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MARCH 2015
ISSUE 65
INVESTIGATION: WEDDINGS WHILE A FEW YEARS AGO THE PROFILE OF A LUXURY TRAVELLER WAS CLEAR-CUT, THE DEFINITION OF LUXURY HAS SINCE SIGNIFICANTLY EVOLVED WITH WELL-HEELED TOURISTS CRAVING THE QUINTESSENCE OF EXCELLENCE.
04 EXPLORE: DUBAI
10 IN THIS ISSUE MARKET UPDATE
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INVESTIGATION: WEDDINGS & HONEYMOONS
04 02 10
EXPLORE: DUBAI DISCOVER: BUDGET TRAVEL SPECIAL REPORT: WATER PARKS VISIT: EGYPT EXCLUSIVE: LUXURY TRAVEL TOUR: UK RENDEZVOUS TRAVEL TALK NEWS & EVENTS
04 16 09 18 16 20 20 25 21 28 22 31 23 33 24 36
EXCLUSIVE: Luxury Travel
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MARKET UPDATE TRAVEL TRADE PUBLICATIONS
MENA EXCHANGE RATES As of 24/02/2015
MANAGING EDITOR
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Mary Kammitsi mary@traveltradeweekly.travel
T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607 Fax: +357 22 103670
ASSISTANT EDITOR Maria Kazeli SENIOR JOURNALIST Rita Kasziba CONTRIBUTORS Dominique Christou Ana Mladenovic PRESS Maria Demetriadou Pauline Shahabian DESIGN & LAYOUT Elena Stylianou WEB DEVELOPER / IT Soteris Constantinou DIRECTORS Andreas Constantinides Mary Kammitsi
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Record Performance at DWC Freight and passenger traffic at Al Maktoum International at Dubai World Central (DWC) reached record levels in 2014, according to operator, Dubai Airports.
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WC welcomed 845,046 passengers in its first full year of passenger operations, boosted mainly by the arrival of a number of passenger carriers during the runway refurbishment at Dubai International. The annual figures were also augmented by traffic during the fourth quarter, during which DWC handled 110,920 passengers. Freight volumes at DWC surged 262.5 percent to 758,371 tonnes.
MARCH 2015
MARKET UPDATE
DAMAC Properties Makes USD948 Million Profit High-end and luxury property developer, DAMAC Properties announced that in 2014, the company’s net profit amounted to AED3.48 billion (USD948 million).
The Dubai Mall Welcomes 80 Million Visitors Surpassing annual footfall figures achieved by the world’s most popular tourist destinations and key international airports, The Dubai Mall is once again said to be the world’s most-visited lifestyle destination, having welcomed over 80 million visitors in 2014.
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ccording to Hussain Sajwani, chairman, DAMAC Properties, 2014 was a year of continued delivery and expansion of the company’s product range, especially the serviced and hotel apartment offering. “[We] have been quick to capitalise on this growing segment of the market. In 2014, we opened four hotel apartment developments and have a significant pipeline of 10,000 hospitality keys under development. Against the backdrop of economic growth and a stabilisation of real estate prices in Dubai, we believe that DAMAC will continue to benefit from customer demand for our product,” he added.
MARCH 2015
The Dubai Mall
ohamad Alabbar, chairman, Emaar Malls, said, “This is another historic milestone for Dubai, with a record 80 million visitors to The Dubai Mall in 2014. No other global tourist destination or even airports, which traditionally have the highest footfall, have achieved the significant visitor arrivals The Dubai Mall recorded.”
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INVESTIGATION WEDDINGS & HONEYMOONS
Memories to Last a Lifetime THE MIDDLE EAST HAS PROVEN TO BE A SOUGHT-AFTER WEDDING AND HONEYMOON DESTINATION, WITH AN ABUNDANCE OF LOCATIONS AND VENUES WILLING TO GO THE EXTRA MILE TO MAKE THAT SPECIAL DAY A MAGICAL ONE TO REMEMBER. SO WHAT MAKES THE MIDDLE EAST THE PERFECT PLACE TO TIE THE KNOT?
Dominique Christou writes
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edding tourism is on the rise as destination weddings are becoming popular among international couples, according to Saida El Massmoudi, director of weddings and events, Atlantis, The Palm. With the hotel having witnessed a 10 percent rise in international weddings booked in 2014, this increase can be attributed to the ability of its staff to tailor-make nuptials for each client’s needs. But there is more to it than just mere customisation. “Many agree that it is easier to plan
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a wedding at a distant destination because of pre-designed wedding packages that are created by professional wedding planners,” commented El Massmoudi, highlighting that parties staying for the duration of the event can combine a holiday of a lifetime with all the family. Similarly, Sameh Sobhy, general manager, Semiramis InterContinental Cairo, pointed out that the rise in that segment is due to people being more inclined to travel and combine the ceremony with their honeymoon. Trinity Antonio, director of events, Grand Hyatt Muscat, commented, “People are looking for weddings to be a major family affair and sometimes a short holiday instead of just a one day event.” MARCH 2015
INVESTIGATION WEDDINGS & HONEYMOONS
Similarly Stephen Daniel, assistant general manager, The Domain Bahrain, indicated that newlyweds and honeymooners are looking for adventurous experiences and not just for the occasion itself, but wish to also explore the whole country. People are now aware of what is out there and their interests in discovering new places and cultures are growing each
year, as Khulood Al Hajri, wedding executive, Al Bustan Palace, a Ritz-Carlton Hotel, pointed out, confirming that couples enjoy exploring a country in combination with their special day, thus boosting the popularity of weddings abroad. Today, people are seeking unique travel destinations, and even more so for weddings. The global trend is moving away from extravagant events, with
couples now choosing more intimate moments that can be shared with close friends and family, enthused Claudio Melli, general manager, Salalah Rotana Resort. On the other hand, there are so many variables driving this rise, as Shady Abdel Aziz, director of catering, Four Seasons Hotel Doha, noted. “Basically, the rapid growth in technology and social media communication, as well as the change in the demographics globally with more sophisticated customers, different needs and higher expectations, are all the reasons behind the weddings [sector’s] demand,” commented Aziz. Mary Choueiry Hassoun, director of marketing, InterContinental Phoenicia Beirut, also noted that weddings have become of a much higher calibre and couples are becoming more demanding. Rebecca Platt, director of communications, Shangri-La’s Barr Al Jissah Resort & Spa Muscat, highlighted another interesting factor which lead to the property’s success: following the production of a Bollywood movie at the resort back in 2013, it saw a huge increase in interest in its wedding capacities from the Indian market. “However, reputation and word of mouth are key to securing these leads,” she stressed. KEYS TO A PERFECT FAIRYTALE The brand is a key element and plays an important role in choosing a hotel venue for a wedding ceremony or honeymoon, believes Ayen Molina, public relations coordinator, Sharq Village and Spa, a Ritz Carlton Hotel. Sister property The Ritz-Carlton, Doha is also an exceptional choice of venue due to the careful attention paid
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to detail, combined with reflections of local culture and commitment to tradition of service, according to Zee Bassila, cluster director, sales and marketing, The Ritz-Carlton, Doha. Another important consideration is the location. That special day needs a lot of planning, and choosing the perfect backdrop for it is one of the main reasons for opting for a certain wedding destination, as Joyce Mouawad, corporate sales and marketing director, Le Royal Hotels & Resorts – Beirut, said. Much alike, Guitta Abdallah, senior
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PEOPLE ARE LOOKING FOR WEDDINGS TO BE A MAJOR FAMILY AFFAIR AND SOMETIMES A SHORT HOLIDAY
banquet and catering sales manager, La Cigale Hotel, Doha, noted that the location of the property makes it ideal for weddings, corresponding with Antonio’s view that Grand Hyatt Muscat’s location has been a major driving force behind many weddings that take place there. Yas Island also seems to be a popular choice when it comes to tying the knot in the UAE, as Sayed Tayoun, area director, sales and marketing, Abu Dhabi, InterContinental Hotels Group, stated, “With demand growing domestically and from the region, we expect that Crowne Plaza Abu Dhabi Yas Island will continue to lead this segment.” MARCH 2015
INVESTIGATION WEDDINGS & HONEYMOONS Venue also, of course, plays a huge role on that special day, and the Middle East offers some exquisite backdrops to host bespoke weddings. Sobhy enthused, “The sophisticated urban charm of Semiramis InterContinental Cairo makes it the ideal place for friends and family to celebrate this special event.” The hotel is said to boast the largest ballroom in downtown Cairo and can accommodate up to 12,000 guests, with an indoor and outdoor venue. Much alike, Mohamed Idris, director of sales and marketing, Radisson Blu Cairo Heliopolis, commented on the hotel’s ability to cater to all types of weddings. “There are wedding packages to suit every size of party, every budget and every concept the bride and groom could imagine,” he said, further noting that the property is famed for its exquisite cuisine and wedding guests are treated to countless tastes and flavours. Over in Oman, Melli indicated that Salalah Rotana Resort offers a variety of venues for weddings of all types, from
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will showcase Cairo as a wedding destination, as Sobhy noted, “We anticipate that Egypt will capture its fair share [of wedding bookings] during the next five years.” Additionally, Wedding and Fashion Arabia, set to exhibit Bahrain’s wedding sector potential, will launch on March 19, in addition to Bride Dubai, the 10th Annual Wedding Show Amman in April, and IWED Qatar. HONEYMOON OF A LIFETIME lavish affairs in its Al Hajar Ballroom and Al Majlis for 400 guests, to intimate nuptials on the beach for a handful of family and friends. For a majestic wedding at Atlantis, The Palm, El Massmoudi pointed out that for those after a grand reception, there is the opulent Atlantis Ballroom or the glittering Asateer marquee which both take 2,500 guests cocktailstyle or 1,500 seated. “Asateer on the beach provides a spectacular venue for weddings, […] with impressive views
of the Dubai skyline.” STAYING INFORMED With the region being in demand for nuptials, numerous wedding shows have been and continue to take place this year. Firstly, The Perfect Wedding Show is set to run from March 4 - 7 in Sharjah, providing a platform to acquire a large share of the regional market. Le Mirage - Cairo International Wedding Show, organised from March 5 - 7,
According to Kuoni Travel, the Maldives have been the outright winner for honeymoons since 1999, the UAE has, however, risen steadily since 2004 to the second place, with Indonesia and Mexico being new entries in the top 10. Kuoni Travel’s report pinpoints that the type of honeymoons newlyweds opt for has also changed significantly, with today’s couples being slightly older and increasingly well-travelled, meaning the stakes are higher when it comes to this special getaway.
