirate has said.
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aktoum emphasised that the emirate had launched no bid for the 2020 Games, and said an attempt would only be made if the small state was confident of success. However, he affirmed that studies into the feasibility of a bid were being carried out. He said that irrespective of the findings of the feasibility studies, the review process would prove beneficial to the sporting tourism sector of Dubai. “It will help us identify the strengths and weaknesses of our transportation systems, our tourism facilities, our sports venues and other vital infrastructure,” he said. “This learning process will benefit Dubai even if we never bid for the Olympic Games.” Maktoum said Dubai needed to face up to its weaknesses as well as its strengths, noting that the extreme summer heat of the emirate would present a challenge for any potential bid. “There is a strong ‘can do' culture here, but
we also have to be realistic,” he said According to Maktoum, Dubai has proven successful in hosting other large scale sporting events, and was emerging as a globally recognised centre for international sporting competitions. However, he recognised that the emirate had no experience with events as large the Olympic Games.
Dubai
Sheikh Mohammed Bin Rashid Al Maktoum MAY 1, 2010
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INTERNATIONAL NEWS
Marriott Introduces Courtyard Brand to Vietnam Courtyard by Marriott Ham Tan, scheduled to open in 2012, will mark the first Courtyard by Marriott property in Vietnam.
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arriott has signed a management agreement with CY-Ham Tan Resort Limited Company for the 200 room property. Ed Fuller, managing director of international lodging for Marriott International, said the introduction of the Courtyard brand signalled continued expansion in Vietnam. “With the opening of this hotel, we’ll be able to offer travellers in Vietnam a choice of four hotel brands from luxury to mid-
priced,” said Fuller. “The World Travel and Tourism Council (WTTC) forecasts that Vietnam tourism over the next 10 years will grow to more than seven million visitors annually, twice what it was in 2007, and we are positioning ourselves to be able to offer these visitors a hotel stay no matter what their travel budget dictates.” Courtyard by Marriott Ham Tan will cater to leisure and incentive guests, with a range of standard guest rooms as well as semi-detached bungalows. In Vietnam, Marriott currently manages
Renaissance Riverside Saigon Hotel and New World Hotel in Ho Chi Min City. The company has three other properties in the planning and construction phase: JW Marriott Hotel Hanoi, opening in 2013; Nha Trang Marriott Hotel, opening in 2013; and JW Marriott Danang Resort, opening in 2014.
Courtyard by Marriott Ham Tan
UNWTO Forecast Shows Positive Growth World Tourism Organisation (UNWTO) figures have suggested that tourism recovery in 2010 will not be strongly affected by the recent disruption of air traffic caused by volcanic ash in Europe. International tourism arrivals are expected to grow by three to four percent this year, with UNWTO estimating that a loss of no more than half of one percent of yearly arrivals to Europe had been caused by the flight ban of April 15 to 20. According to Taleb Rifai, secretary general of UNWTO, emerging destinations are leading recovery in the tourism sector in 2010. “The economic recovery is being driven mainly by emerging economies while growth is still sluggish in most advanced ones,” he said. Rifai also noted that continued and increasing unemployment in major source markets was also cause for concern. Nevertheless, UNWTO’s quarterly report recorded that all world regions experienced positive growth in terms of international tourist arrivals in the first quarter of 2010, with growth led by the Asia Pacific region and Africa. However, the report advised that optimism should remain cautious. “Though there is a clear improvement on the negative results of 2009, this growth must be considered with caution as it compares with a particularly weak period of 2009 − the worst months of the global economic crisis,” it stated. 10
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Qatar Unveils Stadiums for 2022 FIFA World Cup Bid Qatar has unveiled plans for a range of sporting stadiums, tourist facilities and training sites that it will develop, pending the success of its bid to host the 2022 FIFA World Cup.
