OCTOBER 2017 - ISSUE 96
Fresh, daily, up-to-date travel news from around the world
Middle East Asia Pacific Europe Africa Americas
traveltradedaily.com
Reach out to your market around the world!
directoryoffers.traveltradedaily.com • maximise your business exposure • drive traffic directly to your company's website • promote your special offers and packages • expand your customer database • target market those who are looking to buy • create your own 'mini website' in an already established readership base
Add your business today! For FREE
OCTOBER 2017 - ISSUE 96
04 10
VISIT: KUWAIT
EXPLORE
Low -Cost Carriers
07 ONSITE: BAHRAIN
16 Travel Talk 17 Rendezvous
18 Who's Moved
MARKET UPDATE
www.traveltrademena.travel
TRAVEL TRADE PUBLICATIONS
H1 Growth for flydubai
MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel SENIOR JOURNALIST Ellen Petty JOURNALISTS
Maria Sabova Panayiotis Karanicholas Anna Spyrou CONTRIBUTOR
Dominique Christou 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
In the first half of the year (H1), flydubai reported total revenue of AED2.5 billion (USD689 million), a surge of 9.9 percent over the same period in 2016.
WEBSITE www.traveltrademena.travel EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel
W
PRINTED BY 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, Email: neil@globetm.com
hile the number of passengers rose 10.5 percent year-on-year to 5.4 million, the low-cost carrier reported a loss of AED142.5 million (USD38.8 million). Revenue passenger kilometres grew 18.9 percent in H1, and available seat kilometres jumped 7.9 percent. Arbind Kumar, senior vice president, finance, flydubai, said, “During the first six months of this year, we have seen pressure on both yield and cost. We continue to focus our efforts on three key areas: improvement in our cost performance, a broadening of our distribution and optimisation of our network.”
Representative for Indian subcontinent: Faredoon Kuka RMA Media Tel: +912229253735 Email: kuka@rmamedia.com
STR: Middle East Hotel Pipeline Rockets
Representative for UK & Ireland and Scandinavia: David Simpson Simpson Media Tel: +447900885456, Email: david@simpson-media.com
MENA EXCHANGE RATES
as of COUNTRY
2
29.9.2017 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
113.12
Egypt (EGP)
Pound
17.64
Iran (IRR)
Rial
33,807.87
Iraq (IQD)
Dinar
1,165.60
Kuwait (KWD)
Dinar
0.30
Lebanon (LBP)
Pound
1,510.63
Libya (LYD)
Dinar
1.40
Morocco (MAD)
Dirham
9.43
Syria (SYP)
Pound
518.10
Tunisia (TND)
Dinar
2.47
Yemen (YER)
Rial
250.10
According to STR’s August 2017 Pipeline Report, the Middle East reported 98,027 rooms in 309 projects were in construction during the month, a year-on-year increase of 17.2 percent in terms of guestrooms.
I
ncluding those in construction, the region revealed that a total of 164,898 units in 583 project were under contract in August, a 5.4 percent growth in rooms. While the UAE had the most number of hotels in construction, with 35,050 keys in 121 developments, Saudi Arabia recorded the most rooms in this phase, with 40,020 units within 89 properties. Meanwhile, Qatar also grew rapidly, with 9,627 keys in 41 addresses.
OCTOBER 2017
MARKET UPDATE
www.traveltrademena.travel
Sharjah Hub Registered Growth Sharjah International Airport revealed that in July, the number of passengers passing through its doors reached one million, marking an 8.2 percent increase compared to the corresponding month in 2016.
M
Sharjah
eanwhile, aircraft movements escalated 4.4 percent year-on-year, with a total of 6,900 take-offs and landings. In addition to the rise in tourist numbers, during the month under review, the volume of cargo handled by the hub rose 5.5 percent. This success follows on from the growth observed in the first half of the year, during which a total of 5.5 million travellers passed through the gateway.
Dubai International Registered Growth
Dubai International
According to Dubai Airports, 8.2 million passengers passed through Dubai International in August, registering another month of record passenger traffic.
D
uring the period under review, aircraft movements totalled 34,370, a decline of 1.7 percent over August 2016, while freight volumes at the gateway reached 221,508 tonnes, up 10.1 percent compared to 201,100 tonnes recorded in the corresponding month in 2016. Commenting on the positive figures, Paul Griffiths, CEO, Dubai Airports, highlighted, “We are very pleased with the way things are shaping up this year, […] but also with our success in significantly enhancing the airport experience with initiatives such as the launch of the world’s fastest free airport Wi-Fi, streaming entertainment service ICFlix, quicker passport control and shorter wait times in queues thanks to cutting edge technology […].”
OCTOBER 2017
3
VISIT KUWAIT
www.traveltrademena.travel
Kuwait: On the Right
Track
WITH A TOURISM INDUSTRY PROPPED UP BY BUSINESS TRAVEL, KUWAIT IS NOT TRADITIONALLY KNOWN AS A LEISURE DESTINATION. AS THE GOVERNMENT PREPARES TO IMPLEMENT A USD1 BILLION INVESTMENT TO PROMOTE AND DIVERSIFY THE GULF COUNTRY’S OFFERING, TOURISM IS ABOUT TO COME TO LIFE.
