Middle East and North Africa Edition
EXPLORE: GREECE Greece has historically been a firm fixture in the top five European tourist destinations, with operators priding it as a country that sells itself. However, a recent economic meltdown and subsequent civil unrest have jeopardised the tourism industry, which accounts for more than 15 percent of the country’s GDP.
Just as Makkah and Madinah serve as the beating heart of the Islamic world, so too to do the holy cities drive the lifeblood of the Saudi tourism industry. Beyond the millions of pilgrims drawn each year to pray, the cities act to anchor Saudi Arabia to the world — and draw the world’s eyes to the desert kingdom.
10 EXCLUSIVE: BRAND TRAVEL Hotel rating systems can vary wildly across the Middle East alone, not to mention the rest of the world. With the traditional star classification under constant threat of becoming obsolete, hotel companies are instead placing emphasis on well known brands to attract customer loyalty and repeat business.
12 In This Issue MARKET UPDATE INVESTIGATION: Ecosystem Threats VISIT: Saudi Arabia EXPLORE: Greece EXCLUSIVE: Brand Travel ONSITE: Indonesia TRAVEL TALK TRAVEL TIPS TOUR: Germany LONG HAUL: San Francisco WHO’S MOVED RENDEZVOUS NEWS & EVENTS
JULY 2010
ISSUE 9
2 4 6 10 12 14 16 17 18 20 22 23 24
VISIT
Saudi Arabia
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TRAVEL TRADE WEEKLY Deputy Editor Laura Warne Journalist Louis Dillon Savage
Liberty Investment Company, the UAE master franchisee for Budget Rent-a-Car has furthered its expansion plans in Abu Dhabi, targeting substantial growth in new business from the emirate over 2010.
Design & Layout Elina Pericleous Sales & Marketing Jane Davidson Marianna Tsiamas Evelina Hadjigeorgiou
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Budget Rent-a-Car Targets 25 Percent Growth With Latest UAE Expansion he company’s latest outlet has Both Dubai offices are expected to open in recently been opened at Abu Dhabi September, 2010. International Airport’s Skypark Plaza – a specialist car parking and services facility. Salim Damji, senior general manager of Budget in the UAE, said the company was continuing with a nationwide expansion plan. “Budget’s successful bid in acquiring strategic space in the Skypark Plaza is a major development that will significantly contribute to boosting our revenues in the emirate of Abu Dhabi,” said Damji. “With this move, we anticipate a 25 percent growth in business in the capital during 2010.” He added that Abu Dhabi was a key focus area for the company, which currently has a network of 14 outlets in the UAE. Two new offices are also on the way in neighbouring Dubai – one at Dubai Marina and another at Burj Khalifa Downtown. Salim Damji
We anticipate a 25 percent growth in business
Oman Air Cements New Partnership With Bank Muscat
MENA Exchange Rates Accurate as of 22/6/2010 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 5.68 3.75 1501 0.37 0.70 46.91 0.29 3.64 0.38 1.51 8.97 1090 226.19 74.83 1.32
Oman’s national airline, Oman Air, has signed a memorandum of understanding (MoU) with Omani financial services provider, Bank Muscat. The MoU is the first step towards a range of initiatives that are expected to include a cobranded credit card, extension of Oman Air’s Sindbad loyalty programme to credit card holders, Oman Air self-service kiosks in Bank Muscat branches and a series of joint marketing ventures. The agreement is the latest in a string of partnerships that Oman Air has sought with global businesses, including Hertz and Rotana. Abdulrazaq Al-Raisi, general manger of worldwide sales for Oman Air, said the partnership would offer customers the very best in both air travel and financial products and services. “Bank Muscat is an ideal strategic partner for Oman Air and together we look forward to creating new opportunities, accessing new markets and delivering even greater value,” he said. Bank Muscat has assets worth more than USD15
billion. The bank has 125 branches, a 49 percent stake in Bahrain’s BMI Bank BSC and a 43 percent stake in Mangal Keshav Group.
