APRIL 2016 - ISSUE 78
03 VISIT: ABU DHABI / AL AIN
16
EXCLUSIVE
Business Travel 12 EXPLORE
08 Sharjah TOUR: MALTA
ONSITE
10 Ajman
22 Rendezvous
MARKET UPDATE
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TRAVEL TRADE PUBLICATIONS MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel
ANOTHER RECORD FOR DUBAI INTERNATIONAL
ASSISTANT EDITOR Maria Kazeli SENIOR JOURNALIST Rita Kasziba JOURNALIST Pauline Shahabian CONTRIBUTOR Ana Mladenovic PRESS Maria Demetriadou Inna Armeanu DESIGN & LAYOUT Elena Stylianou WEB & BUSINESS DEVELOPMENT MANAGER Savvas Kammitsis DIRECTORS Andreas Constantinides Mary Kammitsi HEADQUARTERS T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607, Fax: +357 22 103670 WEBSITE www.traveltrademena.travel EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel PRINTED IN CYPRUS Cyprinters Ltd P.O. Box 58300, CY-3732, Limassol, Cyprus Tel: +357 25 720035, Fax: +357 25 720123 Email: info@cyprinters.com WORLDWIDE REPRESENTATIVES Representative for North, South & Central America, and the Caribbean: Neil Strickland GlobeTM Tel: +19542969515 neil@globetm.com Representative for Indian subcontinent: Faredoon Kuka RMA Media Tel: +912229253735 kuka@rmamedia.com
The world’s busiest airport for international traffic started this year with the highest-ever monthly figures with 7.3 million passengers on record in January, surpassing the previous benchmark of 7.2 million travellers set in August 2015.
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he 6.3 percent year-on-year growth at Dubai International was driven by a 19.9 percent surge to and from North America, while the GCC and the Indian subcontinent registered 11.6 percent and 8.7 percent increases, respectively. The top country destination remained India, followed by the UK, while London was placed number one among all cities ahead of Doha and Jeddah. As Paul Griffiths, CEO, Dubai Airports, noted, the January figures take Dubai International one step closer to realising this year’s target of 85 million passengers.
RJ GROWS STRONGER
MENA EXCHANGE RATES
as of COUNTRY
2
29.3.2016 CURRENCY 1USD=
Bahrain (BHD)
Dinar
0.37
Jordan (JOD)
Dinar
0.71
Oman (OMR)
Rial
0.39
Qatar (QAR)
Rial
3.64
Saudi Arabia (SAR)
Riyal
3.75
UAE (AED)
Dirham
3.67
Algeria (DZD)
Dinar
109.58
Egypt (EGP)
Pound
8.87
Iran (IRR)
Rial
30,254.32
Iraq (IQD)
Dinar
1,107.08
Kuwait (KWD)
Dinar
0.30
Lebanon (LBP)
Pound
1,511.95
Libya (LYD)
Dinar
1.37
Morocco (MAD)
Dirham
9.72
Syria (SYP)
Pound
188.81
Tunisia (TND)
Dinar
2.03
Yemen (YER)
Rial
214.89
Royal Jordanian Airlines (RJ) registered a net profit of JOD16 million (USD22.5 million) after tax in 2015, improving by far the JOD39.6 million (USD55.1 million) net loss reported in 2014.
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ccording to Suleiman Hafez, chairman, RJ, this is due to the company’s keenness to implement a business plan which focusses on constant fleet renewal and route network review, restructuring in all areas, and measures to increase revenues and reduce operating costs, among more. Hafez also pointed out that the operating efficiency meant that RJ shut down a number of stations due to their weak economic feasibility and at the same time started reaching new destinations like Tabuk, Najaf, Ankara, Jakarta and Guangzhou.
APRIL 2016
VISIT ABU DHABI / AL AIN
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ELIMINATING THE RISK
Factor
IN A DESTINATION WHERE AUTHENTIC ARABIC HOSPITALITY MEETS MODERNITY AND WHERE BUSINESS BLENDS WITH PLEASURE, IT IS NO SURPRISE THAT TRAVELLERS OF ALL KINDS ARE DRAWN IN BY THE MILLIONS.
MARIA KAZELI WRITES
A
s Knight Frank’s recent research suggests, Abu Dhabi’s hospitality market saw subdued performance in the years leading up to 2013, however, it has since gone from strength to strength, with three consecutive years of RevPAR growth and an impressive 2015 performance. ‘‘Whilst Abu Dhabi has historically been driven by corporate and MICE visitation, leisure tourism has seen a boost over the past few years supported by the development of leisure demand generators [and] this trend is expected to continue as future demand generators […] are completed,” analysed Ali Manzoor, associate partner, Knight Frank. Manzoor expects that an expanded base should be less susceptible to exterior forces and this is exactly what the sector’s stakeholders are counting on. Anna Olsson, director of sales and marketing, Emirates Palace, agreed that in order to reduce vulnerability to external factors, it is imperative to remain diverse in the range of offerings as well as in the portfolio of markets targeted. “The need to diversify serves as a strategic advantage and as a result, we find great value in meeting the needs of our varied guests. Emirates Palace is part and parcel of the Abu Dhabi experience and was built to be dynamic in this
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ABU DHABI IN BRIEF Country: UAE Currency: Emirati Dirham (AED) Language: Arabic Population: 1.6 million Calling Code: +9712 Time Zone: GMT +4:00
APRIL 2016
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VISIT ABU DHABI / AL AIN
regard. We are well-versed in hosting everything from important government delegations, the city’s biggest events to creating the most intimate and oncein-a-lifetime experiences for our leisure visitors,” Olsson elaborated. One of the external forces hoteliers referred to is the declining oil prices which have had an impact on visitation numbers and have softened corporate demand. Specifically, in February, STR Global reported a 5.5 percent year-on-year decrease in occupancy to 76.3 percent, a 28.5 percent plunge in average daily rates and a 32.5 percent downturn in RevPAR. Knight Frank analysts forecast this trend to continue, but are optimistic that it will be counterbalanced to some degree by increased interest from leisure tourists. “The oil price drop has affected all industries, not only hotels, and we have
APRIL 2016
witnessed a similar regression in room bookings as other hotels in the city. However, there are signs of recovery in term of occupancy, but certainly pressure on rates will continue until the end of [this year],” supported George Demitry, general manager, Royal Rose Abu Dhabi. Nevertheless, he reminded that the oil crunch only impacted a smaller portion of the business, as the Asian and Far Eastern leisure markets remain steady and are expected to show growing demand due to discounted airline fares and packages, which have made Abu Dhabi more affordable. Bruno Debray, general manager, Novotel and Adagio Abu Dhabi Al Bustan, commented that indeed there has been a noticeable decline in corporate business which was obviously affected by the current situation in the oil production sector. “As a result of low production in the corporate segment, the focus is now changing towards the leisure segment,” he underscored.