ELLEN PETTY WRITES
A
ccording to Euromonitor, Kuwait is one of the smallest tourism markets in the Middle East, primarily relying on visitors from Saudi Arabia, its largest source market. However, the country has big plans to grow its tourism industry, including the expansion of its airport, creating new attractions and welcoming the construction of international hotel brands. As revealed at Arabian Travel Market, the Kuwaiti government has earmarked USD1 billion to invest into making the country a tourism hotspot, with the aim of attracting 440,000 arrivals a year by 2024. Aspiring to diversify its offerings to attract more leisure visitors, there are also plans to establish a Supreme Commission for Tourism to implement its strategy. CORPORATE HUB Currently, the leisure segment accounts for just a small proportion of Kuwait’s tourism industry. As revealed by Wajdy ElChaar, general manager, Mövenpick Hotel Kuwait, just 25 percent of the property’s guests are leisure tourists, with the remaining 75 percent staying for business. As a result, Kuwait’s hospitality sector has been heavily influenced by the plummet in oil prices. Consequently, ElChaar noted that the hotel has observed a minor fall in business in the first half of the year (H1). Also pinpointing that the majority of guests are corporate travellers, Jubran Ibrahim, director, sales and marketing, Radisson Blu Hotel, Kuwait, outlined that H1 was challenging due to regional political issues which put higher pressure on rates, further exacerbated by the government tariffs on electricity and water. Despite this, he added that the hotel’s performance is in line with 2016’s performance. Meanwhile, a number of new hotels have opened in preparation for the expected influx of visitors. While this indicates confidence in what is to come, it has nevertheless put some strain on hoteliers. Khadija Meftah, cluster director, marketing communications, Kuwait, Marriott International, clarified, “[The tough H1] was mainly due to the oversupply in the market with all the new hotels that are opening and the huge drops in oil prices.” Michael Nielsen, resident manager, INN & GO Kuwait Plaza Hotel, explained that while
4
OCTOBER 2017
VISIT KUWAIT
www.traveltrademena.travel
projects to meet all the needs of families. Along with describing Kuwait as a safe country that improves and enhances its security measures, Ibrahim added, “New family resorts are [being] added to the current ones and built for family leisure purposes.”
KUWAIT IN BRIEF Capital: Kuwait City Currency: Kuwaiti Dinar (KWD)
AUTHENTIC EXPERIENCES In line with the global trend of a shift towards unique, genuine experiences, Schuler highlighted that tourists are increasingly seeking experiential travel. Schuler expounded, “More and more visitors want to experience authentic Kuwaiti and Arabian hospitality. [...] Kuwait is viewed as something of a hidden gem in terms of tourism but has a number of sites that are
Language: Arabic Population: 4.1 million Calling Code: +965 Time Zone: GMT +3:00
Egypt and India are important source markets in terms of business guests, the hotel was able to achieve the same level of business in H1 thanks to the number of inbound Saudi travellers, thus reaffirming the market’s vital role in maintaining tourism levels in Kuwait. FROM BUSINESS TO PLEASURE Further confirming that the Gulf country remains largely a business destination, Peter Schuler, general manager, Symphony Style Hotel Kuwait, elaborated that the hotel’s main source market continues to be GCC corporate globetrotters. Even so, Schuler added, “However, this year we have seen a rise in the number of leisure travellers choosing to stay with us, particularly families.” This success is a direct result of the property’s concerted efforts to target the segment, which involves ensuring the availability of connecting rooms and dedicated spaces for youngsters. Going above and beyond, Schuler expounded, “We converted the third and fourth floors of the hotel into Kids’ and Teen Floors to improve our entertainment offering for younger guests – a first for Kuwait.” Corroborating the significance of families, Meftah pinpointed that 90 percent of all leisure travellers are families, with an average of two kids. “When it comes to leisure, the main source is GCC countries, especially Saudi Arabia,” revealed Meftah. As a sector that is expected to soar, investors are creating hospitality
OCTOBER 2017
5
VISIT KUWAIT
www.traveltrademena.travel
easily accessible, from museums to Kuwait Towers [...].” Aiming to tap into this trend, Symphony Style Hotel Kuwait has demonstrated its commitment to offering an authentic experience with Bait Al Dimnah, a lounge in the hotel lobby dedicated to showcasing local culture and traditions. “Visualised and realised by talented Kuwaiti nationals working within the hotel, Bait Al Dimnah is styled on a traditional Kuwaiti home and features artifacts and artworks depicting the country’s past,” enthused Schuler. “[...] Having the ability to offer guests an authentic experience is crucial to retaining that loyalty [...].” Emphasising that Kuwait has a very rich culture and heritage, Nielsen agreed that tailored packages could be used as an effective way to entice visitors as it is promoting its diverse shopping experience, from ancient souks to sprawling malls. In terms of one-of-a-kind offerings, Meftah concurred, “I think in order to persuade traveller to visit Kuwait, [including] other nationalities not just from GCC countries, we need to create unique experience packages. Guests are now looking for more than just flights or rooms, they want a different experience to enjoy the destination.” Meftah elucidated that there needs to be more of a focus on building entertainment options such as cultural centres and events like music festivals. MAKING HEADWAY