MARCH 2015
FEBRUARY 2015
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EXPLORE DUBAI
(Not) Only in Your Dreams TODAY, DUBAI ACCOUNTS FOR 0.4 PERCENT OF THE GLOBAL BUSINESS AND TOURISM TRAFFIC, DOUBLE THE SHARE IT CAPTURED IN 2000, AND THE DESTINATION IS DETERMINED TO BREAK NEW RECORDS. Rita Kasziba writes
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hile arrivals to Dubai stood at just one million in 1993, the numbers soared to over 11 million in 2013 and by 2020, the destination is set to attract some 20 million people. Reflecting the emirate’s buoyant growth, Burj Khalifa’s observatory deck received 907,600 visitors in 2010, and in just three years the figures more than doubled reaching 1.87 million in 2013, while during the same time period, The Dubai Mall’s footfall catapulted from 47 million to 75 million. “Dubai is a destination that is always up to something,” underscored Mohammed Iqbal, general manager, Khalidia Hotel Apartments, saying that spurred by a visionary leadership and innovative ideas that go beyond imagination, Dubai has completely changed its im-
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age and is now leading the way in every aspect of life. Carefully examining every source market’s needs and always planning a step ahead to continuously exceed expectations, have been the main pillars of the destination’s success on the tourism front and the relevant authorities, as Iqbal noted, have not left any gap in marketing all facets of the emirate. While back in the old days, the once sleepy and hydrocarbon-poor
DUBAI IN BRIEF
Country: UAE Currency: Emirati Dirham (AED) Language: Arabic Population: 2.1 million Calling Code: +971 Capital Time Zone: GMT +4:00
MARCH 2015
EXPLORE DUBAI town was mostly visited by friends and relatives of its residents, today this bustling bucket-list destination is a regional hub for MICE, leisure, business, sports events, cruising and more, noted Samir Arora, general manager, Ramada Downtown Dubai, reminding that just a decade ago, most of the landmarks that today are synonymous with Dubai, including Burj Khalifa, The Dubai Fountain, The Dubai Mall or Dubai Miracle Garden, were nonexistent. A BIT OF THIS AND THAT This nonpareil transformation has helped the emirate reach out and, most importantly, engage a much wider pool of visitors. As Arora pinpointed, while in the 1990s and 2000s, Dubai predominantly relied on regional visitors and travellers from the Indian subcontinent and a few Western European countries, today, the hotel, and the destination as a whole, attract a geographically and demographically much more diverse clientele thanks to the expansive offerings.
As Angela Christodoulopoulou, director of sales and marketing, Ramada Plaza Jumeirah Beach Residence and Ramanda Sharjah, put it, Dubai has morphed from a beach destination into a shopping mecca, a medical hub, a cultural destination and more, appealing to travellers of every taste and budget. “Even looking at our guests, we can clearly see the different perceptions and reasons […]. Some guests’ main criteria is the close proximity to the beach
or easy access to the malls, while others prefer to be close to the business areas […] or the downtown,” explained Christodoulopoulou. In fact, over the past years, shopping has become a key aspect of Dubai’s appeal with total tenant sales at The Dubai Mall reaching AED16 billion (USD4.3 billion) in 2014, equivalent to nearly five percent of Dubai’s GDP in 2013. The fact that the mall welcomed 80 million visitors in 2014, surpassing arriv-
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TRUE AMBITION HAS NO ROOM FOR COMPLACENCY
als at some of the busiest airports and major tourist destinations, including New York City’s Times Square, Orlando’s Walt Disney World or the Niagara Falls, speaks volumes. Building on its diverse portfolio of products and experiences, Dubai now aims to become the world’s most popular city destination by 2020 – the year of the much-anticipated Expo 2020, which is set to attract 25 million visitors, 70 percent of whom will originate from outside the host nation. “Dubai will be looking at different types of tourists in the period leading up to 2020 and beyond. There will be more cultural and business tourists, and as such, the city will need to offer more mid-range hotels,” explained Issam Kazim, CEO, Dubai Corporation for Tour-
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ism and Commerce Marketing. To enhance and streamline hotel investment and development and further diversify the sector, in early 2014 the government had issued a series of directives, offering a tax break for midrange properties. “[Up until the end of January, we received] 51 applications for mid-level hotels; this is an important component that will help the emirate achieve its target,” revealed Kazim, further disclosing that an additional 20,000 keys are expected to come online by 2016, bringing the emirate closer to 150,000 units by 2020. As Wael El Behi, general manager, Hawthorn Suites by Wyndham Dubai Jumeirah Beach Residence, noted, the pledged support for the segment is set to enhance the market’s potential to attract a new breed of clientele. “Budget hotels will balance the city demand as we [now] have more fivestar hotels in the emirate than budget establishments,” he said. Likewise, Freddy Farid, area general manager, Gloria Hotels & Resorts, welcomed the government’s endeavour, deeming it an excellent strategic step that will help diversify the emirate’s
MARCH 2015
EXPLORE DUBAI hotel scene to cater to all segments and all types of clients. “Every market should have a complete range of hotel accommodation to suit the needs of every traveller. Focussing mostly on upscale luxury [properties] could lead to overpricing the destination,” warned Farid. A SLICE OF THE PIE
[…]. These technologies make the construction costs very high for mid-market hotel projects. If we top this up with the cost of land, the project becomes somehow not viable,” elaborated Arora, noting that for this reason stand-alone mid-market hotel projects are likely to be developed off key locations, the segment will however eventually infiltrate the city, putting pressure on high average daily rates that the destination has
been enjoying over the past years and dampening overall RevPAR. Nevertheless, as Arora stressed, the long-term prospects are intact and promising. Likewise, Bizid firmly believes that there will be business for everybody. “It is probable that with the increase in low-cost carriers serving Dubai, the city would attract a greater audience of budget travellers. […] Dubai as a destination is subject to many changes as
demand for budget hotels will also increase. However, we also believe that, though the market may be rapidly changing, this would not affect the fivestar luxury hotels as the clientele they are serving is as unique as the service they are providing,” concluded Bizid. As Christodoulopoulou pinpointed, this continuous diversification is exactly what makes Dubai a globally competitive destination.