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VISIT ABU DHABI / AL AIN Confirming the strong focus on vacationing guests, Kamal Fakhoury, chief operating officer, The Cristal Group, commented that given the current circumstances, the company is readily able to step up and increase its leisure market share. The many developments coming up on Saadiyat Island and those already on offer at Yas Island, plus the new attractions on Al Maryah and Reem Islands, as well as the expansion of Sheikh Zayed Grand Mosque will certainly help boost leisure tourist figures and compensate for the short-term loss of corporate business, Fakhoury underlined. Janet Abrahams, area director, sales and marketing, Abu Dhabi, Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl, remarked that the emirate continues to widen its appeal to vacationers looking for a new destination that combines elegance, culture, authentic experiences and smooth infrastructure at exceptional value. Abu Dhabi has and continues to develop tourism attractions that provide quality family fun and cultural experiences, she said. “The opening of Louvre Abu Dhabi is one example of world-class facilities to enhance an already rich offering with the world-famous Formula 1 Yas Marina Circuit, the magnificent Sheikh Zayed Grand Mosque, stunning beaches and diverse island expe-
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AL AIN
B
eing Abu Dhabi’s heritage heartland in the Eastern Region, the Oasis City was declared a UNESCO World Heritage site in 2011, representing a huge opportunity for responsible tourism to flourish. As detailed in Abu Dhabi Urban Planning Council’s Plan Al Ain 2030, business hotels and tourism resorts are both a welcome addition to the city, while its economic development will also be driven by the expansion of cultural and ecological travel. The document predicts that what will differentiate Al Ain is the quality of its lifestyle without tourism’s contribution being excluded. In fact, according to Abu Dhabi Tourism & Culture Authority, guest nights in the destination surged three percent year-on-year in January, to reach 69,393 and average length of stay climbed seven percent. Ashraf Eid, group director, sales and marketing, Ayla Hotels & Resorts, revealed that, while the five-star Ayla Grand Hotel is coming up, the company’s other two properties in the city remain popular with leisure guests who currently make up 70 percent of the total clientele.
riences, great infrastructure and a rich cultural heritage making Abu Dhabi a perfect leisure destination,” added Abrahams. Stephen Gee, development director, Zaya Hospitality, also agreed that the steady investment into new ventures support a general shift towards leisure tourism. These endeavours are helping Abu Dhabi reinvent its offering, surprise guests with new and exciting projects while opening up a whole new market for cultural tourism, he noted. MINGLING However, the bustling emirate is a haven for hoteliers regardless of their respective focal point, and as Rania Rahme, director of sales and marketing, Al Raha Beach Hotel, put it, “It is a blessing to be operating in Abu Dhabi because since the boom in the oil sector, the government has been working on the leisure sector [and] this move [has given] us an alternative to focus on and generate extra business during the drop.” With the upscale Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl launching soon, Abrahams agreed that the UAE capital benefits from being a corporate hub that continues to attract a fresh and growing MICE clientele as well as new international exhibitions, while at the same time it remains one of the top cities in the world to visit. With many upscale properties coming online, Sanjay Kumar, revenue manager, Tilal Liwa Hotel, commented, “The emirate will always be a business destination but I am very positive that these luxury hotels and resorts will just be some addition to the ever-growing luxury and leisure destinations in the UAE
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VISIT ABU DHABI / AL AIN
which will give us a good position in the market.” Demitry agreed that while Abu Dhabi’s hospitality sector has temporarily seen an increased interest from the leisure market, the business segment is not limited to the oil industry since the emirate attracts many educational and entertainment events which can secure a new wave of arrivals into the emirate. “Seasonal events [draw] a special sporadic clientele that choose to stay in a hotel based on availability and nothing else,” he analysed. The great importance of the events sector is palpable when taking into consideration that Abu Dhabi National Exhibitions Company (ADNEC)’s impact on the emirate’s economy in 2015 surged 26 percent year-on-year to AED3.47 billion (USD945 million) as a result of a 13 percent growth in the number of events hosted by Abu Dhabi National Exhibition Centre and Al Ain Convention Centre. These happenings attracted 1.8 million visitors from across the world in 2015, explained Humaid Matar Al Dhaheri, acting group CEO, ADNEC, who also revealed that the company contributed to the high occupancy levels of hotels in the UAE delivering a total of 522,000 guest nights; 420,000 of which were recorded in Abu Dhabi alone. As Thomas Guss, general manager, Shangri-La and Traders Hotels, Qaryat Al Beri, Abu Dhabi, said, this is significant given that corporate visitors are leisure travellers too and they will hopefully have some down time to enjoy the entertainment choices either as tourists or part of team-building activities. “Depending on the time of year, we have a different split of guest types [...]. This allows us to balance the business needs as different guest profiles visit at different times of the year. With our corporate visitors, oftentimes we receive meeting and event bookings to support their business strategies. This spills across our dining portfolio for business dinners to network amongst travelling groups. The leisure guests spend more time at the pool, on the beach and in the spa, shifting our guest spend in different areas,” posited Guss, stressing the interconnectedness of the two segments.
