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INVESTIGATION: HOTEl ApArTmENTS Hotel apartments have seen a rapid rise in popularity over the past few years, according to hoteliers in the Middle East. Business travel has been a strong contributor to this market, with family holidays also making up solid booking numbers.
Rich in natural wonders, historical treasures and hotels of all classifications, Jordan is an old tourism favourite. However, with a feast of new developments simmering on its Levantine shores, it is also a destination with an eye on the future.
10 TOUr: SOUTH AFrICA Tourism development in South Africa has been heating up since the country won its bid to host the 2010 FIFA World Cup. With little more than six months before the event, the tourism industry in South Africa is now close to boiling point.
InMARKET ThisUPDATE Issue
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NEWS EXCLUSIVE: Cultural Travel VISIT: Jordan INVESTIGATION: Hotel Apartments EXPLORE: Kuwait ONSITE: Syria TRAVEL TALK TRAVEL TIPS TOUR: South Africa WHO’S MOVED RENDEZVOUS LONG HAUL: Uganda & Rwanda NEWS & EVENTS DECEMBER 2009
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2 3 5 6 10 12 14 16 17 18 20 21 22 24
VISIT Jordan
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TRAVEl TRADE WEEKlY Deputy Editor Laura Warne Journalist Louis Dillon Savage
Gulf Air’s Structural review produces Commercial Viability Strategy Bahrain’s flag carrier Gulf Air has announced a strategy to become commercially sustainable by 2012.
Design & Layout Elina Pericleous
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Sales & Marketing Joy Hadjivarnava Jane Davidson Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +35722820888 Fax: +35722318958 Website www.traveltradeweekly.travel Emails info@traveltradeweekly.travel editorial@traveltradeweekly.travel sales@traveltradeweekly.travel Printed in Cyprus Cyprint Plc P.O. Box 58300 CY-3732, Limassol Cyprus Tel: +35725720035 Fax: +35725720123 Email: cyprint@cytprint.com.cy
he company has flagged changes to its fleet, new destinations and possible redundancies as part of the three year programme. Following a three month structural review, the new strategy was announced by Talal Al Zain, chairman of Gulf Air, on November 23. Al Zain said the company had a clear mandate: to build an efficient, commercially sustainable and dynamic airline. “At the moment Gulf Air relies on significant government support, spending far more than it earns,” said Al Zain. “This is clearly unsustainable and the funds could be invested into other important areas of the national economy.” The strategy will focus on three core areas. Firstly, a more focused international network, including expansion into more than 20 new destinations across the Middle East, Africa, Asia and Europe. Up to 15 existing routes will be suspended and a number of unprofitable stations will be closed, including Shanghai, Hyderabad and Bangalore. Secondly, new products innovation, including inflight entertainment and onboard amenities, will be introduced to improve customer satisfaction. Finally, Gulf Air will invest in efficient aircraft, creating a fleet of long-range, narrow-body aircraft and regional jets. The airline is negotiating with manufacturing partners to align its current aircraft order with the
new strategy. Gulf Air will also consider selling five of its A340s and disposing of other excess aircraft. The three year strategy will be conducted in two phases: the first will focus on realigning the existing network to match market demand, while the second will push the airline into new markets, supported by the introduction of new products and services.
Some redundancies may be inevitable Al Zain estimated that the programme would save the Government of Bahrain up to BHD1 billion (USD2.65 billion) over the next five years. “If we do not implement the programme, Gulf Air will continue to be an unacceptable burden on the national economy,” he said. Samer Majali, CEO of Gulf Air, admitted that the company would significantly resize its workforce in line with the new strategy. “This will be done through natural attrition, retirements, the ending of contracts and other associated measures,” said Majali. “Some redundancies may be inevitable, in which case we will aim to redeploy individuals elsewhere within the company, but our priority will always be on retaining the best and most productive talent, safeguarding the jobs of Bahraini nationals and expats who continue to work hard for Gulf Air’s long term success and future.”
MENA Exchange Rates Accurate as of 24/11/2009 Currencies shown in red are fixed against the US Dollar COUNTRY UAE (AED) Egypt (EGP) Saudi Arabia (SAR) Lebanon (LBP) Bahrain (BHD) Jordan ( JOD) Syria (SYP) Kuwait (KWD) Qatar (QAR) Oman (OMR) Tunisia (TND) Morocco (MAD) Iran (IRR) Yemen (YER) Algeria (DZD) Libya (LID)
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CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar
1USD= 3.67 5.45 3.75 1501 0.37 0.7 46 0.28 3.64 0.38 1.29 7.63 9930 205.5 72.22 1.2
DECEMBER 2009
Wyndham Expands Into Middle East with Two New Properties Wyndham Hotel Group has expanded into the Middle East, with two hotels set to open in the next two years. The company will operate the first Wyndham brand hotel in the Middle East, to open in Riyadh, Saudi Arabia in 2011. The 210 room, 15 storey property will be the first hotel in the King Abdullah Financial District and will be developed by the Rayada Investment Company in Riyadh. Eric Danziger, president of Wyndham Hotel Group, said the new property would boost Wyndham’s global profile among travellers and developers. “The Middle East is the logical next step for the Wyndham brand’s growth and we are excited to fill a need in one of the most important destinations in the region and in the world,” said Danziger.
Iran Reaffirms Tourism Priorities
The group also has plans to bring the Ramada Encore brand to the Middle East, with a property expected to open in Doha, Qatar in the second quarter of 2010. The property will be Wyndham Hotel Group’s
first managed Ramada Encore property. Ramada Encore hotels cater to business and corporate travellers, making it an excellent fit for Doha, the economic centre of the country,” said Danziger. Wyndham will partner with Regency Group Holding on the property. While adhering to Ramada Encore brand standards, the property will be modified for the Middle East by featuring larger guest rooms and bathrooms, closed wardrobes, flat screen televisions and parquet flooring. Ibrahim Ai Asmakh, president of Regency Group Holding, said he expected the property to be a success as there was a shortage of budget and midscale hotel products. Wyndham Hotel Group currently comprises 7,000 hotels under 11 brands in 65 countries.