Over the past years, Dubai has been leading the region in terms of rates, closing 2014 with an average room rate (ARR) of USD336.22 and a RevPAR of USD269.12, resulting in a gross operating profit per available room (GOPPAR) of USD221.08, as per data released by HotStats. “The hotel market in Dubai is already competitive and the ease in legislation will most definitely increase competition,” admitted Karim Bizid, general manager, The Oberoi Dubai, saying that the pressure on hotels should ultimately benefit guests and, in the end, Dubai’s economy as a whole. At the same time, as Arora, noted, the increase in supply and the projected growth in demand are likely to settle occupancy levels in the 75 – 80 percent range, which is more or less equal to the 80 percent recorded by HotStats in 2014. “Dubai is forecasted to grow at around 6.5 to seven percent until 2021 […] and it will need roughly 150,000 rooms to absorb this demand,” explained Arora, noting that to a certain extent the incentive has already attracted interest in the three- and four-star segment, mainly from local and crossborder investors from the GCC, India, China as well as Russia, a few hurdles, however, still exist. “Dubai has very high standards of safety when it comes to construction
MARCH 2015
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EXPLORE DUBAI
WELCOME ONBOARD Stakeholders agree that the proliferation of mid-market and budget establishments is in parallel with the local and regional airlines’ growth strategy of reaching out to new markets, further strengthening the aviation industry’s pivotal role in Dubai’s socio-economic development. “The growth of the aviation industry was an important key factor. Dubai has always been a must stopover destination, it is where east meets west and now it is expected to grow even more as an international destination,” supported Peter Mansourian, general manager, Grand Millennium Hotel Dubai. In fact, based on a recent Oxford Economics report, in 2013, Emirates, Dubai Airports and the aviation sector as a whole contributed some USD26.7 billion to the Dubai economy, equivalent to almost 27 percent of the emirate’s GDP, while employment in the sector reached 416,500 jobs, 21 percent of the UAE’s total employment, underscoring the aviation’s catalyst role. “Dubai’s success stems from a clear vision, careful planning and collaborative execution. It is no accident that we are a global aviation hub today,” asserted H.H. Sheikh Ahmed Bin Saeed Al Maktoum, president, Dubai Civil Aviation Authority. It is estimated that in Dubai for every USD100 of activity in aviation, a further USD72 is added in other sectors of the local economy. With close to three-fourths of visitors heading to Expo 2020 expected to be from outside the UAE, pressure continues to mount on the national airspace. As one of the world’s largest airlines, Emirates has played a pivotal role in positioning Dubai as a global business and leisure destination and today, the carrier flies to some 150 destinations. “From the beginning in 1985, the
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DUBAI IS A DESTINATION THAT IS ALWAYS UP TO SOMETHING
strategy of Emirates has remained very focussed – to grow organically, connect cities across the world via Dubai, offer unbeatable value for money and provide an unmatched level of service,” explained Hubert Frach, divisional senior vice president, commercial operations, West, Emirates, saying the size of its network has enabled the airline to overcome all kinds of challenges over the past 30 years by activating business between all sorts of city pairs. In 2014, the airline continued its growth with the addition of eight new routes and 27 aircraft, and this year, as Frach revealed, Africa and the US are set to see major developments. By 2020, Emirates is set to fly 70 million annual passengers to and from
Dubai, up from 44.5 million travellers recorded in the 2013/2014 fiscal year, reinforcing the airline’s catalytic role in the destination’s growth. As Frach put it, the success of Emirates and Dubai go hand in hand. “The growth of both demonstrates what can be achieved by a small emirate within a small country. […] However, the work is far from over. True ambition has no room for complacency,” stressed Frach. Although the history of the emirate’s other carrier, flydubai only dates back six years, it has also been marked by notable achievements. “In 2009, flydubai set out to build a world-class, affordable airline that provided passengers a higher level of service and facilitated increased travel to and from the UAE for business, tourism and trade,” said Ghaith Al Ghaith, CEO, flydubai, noting that today, the airline operates some 1,400 flights per week. The exponential expansion of the two airlines along with the destination’s rising profile have turned Dubai International into the world’s busiest airport for international traffic with over 70.47 million travellers passing through the facility in 2014. The historic milestone followed five decades of double-digit growth at the hub, which, according
to Al Maktoum, is gradually becoming a global centre of aviation thanks to an open skies policy, a friendly business environment, Dubai’s growing attractiveness as a centre for trade, commerce and tourism, developing network connectivity and timely investments. According to Paul Griffiths, CEO, Dubai Airports, 2014’s record is set to be broken this year with 79 million passengers expected to use Dubai International as it progresses forward with facility upgrades, including the opening of Concourse D which will boost the hub’s capacity to 90 million. Work is also underway at Dubai World Central (DWC), which, as Rashed Bu Qara’a, chief operating officer, Dubai Aviation City Corporation, explained, involved a purpose-built, masterplanned city, spanning about 145km2, built around Al Maktoum International Airport, which will be the world’s largest hub when complete. “The airport, when fully operational, will have five runways, and is projected to move 200 million passengers annually – in effect tripling Dubai’s current level of passenger traffic - and 16 million tonnes of cargo,” said Bu Qara’a, disclosing that in a bid to accelerate the expansion, the government sanctioned a USD32 billion fund in September 2014. Being the venue for Expo 2020, the DWC project is in fact of great importance to the emirate. “Estimates indicate that the economic impact generated by the Expo between now and 2021 will be approximately USD26.5 billion – much of this value is expected to be retained within the UAE,” highlighted Bu Qara’a, stressing that the vision of DWC stretches far beyond 2020. It is, as Bu Qara’s said, rooted in the Dubai Strategic Plan 2021 that aims to make the destination a city of happy, creative and empowered people. MARCH 2015
DISCOVER BUDGET TRAVEL jected to double, to reach 136 million by 2020. “There is a near saturation in the market in when it comes to luxury hotels. The market does not need any more luxury hotels at this point,” he said. FEEDING THE DEMAND In light of the above, the need for more properties catering to this promising
A World Accessible to All THERE IS A VISIBLE RISE IN POPULARITY IN THE BUDGET TRAVEL MARKET IN THE MIDDLE EAST, AS THE REGION PREPARES FOR A BOOM IN BUDGET FACILITIES. WITH COUNTLESS PROPERTIES IN THE PIPELINE SET TO CATER SPECIFICALLY TO THIS GROWING SEGMENT, THE QUESTION ARISES: WHICH FACTORS ARE INFLUENCING THIS STILL LARGELY UNTAPPED SECTOR?
Dominique Christou writes
“T
here is no doubt that budget travel is going to become more and more popular in the Middle East,” commented Darroch Crawford, senior vice president, Middle East and Africa, Premier Inn, attributing this rise to the increasing number of valuefor-money hotels being developed and the ever-widening availability of low-cost travel options such as budget airlines.
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Jad Shameseddin, general manager, Holiday Inn Jeddah Gateway, believes that the budget travel segment will eventually grow in the Middle East as travellers are becoming more educated and have a better sense of value for money, thus preferring to spend their funds on other activities as opposed to hotel rooms. Much alike, Roudi Soubra, general manager, Premier Inn Abu Dhabi International Airport, commented, “Budget travel in the Middle East is on the rise, and from business to leisure, more and more travellers are choosing to lower their costs. With such fierce competition, budget travel and budget hotel
quality and facilities these days are of a very high standard, especially in the Middle East.” Moreover, Jaya Bhushan Patnaik, general manager, La Villa Hospitality, attributed the upsurge in budget travel in the Middle East to the socio-political stability and economic growth, commenting that due to these two factors, major infrastructure developments are taking place in order to cater to budget tourists. Laurent Voivenel, CEO, Hospitality Management Holdings (HMH), noted that the scale of opportunity in the region for mid-market and budget hotels is unprecedented. The number of visitors travelling to the region is pro-
sector is urging brands to further develop budget facilities in the region. One of these is HMH, which announced its foray into budget segment with ECOS Hotels, a no-frills bed and breakfast brand that ties together a unique economical and ecological concept, sure to cater to the booming budget travel market. “There is a considerable shortage of affordable accommodation and not enough supply,” highlighted Voivenel. Hotel stock in the Middle East, including the UAE, is predominantly geared towards luxury and up-market accommodation, leaving a huge gap and opportunity for budget hotels that we are keen to target with ECOS hotels,” he commented, further noting that if cities like Dubai are to achieve their goal of 20 million annual visitors by 2020, they must widen their appeal amongst the fast growing middle class in emerging economies of Africa and Asia, particularly in India and China. “Therefore, at this point, there is a need to accelerate the development of mid-market hotels,” he enthused. MARCH 2015
DISCOVER BUDGET TRAVEL Further catering to budget travellers is Wyndham Hotel Group, which is set to introduce the Super 8 brand in Riyadh. Bani Haddad, regional vice president, Middle East and Africa, Wyndham Hotel Group, commented on the country being the ideal one for the brand launch. “Whenever we look to enter new markets, it is important for us to de-
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THE SCALE OF OPPORTUNITY IN THE REGION FOR MID-MARKET AND BUDGET HOTELS IS UNPRECEDENTED
velop a strong understanding of the needs of guests and owners in those markets and what it will ultimately take to add value to both,” he explained. With the Middle East gaining ground in budget travel, Haddad pointed out that both the budget and the extended stay sectors still represent significant growth areas for the hotel industry in the region. Both segments are critical, not only to sustain inbound tourism, but also to benefit from the existing and underserved domestic and intra-regional demand. MARCH 2015
Similarly recognising Saudi Arabia’s appeal for new budget brands, Millennium & Copthorne Hotels Middle East and Africa (MEA) has unveiled plans to launch its Studio M brand in Riyadh in partnership with Saudi owner Waseel Properties and developer Raseel Properties. The 145-key hotel, due to open in the second quarter of the year, is the first Studio M brand in the Middle East and will be centrally located on King
and or launched by 2017. And over in Dubai, the innovative Dubai Inn brand is to launch the first phase of ‘best value’ hotels in prime city locations, targeting value-conscious leisure and business travellers. Dubai Inn is a joint venture of Meraas Holding and Emaar Properties. Mohamed Alabbar, chairman, Emaar Properties, enthused, “Dubai Inn will be a game changer for the hospitality, avia-
ties realise the region’s shortcomings and are also encouraging the development of mid-market hotels, this according to Voivenel. “Travel to the Middle East is expected to grow strongly over the next 10 years, with expanding middle class in existing as well as emerging source markets of Asia and Africa. Growth of low-cost carriers has opened this segment,” he noted.