Bank Muscat is an ideal strategic partner for Oman Air
Sulaiman Al Harthy, group deputy general manager of consumer banking at Bank Muscat and Abdulrazaq Bin Jumaa Al Raisi, general manager of worldwide sales at Oman Air JULY 2010
- Ecosystem Threats
Last Resort: Tourism’s Impact in the Middle East The existence of large populations in the harsh natural environments of the Middle East has fostered marvels of technical achievement: in bringing luxury to the desert, Middle Eastern engineers have triumphed over the inhospitable state of the region. However, when confronting environments already at extremes, such dominion is not without its price. Louis Dillon Savage writes
E
cosystem threats in the Middle East can be largely traced to a single cause: the influx of large numbers of people to an environment unsuited to supporting them. Many of the problems faced by Middle Eastern environments are caused by the infrastructure and systems that have been adopted to support a large population at high standards of living in an extreme environment. Tourism is a leading contributor to demand for these amenities, with tourism visitors to the UAE alone outnumbering permanent residents by more than two to one. The region’s focus on luxury travel is particularly affecting – with a harsh environment as a baseline, the cost of comfort is necessarily raised. From the quarrying of construction materials for high rise hotels, to unregulated camping in delicate wadi ecosystems, tourism affects the environment in diverse and often indirect ways. Seaside Dense coastal developments have impinged on marine and intertidal ecosystems, monopolising and changing land once used by a range of creatures. According to the United Nations Environment Programme (UNEP), seaside resorts are often constructed with inadequate reference to environmental principles. Construction impacts include the direct 4
destruction of underwater habitats by land reclamation and ongoing disruption caused by suspended sediment and other industrial waste, in addition to damage to coral by recreational divers. The coastline around Jeddah has been identified as particularly degraded, due to overexploitation motivated by Saudi Arabia’s relatively short Red Sea coastline. Already damaged, underwater ecosystems are further pressured by the high demand for fish to feed growing populations. Dr Christophe Tourenq, science and research manager for the UAE chapter of the World Wildlife Fund for Nature (WWF), estimated that local fish stocks fell by 80 percent over the past 30 years. Desalination also represents a substantial threat to coastal and underwater environments, with by-products of the process routinely pumped back into the ocean. “[Desalination waste] contains substantial amounts of chemical pollutants, such as chlorine (which is used for biofouling control in the plants), antiscalants (which are used for scale inhibition) and heavy metals (which are present due to corrosion),” Tourenq said. Tourenq said the irreversible nature of coastline encroachment made it the most environmentally damaging aspect of Middle Eastern tourism. Land Threats to land bound environments are also very real.
Tourenq said even if development clustered on the seaside, it had impacts inland, with the demand for locally sourced cement creating a quarrying industry that impinges on already delicate ecosystems. “Crushing and quarries for mineral extraction not only means an irreversible loss of habitat, but also induces a supplementary stress to the remnant mountain wildlife populations, weakened by natural causes (drought), overhunting in the past, poaching, water extraction for agriculture, habitat fragmentation with development and interspecies competition with livestock and feral goats for food and water,” he said. Recreational outdoor activities are also beginning to take their toll on once pristine landscapes. WWF has identified camping in wadis as a cause for concern and Tourenq noted the rise in adventure activities as a further threat. “The desert habitat has been drastically under pressure from the boom in off-road tour operators and nowadays it is difficult to see a pristine sand dune without tracks of tires around Dubai,” he said. Despite the damage tourism could do, Tourenq pointed out that the industry could play a role in preserving environments, by providing an income incentive for governments to protect endangered areas. He said good work had been done in this regard in recent years, and named the UAE’s first JULY 2010
- Ecosystem Threats protected mountain habitat, Wadi Wurayah, and the efforts of the Omani government to protect sea turtle hatcheries as examples of progress. Climate Change Climate change remains the leading environmental concern, with worldwide disruption threatening all ecosystems, everywhere. Reliance on air conditioning and desalinated drinking water boosts carbon emissions and the focus on construction, shipping and aviation evident in the tourism sector is a major contributor. Practices in the Middle East are particularly worrying in this regard, with Middle Eastern countries consistently topping lists of nations with the highest per capita greenhouse emissions. According to Tony Williams, vice president for Emirates Hotels and Resorts at Emirates Group, while improvements could be made, the need for climate control in the desert heat meant life in the Middle East would always be energy intensive. Transportation also represents a major component of the travel industry’s greenhouse contribution.
JULY 2010
Road transport is the main producer of emissions worldwide, but aviation, which is more specifically aligned with tourism, is also a major factor.