Marriott Reopens Agent Website Following a recent revamp of the brand’s consumer portal, Marriott’s website for travel agents has also been reworked. The changes, announced November 23, include simplified utilities for arranging agent discounts, personalised logins and the ability to view commission statements online. According to Marriott, the website has been designed in response to ongoing feedback from travel agents using the site. Marriott also announced that the website would improve travel agent support by streamlining workflow for the company’s intermediary care team.
The Iranian Government has emphasised the significance of tourism to Iran, highlighting its investment figures and development plans. Hamid Baqaei, Vice President of Iran, recently reported government tourism investment totalling IRR235 trillion (USD231.7 million) in 2009. Baqaei stated that the development of tourism in Iran was a national agenda and was taken seriously by the government. The Iranian Government has 250 tourism model zones currently under construction and has approved a total of 1,128 zones. DECEMBER 2009
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Emirates to Tokyo Emirates will launch direct services to Tokyo, Japan in March 2010. The new flights will bring Emirates’ international destination list to 102 destinations, following new flights to Durban and Luanda in late 2009. Emirates currently operates daily services to Osaka, Japan. As of March 28, 2010, Emirates will fly to Tokyo five times a week. The company’s partnership with Japan Airlines will be expanded to include a code share on the new services. With 300 Japanese companies currently operating in Dubai, Emirates expects to capitalise on the visiting friends and relatives market, as well as business and leisure travellers and cargo.
Qatar’s Integrated Rail Network to Improve Travel Qatar is moving ahead on plans to integrate its national railway network to improve transportation for residents and travellers to the country. A joint venture between Qatar Diar Real Estate Investment Company and German-based Deutsche Bahn AG was signed on November 22 to create the Qatar Railways Development Company (QRDC). QRDC will develop and integrate Qatar’s rail network, including metro systems, long distance
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passenger travel and freight transport. Ghanim Bin Saad Al-Saad, managing director of Qatari Diar, said the project would revolutionise the ease with which people travel throughout Qatar and beyond. “We are committed to advancing Qatar’s forward-thinking goals of becoming a first class state that provides a high standard of living for all its residents and is an international destination for industry and tourism,” he said. The project is expected to run until 2026, with
the majority of work to be completed by 2022. The 40km causeway planned to connect Qatar to Bahrain is also back on track, according to Jaber al-Mohannadi, general manager of the QatarBahrain Causeway Foundation. Construction on the causeway was scheduled to start in 2009, but the project was delayed by the addition of rail lines. Al-Mohannadi said construction would begin in the first quarter of 2010, with a completion date of 2015.
DECEMBER 2009
Cultural Travel Whether focused on luxury accommodation or shoestring adventures, cultural tourists are potential clients for any travel business.
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ources agree that Europe is the main market for cultural tourism, but recent developments indicate a growing interest within the Middle Eastern market. The number of countries that have combined their tourism and antiquities ministries demonstrates the significance of the culturetourism synergy within the region. Jordan, Saudi Arabia and Fujairah have all
Qasr al Sarab Exterior
Qasr al Sarab Interior DECEMBER 2009
consolidated their tourism and heritage departments, while Sharjah has repeatedly declared the significance of cultural tourism to its development plans. According to Mohamed A Al Noman, director general of the Sharjah Commerce and Tourism Development Authority, cultural tourism accounts for 37 percent of travel worldwide, a figure that is growing by 15 percent annually. Art Pedersen, programme specialist for the UNESCO World Heritage tourism project, said that cultural travel could play an important part in preserving heritage attractions, as well as stimulating the economies of the countries that house them. However, he indicated that there remained a deficit of expertise when it came to managing the sites. “What you will often see is that the areas that could most benefit from cultural attractions are lacking in the expertise to make links to the tourism industry,” he said. “There needs to be a synergy between public and private interests in order to benefit the local communities and preserve the sites.” Rather than merely viewing artifacts, tourists are increasingly looking for hands on experiences and cultural tourism is crossing over with leisure and luxury travel, Pedersen said. “This is being reflected in the add on tours that are starting to emerge, where travellers might sit on the beach in Tunisia, but also get into the back country to see something new,” he stated.
Pedersen also emphasised the importance of good site management, pointing to an increase in world heritage literacy leading to higher tourist expectations of heritage sites maintenance . Cultural heritage tourists are a higher spend demographic, according to Pedersen, making cultural tourism a lucrative market for any destination to pursue. A series of luxury developments with cultural emphases have sprung up across the MENA region, seeking to attract the interest of high spend cultural aficionados. Examples include the new desert camp themed Banyan Tree Al Wadi, opening in Ras al Khaimah and Qasr al Sarab by Anantara Hotels and Resorts, which stands in the emirate of Abu Dhabi on the fringe of the Liwa desert. Qasr al Sarab was developed by the Abu Dhabi Tourism Development and Investment Company as part of the emirate’s 2030 vision. The 2030 plan emphasises culture and environment as pillars of Abu Dhabi’s future development, according to Didier Tourneboeuf, general manager of Qasr al Sarab. Although industry sources generally agree that Middle Eastern travellers play a small part in the cultural sector, Didier said that interest in authentic experiences was growing across all sectors worldwide. He said that the UAE and GCC were core target markets for the concept and that interest had been strong since the hotel launched in October 2009. 5
JoRdAN
Capitalising On Year round Appeal Rich in natural wonders, historical treasures and hotels of all classifications, Jordan is an old tourism favourite; however, with a feast of new developments simmering on its Levantine shores, Jordan is a destination with an eye on the future. Louis Dillon Savage writes
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ordan’s tourism industry is dominated by European travellers, with the vast majority of arrivals originating from Western Europe, according to Fayiz Khoury, deputy managing director of the Jordan Tourism Board. Jordan’s great strength is its status as a year round destination: the country is cool enough to accommodate travellers seeking refuge from the summer heat of the Arabian Gulf, but warm enough to attract European beach goers during the northern winter, according to operators in the country. Despite the global slowdown, Jordan has enjoyed a fruitful year so far, with tourism figures holding steady from 2008, which was the best year for Jordanian tourism in history, according to Khoury. However, spending patterns by travellers in the Kingdom have changed, with interest in budget accommodation ballooning in the last year, particularly in comparison to higher-end options. Compared with 2008, the number of nights spent in one and two star hotels in 2009 increased by 82 percent and 14.6 percent respectively. Three, four and five star hotels declined by 26.7 percent, 12.6 percent and 17.4 percent; in that order. The Jordan Tourism Board is seeking to capitalise on the kingdom’s year round appeal by maintaining a busy schedule of events throughout the year, leading to high expectations for 2010. 6
According to Firas Al Bashir, of the Regency Palace in Amman, upcoming highlights include the SOFEX military hardware exhibition and the classic car rally in May 2010. Bashir said he expects a booked-out May to have an overflow effect, boosting occupancy from March to June. With an early Ramadan anticipated in 2010, Bashir said that June and July would represent a high season for Middle Eastern travellers, a peak that he expects to be bolstered by the month long Jordan Festival. “There will be concerts and parties which many
Gulf people will travel to attend; they come because they love to dance,” he said. Despite decreased luxury sector occupancy, the Jordanian government is pressing ahead with large scale development plans focused on attracting tourism to the country. A series of Regional Development Zones (RDZ) have been established, in the aim of creating investment friendly areas and expediting development in key regions. Akin to Dubai’s free zones, according to Khoury, the RDZ’s have been granted autonomy over labour issues and licensing and have been DECEMBER 2009
empowered to generate incentives for investment. The scheme is already working, with a development master plan established for the Dead Sea zone and two large-scale, mixed use developments ready to go in the Aqaba area. One of these developments, which Khoury described as a new city, is the Marsa Zayed, which when complete will comprise six million square metres of built space. The USD10 billion project, which has been contracted to Abu Dhabi’s Al Maabar company, includes a new port, cruise terminal, shopping malls, beach clubs and branded hotels. The first stage of Marsa Zayed is expected to be completed by 2013.