Sheikh Jaber Al Ahmad Cultural Centre
Yet, Kuwait has already taken major steps to expand its offerings to leisure tourists, including, as Ibrahim highlighted, Sheikh Jaber AlAhmed Cultural Centre. The eye-catching building, which opened in October 2016, is home to an opera house, a theatre and conference facilities. Not ending there, Sheikh Abdullah Al Salem Cultural Centre, currently under construction, will form what is said to be the country’s cultural district. Set to celebrate Kuwaiti, Islamic and Arab culture, the site will comprise a theatre, Natural History Museum, Science Museum, Museum of Islamic History, Space Museum, and Find Arts Centre. On a more practical note, a number of infrastructure improvements have been planned or are underway. Potentially, the most significant is the expansion of Kuwait International Airport. The hub, currently operating beyond capacity, was originally designed to handle six million passengers annually. In May, ground was broken on its expansion project, which is expected to be completed in four years and enable the gateway to serve 25 million travellers each year. As Meftah said, the redeveloped airport will really open up the destination. Further enabling easy access, Kuwait’s Ministry of Information highlighted that the implementation of a new eVisa application system in 2016 has been fundamental in facilitating tourism. The government is also working closely with the private sector, providing incentives to attract tourism investment, and raising awareness of the industry’s potential, among owners of small and medium enterprises. Acknowledging the invaluable role that Kuwaiti citizens play, the government is also committed to supporting young people who have the skills and ideas to revitalise and develop tourism. As well as creating jobs and infrastructure, the growth of tourism will diversify the country’s economy, in line with Kuwait’s aim of moving away from its reliance on oil revenues. Summarising that Kuwait is not traditionally known as a tourist destination, Ousama Al-Hosni, general manager, Sham Tours & Travel, concluded that there is much optimism that it will become one by 2025. With the clear unwavering dedication from the government, investors, and industry professionals, there is no doubt that Kuwait will soon be firmly placed on the international tourism map .
6
OCTOBER 2017
www.traveltrademena.travel
ONSITE BAHRAIN
Bahrain: Authenticity as a Tourism
Trademark HAVING IDENTIFIED THE IMPORTANCE OF AUTHENTIC EXPERIENCES, BAHRAIN'S TOURISM SECTOR IS SET TO BENEFIT FROM THE OUTCOME OF THE INDUSTRY’S ONGOING EFFORTS TO TRANSFORM THE DESTINATION INTO A WORLD-RENOWNED HUB, WITH UNIQUE ACTIVITIES INSPIRED BY THE REGION’S DISTINCTIVE CHARACTERISTICS.
MARIA SABOVA WRITES
S
tanding out among Gulf destinations as the Pearl of Arabia, Bahrain attracts not only business tourism but travellers seeking authentic experiences. At a time when experiential tourism and authenticity have become the main buzzwords among travel communities, with globetrotters hungry to explore the destinations through the eyes of locals, Bahrain’s tourism brand Ours Yours is well-suited to meet such demand. Kyriakos Zarkadas, CEO, Visit Bahrain, summarised what defines experiential tourism, “It is not about just visiting famous spots, it is about discovering the story behind them and emerging in a world that can capture the entire imagination.” Speaking about why Bahrain stands out from other Middle Eastern destinations luring visitors with a plethora of authentic offerings, he elaborated, “What sets Bahrain apart, in essence, is its open and liberal culture that embraces new trends without forgetting its heritage roots. Here, tourists can discover genuine traditional activities while also benefitting from the modern entertainment variety in a set-up that combines mystery with a fantastic atmosphere.” BALANCING THE FIGURES Demonstrating the Kingdom’s rising status, Bahrain Tourism and Exhibitions Authority (BTEA) revealed that in the first half of this year (H1), the country welcomed 5.6 million visitors, a 14 percent increase year-on-year of these, 57 percent of travellers visited the destination for leisure, showcasing its appeal as a holiday gateway. Zarkadas elaborated, “This steady growth is a result of an improved perception about Bahrain, which is now seen as a very attractive tourist destination. Owing to this change, the Kingdom […] continues to attract more travellers who now find it a stress-free destination.” While the majority of travellers managed to unwind on holidays with travel numbers soaring overall, Bahraini hoteliers and service providers faced multiple challenges with mixed results in H1. Al Areen Wildlife Reserve, Photo Credit: Visit Bahrain
OCTOBER 2017
7
ONSITE BAHRAIN
www.traveltrademena.travel
BAHRAIN IN BRIEF Visit Bahrain's Traditional Tourist Activities