Fahd Road. “In Waseel, Millennium & Copthorne has found a like-minded partner that recognises the potential return of developing and operating a stylish and innovative budget brand such as Studio M,” said Ali Hamad Lakhraim Alzaabi, president, Millennium & Copthorne Hotels MEA. “Studio M is a very distinctive brand that addresses an under-represented segment of the regional market. In Riyadh, budget hotels account for just 10 percent of existing supply and only 1,000 rooms in the pipeline, compared to 7,000 for the upscale to luxury segments. We see tremendous potential for a contemporary budget brand, given that this existing market segment is too often represented by independent properties of variable quality,” added Alzaabi. Millennium & Copthorne Hotels has also identified a number of other prime locations in Abu Dhabi, Al Khobar and Jeddah for its innovative budget brand and is already in negotiations for further sites in Doha and Dubai, completing the line-up for up to six properties signed
tion and tourism industry of Dubai by offering unmatched value for the guests”.
Moreover, Soubra expressed that open skies agreements have vastly expanded international passenger flights, making it possible for more budget travellers to come to the MENA region. “I believe the numbers will continue to grow as will demand for budget travel and accommodation,” he said.
GETTING THERE ON A BUDGET As regional low-cost airlines blossom, cost-conscious travellers are flooding the market, pushing demand for midmarket lodging. The tourism authori-
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SPECIAL REPORT WATER PARKS Maria Kazeli
writes
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rrespective of personal preferences and choice of vacation destinations, holidays are all about having fun and relaxing in the top venues that the world has to offer; be that food and beverage outlets, luxury hotels or fantastic experiences and days out, as Tim Mow, general manager, Yas Waterworld Abu Dhabi, underlined. He wasted no time reminding that this does not get much more exciting than a day at a mega-water park in the beautiful UAE sunshine. Actually, the endless sun in the region is a factor contributing to a water park’s popularity, according to Lennard Otto, general manager, Wadi Adventure. “In the UAE, high temperatures throughout the year make water parks a huge attraction for tourists and locals,” he confirmed. REGIONAL FAMILY ESCAPES Traditionally, leisure attractions, such as water parks, have been developed to support existing resorts in the region. However, the DNA of Theme Park Hotels report by Colliers International identified an untapped opportunity for developers looking to build hotels in and around large-scale theme parks within the Middle East. Filippo Sona, head of hotels, MENA, Colliers International, observed that globally, theme park hotel demand is primarily driven by leisure guests, especially families from domestic and regional markets, thus it is crucial to target them effectively. “This means larger rooms and more of them, mid- and upscale hotels rather than luxury, the right mix of food and beverage outlets and facilities that cater to domestic tastes and preferences and, of course, the right brand,” he added.
A Splashing Success WITH MENA’S HOSPITALITY INDUSTRY BOOMING, ATTRACTIONS ARE A MUST TO LURE IN A CLIENTELE THAT WILL STRATEGICALLY DIVERSIFY THE MARKET’S APPEAL. WATER PARKS ARE UNDENIABLY A MAGNET FOR FAMILIES, BUT WHAT IS THEY COULD DRAW IN BUSINESS TRAVELLERS AS WELL?
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HIGH TEMPERATURES THROUGHOUT THE YEAR MAKE WATER PARKS A HUGE ATTRACTION
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Mow corroborated that indeed, a large proportion of Yas Waterworld Abu Dhabi guests are from the UAE and the MENA region. “Tourists and visitors from the GCC and the wider Middle East form around 70 percent of our total visitor numbers and it is fantastic to see local residents responding so positively to our offering,” he said. Wahooo! Waterpark, Bahrain is also a magnet for Middle Easterners, according to Omar El-Banna, sales and marketing director, Majid Al Futtaim Leisure & Entertainment. He further suggested that being part of the Majid Al Futtaim family, a leading shopping mall, retail and leisure pioneer across MENA, positions Wahooo! as a main entertainment destination that caters to the customers of the group’s mall and hotel guests, as well as the tourists and residents in Bahrain. Emphasising the family aspect, Ramsay Rankoussi, director of business development, Middle East and Africa, The Rezidor Hotel Group, said that the Colliers International report is in line with the vision of Dubai to further extend its offerings as a destination and to continue its efforts to cater to families. “Indeed, theme parks have the potential to increase demand generators and further diversify the city overall. I think it is a very positive sign which can only support the need of market diversification and attracting new markets, with families being a priority for the region,” explained Rankoussi. CAN’T A BUSINESSMAN HAVE FUN? MENA provides a real opportunity for success, according to Sona, who deems that the real winners will be hotel companies that pick the right location and broaden their appeal beyond just leisure guests to include MICE travellers. Mow agreed that there is indeed a rise in guests looking for more inspiring alternatives to the hotel ballroom scenario, with unusual venues and entertainment options becoming the creative pull to attract event attendees. Hotels located in close proximity to water parks are interlinked and interdependent, verified Rankoussi, concluding that the diversification strategy in creating new demand generators and attracting families would further help hoteliers benefit from a new source, but it will also help each destination in sustaining and finding the right equilibrium between supply and demand. MARCH 2015
VISIT EGYPT
Too Precious, Too Underrated WITH RUSSIA, ONE OF EGYPT’S MAIN FEEDER MARKETS, FACING FINANCIAL CHALLENGES, THE NORTH AFRICAN COUNTRY LOOKS TO OTHER MEANS AND SOURCES TO FIND ITS WAY TO RECOVERY. TOURIST ARRIVAL FIGURES HAVE BEEN ON THE RISE SINCE JULY 2014, BUT HOTELIERS ARE STILL DOUBTFUL WHETHER THIS IS GOING TO BE EGYPT’S YEAR AFTER ALL.
Maria Kazeli
I
writes
n a destination that received more than 10 million tourists in 2014, of which one million arrived in one single month, Egypt has the potential to recover fast enough. According to Moudy El-Shaer, general manager, Bright Sky Travel, Egypt is recuperating; however, some markets seem to be improving while others, such as Russia and Ukraine, are losing their grip. Magdi Gamil, director of sales and marketing, Fairmont Nile City Cairo, attested that the industry is optimistic about this year and the country is targeting a 20 percent increase in annual tourist numbers.