A similar but smaller development is being undertaken in Aqaba by Saudi Oger, in conjunction with Saraya Holdings of Jordan. Set to begin construction in 2010, the Saraya Aqaba will surround Aqaba’s lagoon and include a beach club, restaurants and a traditional souq, alongside a cluster of upscale residences and hotel developments. Jumeirah is heavily involved with the project and will open three new hotels on the site, as well as unveiling their first Wild Wadi water park outside Dubai. Hotels by Jumeriah will include: Al Qala’a, with 315 guestrooms, including 55 suites; Qasr Al Aqaba with 250 guestrooms of which 48 will be
suites; and Dar Al Masyaf, comprising 10 private water villas and three on land. The Luxury Collection by Starwood has also contracted for two hotels: the 201 room, 39 suite Al Manara; and the Bab Al Bahar, with 10 water and three land villas. The Westin brand will also represent Starwood, with the Westin Aqaba, planned to incorporate 300 rooms, including 23 suites. Source Market Jordan has grown as a source market over the last year, with 8.8 percent more Jordanians travelling outside the country in the first half of 2009 as in the same period of 2008.
Spa Tourism One of the great assets of Jordan’s tourism industry is the Dead Sea. Promoted as the world’s biggest outdoor spa, the Dead Sea (actually a massive saltwater lake, 400 metres below the level of actual oceans) is steeped in minerals leeched from the bedrock of the Jordan rift valley. These mineral rich waters brim with reputed health benefits, attracting tourists in their thousands to what has become one of the mustvisit attractions of the country. Though in 2008 Jordanians comprised nearly half of the visitors to the site, the location has grown in popularity with international tourists;
DECEMBER 2009
foreign visits to the Dead Sea nearly doubled in 2009, with international travellers making up 74 percent of all visitors. Industry sources say that Dead Sea spa treatments are a requisite for any hotel in Jordan and are particularly popular with Middle Eastern travellers. Firas Al Bashir of the Regency Palace in Amman pointed out that while Middle Eastern travellers are less interested in the cultural attractions of Jordan, the healing waters of the Dead Sea represent a must-have experience for this demographic. An ensemble of spa-based resorts have sprung
up on the shores of the Dead Sea, to cater to those demanding a more opulent experience than slathering themselves with handfuls of mud from the shore. Though focused on the Dead Sea, spa tourism in Jordan is not restricted to this area; resort spas also cluster at the Ma’in hot springs, which produce mineral-rich water similar in composition to the Dead Sea, but at temperatures up to 60 degrees celsius. This abundance of natural spa attractions has launched a satellite industry across Jordan, with hotels in all regions offering Dead Sea spa treatments in house.
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Inbound Traffic
Quick Look: Jordan Currency: Jordanian Dinar ( JOD) Language: Arabic, with English widely spoken Most Popular: Petra Petra is the overwhelming favourite among Jordan’s attractions. More visitors of all nationalities travel to this site than any other. Most improved: Aqaba In 2009 Aqaba saw a 30 percent increase in nights spent, compared to 2008. The town will soon be the site of Jordan’s largest ever development and will see a massive influx of mixed use developments, including luxury hotels and the second Wild Wadi water park.
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“Jordan should be promoted as a hospitable country, with the promise of experiences beyond imagining,” Fayiz Khoury, Jordan Tourism Board Main Source Market: Europe A powerful stream of European travellers comprise Jordanian tourism’s main tributary, however other contributors are growing in importance as flows from the GCC, UK, Egypt, Syria and Lebanon are all expected to increase. MENA Travel Travel to Jordan from the Middle East and North Africa is largely driven by family travel. According to experts, individuals prefer to travel to Lebanon and Egypt in pursuit of the more vibrant nightlife of those countries. Though Jordan’s nightlife is good, said Bashir, it is less liberal than some of its rivals for the party market, and so remains better suited to the family sector. Religious and Cultural Tourism Though European travellers dominate this sector, interest from within the Middle East is growing. Statistics from Jordan’s tourism ministry show a widespread increase of interest in the country’s cultural attractions from Arabian travellers. Khoury pointed out that religious tourism is also a huge market for Jordan and that there was significant crossover with cultural travel; tourists interested in history and culture will often visit religious sites, while pilgrims will usually visit heritage attractions during their stay. Though religious tourism is already a major source of travellers for Jordan, a recent visit by the Catholic Pope is expected to boost the sector even further. The majority of travellers originate in North and South America, Germany, and Poland according to Khoury. However, he said that Jordan was also expecting an influx of interest from religious tourists from Syria, Lebanon and Egypt. Major religious attractions named by Khoury include the purported baptism site of Jesus; and Mount Nebo, where Moses was said to have surveyed the holy land after leaving Egypt.