Underscoring the negative impact of higher operating expenses, including rising costs of supplies and commodities, with the drop in oil prices and government fees, Stephen Havrilla, general manager, The Royal Golf Club, confirmed a 6.5 percent year-on-year downturn in general business in H1. Adding to this, Unni Krishnan, general manager, Alraya Suites Bahrain, observed, “Many hotels were undercutting rates and new apartment concepts opened at very low monthly rates, [which] played a major role in the decline of this segment.” He also revealed that consequent lower figures of long-stay corporate and leisure groups contributed to almost 20 percent less business. GOING BEYOND BORDERS In a bid to further strengthen the role of the Bahraini tourism sector as one of the main contributors to national economy, while also promoting the country’s differentiating features through its tourism marketing brand, BTEA has recently established representatives offices in strategic locations, such as Moscow, London, and Paris, to access and serve new source markets. Applauding the H1 as a fruitful period in terms of business opportunities, Zarkadas unveiled that thanks to close cooperation with BTEA, Visit Bahrain secured the exposure to new markets as the authority’s new branches had been launched. Observing a positive change as an outcome of such joint efforts, he added that while the organisation reported a significant influx of Saudi travellers, one of its main source markets, Russian, German, Indian and European visitors also marked a visible growth this year. Commenting on shared initiatives aimed at rising the country’s profile for international visitors, Anurag Bajaj, general manager, e-commerce, Elite Group Hotels, expanded, “This year, we have attempted to reach out to non-traditional markets and support the ministry with special packages and deals for European and Asian countries.” One of the main attractions which has put Bahrain on the map is Bahrain International Circuit. As the first Middle Eastern country having hosted Grand Prix in 2004, Bahrain lures regional and overseas visitors to the venue’s multiple annual events not limited to Formula One. Confirming that the growth of tourist numbers has been significant since the first race in 2004, Arif Rahimi, chairman, Bahrain International Circuit, noted, “We work closely with relevant government departments, as well as other major organisations and businesses in Bahrain to ensure we work together and present the Kingdom in its best light.” A positive outcome of stakeholders’ efforts was Bahrain’s recent selection as one of the members of the United Nations World Tourism Organization’s Executive Council for the period 2018-2021. Such recognition demonstrates rising strength of the country's tourism along with its capability to represent Middle Eastern sector globally.
Capital: Manama Currency: Bahraini Dinar (BHD) Language: Arabic Population: 1.4 million Calling Code: +973 Capital Time Zone: GMT +3:00
brand. As such, authentic travel does not only involve understanding a destination’s culture, history and heritage but the connection to local people. Karim Mansouri, managing director, Mansouri Mansions Hotel, described, “Bahrain is a small simple country. Bahraini people have a long history with foreigners and are welcoming by nature.” In order to boost a positive perception about the Kingdom, Zarkadas believes that stellar service and unique activities based on the country’s most characteristics is the right mix for success. Based on this, the organisation has designed a series of sightseeing tours allowing travellers to get in touch with local culture. Zarkadas further exemplified, “Combining heritage with contemporary activities, the five sightseeing tours offered by Visit Bahrain are as diverse as Bahrain. […]. Whether we are talking about enabling tourists to glimpse into the past by visiting old houses of Muharraq, discovering the modern accomplishments that allow Bahrain World Trade Center to produce its own energy, tasting traditional goods at
AUTHENTIC STORIES Authenticity appears to have been recognised as the Kingdom’s strength for generating higher tourism figures, hence the Ours Yours national tourism
8
OCTOBER 2017
www.traveltrademena.travel
ONSITE BAHRAIN
Royal Golf Club
the Muharaq Souq, taking a leap of faith at the world’s largest indoor Sky Diving Tunnel, relaxing on the elusive island of Jaradh, hunting for the best pearls in the world or marveling at breathtaking sights of this Arabia paradise at dawn, the Visit Bahrain tours […] create a complete experience built on a fascinating narrative.” Expanding on the Kingdom’s authentic account, Bajaj outlined, “Even though a small island, [Bahrain] has remained a mystery for long and has been able to offer sites and cultures different from the rest of the GCC […], today a modern Bahraini lives a life that is easily envied by most neighboring and even developed countries.” Demonstrating the importance of engaging the cultural specifics even in sports to deliver a unique message about the destination, Rahimi summarised, “We always aim to ensure that the experience of our visitors is closely aligned to our culture and we are always looking to reflect Bahrain’s unique character in the events we host. We are fortunate that alongside sporting bodies we work with to
OCTOBER 2017
promote our events, authentic cultural promotion is actively encouraged.” HOSPITALITY ENCOURAGING TO RETURN Complementing the off-the-beaten-track experiences, local hospitality enhances memories of a destination. Rahimi expounded, “More than anything I think our culture of hospitality really stands out from our neighbours. Anyone who visits Bahrain for the first time should see that, and I know that is the reason why many Formula One fans keep coming back.” Having found the right formula to appeal to experiential travellers, the pearl of the Gulf is checking in to be recognised as an authentic travel destination. Zarkada concluded, “Bahrain can be seen, heard, felt and tasted, creating sensorial travel experience that will linger in the memories of travellers for a long time. In an age when everybody is searching for awakening experiences, Bahrain comes to meet the need of authentic travel by revealing its most original core.”