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“Tourism income was USD7.5 billion in 2014, with a growth of USD1.6 billion compared to 2013 reflecting a 27 percent growth. Tourist numbers arriving to Egypt increased to 10 million, compared to 9.5 million
EGYPT IN BRIEF
Capital: Cairo Currency: Egyptian Pound (EGP) Language: Arabic Population: 88 million Calling Code: +20 Capital Time Zone: GMT +2:00
MARCH 2015
VISIT EGYPT
tourists in 2013,” he said, reminding, however, that overnight stay figures registered a drop year-on-year. VALUED PROPORTIONS As Mohamed Eid, assistant director, sales and marketing, Gorgonia Beach Resort, suggested, Egypt offers something too
precious at a too low of a cost, and in this challenging era Egyptians need to review and revalue the product on offer and adjust their pricing strategies. However, value for money is a factor that can draw in travellers at this specific point of time when safety concerns are heightened. “As usual, people are looking for val-
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MANY WOULD-BE VISITORS ARE REALISING THAT NOW IS A GREAT TIME TO VISIT
ue for money on trips. We always try and negotiate good rates with boat owners, especially as price is a factor for people returning to Egypt,” confirmed Agnès Brémont, product and marketing manager, Orbital Travel. The UK-based independent specialist tour operator, which has been offering Nile programmes since 1992, registered a 70 percent decline in demand for Nile cruises compared to 2010, but Brémont expects a full comeback by the winter of 2016. In fact, the British have continued to holiday on the Red Sea in good numbers since the destination offers
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exceptional value, according to Jason Hilton, deputy managing director, Red Sea Holidays. The operator, part of the local hotel and ground transportation firm Red Sea Hotels, also specialises in Nile cruises, which are gaining ground quickly with the reestablishment of direct flights to Luxor, as Hilton said. “The magnificent archaeological and cultural sights of the upper Nile, coupled with Cairo and the pyramids, are the iconic symbols of the country and many would-be visitors are realising that now is a great time to visit, before people return in numbers and you can see these sights without the crowds,” he enthused. Philip Breckner, commercial director, Discover Egypt, resonated that classic Nile cruises are a top seller with healthy repeat business as tourists remain cost-conscious. “Travellers that have been to Egypt know it is safe and a value for money, and they are happy to continue booking and rebooking. We have also seen more requests for upper Egypt to be combined with a stay in Cairo,” Breckner said. Reflecting the views of the local
MARCH 2015
VISIT EGYPT effort, the Ministry of Tourism – as the hospitality industry had done earlier – turned to e-marketing and concluded deals with Google, Visa and Facebook in order to promote the destination. Egypt is riding along the modern trend and Banks admitted that there is a huge growth in online forms of distribution. “Especially in Egypt we have seen growth in Facebook followers who communicate with our hotels – this channel is growing at the rate of 400 percent in some hotels year-on-year. We also see growth in website bookings, whether through our own website or third party online travel agents. Some hotels experience 40 percent of their business now through this channel, whereas three years ago this was around five percent,” he enthused. Jens Freise, vice president, market-
hospitality stakeholders, Stephen Banks, director of sales and marketing, Africa, Mövenpick Hotels and Resorts, commented that there is a trend of returning to classical Egypt and, of course, the all-inclusive concept which proves very popular with holiday-makers who want to know exactly how much their vacation will cost even before they leave their home. Mehdi Zaanoun, general manager, Kempinski Nile Hotel, emphasised the quality aspect in the value for money notion, saying that the capital’s fivestar hotels are ageing, trading on their global brand names but often in need of a facelift. “Generally speaking, new five-star properties coming to the market tend to [be more sophisticated] with a new proposition and capable of expanding
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THE MAJORITY OF OUR HOTELS WERE FULL IN THE SUMMER MONTHS AND THIS WAS DUE TO DOMESTIC TOURISM
the market rather than purely cannibalising it. […] Value for money should be the focus when trying to attract international guests,” he said. GETTING LOCAL SUPPORT Despite the decline in international arrivals, the Egyptian tourism market is getting along on its own means and with the support of domestic, as well as regional visitors. “Domestic tourism witnessed improvement, especially to the top-tier hotels which were usually expensive to stay in. The growth comes in response to the initiatives from hotels and
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EGYPTAIR that offer reduced rates and packages to stimulate domestic tourism,” verified Lamia Assem, director of marketing, Sofitel Legend Old Cataract Aswan, adding that while the luxury domestic segment increased, the frequency of domestic tourism for touristic attractions or other cities in Egypt decreased, especially from the middle and lower strata of the local society. The areas which benefitted the most from the development were Sharm El Sheikh, Hurghada, the northern coast and Ain Sokhna, as Maggie Petrova, director of sales, Cairo Ramses Hilton, said. Banks agreed, revealing that Möv-
enpick Resort El Sokhna was continually filled up every weekend from the local Cairo market. “We found the majority of our hotels were full in the summer months and this was due to domestic tourism. August [2014] was a record month on the Red Sea and again these bookings were made online by the local market,” he added. SURFING THE MODERN WAVE As Sameh Sobhy, general manager, Semiramis InterContinental Cairo, suggested, e-marketing and social media have become an essential channel of marketing and thus, in an innovative
ing and sales, destinations and hotels, Orascom Development, confirmed that this year began with the launch of a high-tech website for the company’s El Gouna hotels which follows all the latest technology trends and which has helped double the group’s online sales share over the last months. “As for social media, our favourite tool given the instant nature it has and the direct impact it allows, we are proud that El Gouna’s community on Facebook alone has around 180,000 loyal fans,” he concluded. Zaanoun summarised his view adding, “Technology is now enabling companies to replace their traditional faceto-face interactions via a technology interface using the Internet. We have witnessed positive results knowing that it attracts affluent customers and lessens dependency on more traditional and expensive channels and measuring the frequency in website visits is a good way to measure our guests’ loyalty.” MARCH 2015
EXCLUSIVE LUXURY TRAVEL Rita Kasziba writes
“M BEYOND IMAGINATION
ost people associate luxury travel with first-class flights, high-end hotels, private limousine transfers and high-end restaurants,” said Sameh Sobhy, general manager, Semiramis InterContinental Cairo, stressing that today preferences and needs differ from traveller to traveller. Pep Lozano, general manager, The Ritz-Carlton Abu Dhabi, Grand Canal, added, “For a modern-day luxury traveller, beautifully appointed accommodation and impeccable services are not enough.” In fact, industry experts agree that flying business class and staying at five-star hotels simply does not cut it anymore. “Today the definition of luxury travel is plural, because there are so many perspectives about luxury as there are travellers,” Soufiane El Allam, director of sales and marketing, The Ritz-Carlton, Bahrain Hotel & Spa, further explained,
saying that these guests demand genuine and personalised services that transcend the notion of luxury. These days, luxury travel is all about the unique experience, underlined Susanna Yong, director of sales and marketing, Dusit Thani Abu Dhabi, who described a typical traveller of this category as someone well-travelled who knows what he likes and, of course, dislikes, and does not compromise on his demands. “A luxury traveller is a wonderful guest to welcome into the hotel as they are very clear in their expectations,” stressed Yong, saying that this very reason is likely to prompt the sector to increasingly utilise guest databases in order to ensure meticulously tailored experiences. And there is no denial that these high-net-worth travellers long to feel known and valued, emphasised Michele Frignani, general manager, Ajman Saray. “[They] expect hotel personnel to greet them with a smile at every encounter and even by name in some cases,” he added, using the term of hyper-personalisation – the approach that allows
WHILE A FEW YEARS AGO THE PROFILE OF A LUXURY TRAVELLER WAS CLEAR-CUT, THE DEFINITION OF LUXURY HAS SINCE SIGNIFICANTLY EVOLVED WITH WELL-HEELED TRAVELLERS AND AFFLUENT MILLENNIALS INCREASINGLY CRAVING THE QUINTESSENCE OF EXCELLENCE AND MERIT. MARCH 2015
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EXCLUSIVE LUXURY TRAVEL extraordinary epicurean experiences. “Luxury travellers differ from one country to another, from one ethnicity to the other, but one truth stays the same across all: they all seek high standards in service, rooms, dining and everything else,” asserted Frignani. THE HOME OF LUXURY “Luxury travellers these days are looking for experiences that raise the emotional bar,” supported Anthony Tyler, general manager, Four Seasons Hotel Riyadh, saying that a blissful spa visit or a one-of-a-kind gastronomical experi-
ence is more important than the square footage of the bathroom. “Today’s luxury travellers are also looking for a more intimate exploration of a destination’s culture and people, and it has become increasingly apparent that high-end travellers seek out the hotels that provide them with memories that will last a lifetime,” he added. Tamara Salha, hotel manager, InterContinental Phoenicia Beirut, threw the spotlight on other aspects, suggesting that luxury goes well beyond the tangible and is more about time, knowledge and relevance. “Time is luxury [because] travellers want to enjoy the pleasures of the moment and want us to make sure that every moment of their experience is memorable. Knowledge is luxury [because] travellers want to be told where the best manakish sandwich in Beirut is found. It is most probably sold by a food cart vendor and costs less than USD1. What makes the experience special is its authenticity and exclusivity. Finally, relevance is luxury [because] travellers want us to realise their personal
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LUXURY IS STILL ABOUT DESIRING THE BEST AND MOST EXCLUSIVE OF EVERYTHING
dreams, create passion and desire, and improve their lives,” said Salha. According to Frignani, this shift in the perception is particularly evident in the Middle East, where travellers arrive with higher expectations and, nevertheless, with larger budgets. “[They] are willing to spend more than what they would spend in other destinations, seeking a different experience and a memorable time whether they are coming on holidays, stopovers or on business,” supported Frignani. Nadege Noblet, exhibition manager,
Arabian Travel Market, Reed Travel Exhibitions, cited a 2014 YouGov Luxury Travel report that showed that, based on the input of 1,000-plus regionally based respondents, luxury clearly has a home in the Middle East with Dubai topping the list of preferred upscale destinations. On average, respondents spent around USD8,310 per trip and interestingly, 77 percent said they were likely to book an all-inclusive package. The results are in accordance with a Credit Suisse report which found that GCC nationals spend 260 percent more on air fares than other nationalities, with 40 to 60 percent opting for business class. In terms of accommodation, the gap is even wider with GCC nationals splurging 430 percent more on hotel accommodation and 588 percent more on dining. FOLLOWING THE TREND To capture a fair share of this lucrative market, destinations are in a never-ending race to outdo each other. As Mehdi Zaanoun, general manager, Kempinski Nile Hotel, Cairo, highlighted, in order to ensure exclusivity, a new trend of smaller sized and, in many cases, boutique properties has emerged in the market. This, as Zaanoun noted, comes in response to the evolving demands of guests in the region and Egypt. “The local hospitality market is getting more sophisticated and segmented than in the past,” said Zaanoun, adding that the boutique hotel concept offers a clear competitive-edge. “Our smallest competitor has 355 rooms; it simply cannot provide the tailored services we can,” stated Zaanoum, listing a bundle of exclusive services that are mostly the domains of relatively smaller or boutique establishments.