DECEMBER 2009
HoTEL APARTMENTS
Creating a Home Away From Home Rotana Arjaan dubai Media City
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otel apartments have seen a rapid rise in popularity over the past few years, according to hoteliers in the Middle East. Business travel has been a strong contributor to this market, with family holidays also making up solid booking numbers. Many brands have added apartment facilities to their existing hotel offerings and a range of new developments are in the pipeline. However, some industry sources are still unsure of the continuing success of the hotel apartment sector.
Customer Profile Hotel apartment managers say long term guests will stay for anything from two weeks up to a year, with the majority of guests staying an average of three months at a time. Toufic Tamim, vice president of sales and marketing, Middle East, for Mövenpick Hotels and Resorts, said hotel guests, by comparison, would stay one or two days in a city hotel and five days in a resort. According to Tamim, long stay guests tend to be senior managers, particularly those who are in the city for a specific project or are relocating and need somewhere to stay while looking for permanent accommodation. He added that apartments are also popular with GCC families during key holiday periods. Pam Wilby, general manager of Grosvenor House Dubai agreed, adding that guests to Grosvenor House comprised senior management from multinational companies, individual corporate travellers and regular leisure travellers.
Jumeirah World Trade Centre Residence. 10
Grosvenor House Dubai opened in 2005, with a combination of hotel rooms and apartments. In November, the property was awarded World’s Leading Serviced Apartment Hotel 2009 at the World Travel Awards in London. Wilby attributed the win to a commitment to offering unique service to each guest and a focus on providing premier business services. Selim El Zyr, president of Rotana, said the main market for Rotana’s Arjaan brand of hotel apartments remained UAE guests, followed by GCC travellers. Focus on Facilities “Guests staying in apartments are generally looking for the same basic features that they would get at home: basic cooking facilities
including a fridge, hot plates, cooking utensils and crockery,” said Tamim. “They also prefer to have access to their own washing machine and dryer, preferring not to send all of their laundry to the hotel facilities. “Sizeable units are also a consideration for guests choosing an apartment, as they will likely spend more time within their rooms than the average hotel guest.” Storage space and covered parking were also key features, according to Tamim. Wilby said Grosvenor House Dubai offered very similar services to guests in the hotel and apartment suites, but added that discounts were offered on laundry and F&B for long term guests. Hotel apartments often blur the line between hotels and private residences; Jumeirah has taken DECEMBER 2009
advantage of this niche by providing hotel apartments that can be tailored to individual requirements. At its World Trade Centre Residence in Dubai, Jumeirah Living has employed a lifestyle concierge team to assist residents with shopping, travel arrangements, IT support and domestic services. The team will even alter the interior decor of the apartments (including painting walls, creating a home office or customising children’s rooms) according to the desires of long term guests.
Pam Wilby (left), general manager, Grosvenor House dubai at the World Travel Awards 2009.
DECEMBER 2009
Looking To The Future Despite a raft of new developments throughout the Middle East, many hoteliers are divided on the continuing popularity of hotel apartments. “I don’t necessarily think that hotel apartment buildings will become a regular feature of hotels,” admitted Tamim. “The needs of a hotel guest are entirely different to those of apartment guests and so both buildings perform two different functions.” Tamim added that the demands of individual destinations determined whether hotel apartments were required, and in that respect, the Middle East may continue to see growth in the sector. “A resort destination such as Phuket will have far less need for long term accommodation than a city such as Dubai, for example,” he said. “Guests going to Phuket just need a place to sleep, only for a couple of weeks at a time, and so have no need for a fully furnished apartment.” Wilby said she expected hotel apartments to remain very popular, particularly among business and long term travellers. “We recognise that we have to push boundaries
to keep ahead of the competition and that’s why, despite the economic climate, we have continued with our commitment to build a sister tower to Grosvenor House – The Residence,” said Wilby. “We are planning to open the extension in 2011 and on completion it will comprise 107 hotel rooms and suites, and 216 apartment suites.” Rotana has a range of new Arjaan properties in the pipeline, with nine new buildings planned to open by 2011. Destinations for the new buildings will be Abu Dhabi, Al Ain, Amman, Beirut and Fujairah. Mövenpick currently has seven properties in the Middle East that feature hotel apartments, which accounts for one third of the company’s existing portfolio. Tamim said the changing economic situation would also have an impact on the hotel apartment market in the Middle East. “For the time being there is perhaps an oversupply given the recent downturn, but this will right itself as soon as demand once again rises as it surely will,” said Tamim.
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KuWAIT
Big Business Courts leisure
Government sources and industry experts agree that Kuwait remains a significant source market, but underdeveloped as a destination. Kuwait’s strong currency and relatively few recreational options limit the country’s appeal as a leisure destination, which leaves the majority of tourism to business travellers drawn by the country’s powerful economy. Louis Dillon Savage writes
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ccording to consulting group Euromonitor, the majority of leisure visitors are from nearby countries or are family and friends visiting expatriate residents in Kuwait. Figures cited by tourism authorities in Kuwait show that a large majority of Kuwaitis prefer to leave the country for vacation purposes; as a result, business tourism dominates the market.
using Kuwait as a transitional destination, he said. Other sources of interest include the financial sector, development companies and the import/export industry. Kuwait’s strength as an international investor also lures developers searching for prospective backers, Saleh said.