9
EXPLORE LCCs
www.traveltrademena.travel
Low Cost Carriers: Liberating
the Skies
OVER THE PAST 10 YEARS, LOW-COST CARRIERS (LCCs) HAVE BECOME A MAJOR FEATURE OF THE AVIATION INDUSTRY ACROSS THE MIDDLE EAST AND NORTH AFRICA. MAKING AIR TRAVEL ACCESSIBLE TO BROADER DEMOGRAPHICS, THEY HAVE SUCCEDED IN RESHAPING THE DYNAMICS OF THE REGIONAL AIRLINE MARKET, WHILE ALSO STIMULATING NEW INBOUND TOURISM.
ANNA SPYROU WRITES
A
ir transport has always been considered a very special sector in the international context. It facilitates global economic growth, contributing around USD413 billion annually according to International Air Transport Association (IATA), international and domestic tourism, world trade growth and most importantly, it has been a dominant factor in the process of globalisation. While aviation has evolved in so many ways over the past decades, nothing has had a greater impact on the industry than the evolution of LCCs. Considered to be one of the most significant consequences of the world airline deregulation, the advent of LCCs has undoubtedly reshaped the world airline market, previously controlled by Full Service Airlines (FSAs). In the Middle East, the penetration of LCCs is relatively new and was encouraged by the fast growth of LCCs in the European and the US markets. Featuring a simpler service ethos, more affordable pricing, and the use of the Internet as a sales channel, this new business model has democratised air travel in the Gulf and the wider Middle East, tapping into the region’s vast local population, particularly for the younger market with a set budget, as well as the region’s foreign workers that wish to visit home. WINGS OF SUSTAINABLE DEVELOPMENT
RIYADH IN BRIEF Country: Saudi Arabia Currency: Saudi Arabian Riyal (SAR) Language: Arabic Population: 5,272,000 Calling Code: +966 1 Time Zone: GMT +3:00
10
Over the past decade, liberalisation efforts, undertaken within the Middle East and North Africa have resulted in the advent of LCCs. Meanwhile, the lack of satisfactory infrastructure and railway systems linking the region, coupled with an increased regional passenger demand for shopping and pilgrimage have also led to the emergence of this new business model. During the last decade, and since the first regional budget airline, Air Arabia, commenced operations in 2003, the low fare sector has dramatically grown and there are no signs that the expansion will be curtailed. According to OAG, one of the leading global providers of digital flight information, LCCs in the Middle East have grown at an annual rate of 52 percent during the last decade, whereas FSAs only grew at an average rate of seven percent year-onyear. The emergence of budget airlines and their dynamic development has significantly affected the degree of competition in the market. Furthermore, the competition stimulated the introduction of new products while also reaching out to segments that were not properly supported before.
OCTOBER 2017
www.traveltrademena.travel
EXPLORE LCCs
LCCs are significant for the development of weekend, city or short-break tourism and in effecting a radical expansion of potential destinations. In addition they have taken the region by storm with not only leisure travellers, but also business travellers seeking the best value offer available. Taking advantage of the changed mind-set of the corporate segment, LCCs started enhancing their offering, demonstrating that they are definitely not low in the quality of service. Moving towards a hybrid model by adopting features of FSAs, Jazeera Airways and flydubai have recently introduced business class seats, while flynas, Air Cairo and flydubai introduced global distribution systems in to their operations. Recognising the importance of travel agents to its future success, African LCC fastjet is one of the latest airlines to adopt a multi-channel distribution strategy
OCTOBER 2017
by partnering with Amadeus, Sabre and Travelport. FROM MODEST BEGINNINGS TO SUCCESS When LCCs first emerged in the MENA region, there was scepticism over whether they would survive. Many industry observers believed that potential passengers would equate low cost with poor quality and hesitate to use them. However, their financial results and operating performance during the last decade reflects that their sustainable business model is resilient. Marking the first LCC in the region, Air Arabia was founded in 2003 by Sharjah Government in an attempt to further promote travel and tourism sectors ďƒ¨
11
EXPLORE LCCs
in the emirate. At the beginning of its operations, the main challenge was to change the perceived image of luxurious air travel in the region. Dominating the sector even during the challenging times of the global air travel, Air Arabia achieved a continued annual growth and became profitable. Moreover, it has successfully positioned its brand in the region and has been named as the Best Low-Cost Airline in the Middle East for the second consecutive year during the 2015 Skytrax World Airline Awards at the Paris Air Show. Following a multihub strategy by launching subsidiaries in different markets through making local joint ventures, the carrier serves some of the key destinations within the Middle East. Exceeding analysts’ expectations, the Sharjah-based carrier reported strong financial results for the first quarter of this year, with a net profit of AED103 million (USD28.04 million). In addition, more than 2.1 million passengers chose to fly with the airline between January and March while its average seat load factor stood at an impressive 81 percent. In a similar manner, flydubai experienced unrivalled growth by following an aggressive expansion strategy since its establishment in 2009. Capitalising on the unique opportunities offered by Dubai’s proximity to the world’s centres, the carrier facilitated trade and tourism with the opening of new and previously underserved routes, succeeding a total revenue of AED2.5 billion (USD689 million) during the first half (H1) of this year, an increase of 9.9 percent compared to the corresponding period in 2016. In addition, passenger numbers reached 5.4 million, an increase of 10.5 percent over the first six months in 2016. Most importantly, Dubai’s LCC contributed 19.4 percent to the total growth at Dubai Airports compared to H1 in 2016. Focussing on its strategy to be a leader in innovation, flydubai is said to be the first airline in the region to operate Boeing's newest single-aisle airplane, Boeing 737 MAX 8.