Yet, experts warn against relying solely on the property’s size and location and urge to move with the times. As Tareq Derbas, general manager, The St. Regis Doha, noted, while these guests require personalised services that ensure that they feel special and appreciated, they highly value time, thus taking advantage of technological advances can highly benefit hoteliers. “Keeping up with technology is the future and being quick to respond to new tech trends should be a major focus in staying connected with the guest, both when in and after they leave a hotel,” he said. “In the Middle East, we are leading the world in hospitality technology development and, as a result, hotels in this region are more able to delight guests using their preferred communications channels.” Drawing conclusion from the changing trends, Tyler elaborated on how luxury travellers value technology, identity, design and adventure. “Travel for the luxury traveller is about hands-on, hightouch experiences; [it is] about growing, learning and understanding the history. They want ultimate personalisation, but simple and seamless service,” he said. El Allam added, “The most personalised amenities are those which surprise you by their spontaneity and keep you emotionally engaged to the destination.” To satisfy these travellers’ thirst for the exclusive and inimitable, the industry is on the quest to keep abreast of the latest and greatest. “Private jets and technology will be major players in order to achieve that,” indicated Frignani. “New technological developments like the Google Glass, which can enrich guest and employee engagement and solve operational challenges, are one of the ways to imMARCH 2015
EXCLUSIVE LUXURY TRAVEL prove personalised services. Keyless check-in with your own mobile phone will also lead luxury travellers towards new engaging experiences.” Tyler agreed that with consumers becoming more and more savvy and selective, brands must find ways to naturally insert themselves into the digital habitat of the luxury traveller. “In the future, many of the room features currently considered luxury in hotels will become standard, and brand will seek in-room technological innovations to enhance the guest experience and further differentiate their offerings from their competition,” he said. Emotions, which are the essence of luxury as experts seem to agree, however go beyond technology. Providing access to the different and undiscovered will never to go out of style. “Shopping with local artisans, cooking lessons with the chef using home-grown ingredients from the rooftop, behind the scenes tours with artists and designers [are all part of this],” stressed Salha.
MARCH 2015
THE USD20,000 AIRPLANE TICKET Luxury keeps evolving not only on the ground but in the air as well, and Etihad Airways has literally taken the travel experience to new heights with the introduction of The Residence by Etihad. Designed for up to two guests, the close to 12m2 unit offers the highest levels of privacy and exclusivity. The world’s first private multi-room cabin on a commercial passenger aircraft, which is currently available on an Airbus A380 aircraft on the Abu Dhabi –
London route, features a living room, double bedroom, separate ensuite shower room and is served by a Savoytrained butler, ushering in, as Peter Baumgartner, chief commercial officer, Etihad Airways, said, a new era of luxury travel in commercial aviation. In the pursuit of perfection – and after realising that no single design agency could deliver the company’s vision for the cabin – Etihad Airways has set up its very own Etihad Design Consortium to, as Baumgartner put it, reinterpret the definition of luxury in
new ways and boldly think about how aircraft real estate can be utilised. As Baumgartner revealed, guests wishing to enjoy The Residence by Etihad can expect to pay around USD20,000 one way for two passengers, and while he was unable to disclose sales figures, he suggested that the demand so far reinforced the company’s prediction that there is a strong demand for such products. “As a comparison, the cost for two people to travel from London to Abu Dhabi on a private jet, the closest in terms of luxury and service, can be up to six times higher,” explained Baumgartner, adding that Etihad Airways takes pride in defying the status quo and setting the bar higher and, ultimately, stimulate further innovation in the industry for the benefit of travellers. As Salha put it, “The concept of luxury is ever-moving, definition and perceptions are changing [but] luxury is still about desiring the best and most exclusive of everything but it is now more within the realms of experiences.”
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TOUR UK
A Breath of Fresh Air Dominique Christou writes
year Countryside is GREAT campaign is designed to grow international visits and spending across the country to an invited industry audience, showing how everyone can get involved. VisitBritain’s ambition is to have generated extra visi-
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ew analysis from VisitBritain has revealed that more international tourists are starting to travel across the country than ever before, with spending hitting record levels for the majority of source countries and regions for the first nine months of 2014. Between January – October 2014, the UK received 29.5 million visitors, a five percent increase on 2013 and a new record. Spend amounted to a total of GBP18.2 billion (USD28 billion), reaching new heights and marking a two percent increase over the same ten-month period in 2013. This year, visits to the UK are predicted to go up 2.5 percent on 2014 figures to 35.1 million, with a 4.5 percent rise in spending. SAVOURING THE GLORIOUS NATURE A new VisitBritain campaign is set to position Britain’s countryside as a place to enjoy modern culture, top-quality food and world-class accommodation amidst a beautiful landscape. The three-
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UK IN BRIEF
Capital: London Currency: British Pound (GBP) Language: English Population: 63.7 million Calling Code: +44 Capital Time Zone: GMT +0:00
THE UK IS FOR LONG NOW AN ESTABLISHED, SOUGHT-AFTER DESTINATION, LURING VISITORS FROM ALL OVER THE GLOBE TO ITS MAJOR SHOPPING CITIES, BREATHTAKING SITES AND WORLDLY CULTURE. BUT THIS YEAR, THE UK IS FOCUSSING ON PROMOTING ANOTHER SIDE OF THE KINGDOM – THE COUNTRYSIDE.