Kuwait in Brief Capital: Kuwait Currency: Kuwaiti Dinar (KWD) Language: Arabic, with English widely spoken
Business is Booming According to Dori Saleh, executive assistant manager of the Mövenpick Kuwait, nearly 75 percent of all tourism in Kuwait is business based. Business tourism is in turn dominated by the MICE sector, with Saleh adding that 45 percent of total occupancy is supplied by MICE bookings. Military delegations are also an extremely important category for the country, with firms 12
DECEMBER 2009
Closer to Home Kuwaiti authorities have declared an interest in retaining domestic tourists and have initiated a series of developments intended to maximise the country’s appeal to resident leisure travellers. The government has also stated an interest in repositioning Kuwait as an inbound destination for GCC travellers, with a strong emphasis on family travel, meetings and exhibitions. To this end, Kuwait is undertaking a series of massive infrastructure projects, including Sabah Al Ahmad Future City and Madinat Al Hareer (City of Silk). Madinat al Hareer will be a 250km² mixed use development, featuring residential and commercial areas as well as a stadium, hotels and other leisure facilities. Similarly mixed use, Future City will accommodate commercial, hospitality, residential and recreational businesses within its 35km² bounds. Maintaining a continuous schedule of openings, the country is also seeing development on a smaller scale. InterContinental Kuwait Downtown and Staybridge Suites Salmiya are both planned to open in Q4 2010. Jumeirah is also planning to open the Jumeirah Messilah Beach in 2010. Al-Jawhara in Kuwait
DECEMBER 2009
Al Hamra Tower
Outward Bound Despite progress in the domestic leisure market, Euromonitor reports that outbound travellers continue to outnumber visitors to the country. According to Euromonitor’s country report on Kuwait, the continued strength of the Kuwaiti Dinar makes the country an expensive destination, however, outbound travel is boosted by the high level of disposable income available to Kuwaitis. With airlines offering a variety of new flight options to and from Kuwait, the growth of outward travel is expected to continue, Euromonitor reported.
Hoteliers Target Locals According to Saleh the ongoing H1N1 virus scarecaused many Kuwaitis to explore domestic options throughout 2009, giving Kuwaiti hotels an opportunity to showcase themselves to domestic tourists. He said that hotels had done a good job of holding the interest of local travellers and he expected to retain the demographic in 2010.
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SYRIA
Finding its Feet Travel agents and tour operators say Syria needs a serious infrastructure boost in order to cater to its growing tourism numbers and continue to attract new visitors. New projects are coming up and operators plan to capitalise on the region’s historic and natural attractions. Laura Warne writes.
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t the opening of the recent Silk Road Festival in Damascus, Dr Saad Allah Agha, Minister of Tourism, reiterated the government’s commitment to tourism and flagged a new project for 2010, designed to stimulate the industry. The minister said a new festival would pave the way for tourists to experience the Silk Road caravan traditions of Syria, with several historical renovation projects on the cards. He added that he expected the number of tourists to Syria to reach six million by the end of 2009, showing a growth rate of 10 percent compared to 2008. May Abido, of Eco Adventure Syria, said the tourism industry in Syria needed to catch up to the country’s growing tourist numbers. “We have seen improvements lately in the market, as well as an increase in the number of tourists,” said Abido. “Yet the Syrian industry still has a long way to go in terms of quality standards, service standards, developing tourism infrastructure and to qualify more locals to serve the market. “This is especially important in terms of the booming business tourism to Syria.” Sumit Acharya, managing director of BCD Travel, said the business travel market was being supplemented by a growing incentive segment. He agreed that Syria’s tourism market was largely defined by its infrastructure and attractions. “Syria attracts tourists (residents and expats) of different nationalities that are interested in the history,” said Acharya. “The introduction of Air Arabia’s direct flights to 14
Aleppo has helped. “Due to the nature of its attractions and infrastructure, Syria probably receives a greater number of budget travellers from this region, when compared with other destinations.” However, Syria also features a range of luxury and business hotels for travellers seeking a more comfortable trip. Coming Up InterContinental Hotels Group has two properties planned for Syria. InterContinental Damascus,
with 392 rooms, is expected to open in 2010. Holiday Inn Damascus, featuring 300 rooms, is scheduled to open in the first half of 2011. Construction also continues on Emaar’s Eighth Gate mixed use project in Damascus, which includes a commercial centre, tourist area and waterfront development. Eco Tourism Underrated According to May Abido of Eco Adventure Arabia, Syria is the perfect destination for eco tourism. However, she admits the sector has a DECEMBER 2009
long road ahead, particularly when it comes to attracting Middle Eastern tourists. “Since Syria has not yet experienced a wave of mass tourism, its sites are still well preserved and relatively undisturbed,” said Abido. “We are trying to generate more interest in eco tourism, which could be an evolution over the current type of tourism in the years to come.” She acknowledged that eco tourism was not a common request of Middle Eastern travellers. “Unfortunately we have very few clients from the Middle East; however we do get a lot of nonMiddle Eastern nationalities who work in gulf countries,” said Abido. “Mainly our clients are from the UK, Sweden, Norway, the US, Canada and Spain.” Abido added that one of the main challenges of operating eco tours in Syria was the lack of appropriate accommodation. “The number of Syrian boutique hotels has increased lately, but they are not a substitute for real eco hotels and eco lodges,” she said. “We try to support family run hotels that make an effort to market their organic or home made products, with a special focus on the culture of local people.
DECEMBER 2009
“We also focus on biodiversity, along with important historical attractions and world heritage sites.” Abido said that while the educational market, including student groups, was still the company’s main source of business, there was promising
interest from private tourists looking for naturebased adventure holidays. To boost sales, Eco Adventure Arabia expanded its services in 2009 to offer tours throughout Syria, Jordan and Lebanon.
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didier Tourneboeuf General Manager, Qasr Al Sarab Desert Resort by Anantara “The experienced travellers today are looking for more than just a relaxing holiday and a sense of discovery and adventure. Our guests love doing things they’ve never done before. They travel looking for an authentic experience by getting insights of the culture, a taste of local cuisine, engage in ancient sports and modes of life; it is about more than just getting a suntan from a holiday – it is about taking home a memory and a story to tell.”
dr Michael Grosspietsch Executive Director, Eos Visions (Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda) “World Travel Market in London looked rather promising because a lot more traffic and interest was around our stands, compared to the previous year. Nevertheless, we are yet to feel the positive impact on the ground.”
It is about more than just getting a suntan from a holiday
Art Pedersen Programme Specialist, UNESCO World Heritage Council “We’re beginning to see real interest, especially from places like China, Japan and Vietnam; people are beginning to use world heritage status as the basis for marketing tours. So tourism can help local communities, but the paradox is that while developing nations are often the most dependant on heritage sites for revenue, there remains a large gap in the management experience required to take advantage. There are an increasing number of sites that are run with more dialogue with the tourism industry, but better cooperation is required between conservationists and private interests across the board.”