APRIL 2016
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EXPLORE SHARJAH
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THE STORY
Continues SOME 10 MILLION VISITORS ARE EXPECTED TO MAKE THEIR WAY TO SHARJAH BY 2021, UP FROM JUST TWO MILLION IN 2014, AS THE EMIRATE CONTINUES TO CONSOLIDATE ITS POSITION ON THE WORLD TOURISM MAP.
RITA KASZIBA WRITES
“I
t has been a period of incredible growth for Sharjah’s tourism over the past few years,” said H.E. Khalid Jasim Al Midfa, chairman, Sharjah Commerce and Tourism Development Authority (SCTDA), deeming the launch of Sharjah Tourism Vision 2021 a milestone. “The vision aims to attract up to 10 million tourists to Sharjah by 2021, serving as a platform to unite all the efforts, initiatives and tourism programmes under one umbrella,” explained Al Midfa. As part of the new strategy, SCTDA rolled out the comprehensive Marhabtain training programme and earmarked innovative tourism approach as a key pillar of the scheme, leading to the installation of modern touch screens at four- and five-star establishments, the mClass smart hotel classification and a new mobile application. GLOBAL EXPOSURE As Michael Kasch, general manager, Centro Sharjah, noted, the emirate’s realigned strategy came at a time of geopolitical instability and economic challenges, thus, as he said, 2015 was a year of discovery and consequent adaptation to the changing market trends. Despite a drop in demand from the CIS, and the fact that a slump in the Euro made a holiday to Europe cheaper, Sharjah managed to remain on the upward trajectory spurred by the promising performance of India, China and European countries, divulged Kasch. Alex Cherfan, operations manager, Golden Tulip Sharjah, reported similar demand patterns, saying that diverting the focus from CIS to other areas, such as the Far East, China, India and the Czech Republic, helped achieve a two percent year-on-year improvement in occupancy levels. As Kasch further suggested, Sharjah-based Air Arabia’s expansion into China opened new avenues for the emirate and through its well-articulated strategy, SCTDA is actively looking for ways to exploit these markets. In fact, while Gulf countries remain prominent contributors, Al Midfa also disclosed that in 2015, the biggest growth in visitor numbers was recorded from China and India, surging 78 percent and 23 percent, respectively, underscoring Air Arabia’s eminent role. The airline’s expansion is largely decisive of the industry’s future path, confirmed Kamal Rijhwani, executive assistant manager, sales and marketing, Radisson Blu Resort Sharjah, indicating that the upcoming launch of services to Bosnia and Herzegovina, for example, is set to further enhance Sharjah’s appeal in that side of the world. Asia in general is indeed a fast-growing segment, concurred Alper Can Bulcum, cluster general manager, Ramada Plaza Jumeirah Beach Residence and Ramada Sharjah,,
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APRIL 2016
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EXPLORE SHARJAH
listing the UK and German-speaking countries also among the top emerging markets. Despite changes in geographical sourcSHARJAH IN BRIEF es, the GCC to international guest ratio remains more or less the same, with a notable share from Russia now being shifted to Country: UAE other territories, explained Rijhwani. Currency: Emirati Dirham (AED) The emirate’s expansion into new segLanguage: Arabic ments, which follows years of vigorous Population: 950,000 work and road shows by SCTDA, Sharjah Calling Code: +9716 Investment and Development Authority Time Zone: GMT +4:00 (Shurooq) and local industry stakeholders, is a testament to the destination’s successful strategy, which, despite the UAE’s phenomenal international success, remains committed to its traditional values. For this reason, Emad Saeed, director of sales and marketing, Oceanic Khorfakkan Resort & Spa, believes that Sharjah should continue to leverage its historical and cultural tourism potential while reaching out to high-value guests from Western and Eastern Europe as well as South Asia and the Far East. While maintaining its focus on regional markets, SCTDA is looking to make Sharjah a prominent destination on the international tourism map. “The authority is making all efforts to develop world-class facilities for international tourists and enhance their tourism experience in Sharjah,” stated Al Midfa, further explaining that in order to achieve this, SCTDA is participating in
the view that events, the launch of new projects and the UAE’s overall international recognition are all playing an important role in further improving the emirate’s ranking. “Sharjah’s positioning as an established family destination and the region’s cultural hub will continue to be strong influencers that attract tourists to the emirate. Sharjah, through new projects, is tapping into niche markets and is appealing to the discerning traveller who is on the lookout for an overall enhanced experience,” added Kasch. To further strengthen its family-friendly and culturally-charged image, SCTDA along with Shurooq, is working on a number of developments, one of which is the AED80 million (USD22 million) Al Noor Island project in Khalid Lagoon. Likewise, the 126,000m2 water-themed facility, Al Montazah Park is also quickly becoming a must-visit destination while Kasch referred to the Mleiha archaeological and eco-tourism project as another up and coming sight, all of which reinforce Sharjah’s intention to create its own image that while still appealing to a broader global audience, relies on traditional values and sets it apart from other destinations.
major industry events and road shows across European cities, especially in the eastern part of the continent, as well as key South Asian locations. As a result, in recent years the organisation entered into a number of cooperative agreements with foreign partners, leading to increased arrivals from the specific markets. Along parallel lines, Saeed noted, “Focus on emerging growth markets could balance out the source market portfolio by increasing market share in these regions, hence reducing over-dependence on Russia, CIS and other Arab countries.” Leveraging an expanded reach is pivotal, concurred Ines Drauschke, director of marketing, Sheraton Sharjah Beach Resort & Spa, saying that as a new hotel, the management lays great emphasis on diversifying its business mix. ON ITS OWN PATH Although Kasch believes that the slump in CIS arrivals is a temporary phenomenon and expects the segment’s return in the coming months, he also maintains
APRIL 2016
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ONSITE AJMAN
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ASPIRATIONS OF
Tomorrow WITH ITS EXPANDING TOURISM PRODUCT, AJMAN HAS SUCCESSFULLY ESTABLISHED A NAME FOR ITSELF ON THE TOURISM MAP AND THE EMIRATE IS NOW LOOKING AHEAD TO A NEW WAVE OF DEVELOPMENTS IN LINE WITH ITS STRATEGIC PLAN FOR 2021.