www.traveltrademena.travel
flydubai
FACING THE CHALLENGES Despite the numerous positive outcomes and sustainable developments emerging from the rise of LCCs, Low-Cost airlines in the region are still facing several critical challenges with the region’s political and economic status representing the main obstacle. Another major challenge is the lack of infrastructure as the majority of secondary airports, where LCCs often operate their services, are away from capitals, something which threatens their competitive advantage against FSAs. In addition, LCCs face crucial governmental restrictions including higher airport taxes and restricted licenses especially in Egypt, Saudi Arabia and Kuwait. Although ancillary revenues contribute mostly to LCC’s, there is an urgent need to promote them effectively in order to ensure revenue maximisation and to influence the consumer’s purchase decision. Thus, LCC’s should focus on identifying new sources of ancillary revenue including airport transfer facilities. According to IATA, by 2020, Middle Eastern Airports will handle some 400 million passengers per annum, with low-cost carriers playing an ever-increasing role in the evolution of the sector. Achieving these numbers and making air travel accessible to all is therefore crucial, and airlines, airports, regulators, governments and relevant stakeholders all have a duty to work together to make this a reality.
12
OCTOBER 2017
TRAVEL CHANNELS
www.traveltrademena.travel
Emirates Park Zoo Launched Veterinary Clinic Etihad Airways Celebrated Fashion
Emirates Park Zoo and Resort’s vet in action
E
mirates Park Zoo and Resort has launched a new veterinary clinic, providing professional grooming services for cats, dogs and birds carried out by an accredited team of staff. Services include breed standard haircuts, hairstyles, full body baths, ear cleaning, eye cleaning, nail cutting, topped off with gender-specific perfumes. Commenting on the facility, Waleed Sha’aban, manager, zoo operations, Emirates Park Zoo and Resort, emphasised, “We have received a lot of support for this project. So many people came together to make this clinic happen. It has been truly amazing to see this clinic rise from the ground up, and I am confident that those after me will continue to add to the clinic’s success.”
Models’ walk during the event
E
tihad Airways and British designer Julien Macdonald have recently hosted an intimate celebration of fashion at the airline’s state-ofthe-art Innovation Training Academy in Abu Dhabi. The exclusive event showcased some of Macdonald’s creations and was attended by renowned stylist Karl Plewka, fashion and lifestyle media, up-and-coming Emirati and Arab fashion designers, regional social influencers, corporate partners and Etihad Airways employees. During the event, the national carrier took the opportunity to screen its new promotional fashion film, titled Runway to Runway which was directed by award-winning director Paul Butterworth. One of the highlights of the evening was a catwalk show presenting outfits created by talented local fashion designers and brands including Endemage, Twisted Roots, Taller Marmo and others.
Sharjah Girl Guides Held Master Chef Programme
SGG’s Master Chef Programme
14
A
iming to enhance the culinary skills of girls aged nine – 11, while also encouraging them to help their families with cooking at home, Sharjah Girl Guides (SGG) recently hosted its first Master Chef
Programme. Taking place at Culinary Boutique in Dubai, the month-long initiative featured five lessons where the girls learned the fundamentals of cooking. Shaikha Abdul Aziz Al Shamsi, manager, SGG, highlighted, “The importance of committing to eating healthy food, prepared at home in accordance with specific safety conditions and procedures, is more important than ever in our modern society, with the proliferation of fast food that we see these days.”
OCTOBER 2017
16
www.traveltrademena.travel
For more than two decades I have lived and breathed aviation
“I am honoured to have been chosen by my fellow board members to head this important body, at a time when the industry faces numerous challenges on a multitude of levels. [...]. For more than two decades I have lived and breathed aviation, and I look forward to working alongside the board of governors to champion passenger rights and improve security standards across the industry, as well as continuing to promote the rights of freedom of flight for all.”
NASSER AMER
CHAIRMAN, BOARD OF GOVERNORS, INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)
H.E. AKBAR AL BAKER
TRAVEL TALK
VICE PRESIDENT, DEYAAR DEVELOPMENT
It is our mission to strive towards clients’ satisfaction “This is a time of significant transformation for every industry, and this presents our brokers with both challenges and unique opportunities. All recognised brokers have chosen to rise above the challenges, embrace the opportunities, and put the investor at the heart of their strategy to focus on delivering outstanding achievements. It is our mission to strive towards clients’ satisfaction, while addressing their needs and demands to further reinforce our position as a reputable and trusted real estate partner in the UAE.”