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nnovative new carbon-neutral technology will be used to cool the stadiums and other facilities, which Qatar 2022 authorities said would make the 2022 World Cup the world’s first ever cooled outdoor global sporting event. Designs for three new stadiums were unveiled on April 28: Al Shamal stadium in the north of Qatar, with capacity for 45,120 guests; Al Khor, a 45,330 capacity stadium in the north east of Qatar; and the 45,000 capacity Al Wakrah stadium in the south of Qatar, which also includes a themed swimming pool, spa zone, sports facilities and a shopping mall.
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Two existing stadiums, Al Rayyan and Al Gharafa, will also be expanded if Qatar’s bid is successful. Hassan Abdulla Al Thawadi, CEO of Qatar 2022, said the facilities would be linked to a new metro system and integrated with a comprehensive shuttle bus network. “We have also designed our new stadia with legacy front of mind and, with their modular design, can be reduced in size after the World Cup to fit local football and community requirements and, in some cases, transported abroad for permanent use,” he said. “Qatar aims to bring the World Cup to the Middle East for the first time in the
history of the tournament.” FIFA’s executive committee will vote on the locations of the 2018 and 2022 World Cup Finals on December 2, 2010.
Al Gharafa
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Costa Cruises Launches Dubai Office Italian travel group Costa Cruises plans to target Arab and expat customers with a dedicated office in Dubai and a range of made-to-measure cruising options.
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ianni Onorato, president of Costa Cruises, said Dubai Department of Tourism and Commerce Marketing had assisted with the implementation of Costa’s business development policy in the Gulf. “Following the huge success of the inauguration, on February 23 this year in Dubai, of the Costa Deliziosa, the first cruise ship ever to be inaugurated in an Arab country, our objective is to invest in Dubai, the Arabian Gulf and the Middle East, not only as a regular destination for our ships, but also as a sourcing area so as to increase the number of cruisers choosing
us for their vacations,” said Onorato. “Our target comprises both local customers and the numerous expatriates who live and work in these countries.” To cater to this growing market, Costa has implemented a range of new features: the two Costa ships based in Dubai will feature prayer rooms, Arabic food and drinks, Arabic radio and television channels, and Arabic language facilities. The upcoming representative office in Dubai will be Costa’s 17th branch office worldwide. Costa will be represented in the UAE by Al Ketby Consultancy and also plans to distribute brochures to travel agents throughout the region.
(L-R) Gianni Onorato, president of Costa Crusies, with Hamad bin Mejren, DTCM executive director of business tourism
Wild Nights at Al Ain Wildlife Park & Resort Al Ain Wildlife Park and Resort (AWPR) has launched its summer programme, Wild Nights. From May 1 to September 30, the park will open from 4pm to 12 midnight Saturdays through Thursdays and 10am to 12 midnight on Fridays. Park operations will be adjusted to suit the new night programme, with feeding times moved to the twilight hours for the crocodiles, penguins, Arabian and African exhibits. The cat house, featuring lions, tigers, pumas, jaguars and cougars, will be lit for the first time and special effects will transform AWPR’s dinosaur trail. Dr Fred Launay, CEO of AWPR, said he expected AWPR to be a popular summer evening destination. In 2009, the park received more than 100,000 visitors between June and mid September. “AWPR is one of the most visited tourist destinations in the UAE and we are always looking at new and unique ways to ensure an enjoyable experience for all visitors to the park,” said Launay.
Recently introduced blackbacked jackals at AWPR 12
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ATM Preview – Who’s Doing What at The Biggest Event of the Year Arabian Travel Market (ATM) 2010 will take place in Dubai between May 4 and 7, highlighting the big issues for the travel and tourism industry in the current global economic climate, as well as examining future trends and recovery efforts. More than 50 new-to-market exhibitors will debut at this year’s show. Here, Travel Trade Weekly takes a look at some key announcements by exhibitors at ATM 2010. Tech Trends Amadeus will mark its ninth year at ATM in 2010, according to Antoine Medawar, vice president for the Middle East and North Africa. “One of our key products on display will be the Amadeus SMS solution for the travel agents, an exclusive webbased tool that allows travel agents to update their customers with their latest travel itinerary via SMS,” said Medawar. Travelport will preview several product enhancements at ATM, including a new version of the web-based e-ticket
tracking tool Galileo e-tracker and the company’s new professional networking took, Travelport Opinions. Rabih Saab, vice president for the Middle East, said Travelport would also operate live demonstrations and a dedicated GDS training session during Travel Agents Day on May 6. For the Saudi Arabian market, Dubaibased Global Innovations International FZ LLC is set to launch a new range of automation solutions catering to Umrah and Hajj operators.
