United Arab Emirates

Abu Dhabi

Abu Dhabi Airports, the operator of the Emirate’s five airports, recorded significant growth in passenger traffic and air cargo in 2022. The total passenger traffic through Abu Dhabi International, Al Ain International, Al Bateen Executive, Delma Island, and Sir Bani Yas Island Airports tripled from 5.26 million in 2021 to 15.9 million in 2022. This remarkable growth reaffirms Abu Dhabi’s position as a leading regional and international travel hub. Abu Dhabi International Airport, serving more than 100 destinations through a network of 28 airlines, played a crucial role in accommodating passengers traveling for both tourism and business purposes. The increase in passenger numbers highlights the growing popularity of Abu Dhabi’s airports among travellers choosing the emirate as a transit point or final destination for their regional and international journeys. Abu Dhabi Airports’ investments in airport infrastructure, customer service excellence, and collaborations with key stakeholders and government organisations, including the Department of Culture and TourismAbu Dhabi, have contributed to the growth of Abu Dhabi’s travel, tourism, and business sectors.

Cargo traffic at Abu Dhabi and Al Ain International Airports also saw favorable results, with 5,83,949 tonnes of air freight handled in 2022. This positive figure can be attributed to the rebalancing of fleets by airlines, focusing on cargo operations due to the COVID-19 pandemic. The increase in shipments of general cargo and specialised products, such as express, temperature-controlled, and pharmaceuticals, further contributed to the growth of cargo traffic.

Dubai

Dubai Airports, managing Dubai International (DXB) and Dubai World Central (DWC), maintained its position as the world’s number one airport for international passengers in 2022. DXB’s annual traffic reached 66.1 million passengers, experiencing a significant jump of 127 per cent compared to the previous year. This figure represents 76.4 per cent of the 2019 levels, showcasing a strong recovery in air travel. Direct traffic accounted for 58 per cent of the total traffic, while transfer passengers constituted 42 per cent of the volume. The second half of 2022 witnessed a robust growth, with monthly traffic consistently crossing the six million passenger mark. The fourth quarter of 2022 was the strongest since 2019, recording 19.7 million passengers, an increase of 67 per cent compared to the same period in the previous year. December 2022 was particularly busy, with 7.1 million passengers, reaching pre-pandemic traffic levels.

Dubai International Airport maintained connectivity with 229 destinations across 99 countries through 88 international airlines, further solidifying its status as a global aviation hub. The airport handled 62.2 million bags with a success rate of 99.8 per cent in baggage handling. Despite a 25.5 per cent YoY contraction in cargo volume, handling 1.7 million tonnes in 2022, this decline was mainly due to the shifting of freighter operations back to DWC and the resumption of passenger operations by freighter aircraft. Dubai International Airport also achieved high levels of customer satisfaction, with minimal waiting times at passport control and security checks. The annual forecast for 2023 has been adjusted upwards to 78 million passengers, indicating further anticipated growth in air travel.

SHARJAH

Sharjah Airport, located in the United Arab Emirates, has experienced remarkable growth in both passenger and cargo traffic in recent years. In 2021, the airport served a total of 12.4 million passengers, representing a significant increase compared to the previous year. This upward trend continued in 2022, with passenger numbers reaching a record high of 14.2 million, reflecting a steady growth rate. The surge in passenger traffic can be attributed to several fac-

Chapter 16

Vietnam

The travel industry in Vietnam experienced remarkable growth in 2022 following the lifting of COVID-19 travel restrictions. In the first six months of the year, airports in Vietnam served 40.7 million passengers, a significant 56.8 per cent increase compared to the same period in the previous year. Cargo movements also grew by 30.6 per cent, reaching 7,65,000 tonnes during this period.

As per the Civil Aviation Administration of Vietnam (CAAV), airports nationwide served approximately 87.8 million passengers and 1.5 million tonnes of cargo in 2022, representing a growth rate of 190 per cent and 5 per cent compared to 2021, respectively.

Vietnam Airlines, the national flag carrier, witnessed a strong revenue recovery but suffered losses of approximately $228 million in the first half of 2022. The airline is seeking financial aid from the government and exploring other solutions to improve its financial situation. On the other hand, VietJet, a low-cost carrier, experienced significant growth in passenger traffic, reaching 9 million passengers in the first half of 2022, a remarkable 200 per cent increase compared to the same period in 2021. The carrier’s after-tax profit also rose by 123 per cent during this period. Pacific Airlines, a subsidiary of Vietnam Airlines, is seeking investors to restructure the airline due to heavy losses in previous years. Bamboo Airways, a hybrid carrier, recorded a loss of about $41 million in the first half of 2022. The airline was acquired by a new investor and is undergoing a restructuring process to sustain its growth.

Vietnam has 22 airports, with notable development projects including the expansion of Tan Son Nhat International Airport and Noi Bai International Airport, construction of the mega Long Thanh International Airport, and the expansion of airports in Phu Quoc and Da Nang to cater to increasing passenger traffic.

Looking ahead, passenger traffic is projected to continue growing steadily in 2023 and beyond, driven by the recovery of international travel and expansion of domestic tourism. Cargo movement is also expected to witness sustained growth, fuelled by Vietnam’s growing manufacturing sector and the expansion of the e-commerce industry. However, airlines may face challenges such as fuel price volatility, intense competition, and ongoing restructuring efforts. Airlines that adapt to market dynamics, invest in modern fleets, and provide competitive services are expected to thrive.

Infrastructure development, including the expansion of airport facilities, will remain a priority in Vietnam. Projects such as the completion of Long Thanh International Airport will attract more international airlines, strengthening Vietnam’s position as an aviation hub in Southeast Asia. The Vietnamese government has actively promoted tourism and continues to invest in tourism infrastructure, marketing campaigns, and visa facilitation measures to attract more international visitors.

The maintenance, repair, and overhaul (MRO) sector in Vietnam shows significant growth potential. The country has been developing its MRO capabilities to meet the increasing demand from domestic and international airlines. Factors driving growth include the expanding fleet size of Vietnamese airlines and the government’s goal of developing a comprehensive aviation ecosystem. However, the shortage of skilled technicians and engineers poses a challenge that requires investments in training programs and partnerships with educational institutions. Competition from regional MRO markets also necessitates continuous improvements in infrastructure, service quality, and regulatory frameworks.

Vietnamese travel industry is poised for continued growth in 2023 and beyond, driven by increased domestic and international tourism, government initiatives, and investments in airport infrastructure.

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