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 16
DECEMBER 2009
Time to Clean Up Your Toolkit
Accurate demand forecasting, optimal pricing setting and parity across all selling channels is fundamental
Guy Barnes, major account manager for EAME, IDeaS Revenue Optimisation, highlights the importance of revenue systems: “Quite simply, hotels need to make sure that they have a sufficient tool set in place now. Despite the so-called green shoots, the return of confidence and economic growth is likely to be slow and drawn out through 2010. As a hotel, do you have the tools to make sure that you are maximising every revenue opportunity today? Accurate demand forecasting, optimal pricing setting and parity across all selling channels is fundamental. Make sure that you have tools that will allow you to react to the first sign of change and above all make sure that you have skilled people in place to make the right revenue management decisions. Companies that react late in a downturn typically overreact, often at great expense and find themselves in the position of playing catch up with the competition.” Barnes added that slashing prices is not the answer. “You will find that hotels that have previously dropped their rates most will find it hardest to recover to the level that they were previously selling at – a lesson borne out time after time, but seemingly hard to learn!”
Brand Together Government tourism bodies spend millions promoting their countries every year; Gloria Mattar, business director of the BrandCentral consulting firm, says that symbiotic branding is the key to success. "The economic meltdown has perpetuated a myth within the hospitality trade that players offering the cheapest offerings will survive. This is not true; rather, those who are better branded will be the ultimate victors. Branding provides hospitality businesses with the visibility, recognition and uniqueness they need to attract a constant flow of customers and secure loyalty. Harmonising with national promotional programs brings even more opportunities to the table as it creates a cooperative approach to development."
Harmonising with national promotional programmes brings even more opportunities to the table as it creates a cooperative approach to development.
Stay Informed The H1N1 virus has swept the globe, and despite waning media attention, continues to impact the tourism industry. Though the virus remains mild, uncertainty as to its future development remains. The United Nations World Tourism Organisation had this advice for the travel industry: “Nowadays, travel and tourism are widespread social and global phenomena that affect many more sectors than when the last pandemic occurred, more than 40 years ago. Thus, even if the virus continues to be as mild as it currently is, when combined with the economic crisis and the next wave of the pandemic, the sector will have to deal with more challenges in terms of business continuity. The sector needs to stay vigilant and monitor the situation closely.”
The sector needs to stay vigilant and monitor the situation closely DECEMBER 2009
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SouTH AFRICA
preparing for Kick-Off
Tourism development in South Africa has been heating up since the country won its bid to host the 2010 FIFA World Cup. With little more than six months before the event, the tourism industry in South Africa is now close to boiling point. Laura Warne writes
A
ccording to Sumit Acharya, managing director of BCD Travel, South Africa is an attractive destination for Middle East tourists, offering a combination of safaris, luxury travel, culture and natural tourist attractions. “Cape Town and its neighboring areas is a significant attraction,” said Acharya. “Also, the introduction of Emirates’ non-stop flights to Durban serves as an added attraction [for the Middle East market].” The new daily Emirates flights to Durban recently joined the airline’s existing daily flights to Cape Town and Johannesburg. Emirates is also offering a number of tailor-made travel packages for the 2010 FIFA World Cup, which include flights, accommodation, ground transportation and World Cup tickets. 18
Representatives from Emirates said the company would be announcing further incentives and sponsorship activities closer to the event. Acharya said the World Cup would certainly create more awareness about South Africa as a destination, resulting in increased travel in the future. However, he added that travellers would be very wary of costs increasing during the event. Speaking at WTM, Danny Jordaan, CEO of the
2010 FIFA World Cup Organising Committee South Africa, said the country had anticipated the event’s diverse audience with a range of accommodation options. “As well as the hotels (including more than 30 new world class facilities) there will also be low cost bed and breakfast as well as student accommodation options available,” said Jordaan. “We are more than ready to host all the fans during
FIFA World Cup 2010 As the host of the 2010 World Cup football tournament, South Africa is firmly seated on the world tourism stage and tourism authorities expect an influx of travellers to the region. Five new stadium venues were announced for the event, at a cost of R5.6 billion (USD737.4 million); a further R1.95 billion (USD256.7 million) was invested in upgrading five existing venues. World Cup games will be held in Cape Town, Durban, Johannesburg, Mangaung/Bloemfontein, Nelson Mandela Bay/Port Elizabeth, Nelspruit, Polokwane, Rustenburg, and Tshwane/Pretoria. The tournament will run from June 11 to July 11, 2010. DECEMBER 2009
Infrastructure underway the 2010 World Cup and hopefully thereafter they will return as tourists without their teams. “The World Cup will offer visitors a chance to explore the country’s attractions and major tourism spots and allow the world to get to know and appreciate South Africa and the continent better.” Jordaan pointed to the 140 major sporting events that South Africa has hosted in the 15 years past as evidence of the country’s capability. Sue ver der Merwe, International Relations and Cooperation Deputy Minister, added that the event was expected to attract South African expats working in other parts of the world, including the Middle East.
Zimbali Lodge
Zimbali Lodge DECEMBER 2009
Infrastructure projects are underway across South Africa in preparation for the expected influx of tourists, both during and after the World Cup. Construction is continuing on a new airport at La Mercy, north of Durban, which is expected to open in early 2010. The new facility will eventually replace the existing Durban International Airport, however, South African Transport Minister Sibusiso Ndebele said both airports would remain open during the World Cup to cater for the additional traffic. Bloemfontein Airport has opened a new terminal as part of a R46 million (USD6.1 million) project that also includes a hotel and realignment of roads. The project is expected to be complete in January 2010. Cape Town International Airport unveiled its new R1.6 billion (USD2.3 million) , five storey central terminal building in November. The new 50,000m² facility features 120 check-in counters and 20 self-service check-in machines. The airport’s retail facility also increased from 44 retailers to 74. A road network upgrade around the airport is still underway, with completion expected in March 2010.