Up in the Air Afghanistan’s Safi Airways will announce rebranding and further expansion plans at ATM, following the announcement of several new flight routes. Emirates Group will be celebrating a range of network and fleet expansions, as well as promoting South African packages in its role as an official tour operator of the 2010 FIFA World Cup. Wataniya Airways, from Kuwait, will be announcing the inaugural flight details for its first three European destinations, Istanbul, Vienna and Rome, as well as its third Egyptian destination, Alexandria.
Hotel News Middle Eastern hotel company Rotana will focus on the continued diversification of its brand portfolio, including: upcoming properties under its Centro brand, including Centro Barsha and Sharjah Airport; the recently opened Rose Rayhaan by Rotana, the tallest hotel in the world; and the alcohol-free brand Rayhaan Hotels and Resorts by Rotana. Southern Sun has signed an agreement with Emaar Properties to manage future four star hotels by Emaar and is also expanding its operations in Abu Dhabi, Saudi Arabia and Africa. Anantara Resorts and Spa will be promoting several upcoming and expanded developments in the Middle East and globally, including Anantara Al Madina A’Zarqa in Oman; Desert Islands Resort and Spa; Anantara Kihavah Villas in Maldives; and Anantara Sanya in China. Newcomers Fiji Tourism will make its Middle Eastern debut at ATM 2010; the country is hoping to capitalise on the region’s outbound tourism in its quest to meet a target of 1.1 million visitors per year by 2014. According to Fiji Tourism, increasing airlinks to Australasia by Emirates, Etihad and Qatar Airways have put Fiji in a strong position to target the Middle East. 14
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Disaster Planning: Tourism Recovery Examples From Around the World Natural disasters can cripple a country’s tourism industry, and while it is impossible to be 100 percent prepared, it pays to consider the possibilities before it’s too late. ATM’s New Frontiers Awards is a scheme designed to recognise destinations that make an outstanding contribution to tourism development in the face of staggering adversity. The Philippines, Italy and Australia were named as finalists – here, we look at how these countries bounced back from various disasters. Their examples can provide good best practice tips for tourism authorities around the world. The Philippines In the wake of a devastating typhoon September 2009, the National Economic and Development Authority put in place a USD145 million project to rehabilitate damaged infrastructure. At the same time, the Department of Tourism implemented a campaign to bring tourists back to the country, endorsing 28 new tourism projects worth USD821 million, with employment capacity of 15,567.
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Australia In February 2009, Australia was hit by more than 400 wildfires, as well as widespread flooding. Despite this, Tourism Australia’s efforts led to the country ermerging as one of the better performing international tourism destinations of 2009. Tourism Australia launched countryspecific marketing campaigns to its key source markets around the world and worked directly with the tourism industry to deliver government stimulus packages.
Italy An earthquake in April 2009 caused USD2.5 billion worth of damage in Italy, flattening cities that had previously been major tourism drawcards. Italian tourism bodies implemented marketing efforts to focus on the country’s core strengths, such as Milan’s fashion industry, Italy’s historic monuments and the country’s cuisine. The Italian Government also made the bold move of shifting the G8 summit to L’Aquila, the hardest hit area, to relieve fears about its safety and highlight the country’s natural beauty.