tor spend of GBP70 million (USD107.8 million) by 2018, which would see the creation of 1,296 new jobs. “Our research and the feedback we receive from the market tells us that people want to see more of Britain than the capital, whether that is on the same trip or a repeat visit. It is our job to facilitate and package different parts of Britain to suit the consumer demand,” commented Annique Labuschagne, MARCH 2015
TOUR UK for our marketing messages, ensuring all the messages are communicated in dual language, Arabic and English, across the different platforms within the Gulf region,” she highlighted. In November 2014, VisitBritain launched an Arabic version of its www. lovewall.visitbritain.com website. UNIQUE PLAYERS Scotland is also a popular choice for Middle Eastern travellers, with 68,000 trips having been made to the destination by visitors from the region during the first three quarters of 2014. Gulf markets manager, VisitBritain. As she further explained, the Countryside is GREAT campaign, launched on January 29, aims to make the British countryside modern, refreshing, accessible, and with packaged experiences. “Britain may be a small island, but beyond its towns and cities is a breathtaking variety of countryside, from rugged mountains, deep forested and tranquil waterways to stunning beaches, cliffs and coastal paths, there is something to inspire and delight all visitors. The sheer variety of its countryside is extraordinary and surprising. It is not just a pretty backdrop; it offers visitors countless ways to invigorated by the nation’s drama beauty and space,” enthused Labuschagne. A REFRESHING EXPERIENCE With keen Middle Eastern travellers in mind, VisitBritain has already done a lot of work within the GCC to promote this aspect. “In 2013, the first edition of the Countryside series was launched. Dunes to Dales focussed on discovering Manchester and the Yorkshire Dales through four GCC nationals who cycled through the Dales ahead of the Tour De France Grand Depart. The campaign delivered outstanding results and Yorkshire was showcased to an audience of over five million across the Arabian Gulf countries: UAE, Qatar, Kuwait, Bahrain and Saudi Arabia,” revealed Labuschagne. In 2014, VisitBritain extended the Dunes to.. campaign and launched Dunes to Peaks, taking two Emirati nationals to explore the great countryside of Britain, maintaining Manchester as an exciting city base and introducing the Peak District, a world-class holiday
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destination just a 45 minutes’ drive from Manchester, which offers fabulous countryside holiday experiences. Again, the feedback from the campaign and results delivered were great. As Labuschagne reported, from the six GCC markets combined, visits went up 12 percent in the first six months of 2014, compared to same period in 2013. Total GCC figures stood at 466,000 visits, up four percent, and GBP1.1 billion (USD1.7 billion) in spend, with the highest contributions being from Saudi Arabia and the UAE. By 2016, VisitBritain is projecting a growth of 30 percent in number of visits from the Gulf region. Moreover, Destination Britain, VisitBritain’s largest travel trade event for the Asia Pacific, Middle East and Africa, is held annually to engage with the travel trade from these regions and offer them the opportunity to meet with up to 85 suppliers from all over the UK and Ireland, including regional and national tourist boards, hotel chains, attractions and inbound tour operators. “As for the MENA market, VisitBritain has implemented a GCC-wide strategy
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BRITAIN MAY BE A SMALL ISLAND, BUT BEYOND ITS TOWNS AND CITIES IS A BREATHTAKING VARIETY OF COUNTRYSIDE
VisitScotland has a great opportunity to position Scotland’s countryside on the global stage within the Countryside is GREAT campaign, highlighted Martina Majerova, assistant marketing manager, trade and partnerships special projects, long haul and emerging markets, VisitScotland. She noted that Scotland’s outstanding landscape, coupled with the opportunity to stay in some of the UK’s best luxury properties such as Gleneagles Hotel, Cameron House Hotel on Loch Lomond or Dundas Castle, and the ever-present heritage and traditions and friendly lo-
cals, make Scotland an ideal destination for the Middle Eastern traveller. “This year is The Year of Food and Drink Scotland, a year-long celebration of the country’s outstanding natural larder and produce, offering the visitor many brilliant moments to savour. From artisan cheeses to succulent seasonal berries and seafood, there is an abundance of delicious regional flavours round every corner,” Majerova further elucidated. UPPING CONNECTIONS “We have great airline partnerships with the key players in the region – Etihad Airways, Emirates and Qatar Airways; these partnerships ensure that we are offering our customers a well-rounded experience on both the connectivity and exploration level. Our role is to create awareness and inspire travel to the different areas within Britain, whilst working with the airline and trade partners helps us create the tangible offer (bookable element) and make it available for consumers to enjoy,” said Labuschagne. As for links to Scotland, Majerova said the industry is delighted to be welcoming yet another Middle Eastern carrier, Etihad Airways in June, in addition to Emirates’ and Qatar Airways’ established routes, making the destination more accessible than ever before. REMOVING TRAVEL BARRIERS Another move which is set to boost tourism to the UK is the consolidation of its visa regime. David Scowsill, president, The World Travel & Tourism Council (WTTC), commented on this initiative, “It is great to see the UK take a step in the right direction to ease visa processes and towards bringing greater economic prosperity and more jobs to the UK as a result. This streamlining of visa routes from the current 15 to four will make the application process easier and more accessible for travellers, and sends a powerful message that the UK is a welcoming place to visit.” He further indicated that never before has the link between easing tourist visa procedures and the growth of the industry’s GDP been more apparent. “The world is a better place if we have greater freedom to travel – the freedom to celebrate the immense diversity of our planet; the freedom to do business; the freedom to create jobs and to generate prosperity,” Scowsill remarked. MARCH 2015
RENDEZVOUS
Q & A with Ahmed Al Biel DEPUTY EXECUTIVE DIRECTOR, YEMEN TOURISM PROMOTION BOARD
related entities are working to improve the country’s tourism infrastructure. The ministry [is working] alongside the YTPB and the stakeholders to put forward the nominated destinations included in UNESCO’s Tentative List, like Thula, Altawila and Sa’da. TRAVEL TRADE MENA: In March, YTPB will be participating in MITT for the first time. How this participation will aid Yemen’s tourism sector? AHMED AL BIEL: MITT is Russia’s largest travel exhibition. One of the major aspects of YTPB’s strategy is to approach new markets with new offers. Yemen has many things to offer, one of which is a long coastal line which stretches around 2,300km [and is] one of the attractions and trends that appeals to this targeted market. YTPB has received several requests from tour operators interested in Yemen and [they want to start] sending their tourists to genuine Arabia, to unusual and exotic destinations like Yemen.
TRAVEL TRADE MENA: What is the focus of Yemen’s Sana’a Tourism Summer Festival this year? AHMED AL BIEL: Depending on the stability of the situation in Yemen, the Sana’a Tourism Summer Festival’s focus will be on the participation from all our 23 governorates with all their different traditions on display and a combination from some selected Arab and international countries, which is expected to bring about awareness among the locals of other cultures. The different events of the festival will be enriched this year. TRAVEL TRADE MENA: What are your expectations for the country’s future? AHMED AL BIEL: We are optimistic about the future and the country, and we think that the tourism business will pick up in the near future as long as the political parties reach a settlement position and all have put their commitments towards improving and protecting the tourism industry.
AHMED AL BIEL, DEPUTY EXECUTIVE DIRECTOR, YEMEN TOURISM PROMOTION BOARD (YTPB), EXAMINES THE ACTIONS TAKEN TO UNEARTH THE COUNTRY’S APPEAL TO DISCERNING TRAVELLERS. TRAVEL TRADE MENA: The current situation in Yemen is very fluctuant, negatively affecting tourism. Do you have any plans to reverse this image? AHMED AL BIEL: We are focussing on three major areas this year, we have drafted a strategy for encouraging domestic tourism, [we have] development projects in the archipelago of Socotra and we are working to declare the Ibb province as the tourism capital of the year. Besides, [through a] number of projects we are promoting adventure tourism and we are establishing diving centres. A five-star hotel in Ibb is almost ready to become operational, yet there MARCH 2015
is a slight hassle to be finalised so [representatives of ] the Ministry of Tourism travelled to Saudi Arabia to discuss the issue of this hotel with the investors. [They] met as well [with senior board members] of the Arab Tourism Organization and agreed on a number of cooperation aspects. [Amongst those actions there was the] signing of an agreement on establishing a Tourism Development Fund, providing insurance for tourism investment projects in cooperation with the Islamic Banks Group, upgrading the standard of private premises, training Yemeni tourism [stakeholders] and investment plans for the near future. The ministry, the YTPB and other
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TRAVEL CHANNELS
Rotana Evaluates Sustainability Efforts Rotana has published its Sustainability Report for 2014 as part of the group’s commitment to addressing environmental, social and economic priority areas and measuring the progress and performance of initiatives undertaken within the framework of its global corporate sustainability platform, Rotana Earth.
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ver the course of the year, Rotana undertook a total of 273 corporate social responsibility activities across its 50 properties in the region, raising the equivalent of AED2 million (USD544,000) through cash and in-kind contributions, as well as employee volunteering and fundraising. Rotana also achieved a combined saving of AED3 million (USD817,000) from waste management and recycling programmes executed across its properties; over 1,100 tonnes of recyclable was diverted from landfill and 74,064 litres of used oil were recycled.
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Dubai’s Museum of Future Government Services Opens
D
uring the third Government Summit in Dubai, H.H. Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, inaugurated the annual Museum of Future Government Services, put together by over 180 experts to showcase how technology will radically transform government services in areas such as healthcare, education, mobility and smart city planning. The innovative exhibition also explored the future of travel services, while other highlights included ASIMO, hailed as the most advanced robot in the world, selfdriving car concepts and a laboratory of future services.
MARCH 2015
TRAVEL TALK
H.E. ABDUL RAHMAN AL OWAIS Chairman, Dubai Culture & Arts Authority
Khor Dubai and the Historical District are the soul of the city
The Savoy is the ideal opportunity to expand our footprint
“Khor Dubai and the Historical District are the soul of the city, and define our cultural legacy and our Emirati heritage. Apart from having contributed to the evolution of the city as a global hub for business by promoting trade and commerce, our community today celebrates the cultural identity of Dubai and serves as one of the most inspiring art centres. Dubai Culture is honoured to partner in this ambitious initiative [for the rejuvenation of Dubai’s Historical District] that will transform the city’s cultural heart, and create a vibrant destination.”