OCTOBER 2017
RENDEZVOUS
Q & A with
www.traveltrademena.travel
HASSAN AL IBRAHIM CHIEF TOURISM DEVELOPMENT OFFICER, QATAR TOURISM AUTHORITY
DESPITE THE CHALLENGES FACING QATAR’S TOURISM INDUSTRY ON THE BACK OF RECENT REGIONAL EVENTS, QATAR TOURISM AUTHORITY (QTA) HAVE BEEN HIGHLY ACTIVE IN ATTRACTING NEW SOURCE MARKETS. HASSAN AL IBRAHIM, CHIEF TOURISM DEVELOPMENT OFFICER, QTA, HIGHLIGHTS SOME OF THE AUTHORITY’S MOST SUCCESSFUL INITIATIVES.
TRAVEL TRADE MENA: In terms of diversifying source markets, what initiatives has QTA implemented to attract a broader range of tourists and how successful have they been? HASSAN AL IBRAHIM: QTA launched Qatar’s first destination brand at World OCTOBER 2017
Travel Market in 2015, marking a milestone in the journey to position the country as a tourism destination. Following the launch, we have implemented a series of programmes, initiatives and international campaigns to boost visitor arrivals and diversify source markets. An extensive outreach programme in 2016 attracted hundreds of travel professionals eager to experience Qatar’s authentic tourism offering first hand. And in the first half (H1) of this year, QTA hosted several mega-fam trips for industry professionals from the US, the UK, Italy, and Finland. In addition to our efforts to attract trade partners to Qatar, we have also worked on making Qatar easily accessible to global tour operators and travel agents through the Tawash destination training programme. Conducted entirely online and available in six languages, it provides them with the in-depth knowledge they need to market the destination authoritatively and persuasively to their clients. Recognising that ease of access is a key determinant of growing visitor arrivals, QTA has also worked with Qatar’s Ministry of Interior to facilitate and streamline entry into the country. Qatar has waived entry visa requirements for citizens of 80 countries making it the most open country in the region; in another recent move, visitors from other countries can apply for an e-visa on the Qatar visa service online platform. In an effort to target the millions of Qatar Airways passengers who transit through Hamad International Airport each year, QTA partnered with the national carrier to introduce a unique stopover campaign. +Qatar, which launched in May, encouraging Qatar Airways passengers to turn a layover into a stopover by offering complimentary four- and five-star hotel accommodation in Qatar. This campaign leverages the country’s existing free transit visa which allows passengers of all nationalities with a minimum transit of five hours to stay in Qatar for up to 96 hours (four days). The campaign has resonated well with passengers from all over the world with over 6,000 visitors choosing to stopover in Qatar since its launch. We have also stepped up efforts to attract cruise tourists to the country. During the 2016-2017 season, Hamad Port received 28 cruise ships and one mega-yacht, bringing a total of 47,000
passengers and crew to Qatar’s shores. This represented a 120 percent and 1,000 percent increase in the number of cruise ships and visitors respectively, compared to the previous 2015-2016 season. TRAVEL TRADE MENA: How many visitors did Qatar welcome H1? How does this compare to H1 2016? HASSAN AL IBRAHIM: As a result of all of the initiatives mentioned above, we have seen a one percent increase in visitor arrivals during the first six months of the year, compared to the same period in 2016. Arrivals to Qatar from most regions were up in the period between January and April, compared to 2016, signaling that our strategy to diversify visitor source markets is on track. European markets were the source of greatest growth, up 10 percent compared to the same period of 2016, and arrivals from the US source markets were seven percent higher compared to 2016. Arrivals from Asia including Oceania grew by four percent, as too did arrivals from other African countries. TRAVEL TRADE MENA: Which source markets is QTA planning to target? HASSAN AL IBRAHIM: Our plan is to build on the aforementioned growth in European and Asian markets, particularly as the recently-announced visa facilitation measures are set to make Qatar more accessible to visitors from countries in those regions. TRAVEL TRADE MENA: What does the future hold for Qatar’s tourism industry? HASSAN AL IBRAHIM: QTA is currently preparing to launch the next chapter of the Qatar National Tourism Sector Strategy (QNTSS) 2030. This is being developed in partnership with the private sector and relevant government entities to ensure that the tourism industry is on the right track to fulfil its role in the realisation of Qatar National Vision 2030. The strategy review process began in April with the core objectives of diversifying source markets, developing new tourism products and services and enhancing the overall tourist experience. The resulting strategy was set to be announced on 27 September, when Qatar hosts the official UWNTO World Tourism Day celebrations.
17
CHADI NICOLAS has assumed the position of general manager at Centro Capital Centre and Capital Centre Arjaan by Rotana. Nicolas, who has more than 17 years of experience in the hospitality industry, joined Rotana Group in 2001 and has since taken on several managerial roles at various Rotana properties in the UAE. In his previous role as general manager of Hala Arjaan by Rotana, Nicolas played a pivotal role in driving the business and leading the operations. Prior to that, he was executive assistant manager at Khalidiya Palace Rayhaan by Rotana.
www.traveltrademena.travel
DAMIR BOSHNJAK
CHADI NICOLAS
WHO’S MOVED
AHMED KHALAF has assumed the position of general manager of Four Seasons Hotel Tunis, which is scheduled to open by the end of this year. Bringing with him a wealth of experience in the hospitality industry, Khalaf began his collaboration with the company in Cairo. Prior to his new role, he served as general manager of Four Seasons Hotel Alexandria at San Stefano, Egypt and was previous part of the senior leadership team at Four Seasons Hotel Doha.