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Dukes Hotel
Debrah Dhugga General Manager, Dukes Hotel London (owned by Dubai-based Seven Tides) “We have always appealed to guests from the GCC, whether business or leisure, but we believe that our new rooms will particularly impress ladies from the Middle East looking for discretion and privacy. We are already seeing an increase in guests from the Middle East, with a four percent increase so far this year, mainly from business travellers. We expect the largest part of the business from this region to be during the summer months.”
We are seeing an increase in guests from the Middle East
Ghaith Al Ghaith
Fatima Al-Huraibi Executive Director, Yemen Tourism Promotion Board “Unfortunately, it is a sad reflection on world tourism today that very few countries can offer total peace of mind when it comes to safety and security matters. We are working tirelessly with other government departments to ensure discreet but optimal levels of security for our own citizens as well as business and leisure tourists. We are determined not to let the actions of a few wreck our aspirations to build a strong tourism industry and I have a simple message, which is that Yemen is an extraordinary country, one which deserves to be mroe widely recognised as an outstanding and unique destination and is well worth a visit.”
Very few countries can offer total peace of mind Ghaith Al Ghaith
CEO, flydubai “Adding Latakia to our existing routes of Damascus and Aleppo, demonstrates the importance of Syria as a key destination to flydubai. Thanks to flydubai, Dubai’s growing Syrian expatriate population and the 500,000-strong community in Latakia now have even better access to quality, safe and low-cost air travel.”
Adding Latakia demonstrates the importance of Syria as a key destination 16
MAY 1, 2010
Emirates Golf Club Kicks Off Summer Renovation Plans Emirates Golf Club (EGC) has begun improvements that include a clubhouse refurbishment, course improvements and the introduction of a boutique events venue, the Royal Majlis. All renovations will be completed during the summer months, which are typically quiet for the club, and the upgrade is expected to be completed by October, 2010. Andrew Whitelaw, club manager at EGC, said all clubhouse operations had moved to the tournament hospitality facilities used for the Omega Dubai Desert Classic, overlooking the Majlis’ ninth and eighteenth greens. “The temporary clubhouse facility comprises a spike bar, pro shop, meeting and function rooms, locker rooms, gymnasium, aerobic studio and physio treatment rooms,” said Whitelaw. “Everything a golfer or guests would require is catered for during the renovation period.” The Majlis course at EGC will be closed between June 1 and September 30 to allow for improvements that will include the repositioning of several bunkers, as well as the introduction of new tees and additional bunkers. Whitelaw said the closure dates had been carefully selected, with member play at its lowest between June and September.
UAE’s Fast Rent A Car Expands Fleet Fast Rent A Car will increase its fleet by 13 percent in 2010, adding 900 units to meet rising demand. The increase will bring the company’s total fleet to 8,000 units. Fast Rent A Car focuses primarily on business travellers to the UAE and event patrons, with corporate clients making up 80 percent of the company’s business. The group also targeted several recent corporate and government projects in Abu Dhabi, which helped stimulate
strong growth in 2009. Ahmed Abood Al Boasy, CEO of Fast Rent A Car, said the company’s revenue was up 8.5 percent across the UAE in 2009, with a 25 percent increase in revenue in Abu Dhabi. “Our achievements in 2009 have allowed us to invest in 2010, to be able to build a bigger, better and stronger company,” said Al Boasy. The company currently offers more than 45 vehicle models, including cars, SUVs, prestige vehicles, buses and trucks.
Emirates Golf Club new clubhouse design MAY 1, 2010
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Etihad Airways
Philipe Pellaud
Etihad Airways has made two senior appointments. Geert Boven, currently the executive vice president of customer services and airport operations has been appointed managing director and member of the board of Amadeus Gulf. Amadeus Gulf is a joint venture global distribution company owned by Etihad Airways and Amadeus International. Chris Youlten has been appointed as the new vice president of airport and network operations for Etihad. Youlten will lead the newly combined airports and operations unit. He has more than 25 years of experience in international aviation, having worked in Europe, the US, Australia and Hong Kong. He joined Etihad in May 2008 as head of operations planning, before being appointed vice president of network operations.