RITA KASZIBA WRITES
T
hrough the allocation of human and financial recourses, Ajman’s tourism industry has achieved notable results over the past years with revenues generated by the industry soaring to AED359 million (USD97.8 million) in 2015, up 19 percent year-on-year, with 509,658 guests and over 1.39 million bed nights on record. To maintain this pace of progress and lay down a solid foundation for the future, Ajman Tourism Development Department (ATDD) created a new identity, to, as Faisal Al Nuaimi, general manager, ATDD, explained, enhance the destination’s position in the marketplace. “The brand’s focus is to bridge today’s realities with the aspirations of tomorrow,” articulated Al Nuaimi, further disclosing that the strategy builds on Ajman’s existing credentials with a keen focus on its quality-driven hospitality offerings, free zone and port, to seamlessly align with the emirate’s vision for 2021. “We will position Ajman as a tourism and investment destination. The aim is not to make the emirate like every other destination, rather to make Ajman different from everyone else,” said Al Nuaimi, adding that ATDD is building its actions around the ethos of Sincerely Emirati, highlighting the welcoming nature of the destination and its people. SINCERELY EMIRATI “Ajman has definitely gained exposure and popularity owing to the considerable efforts of ATDD,” claimed Kai Schukowski, general manager, Kempinski Hotel Ajman, noting that this, combined with the recent influx of accommodation establishments and a focus on cultural heritage and attractive rates, have helped reinforce Ajman’s position as an ideal alternative to the buzz of Dubai and Abu Dhabi. Indeed, the significantly lower prices have allowed Ajman to attract diverse markets, concurred Kefah Abraham, general manager,
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AJMAN IN BRIEF Country: UAE Currency: Emirati Dirham (AED) Language: Arabic Population: 262,186 Calling Code: +9716 Time Zone: +4:00
APRIL 2016
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ONSITE AJMAN
EWAN Ajman Suites Hotel, attributing much of the success to the government’s policies, which, according to Abraham will spur further developments. This comes after years of steady progress in both infrastructure and offerings, noted Iftikhar Hamdani, cluster general manager, Ramada Hotel & Suites Ajman and Ramada Beach Hotel Ajman. “The additional room inventory and hotel pipeline in the emirate also prove the growing tourism demand in Ajman,” suggested Hamdani. In 2015 alone, five new addresses were introduced, bringing the emirate’s inventory to 36 accommodation establishments with 3,354 units and 5,074 beds. Yet, according to Schukowski, the increase in supply has helped drive demand, rather than the other way around. Speaking of recent developments, Nehal Rizvi, general manager, Crown Palace Hotel, said, “The developments in and around Ajman have invited many multinational companies to come and invest in infrastructure which has resulted in some major projects.” This, as Rizvi pinpointed, also means a high volume of long-stay guests. Creating a loyal clientele and attracting new segments is indeed high on the agenda in light of the future augmentation of the emirate’s hotel sphere. Scheduled to open by the end of the year, The Oberoi, Al Zorah will be another jewel in the destination’s luxury eco-destination, boasting 89 rooms, suites and villas. Having long been committed to employing the best environmental and ecological practices in technology, equipment and operational processes, The Oberoi Group’s ethos is in synergy with Al Zorah’s credentials. Another much-anticipated accommodation establishment is to follow towards the end of 2017, offering guests the chance to, as Julian Hagger, chief sales and marketing officer, LUX Hospitality, said, experience the country’s outstanding wildlife and nature. “LUX* Al Zorah will deliver a fresh and sensory travel experience through its outstanding team, striking hardware and an inspiring approach to the locale,” disclosed Hagger, adding that besides the traditionally strong GCC markets, the property is also set to lure visitors from Europe and Asia. As Hamdani revealed, right beside Ramada Beach Hotel Ajman, construction is also in full swing on a new hotel that will add 182 keys to the emirate’s room inventory.
In line with the new brand identity, ATDD’s key objective now is to raise inbound tourism figures by 20 percent by year-end. “With our diverse offering, we can target a large number of travellers from the visiting friends and relatives segment and middle income families who are travelling to the UAE for value-for-money accommodation and attractions,” explained Al Nuaimi. This unique atmosphere, as Schukowski pointed out, has already created a place where old meets new and where generations can come together. “Whilst the smallest of the emirates, Ajman has a bright future ahead and [...] the way forward for Ajman towards 2021 is clear,” concluded Schukowski.
WHERE GENERATIONS MEET Ajman remains committed to its values, and according to Al Nuaimi, this sizable town-living feel is one of the destination’s trump cards. Rizvi echoed similar views, saying that people often tend to grow tired of the traffic jams and overwhelming offering of the larger emirates, and are, thus, open to discover new locations beyond the UAE’s postcard attractions.
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TOUR MALTA
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RIPE FOR THE
Taking
PAULINE SHAHABIAN WRITES
THE MALTESE ISLANDS ARE SWIFTLY MAKING A NAME FOR THEMSELVES AS PROMINENT CRUISE DESTINATIONS WELCOMING A PLETHORA OF MARKETS. THOUGH THE MENA REGION WITHIN THE SEGMENT REMAINS LARGELY UNTAPPED, IT IS ONE THAT RESPECTIVE TOURISM STAKEHOLDERS ARE KEEN ON FURTHER DEVELOPING.