“We are delighted to welcome The Savoy [London] to our collection of iconic hotels and believe this investment will add operational strength and build on the foundations of our successful portfolio. Katara Hospitality’s vision is to build a portfolio of leading hotels in key destinations around the world. The Savoy is the ideal opportunity to expand our footprint into the vibrant and exciting London market.”
SHEIKH NAWAF BIN JASSIM BIN JABOR AL-THANI Chairman, Katara Hospitality
Our goal is to become the key leisure beach resort in Oman
SUBHASH KURUP General manager, Sohar Beach Hotel
“Our goal is to become the key leisure beach resort in Oman through the delivery of consistently world-class hospitality services that promise a unique leisure experience to our guests.”
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
MARCH 2015
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WHO’S MOVED
SVEN WIEDENHAUPT
Sven Wiedenhaupt has joined Jumeirah Group as the new general manager of Jumeirah Emirates Towers. Wiedenhaupt moves to the company from Four Seasons Hotels and Resorts, where he most recently served as general manager of Four Seasons Resort Nevis, West Indies. All in all, the industry veteran has more than 24 years of luxury hotel management experience in properties around the globe. He was with Four Seasons Hotels and Resorts for 10 years, having started in 2004 as director of food and beverage in New York. He later also worked at Four Seasons Hotel Doha, Four Seasons Hotel Damascus as well as several locations in the US.
HANNA MOGES
BANDAR AL MUHANNA
Hanna Moges has joined Radisson Blu Hotel Doha as the property’s new public relations and marketing manager. Moges has been with The Rezidor Hotel Group since 2013 when she started working as personal assistant to the general manager at Radisson Blu Hotel Addis Ababa, where she further developed her skills as public relations and social media manager. In the Qatari capital, she will be responsible for creating and delivering effective public relations and marketing strategies in line with the hotel’s business goals and brand position, working across both online and offline channels and utilising social media.
Bandar Al Muhanna is the new CEO of NAS Holding, the parent company of nasair. Al Muhanna, who completed his studies at renowned American universities and also holds a certificate of advanced management from Harvard University, has been pivotal in the development and growth of key companies and brands under the NAS Holding umbrella, and especially flynas. He was also able to implement successful growth plans contributing to the operational results of the airline. As chief financial officer from 2006 onwards, he took the group to new heights. He then continued as president and later as deputy CEO. Al Muhanna replaces Sulaiman Al Hamdan, who was recently appointed president of Saudi Arabia’s General Authority of Civil Aviation.
Al Muhanna implemented successful growth plans
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MARCH 2015
RENDEZVOUS TRAVEL TRADE MENA: What are the key elements of Emirates’ business and growth strategy that have enabled it to achieve continued success in the face of regional and global geopolitical challenges and increased competition? HUBERT FRACH: Emirates is no stranger to challenges and in the nearly 30 years that [it] has been operating, we have seen just about everything – from wars, to global pandemics and global economic trauma. One of our core strengths is the size of our network, enabling us to activate business between all sorts of city pairs: Guangzhou – Dar es Salaam, Moscow – Durban, Shanghai – São Paulo and so on, benefitting from the east – west connectivity through our Dubai hub. The strength of our business model and the spread of risk have certainly helped us through the more difficult times.
Q & A with Hubert Frach
DIVISIONAL SENIOR VICE PRESIDENT, COMMERCIAL OPERATIONS, WEST, EMIRATES
TRAVEL TRADE MENA: With many of the Middle Eastern low-cost carriers focussing on regional route developments, which will be Emirates’ main focus markets this year and beyond? HUBERT FRACH: For Emirates, 2014 was a year of considerable growth, and we continued to lay the groundwork for more expansion. We launched eight new routes in 2014 and received 27 aircraft. This year, Africa will continue to be an important region for us, and the US is also a vital market for growth. In other key markets we will look not only at expansion, but also at up-gauging aircraft in order to better meet the market needs. TRAVEL TRADE MENA: How is the company preparing for the projected increase in demand? What are the next major developments that will take the airline closer to its target of flying 70 million travellers? HUBERT FRACH: By 2020, we will have more than 250 aircraft serving some 70 million passengers across six continents. It will make us the largest airline on the planet by international passenger traffic. However, being the biggest airline in the world is not really the end goal. Our aim has always been to conMARCH 2015
EMIRATES HAS GROWN INTO ONE OF THE WORLD’S LEADING AIRLINES, FLYING TO SOME 150 DESTINATIONS ACROSS 80 COUNTRIES. HOWEVER, ACCORDING TO HUBERT FRACH, DIVISIONAL SENIOR VICE PRESIDENT, COMMERCIAL OPERATIONS, WEST, EMIRATES, BEING THE BIGGEST AIRLINE IS NOT THE END GOAL. nect travellers from around the world to Dubai and other destinations with just a single stop via our hub. Emirates, together with its partners in Dubai, is already progressing on plans to ensure the right infrastructure is in place to support and capitalise on this growth. Work is already underway at Dubai International on Concourse D to expand handling capability for the other airlines operating international flights, due for completion this year.
TRAVEL TRADE MENA: How would you describe Emirate’s role in the growth of Dubai’s tourism industry and economy as a whole? Hubert Frach: The success of Emirates and Dubai go hand in hand, as they have done from the very beginning. As Dubai has developed, Emirates has expanded its route network, with farflung city pairs connected with just one stop in Dubai. It is hard to imagine
a Dubai without Emirates, and an Emirates without Dubai. [...] TRAVEL TRADE MENA: Over the past years, Emirates has heavily invested in employee training and talent management. What are the company’s main priorities when it comes to recruitment? HUBERT FRACH: The people at Emirates, our employees, are by far our greatest asset. Each and every employee brings with him a unique point of difference that has helped make Emirates the leading global airline that we are today. We invest millions of dollars in our employees each and every year by way of training programmes, training facility upgrades and staff benefits. We have a dedicated recruitment team that identifies key opportunities for hiring and filling gaps in our workforce to attract the best talent. We look for people with exceptional customer service skills, cross-cultural sensitivity and good attention to detail. Considering its high staff retention rates, Emirates is an excellent employer. Currently, more than 8,600 staff have served for 10 years or longer and in excess of 2,100 have been with the company for 20 years or more. In 2013, Emirates received over 406,000 employment applications and over 76,000 came from Europe – across all functions – it does not come as a surprise with our favourable reputation as an employer as well as the benefits such as employee and family healthcare, housing, transportation and education that our staff in entitled to during their tenure. TRAVEL TRADE MENA: 2014 has been extremely challenging for the global aviation industry, bringing up new concerns in terms of safety and security. What is Emirates’ role in ensuring that safety and security measures both on ground and in the air are continuously being improved? HUBERT FRACH: Emirates is a leading international airline and safety and security remains our number one priority. We are very proud of our safety record, however, we continue to look at new technologies and innovations to further enhance and improve this critical area of our business.
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NEWS & EVENTS EVENTS
roomsXML.com Adds Industry Game-changer Feature
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ITB BERLIN Berlin, Germany March 04 – 08 www.itb-berlin.de A leading trade fair for the worldwide travel industry as in 2014 a total of 10,147 companies from 189 countries exhibited their products.
INTERNATIONAL LUXURY TRAVEL MARKET JAPAN Kyoto, Japan March 16 – 18 www.iltm.com/japan A specialist invitation-only event, where Japan’s travel agents and advisors meet the world’s most spectacular travel experiences.
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ccommodation specialist for the travel trade industry, roomsXML.com has introduced yet another first of its kind feature that is poised to revolutionise the way professionals manage bookings. The innovative function, the result of thousands of dollars and man-hours invested in product development, ensures a more convenient booking experience by displaying the room types exactly as per the hotel’s very own room names, alleviating the confusion associated with the normally used simplified names. When relying on shortened room descriptions, agents or their customers often waste time on double checking the booking with the hotel, thus roomsXML.com’s new feature not only saves time but also helps eliminate the risk of a possible mismatch, keeping guests happy. “At roomsXML.com, innovation is the key differentiator. That is what keeps us leading the pack. Till date we have introduced nine specific features that were industry firsts – and many of them still are,” noted Prakash Bang, managing director, roomsXML.com, noting that to date, over 3,900 of the world’s most popular hotels, including many from the MENA region, have been included with hundreds of more joining the list every week.
Prakash Bang
MARCH 2015