Hotel Developments A raft of new hotel openings are slated for the opening of the World Cup and beyond, with tourism expected to continue well after the event. Taj Hotel’s first African property is opening in Cape Town in December, along with the first Jiva Spa in Africa, offering traditional Indian spa treatments. Taj Cape Town features 155 heritage rooms, tower rooms and suites; 12 fractional suites; 10 sectional apartments; and one presidential suite. Coral International is also expanding into South Africa in December, with Coral International – Cape Town. The Coral brand caters well for Middle Eastern tourists, offering an alcohol-free environment and halal-certified meals. The new property features 137 rooms and suites, plus facilities for both business and leisure travellers. Fairmont Zimbali hotel is set to open in the first quarter of 2010, as part of the existing Zimbali Coastal Resort. Fairmont Zimbali will feature a five star hotel, conference facilities, a Willow Stream Spa, beach club and private residence club. The Fairmont Residences will include designer apartments, hillside villas and beachfront villas. A Gary Player Signature Golf Course, country club and golf academy are all expected to open later. Further development plans include the Zimbali Office Estates and Zimbali Lakes. InterContinental Hotels Group (IHG) has two Holiday Inn Express properties opening in South Africa. Holiday Inn Express Durban, Umhlanga Ridge, will open in 2010 with 200 rooms. Holiday Inn Express Cape Town, Hout Bar Harbour, will open in 2011 with 123 rooms. 19
Cristalyn Pastrana
Heinz Krähenbühl
Cristalyn Pastrana has been appointed as the new communications manager for Mövenpick Hotel Bahrain. Her previous roles included executive administration assistant and sales coordinator for the hotel. Pastrana also has experience as the public relations coordinator for Mövenpick Resort and Spa Dead Sea in Jordan.
Heinz Krähenbühl has been appointed as general manager for Mövenpick Hotel Bahrain. He was previously general manager at Mövenpick Hotel Kuwait. Krähenbühl holds a masters degree in hotel management and has worked in Switzerland, Russia and Singapore. Within the Middle East, he has experience in the UAE, Beirut, Jordan, Lebanon and Kuwait.
Matthias Al-Amiry Rosewood Hotels and Resorts have appointed Matthias Al-Amiry as hotel manager for the Al Faisaliah Hotel in Riyadh. Al-Amiry has 23 years of international hospitality experience across Europe, Asia and the US and has held managerial positions with hotels such as Ritz-Carlton and Raffles.
Walid Mehiri Radisson Blu Residence, Dubai Marina has appointed Walid Mehiri as director of sales and marketing. Mehiri holds a master certificate in hospitality management and has 14 years of experience in four and five star properties for several international brands. His most recent position was director of sales and marketing at Swiss Belhotel International Dubai.
Iftikhar Hamdani Ramada Hotels and Suites Ajman has appointed Iftikhar Hamdani as director of sales and marketing. Hamdani has more than 15 years in the hospitality industry, having worked with Pearl Continental Hotels in Pakistan and Coral Hotels UAE. Hamdani plans to focus on developing an aggressive marketing campaign to build brand awareness in the region. 20
david John Chapman The UAE-based General Civil Aviation Authority (GCAA) has appointed senior safety veteran David John Chapman as a senior safety advisor. The appointment is designed to further develop aviation safety systems and standards across the UAE. Chapman previously worked as group director of the Safety Regulation Group (SRG) of the UK Civil Aviation Authority (CAA). He has more than 30 years of experience in the aviation industry. DECEMBER 2009
Q&A with Daniel mathew Daniel Mathew is the general manager of the Rose Rayhaan by Rotana – the world’s tallest hotel. Here, he lays out his pre-opening plan, strategies to combat competition and expectations for the hotel. Mathew also discusses the decision to open the world’s tallest hotel under the alcohol-free Rayhaan brand.
Travel Trade Weekly: The opening of the Rose Rayhaan by Rotana has been announced for December. Is this just phase one – how long until the hotel is fully operational? Daniel Mathew: Mid December will be the soft opening of Rose Rayhaan by Rotana and within 20 days from that date, the hotel will have full operation.
Travel Trade Weekly: How do you think the alcohol-free concept will affect the success of the hotel? Do you expect to attract guests based on this feature? Daniel Mathew: Rayhaan properties are a breath of fresh air with their modern design complementing the values of Arabian culture. To our valued patrons, Rayhaan brings an alternative which is uncompromising, not only in respecting the guest but also in its delivery of world-class standards true to the existing reputation of Rotana. Rose Rayhaan by Rotana will certainly attract GCC business and leisure travelers in addition to families during the weekends; especially with an alcohol-free policy and top floors dedicated to suites and penthouses. However, due to its strategic positioning, the property is largely focused on business and corporate travelers.
Travel Trade Weekly: Will the hotel focus specifically on attracting Middle Eastern travellers? Daniel Mathew: We are targeting the very high percentage of the clientele originating from this part of the world from different segments, including corporate and leisure, who do not see alcohol as a requirement whenever they travel. DECEMBER 2009
Travel Trade Weekly: What pre-opening promotional activities are underway? Daniel Mathew: We have massive marketing activities in place during the pre-opening phase in order to meet the opening deadline. We have already started our visits to the GCC market and the feedback received there was very positive. Fortunately, we have already started receiving bookings for 2010 from the different online channels. We have unique products with the right pricing, the right strategy and most importantly the right team to market them. We’re the only hotel chain that believes in a national sales office. Sales and marketing efforts are centrally coordinated through our corporate office in Abu Dhabi and delivered to target audiences around the world through a network of area sales offices and outbound sales offices located in Abu Dhabi, Beirut, Cairo, Dubai, Frankfurt, Kuwait, London and Saudi Arabia.
Travel Trade Weekly: How will the hotel combat competition and ensure solid occupancy rates? Daniel Mathew: We are very alert as to what's going on in the market, what our competitors are doing, and we listen to our customers. We need to continue the long term relationships we have with a lot of the corporate accounts and be sensitive when it comes to their needs and requirements, such as budget constraints, due to the economic downturn. We can have some form of flexibility in pricing but it has to be done as a partnership to help us through the short term and get us back to where we were before. We are forecasting an average occupancy of 75 percent in the first quarter of 2010. The preopening rate for Rose Rayhaan by Rotana, which will be around AED400, will be launched in December.
Travel Trade Weekly: How long do you expect to hold the crown of world's tallest hotel? Daniel Mathew: We are more focused on providing the best services and maintaining the Rayhaan name in the region. Once a new hotel takes our place, we will still be one of the tallest hotels in the world! 21
uGANdA & RWANdA
Beyond the Year of the Gorilla Uganda and Rwanda are still emerging destinations for the Middle Eastern tourist market, but operators say the countries offer private luxury holidays and unique destinations for MICE tourism.