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ccording to Malta’s National Statistics Office, the country welcomed 1.8 million visitors in 2015, up 5.4 percent over 2014, marking the sixth consecutive year of growth. More prominent is the significant increase registered in the destination’s cruising sector with traffic, transit and landed, having reached 600,156 individuals in 2015, signalling a 27.3 year-on-year surge. As Carlo Micallef, chief marketing officer, Malta Tourism Authority (MTA), noted, 75.8 percent of total cruise arrivals derived from European Union members with Germany, Italy and France posting the highest figures with 124,285, 111,535 and 72,896 passengers, respectively. Speaking exclusively of the island of Gozo, Esther Bajada, director of tourism and economic development, Ministry for Gozo, pinpointed that the destination received 2,226 cruise holidaymakers in 2015, indicating an impressive 325 percent rise over 2014. As Bajada highlighted, Malta’s sister island is perceived as an attractive destination on its own for the particular segment due to its rural nature and historical attractions that are all located in close proximity to one another, which is considered ideal for touring visitors. “Gozo in particular has a different perspective in terms of nature, diving and extensive cultural heritage,” concurred Massimo Bonafaccia, director of sales and marketing, Kempinski Hotel San Lawrenz. “Gozo is a popular daily destination with tourists coming for a day visit from the main island but also a destination on its own for extensive vacations,” he added. With surging arrivals clearly having a positive effect on the national economy, the development of the sector continues to pay rich dividends for the country. FORGING AHEAD
MALTA IN BRIEF Capital: Valletta Currency: Euro (EUR) Language: Maltese Population: 425,000 Calling Code: +356 Capital Time Zone: GMT +1:00
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“The impact of cruise tourism, however, extends beyond what cruise tourists spend while on shore in Malta and Gozo. The few hours spent [here] are the best opportunity to showcase what our islands offer,” highlighted Micallef. Although the MENA region does not pose as a significant market yet, the tourism body is keen on opening up new opportunities. The many initiatives MTA undertakes
APRIL 2016
TOUR MALTA
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include the continuous collaboration with the country’s cruise stakeholders, plans to set up Malta Cruise Council, and endeavours aimed at showcasing the destination’s appeal to global audiences. Despite the government’s and MTA’s worldwide public relations and marketing activities over the past years, the destination still remains a hidden gem. “Cruise tourism is an opportunity to showcase highlights of the Maltese Islands to those who visit [us] for a few hours. In Malta’s case, a large majority of those who visit on a cruise say that their stay largely exceeded their formerly uninformed expectations and often return to our islands for a longer holiday within two or three years of first visiting on a cruise. This is certainly the case for travellers coming from the MENA region where Malta is a new destination that is yet to be discovered by many. Cruise tourism can be a
BREAKDOWN OF CRUISE PASSENGERS IN MALTA IN 2015 Other:
59,021
Spain:
28,239
Non European Union:
145,041
UK:
59,139
France:
72,896
Germany:
124,285
Italy:
111,535 Total: 600,156
travellers
most important vehicle for MENA tourists to discover the hidden treasures on the Maltese Islands at the heart of the Mediterranean,” stressed Micallef. In agreement, Vincent Degiorgio, director, db Hotels + Resorts, stated, “It is a wellknown fact that cruise passengers who are impressed by their whirlwind visit, tend to return by airplane and stay longer.” Similarly, Bajada posited that the objective of cruise tourism is for visitors to savour Gozo’s attractiveness, thus, placing it on the map as a highly preferred future holiday destination. The ministry has adopted a two-pronged strategy consisting of improving facilities for cruise lines and developing tourist attractions. “The cruise industry in the Maltese Islands can only grow if we continue to provide a consistently superior level of service and create added value through collaboration with all local partners,” commented Stephen Xuereb, CEO, Valletta Cruise Port, stressing the importance of constant efforts to enhance offerings. Xuereb further noted that the port has developed a mutual and beneficial cooperation with MTA, Malta International Airport as well as local industry professionals, ensuring
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TOUR MALTA opt to cruise to a different area, as they have already experienced all that Malta has to offer, which would lead to a decrease in satisfaction ratings and a possible reduction in cruise calls.” Edward Gauci, director, Hotel Argento, argued that in order for the destination to lure a higher number of Middle Eastern guests, it has to invest more in diversifying services, expand the transportation network and enhance the touring and excursion business to attract a more varied clientele. A SLICE FOR ALL
an efficient homeport operation. Echoing notions pertaining to the ongoing efforts, Martin Lister, planning manager, Fred. Olsen Cruise Lines, suggested, “[...] As with any existing, established cruise destination, Malta needs to be mindful of the need to provide new and unique attractions, in order to be able to refresh itself and to appeal to both repeat and new cruise customers. Without new attractions, repeat guests could
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The positive impact cruise tourism has had in Malta can also be witnessed in the destination’s wide array of accommodation establishments in varying categories. According to Matthew Caruana Smith, operations manager, The Xara Palace Relais & Chateaux, the 17-unit property has been minimally affected by the sector’s growth in regards to occupancy rate, however, it has seen a positive effect on its restaurant, located in front of the hotel, from visiting cruise passengers. Smith also posits that these arrivals boost the property’s market visibility, thus, helping to attract return travellers. “Although the majority of cruise liner visitors stop in Malta for one day, there are always ways and means to attract more Middle Eastern arrivals. [...] We look forward to welcoming Middle Eastern guests both for accommodation and also in any of out outlets,” concluded Raphael Borg, sales manager, Maritim Antonine Hotel & Spa, highlighting the hotel’s recent refurbishment.
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EXCLUSIVE BUSINESS TRAVEL
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THE OTHER
End
WITH MORE AND MORE BUSINESSES EXPANDING THEIR REACH INTERNATIONALLY, ASSOCIATES ARE EXPECTED TO BE IN VARIOUS LOCATIONS THROUGHOUT THE YEAR. THIS REQUIRES A LARGE SUM OF MONEY WHICH MOST COMPANIES HAVE CONSIDERABLY REDUCED.