Rezidor Hotel Group has appointed Philipe Pellaud as general manager of Radisson Blu Hotel, Kuwait. Pellaud previously held the role of general manager at the same hotel in 1992, before moving to the UAE to take up the position of general manager of the Radisson SAS Hotel, Jumeirah Beach in Dubai. He has also managed other Rezidor properties in Dresden, Prague, Cannes, Istanbul, Sofia, Stockholm, Wroclaw, Krakow, Ankara and Vienna. Most recently, he worked as general manager of Radisson Blu Resort and Spa in Dubrovnik, Croatia. Pellaud is a graduate of École Hoteliere in Lausanne and also attended Cornell University in New York.
Tareq Bagaeen
Nihad Kattan Nihad Kattan has been appointed country general manager to Jordan for Marriott International and general manager of the Amman Marriott Hotel. Kattan has moved from his previous role as area vice president. He has worked for Marriott for more than 26 years in various roles across the US, Mexico, Venezuela and Saudi Arabia.
Philipe Pellaud
Nihad Kattan
Grand Hyatt Doha has appointed Tareq Bagaeen as director of marketing. Bagaeen has more than eight years of experience in the hospitality industry, most recently working as director of sales for several Ritz-Carlton properties in the Gulf, Singapore and Ireland. His responsibilities at Grand Hyatt Doha will include overall strategic sales, marketing, revenue management, ecommerce, public relations, promotions and brand image. He will also represent the property at international tourism and trade exhibitions.
Jeffrey Xu Jeffrey Xu has been appointed as exhibition manager for China Incentive Business Travel and Meetings Exhibition (CIBTM). Xu replaces Greame Barnett, who has moved into the role of exhibition director for EIBTM in Barcelona. Xu previously worked as deputy general manager for Super Events in China; his clients included the 2008 Beijing Olympic Games, 2009 East Asian Games and 2010 Asian Games. He has also worked as deputy general manager of Seven Network Ltd, an Australian commercial broadcaster.
Tareq Bageen
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 18
MAY 1, 2010
Q&A with Paul Clabburn Paul Clabburn has been working as a travel agent in Bahrain for 21 years and is now general manager of Bahrain International Travel Group. He gave Travel Trade Weekly the run-down on the changes he has witnessed. Travel Trade Weekly: I understand you have been operating in Bahrain for a long time; can you tell us a little about how the local industry changed in that time? Paul Clabburn: In 1990, there were only about 45 travel agents operating in the country; by 1995 that had risen to over 100, but the size of the market certainly had not doubled, so it began to get tougher to see a good return on investment. Until around 2003 business had its ups and downs and then from 2003 until 2008, incomes were increasingly positive. Then the global economic crash occurred and in the local market we are only just starting to see the recovery. Also during my time in Bahrain we have witnessed the region becoming [an IATA] BSP environment, the rise of the regional low cost carriers, the growth of online trading, the end of airlines paying commission together with SARS and bird flu... so it has not always been a smooth ride for the industry!
Travel Trade Weekly: Are there any challenges particular to operating in Bahrain? Paul Clabburn: That’s not so difficult to answer…it is simply one of supply, distribution and demand, or to put this more clearly, the demand is not sufficiently great as to warrant the number of outlets supplying it. We also suffer from overcapacity of available airline seats for most of the year. This forces yields down and that means the only winner is the consumer.
Travel Trade Weekly: Could please share some of your insight into the travel habits of Bahrainis? Paul Clabburn: Bahrainis love to travel MAY 1, 2010
and I believe many do so as often as they can. Iran is a perennial favourite due to the many strong links between the two countries, as is travel to those areas where Arab nationals are truly welcomed. Asia has certainly witnessed strong growth over recent years due to numerous factors but also in no small way due to the value for money which many countries there are able to offer. Bahrainis, like many nationalities, are discerning travellers and look to get the best value they can for their hard earned Dinars.
It has not always been a smooth ride for the industry!