Khalaf's expertise will bring the brand’s world-renowned hospitality to guests
18
Boshnjak will be overseeing hotel operations
ISMAIL IBRAHIM
AHMED KHALAF
Nicolas will strengthen the position of the properties
DAMIR BOSHNJAK has assumed the position of director of hotel operations of Media One, a mixed use development comprising a hotel and offices located in the bustling area of Dubai Media City. Boshnjak has more than 10 years of experience in the hospitality industry, including five years in the Middle East. His hospitality career started in Macedonia in 2007, in a small motel and since then he has had the opportunity to work in hotels all over the world. In his new role, Boshnjak will be overseeing hotel operations while also managing the housekeeping, engineering, front office and security teams.
ISMAIL IBRAHIM has been appointed as the new general manager of Ramada Abu Dhabi Downtown. Bringing with him more than 15 years of experience in the hospitality industry across the UAE and Egypt, Ibrahim has demonstrated a deep commitment to the strategic work of hotels, with an emphasis on operational planning and business development. Prior to his new role, he served as cluster director of sales and marketing for Wyndham Hotels & Resorts, focussed on Ramada Abu Dhabi Corniche and TRYP by Wyndham Hotel. Ibrahim will oversee all hotel departments’ daily operations.
Ibrahim brings with him more than 15 years of experience in the hospitality industry
OCTOBER 2017
PHOTO ALBUM
www.traveltrademena.travel
Delegates from Bahrain Tourism and Exhibition Authority promoted Bahrain's cruise industry at Seatrade Europe, taking place in Hamburg on September 06 – 08
Jumeirah Golf Estates received prestigious awards during this year's Arabian Property Awards
Take a Shot! Share with us the latest images of your activities and let your colleagues know what you have been up to. Bahrain Tourism and Exhibitions Authority celebrated Saudi Arabia’s national day by distributing gifts to visitors coming to Bahrain through the Bahrain International Airport
Send your photos to editorial@traveltradeweekly.travel Because a picture is worth a thousand words...
Etihad Aviation Group donated school supplies to children in Mrajeeb Al Fhood refugee camp in Jordan as a part of 2017 Year of Giving initiatives
OCTOBER 2017
Centre Arjaan by Rotana in partnership with SEDRA Foundation, Abu Dhabi organised a field trip to Ferrari World Abu Dhabi for the winners of SEDRA Family Coaching Competition
H.E Mohamed Khalifa Al Mubarak, chairman, Abu Dhabi Tourism & Culture Authority (first from left) at the launch of Comic Craze exhibition at Al Qattara Arts Centre
19
NEWS & EVENTS
www.traveltrademena.travel
Dubai to Host Port Development Conference
EVENTS 24TH UKRAINE INTERNATIONAL TRAVEL MARKET (UITM) Kyiv, Ukraine October 04-06 www.ukraine-itm.com.ua During the exhibition representatives of the tourist business will be able sign lucrative contracts with the leaders of the tourism industry.
Port of Jebel Ali
PRIME TRAVEL MART Baku, Azerbaijan October 05 www.primetravelmart.com The event will keep its creative and innovative spirit and provide a platform for visitors and exhibitors to establish and strengthen relationship.
Aiming to promote maritime safety, secure navigation and operation efficiency of the emirate’s maritime sector, Dubai Maritime City Authority (DMCA) has organised Port Development MENA Conference.
P
roduced by international company IQPC, the event took place on September 26 – 28. Middle Eastern ports have witnessed enormous growth, reflected through attempts to expand infrastructure, upgrade terminal operating systems while also investing in cyber security and smart solutions. Amer Ali, executive director, DMCA, revealed, “[…] The summit will be another great opportunity for us to take a closer look at the global trends and assess these in parallel with robust activities in the region’s seaport terminals, in addition to the significance of MENA’s continuous expansion, transformation, and infrastructure development.”
THE NATIONAL FRANCHISE EXHIBITION Birmingham, UK October 13-14 www.franchiseinfo.co.uk The National Franchise Exhibition is one of FranchiseInfo's largest exhibitions and amongst the most successful in the franchising sector across the UK.
VISCOM Dusseldorf, Germany October 18-20 www.viscom-messe.com viscom has been the visual communication industries’ leading trade fair in Europe for the last30 years.
20
DMCA Focusses on Maritime Safety Aiming to enhance maritime safety and operational efficiency within Dubai's territorial waters, Dubai Maritime City Authority (DMCA) continues monitoring, inspection and follow-up on the work of floating restaurants.
M
eanwhile the authority is committed to launching periodic educational campaigns to raise awareness about how to ensure compliance with international standards and best practices focusing on effective internal and external communications, fire prevention and control policies. Abdullah Bintoaq, senior director, maritime inspection department, DMCA, revealed, “[…] We are confident that the continuation of inspections and follow-up will push forward the process of organising floating restaurants, which will in turn reflect positively on attracting more qualitative investments supporting the path of economic growth […].”
OCTOBER 2017