MARIA KAZELI WRITES
M
ore often than not, business travel entails boarding a plane for a short- or long-haul flight and this is what makes airborne journeys a very significant part of the corporate travel segment. At the same time, the global economy’s fragility and the monetary uncertainty of recent years have had an impact on attitudes and made companies turn to cost-effective solutions, according to HRG, a London-based consultancy that offers travel, expenses, meetings and events management. As businesses seek to reduce travel costs, there has been a shift in trends, with one in three managers reporting revisions of travel policy, commented Matthew Pancaldi, global client management director, HRG. “There has been an overall move from business to economy class, and within both classes, a shift towards lower cost, less flex-
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EXCLUSIVE BUSINESS TRAVEL
ible fares, as companies look for actionable ways to reduce their corporate spend,” he revealed. Reporting on the private jet industry, Andrew Jurd, charter sales manager, TAG Aviation Europe, said that market trends are indeed guidelines to be taken into consideration and in this case, they point to businesses at the lower end of the market spectrum turning costconscious. Recognising that there has been a shift with the operator’s clientele becoming increasingly cost-focussed when chartering jets, he mentioned, “At present, our focus is a little more price-orientated, especially with new customers. We always offer fair and competitive pricing and often find that once a new client has realised the benefits of travelling privately with TAG Aviation, they are willing to spend a little bit more for the added customer service value we deliver.” In addition, data derived from Business Travel Show, held in February in London, suggest that this will be a challenging year as budgets increase at a slow rate and rising travel costs are causing much concern. One quarter of the show’s buyers actually expect funds to shrink. Another interesting finding is that the portion of business travellers which anticipate to use low-cost carriers is at 86 percent, while there will be a year-on-year rise of 27 percent in lowpriced flights booked.
quests, and mobile technology to avoid printed itineraries of yesteryear. […] These necessities should be included without exception in every flight booking, to maximise the traveller experience,” he noted. Likewise, a survey published by the Global Business Travel Association (GBTA) revealed that when considering which airline add-ons to negotiate into contracts, travel buyers most commonly report eliminating fees for cancelled or changed itineraries, receiving name change waivers for tickets and ticket credits and removing checked-bag fees as valuable. Fredrik Odeen, senior manager, new carrier commercial strategy, airline distribution marketing, Amadeus, revealed, “We are seeing the number of business travellers through Amadeus growing in the more than 50,000 agents that are booking low-cost carriers through Amadeus today. [In 2015], business travellers booked almost 20 million trips on low-cost carriers in Amadeus and our lowcost carrier bookings increased 11 percent year-on-year.” He deemed that while this is a significant evolution, it is only the beginning. In the Middle East, budget carrier flydubai launched business class services in early 2014 to provide faster check-in, comfortable and spacious seating and a variety of internationally-inspired menus. In 2015, the offering was introduced on 17 new routes representing 87 percent of all departures from Dubai. The number of business class passengers from across the airline’s network increased 72 percent compared to 2014, with the highest demand coming from
GOING LOW COST Following this trend, many no-frills carriers have been looking to find ways to tap into the promising sector which is increasingly appreciative of their own philosophy. According to Anthony Drury, head of business, easyJet, when travelling for business, there are some things that are non-negotiable. “Like speedy boarding to maximise every minute, free route changes for those inevitable last-minute re-
APRIL 2016
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EXCLUSIVE BUSINESS TRAVEL
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Africa, followed by the Indian subcontinent and the Middle East. Determined to adhere to the surrounding rhetoric, easyJet also gained traction in corporate travel when it evolved to include two types of specific fares and has now successfully managed to tap into Europe’s high-net-worth market with 20 percent of its customers flying on business. Similarly, Ryanair offers bundled services through its Business Plus fare to better accommodate executives. With these new business-centric packages available, travel agencies are reaping the benefits of offering low-cost and hybrid content to business travellers, summed up Odeen.
GBTA Business Traveler Sentiment Index When booking flights MOST BUSINESS TRAVELLERS CONSIDER
Airplane delays,
airport security
45%
33% convenient flight schedules and airline fees
36%
29% are reported as three reasons why BUSINESS TRAVEL IS MORE DIFFICULT TODAY than three years ago.
6 OUT OF 10 business travellers surveyed are satisfied or very satisfied with their company’s travel policies and flexibility in planning a trip.
over ticket price
24%
or the ability to earn miles 20% and other airline perks.
When presented with a list of choices, travellers believe airlines should offer conveniences such as free Wi-Fi.
26%
If travellers have a frustration, it is about changing itineraries. 59% said they were satisfied or very satisfied with the ease of changing an itinerary, 35% were neutral and 6% were dissatisfied or very dissatisfied.
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WHEN TIME IS MONEY Aside from costs, companies also appreciate time efficiency, with Odeen observing, “Businesspeople cannot be bothered with unnecessary distractions when they are on the go, so they will pay extra for better seats, quick boarding, and flexibility because to them, time is money.” Jurd agreed saying that clients can avoid unnecessary consumption of valuable working time which is often the case when travelling commercially. “By using a private jet, the client can arrive at the airport 15 minutes prior to departure and when they arrive at their destination jump straight into a chauffeur-driven car and be at a down town meeting whilst the commercial traveller is still being processed through immigration,” he stated. APRIL 2016
ROUND TABLE
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ROUND TABLE with CORPORATE SOCIAL RESPONSIBILITY (CSR) IS INCREASINGLY BECOMING AN INTEGRAL PART OF TRAVEL AND TOURISM BUSINESSES’ AGENDA WITH MORE AND MORE TRAVELLERS JOINING THE ENDEAVOURS.