T
he international 2009 Year of The Gorilla initiative prompted a renewed focus on eco tourism in Uganda and Rwanda, with several Hollywood starlets flocking to the region in an effort to raise awareness. Both countries have also boosted their presence at recent trade shows, including WTM, however Tony Ofungi, senior tourist information officer with the Uganda Tourism Board, admitted there had been no conscious effort to promote the region in the Middle East. He said that many operators in Uganda were more focused on targeting existing source markets, such as the US and Europe. Several UAE-based travel agents agreed that there were very limited numbers of Middle Eastern tourists booking trips to Uganda and Rwanda, adding that the region mainly appealed to serious nature enthusiasts. However, Ofungi said that with an increase in MICE tourism facilities, a strong luxury sector and growing interest from Middle Eastern investors, there was new potential for the Middle East market. Hitting Critical Mass Ofungi said the 2007 Commonwealth Heads of Government Meeting, held in Uganda, inspired a much-needed increase in accommodation options. “We couldn’t have hosted an event of that size without a building boom,” said Ofungi. “I think we have now reached critical mass in terms of accommodation.” These facilities have now led to an interest in targeting the international MICE market. “For the business market, Uganda offers something different that is unlike the traditional MICE destinations,” said Ofungi. “This could also affect the Middle Eastern market; we have investors in the Middle East that have shown interest in the hotel industry in Uganda.” Ofungi said the tourism industry was improving in Uganda, with visitor arrivals increasing yearly; 2008 saw 840,000 arrivals and Ofungi said that number was up again in 2009. 22
Neighbourly Cooperation Rwanda and Uganda share more than just a border, according to Ofungi. “We share natural resources really, because gorillas don’t take any notice of borders and will roam between the two countries,” he said.
He added that it was common for tourists to book holidays spanning the two countries, with a focus on gorillas in Rwanda before heading to Uganda for the other big five safari animals (the lion, leopard, elephant, rhinoceros and buffalo). DECEMBER 2009
Less is More Ofungi said that despite promoting the country at major exhibitions such as WTM, the tourism board was not looking for mass tourism. “We are more interested in sustainable, eco tourism,” he said. “In the long term, mass tourism is not worth it, even though it may bring in revenue. The selective luxury and eco tourism markets attract a smaller number of discerning travellers. “However, we do not ignore the budget market; there are facilities available for everyone and budget travellers help to spread the word about Uganda.” Ofungi said luxury lodges and resorts were able to generate high revenues without relying on large amounts of traffic, leading to a low impact on the natural environment. Coming Up Rwanda is working on several new experiences for tourists in 2010, including a canopy walk in Nyungwe forest; a high-end 20 seat leisure boat for tourists; a three day walking trail along the Congo Nile Divide in Nyungwe; and Kwita Izina 2010, an annual Rwandan ceremony of naming a new born baby gorilla. In Uganda, Serena Hotels recently expanded its offering with the acquisition of a new resort property to complement its existing five star city hotel, The Kampala Serena Hotel. DECEMBER 2009
The new Lake Victoria Serena Resort was partly opened in October, but facilities including an 18hole golf course and marina attached to the resort are currently under construction. The new facilities are expected to open by the end of 2011. Dr Michael Grosspietsch, executive director of Eos Visions, a destination and event management company operating in Uganda and Rwanda, added that existing hotels were
revamping their offerings. “Most of the top hotels in Kigali [Rwanda] are currently undergoing major renovations,” said Grosspietsch. “The Kigali Serena Hotel has just finished the first phase and has opened, among others, a world-class Maisha Spa. “The Mille Collines has also just reopened a newly renovated wing and is now working on the other wing.”
Best in Show Rwanda boosted its presence at WTM in November, more than doubling its 2008 stand size to 100m². Extra training was given to the tour operators in order to maximise their presence at the trade fair. The initiative paid off, with Rwanda taking home the WTM prize for Best Stand Personnel.
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Wataniya’s Frequent Flyers
Global Village opens for Festive Season
Kuwait based Wataniya Airways has launched a frequent flyer programme, Wataniya Diwan. The loyalty programme consists of three membership levels: purple, silver and gold. The airline also offers family memberships; guests can enrol up to eight family members, including domestic employees.
The Global Village entertainment precinct in Dubai re-opened its gates on November 22 and will operate until February 27, 2010. The season is designed to coincide with Eid, National Day, Christmas and the February retail season. The 14th edition of the Global Village event will include 31 pavilions, featuring 45 different cultures. Mondays are reserved for families only.
Events Luxury Travel Expo Las Vegas, USA, Dec 1-3 (www.luxurytravelexpowest.com) Exhibition for luxury travel professionals. EIBTM Barcelona, Spain, Dec 1-3 (www.eibtm.com) Global event for the meetings and incentive industry.
Moroccan Travel Market Marrakech, Morocco Jan 14-17 (www.mtm.ma) International fair for tourism professionals. FITUR Madrid, Spain, Jan 28 - Feb 2 Spanish travel show targeted to business travel market.
Sportex Middle East Exhibition Dubai, UAE, Dec 6-8 (www.sportexmiddleeast.com) International event for the sports, fitness, health and leisure industries. International Luxury Travel Market Cannes, France, Dec 7-10 (www.iltm.net) Annual business-to-business event for the global luxury travel community. Nation Branding Seminar Dubai, UAE, Dec 10 (www.nationbrandingevents.com/nationbranding/middle-east) Advising governments on ways to better manage investment, tourism, trade and talent. Travel Turkey Izmir Izmir, Turkey, Dec 10-13 (www.travelturkey-expo.com) Travel Turkey Izmir Tourism Fair and Conference.
Middle East Exclusive 2010 Dubai, UAE, Feb 2-4 (www.middleeastexclusive.com) Luxury brand and travel retail exhibition. SME Expo and Conference 2010 Dubai, UAE, Feb 2-4 (www.smeexpo.com) Exhibition and conference for small and medium enterprises. EMITT Istanbul Istanbul, Turkey, Feb 11-14 (emittistanbul.com) Exhibition for travel professionals in the East Mediterranean and Eurasia. Gulfood Exhibition 2010 Dubai, UAE, Feb 21-24 (www.gulfood.com) Food and beverage exhibition.
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DECEMBER 2009