Paul Clabburn
Travel Trade Weekly: Do people tend to visit the rest of the archipelago, or do they mostly stay around Manama? Travel Trade Weekly: Who is coming Paul Clabburn: Certainly tourists visit into Bahrain? Has this changed? and travel all over the country; our places Paul Clabburn: This certainly has of interest are spread throughout the changed. With the exception of the weekend tourist, where the business has always been very healthy, growth in inbound tourism from within the region continues to rise. Tourists from Europe and Asia, who used to arrive by air, have now found cruise ships a better way to visit not just Bahrain but many GCC countries. The only down side of this type of tourism for the countries and the suppliers of ground services, hoteliers and DMCs is that the tourist is only in each destination for a day or two at most and therefore only gets a snapshot of what the country has to offer. And of course with the new Bahrain government initiatives in the sporting arena, such as F1 and yachting, we are starting to see international visitors arriving for specific reasons.
islands. Then of course, that is easy as we are not such a large country. But the hotels are still mostly centred in the Manama area, although that is changing and more leisure styled properties are being opened up further afield, as Bahrain looks to decentralise its activity and community focus.
Travel Trade Weekly: Is there anything coming up in Bahrain that you feel will help tourism in the country? Paul Clabburn: I see a concerted drive and desire to elevate the country’s international image and exposure. All this spells good news for those of us in the service industry as more people will be encouraged to visit Bahrain. 19
South American Hotel and Tourism Investment Conference With emerging markets at the front of mind for many tourism professionals, the 2010 South American Hotel and Tourism Investment Conference (SAHIC) has been announced for September 27 to 28 in Cartagena de Indias, Colombia. Arturo García Rosa, president of SAHIC said that early registrations for the conference had proven the strong interest that SAHIC anticipated from the market. “This new SAHIC edition will be a further opportunity for interaction between the region’s major players and those interested in investing in a business that continues to demonstrate that South
America is a great option,” he said. Nubia Stella Martínez Rueda, vice president of tourism for SAHIC’s host patron Proexport, said Colombia was one of Latin America’s premier venues for conference hosting. “Furthermore, it is an excellent occasion for many of the world’s leading businessmen to believe in Colombia and to realise that it is a good place to invest, by changing their perspective and generating more business opportunities,” said Reuda. The event will feature a range of general and break-out sessions, with a space for
interaction and discussion of upcoming projects. A series of awards will also be presented to people and organisations that have contributed to the development of the hotel and tourism industry in the region.
2009 South American Hotel and Tourism Investment Conference
Events Arabian Travel Market Dubai, UAE, May 4-7 (www.arabiantravelmarket.com) Travel and tourism event for inbound and outbound tourism professionals, featuring destinations, accommodation, tourism attractions and airlines. HOTEC Middle East Muscat, Oman, May 7-10 (www.mcleaneventsinternational.com/events/HotecMid dleEast2010) Business to business meetings forum for hotel owners, developers and operators to meet with suppliers. China Hotel Investment Conference Shanghai, China, May 12- 14 (www.chinahotelconference.com) Conference focusing on hotel investment in China. Food and Hotel Arabia Jeddah, Saudi Arabia, May 16-18 Meeting of professionals from the Saudi food and hospitality industries.
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Oman Travel Market Muscat, Oman, May 17-19 (www.oite.com/otm/2010) Exhibition for the promotion of Oman to as an international destination. Travel World Expo Kuwait City, Kuwait, May 19-20 Exhibition for domestic, regional and international tourism enterprises. The Hotel Show Dubai, UAE, May 18-20 (www.thehotelshow.com) Exhibition for hoteliers and suppliers to the hotel industry. IMEX Frankfurt, Germany, May 25-7 (www.imex-frankfurt.com) Major international exhibition for the meetings and events industry. Global Travel and Tourism Summit Beijing, China, May 25- 27 (www.globaltraveltourism.com) High level gathering of travel industry chairs and CEOs.
MAY 1, 2010