ALI HADDAD
JOYCE MOUAWAD
LAYALI NASHASHIBI
General manager, Swiss-Belhotel Kuwait
Corporate sales and marketing director, Le Royal Beirut
Director of public and community relations, Mövenpick Hotels & Resorts, Jordan
Q: What makes CSR a key priority for your organisation? HADDAD: Swiss-Belhotel Plaza Kuwait has always embraced its social responsibility as one of the hotel’s key [priorities] to secure long-term success. Our care for our guests’ welfare is continually extended to the society as part of our commitment through various activities that foster social awareness and promote a healthy living environment. CSR helps achieve long-term success as it engages the heart of the people you [captured]. MOUAWAD: It is the duty of every single business on the planet to be involved in CSR. Before being successful on a business level, we need to have a viable community and a sustainable environment. If every business contributes through a CSR programme, then communities will flourish and so will businesses. […] To achieve this, however, a business must continuously undertake different social initiatives that involve the community, the environment and the good of the nation in a myriad of ways. The key is to involve not just the management, but the staff and the clients as well. This way, the responsibility part goes beyond just the corporate [level] and spills over to friends, families, partners, clients, and of course, future generations. NASHASHIBI: Part of the values and fabric of Mövenpick Hotels & Resorts has always been to conduct its business in a responsible and caring way, encouraging a personal touch with all its stakeholders. In 2009, Mövenpick Hotels & Resorts announced its global sustainability programme based on three key focus areas: environment and employer sustainability, [but] the company’s commitment goes beyond environmental and employer sustainability to also encompass social sustainability. Being a part of the community, extending our services to people around us is very important, and as a part of our Shine and international sustainability, social responsibility means recruiting local talents, participating in their social activities, extend our international experience to benefit the society, assisting the growth of talent through the Shine programme. […]
ity we organise. Our wholesome effort leads to a more productive and deeply engaged commitment that our guest and partners grasp and this helps to [reinforce] their loyalty. MOUAWAD: Everything is based on education. People need to be taught and we need to remind them that their fast-paced life must not only be about daily tasks and problems, but also about the greater good. By showing all the stakeholders that they too are part of a noble cause, this will lead to an instilling purpose in their lives and [allow them to] connect with Le Royal on a more intimate basis, fostering authentic loyalty to our business. Loyalty is also enhanced when guests and employees realise it is not just about making profit but about [creating] a better world. NASHASHIBI: Interacting is very active through all social media channels, as our active follow-up and standing on guests and partners’ feedback is vital to the continuity of streamlining the relationship with guests and partners. With our initiatives towards interactions with guests and partners, fostering loyalty will be led by customer experience management and customer retention solutions [...] to better understand our customers’ needs as the real business value lies in retaining that customer through CSR initiatives.
Corporate Social Responsibility
Q: How can such endeavours help foster guest and employee loyalty? HADDAD: The effectiveness of our CSR relies on the aftermath of every activAPRIL 2016
Q: How can hoteliers play an even larger role in creating a sustainable future? HADDAD: Through continuous dedication and effort in giving wholesome warm service to their guests, colleagues, community and to everyone in need. MOUAWAD: Hoteliers can play a major role as they are often quite influential in their community […]. In addition, hoteliers can combine forces, create a network and tackle social issues together, such as helping the underprivileged, contributing to environmental causes, lobbying with local and national government bodies, etc. Their ability to always meet new people, combined with their expertise in selling, convincing and educating, places hoteliers in a key position to advance CSR. NASHASHIBI: This can be done by enabling others to adopt our good practices to make it become a sustainable practice in the community. At the same time, it also evolves encouraging many other parties in the community to initiate more […] responsible activities.
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TRAVEL TALK
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CEO, DUBAI AIRPORTS
SENIOR VICE PRESIDENT, MARKETING, ETIHAD AIRWAYS
PAUL GRIFFITHS
PRESIDENT, EMIRATES
“Our current Boeing 777 business class seats are already an industry-leading premium product, and what [the] new seat does is to take that design and comfort to the next level. We gave the seat a fresh and modern look, retained all the existing features that our customers love and added a few more, while improving the seating and sleeping comfort. […] It is evolution as well as revolution. […] We are very excited about the arrival of our first Boeing 777 later this year with the new seats, and to see how our customers will respond to it.”
SHANE O’HARE
TIM CLARK
It is evolution as well as revolution
Concourse D’s opening […] has increased […] capacity to 90 million
“Concourse D’s opening in February has increased Dubai International’s capacity to 90 million passengers a year, allowing us to continue to accommodate the rising number of people whilst boosting service levels. In the months ahead we will begin the complete refurbishment of Concourse C which will further improve passenger flows and the overall customer experience.”
[Etihad Airways’] mission is to provide remarkable service “Aligning with Taste Festivals [organisers of leading restaurant events] is a natural progression for a global airline whose mission is to provide remarkable service and hospitality to millions of guests. We deliver this promise through a highly-acclaimed culinary offering and a food philosophy that constantly pushes the boundaries to provide superior guest experience. Taste provides us with a platform to highlight our dining innovation across all cabins and in our spectacular lounges.”
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
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APRIL 2016
Q & A with
RENDEZVOUS
THIERRY PERROT AREA GENERAL MANAGER, OMAN, INTERCONTINENTAL HOTELS GROUP
WITH A FOUR DECADES-LONG PRESENCE IN OMAN, INTERCONTINENTAL HOTELS GROUP (IHG) IS INVESTING MORE AND MORE IN THE SULTANATE, AND AS THIERRY PERROT, AREA GENERAL MANAGER, OMAN, IHG, EXPLAINED, THE COMPANY IS POISED FOR THE LAUNCH OF THE FIFTH CROWNE PLAZA, AS WELL AS NEW INTERCONTINENTAL AND HOLIDAY INN HOTELS. TRAVEL TRADE MENA: Having recently taken over as area general manager for the six properties in the country, what are your current goals and priorities? THIERRY PERROT: [This] is a challenging year, due to the oil price reduction, unrest in the Middle East and the devaluation of the Euro. This makes my role a
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Crowne Plaza Duqm
challenging one, but also exciting in the way how we can manage our six properties through this journey. I am confident we can overcome [challenges], as we have great teams with a lot of experience onboard. TRAVEL TRADE MENA: With a vast experience in several locations around the globe including the UK, Africa, France, Switzerland, Indonesia, South Korea, Egypt and the UAE, how different do you find the Omani market? THIERRY PERROT: The Omani culture is very friendly and the Omanis are well known for their hospitality. InterContinental Muscat was the first five-star hotel in Muscat and is known for its history and Omani service which is key for our ‘in the know’ experience. Next to that, Oman is very diverse, from the mountains to the desert, the Khareef season in Salalah and the wadis throughout the country, not to mention the beautiful white beaches with the blue ocean.
big exhibitions and conferences, Oman will grow as a destination. [In addition] to Crowne Plaza Oman Convention and Exhibition Centre, we will be opening InterContinental Muscat Hills Golf Resort. This brand-new resort and spa will be [part of ] Muscat Hills Golf & Country Club Muscat and is due to open 2019. With the [help] of the country’s Ministry of Tourism, this hotel will be an asset to attract tourism to the Sultanate. Oman is continuously developing with a lot of opportunities. Omran, the owning company of Crowne Plaza Duqm, InterContinental Muscat as well as Crowne Plaza Oman Convention and Exhibition Centre, will be redeveloping the Port Sultan Qaboos. Together with that, a lot of new hotels will be added to the portfolio. IHG is also looking into further developing its portfolio. We are looking for more opportunities to build new Crowne Plaza and Holiday Inn hotels.
TRAVEL TRADE MENA: With the Crowne Plaza brand enjoying big presence in the country, how is IHG aiming to enhance its portfolio in Oman in the years to come? THIERRY PERROT: We are opening our fifth Crowne Plaza in Muscat in early 2017 which will be Crowne Plaza Oman Convention and Exhibition Centre, next to the new convention centre. With the opening of the new convention venue, Oman is capable of attracting a new big segment; MICE. With
InterContinental Muscat
APRIL 2016
WAEL EL BEHI
WHO’S MOVED
HASSAN HASSANEIN has been selected general manager at Mövenpick Hotel Jeddah. Prior to his appointment, Hassanein served as general manager at Mövenpick Hotel Kuwait for over two years and held a similar position at Mövenpick Madinah Hotel. He has worked for Starwood Hotels & Resorts Worldwide, Marriott International and InterContinental Hotels Group, assigned to various luxurious properties in the Middle East. Aside from management, his expertise includes hospitality sales and marketing. Hassanein is hailed to make positive transformations in his new role, applying his professional management prowess and strategic practical knowhow in the industry.
FATHI KHOGALY
HASSAN HASSANEIN
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FATHI KHOGALY has returned to Grand Hyatt Dubai, now taking over as general manager. Khogaly joins the hotel from his most recent role as general manager at Hyatt Regency Dubai. Prior to this, he served as hotel manager at Grand Hyatt Dubai between 2010 and 2013, as well as opening director of events, from 2002 until 2005. He started his career with Hyatt in 1987 in Egypt, at Hyatt Regency Cairo, in the food and beverage department. He transferred to Hyatt Regency Dubai in 1988 and worked for 10 years in various roles in the food and beverage, catering and events departments. At the same property, Khogaly also held the role of resident manager from 2007 to 2009.
WAEL EL BEHI has been named general manager at First Central Hotel Apartments, in Dubai. El Behi will oversee all operations of the 524-room property, including guest services, sales and marketing efforts as well as hotel administration. He will also participate in the business development and expansion of Central Hotels, the hospitality division of New Dubai Properties. Boasting a wealth of hospitality industry experience, El Behi most recently served at Hawthorn Suites by Wyndham, Dubai in the same position, where he was in charge of the pre-opening and launch of the hotel.
El Behi will oversee all operations of the 524-room property
APRIL 2016
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NEWS & EVENTS EVENTS
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ATM to Highlight Midmarket Travel
IBTM AFRICA
ATM 2015
Cape Town, South Africa April 08 www.ibtmafrica.com The show evolved from a table top event to a content-driven education programme which focusses on technology, future trends, procurement and consolidation.
Following the success of Arabian Travel Market (ATM)’s 2015 spotlight theme of family travel, the focus for this year’s edition will be on midmarket tourism, hailed as an important area of opportunity for Middle Eastern destinations.
RIYADH TRAVEL FAIR Riyadh, Saudi Arabia April 12 – 15 www.riyadhtravel.net Attracting leading travel and tourism companies from Saudi Arabia and the GCC, the event is a platform for introducing new tourist products and services, and making investments.
“A
s tourism infrastructure across the Gulf and beyond continues on its high profile development path, our spotlight theme for this year has turned to midmarket tourism,” said Nadege Noblet-Segers, exhibition manager, ATM. “This has been identified as both an underdeveloped and potential growth area for the region, driven by demand from the growing middle class markets [...] combined with budget Generation Y travellers and young families.” A key point of discussion will be the number of new hotel rooms entering the market, and the increasing share of the four- and three-star categories.
Record Deals at ITB Berlin
IMEX
ARABIAN TRAVEL MARKET Dubai, UAE April 25 – 28 www.arabiantravelmarket.com A major event where global tourism destinations showcase a diverse range of accommodation options, tourism attractions, travel technology and key airline routes.
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ITB Berlin
Frankfurt, Germany April 19 – 21 www.imex-frankfurt.com A landmark exhibition for professionals working in the MICE industry where global decision-makers meet with 3,500 suppliers for three days of business.
The 50th edition of ITB Berlin welcomed over 120,000 trade visitors – the highest number to date – and generated some EUR7 billion (USD7.8 billion) in sales.
O
ver the five days of the show, more than 10,000 companies from 187 countries and regions showcased their products in 26 fully-booked halls. In addition to industry stakeholders, 60,000 members of the public also took advantage of the wide range of information available at the event, which, according to Christian Göke, CEO, Messe Berlin, has since 1966 evolved into a real international success. As Göke further noted, this year’s figures confirm that even in times dominated by uncertainty, people still want to travel.
APRIL 2016