It is difficult to see a pristine sand dune around Dubai Aviation is the fastest growing transport contributor to greenhouse emissions, according to a report from European Federation for Transport and Environment (T&E). IATA estimates that the aviation industry contributes two percent of all emissions annually. However, the figure is controversial. T & E has argued that figures as low as two or three percent have been gained by measuring carbon emissions exclusively. However, according to T&E, the warming impact of airlines is not caused by carbon alone. Aircraft emissions also include significant quantities of nitrous oxide, a less common but much more damaging greenhouse gas. Similarly, airlines have been accused of
contributing to the greenhouse effect by causing unnatural cloud formations, which develop around the contrails produced by modern jet engines. IATA, in turn, has blamed inefficient government air space control for wasted flight time, claiming one minute saved on every flight would eliminate more than four million tonnes of carbon dioxide and other pollutants. Measures are being taken to create carbon neutral fuel sources, however, and Qatar Airways has taken a leading role in this regard. In partnership with Airbus and research arms of the Qatar government, the airline has undertaken to develop sustainable biomass to liquid jet fuels. Bio-fuels are not without their own challenges – developing feed stocks that do not compete with land for the production of food and water, and ensuring the use of nitrogen fertilisers do not outweigh carbon emission savings, for instance. However, Akbar Al Baker, CEO of the airline said the project was bringing the industry ideal of carbon neutral growth a step closer. n
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- Saudi Arabia
Development in the Original Tourism Mecca Just as Makkah and Madinah serve as the beating heart of the Islamic world, so too to do the holy cities drive the lifeblood of the Saudi tourism industry. Beyond the millions of pilgrims drawn each year to pray, the cities act to anchor Saudi Arabia to the world — and draw the world’s eyes to the desert kingdom. Louis Dillon Savage writes
Madain Salah
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lready, tourism stands among the major non-oil contributors to the Saudi economy; Saudi Commission for Tourism and Antiquities (SCTA) expects travel revenue to equal SAR66 billion (USD17.1 billion) in 2010 alone. Furthermore, the sector has been highlighted by the government as a cornerstone of the future, diversified economy of Saudi Arabia. The country has recently opened its doors to non-religious tourists, issuing tourism visas for the first time in its history. Yet despite the apparent handicap of a fledgling tourism market, Saudi has never been truly closed and can rely on the swelling stream of pilgrims to spread the word of its attractions. Jones Lang LaSalle has called the latent demand for Saudi Arabian travel “effectively limitless” and major operators are gathering in anticipation of a boom. Holy Cities Makkah is the epicentre of hotel development in Saudi and receives the lion’s share of visitors. Jones Lang LaSalle has predicted the stock of hotel rooms in the city could double within a decade; 50,000 new rooms have already been proposed. Madinah, Saudi’s second holy city, has received 6
Makkah
less interest, with a comparatively meagre 3,000 rooms in the pipeline for the next three years. Omar Boujild, manager of Mövenpick’s Hajar Tower property in Makkah, said religious tourism accounted for the bulk of both domestic and international visitation. What is more, he said the strength of religious tourism was beginning to stimulate other segments as visitors took the opportunity to visit Saudi to explore its other attractions. “It is estimated that more than 15 million domestic trips, out of a total of nearly 30 million, are religious tourists, and more than 50 percent of inbound foreign tourists are religious tourists,” he said. “Hotels are reacting quickly to address religious
tourism, transportation networks are growing and recently medical tourism for religious travellers has started to take off in the kingdom.” However, analysts warn that despite the bonanza hordes of pilgrims seem to represent, caution should be taken when investing in the holy cities. Chiheb Ben-Mahmoud, senior vice president of Jones Lang Lasalle Hotels in Saudi, said deluxe five star properties were not necessarily the most appropriate for a market based on faith. He said the optimal model for hospitality in the cities had yet to be determined, and that only time would reveal what the demands of pilgrims truly entailed. JULY 2010
- Saudi Arabia Arabian desert
Red Sea diving Jeddah
“Abha is located in Asir in the south, where the mountains rise over 3,000 metres and then drop into a plateau that melts into the Rub Al Khali, one of the largest sand deserts in the world,” he said.
Leisure Leisure visitors still comprise a small fraction of the overall market, with the segment dominated by domestic travellers. Yet despite the pre-eminence of the holy cities in the Saudi travel market, the rest of the country has not been neglected. Saudi authorities are busily preparing the nation’s heritage and natural assets as potential tourism attractions. Policies have been designed for developing archeological sites and a number of heritage villages have been flagged, taking advantage of the well preserved traditional lifestyles still evident in the kingdom. International standards have been introduced in the field of hotel classification and are in the process of being applied. Shuja Zaidi, vice president of projects in Saudi Arabia for Hilton Worldwide, identified the various regions of strong development. “Resorts and other tourist facilities have been growing rapidly as the infrastructure develops JULY 2010
along the 180km coastline of the Red Sea, in various cities as well as mountain destinations,” he said. “Key among these are Jeddah, Abha, Madain Saleh, Riyadh, Taif and Al Khobar – destinations that attract domestic tourists, including Saudi families and a considerable number of expats based in the kingdom.” Jeddah is the country’s leading resort centre, taking advantage of its Red Sea location to attract tourists interested in sand, sun, diving and other leisure activities. “Jeddah is multi-faceted in its offerings,” Zaidi said. “Jeddah has Balad, the old town with its ancient buildings and traditional souks, as well as the corniche that runs along the coast of the Red Sea for many miles and offers great diving and swimming facilities.” Madain Saleh is home to Saudi’s Nabataean tomb complexes, akin to Jordan’s Petra, while Zaidi recommended Abha as a must see mountain destination.
Development Jones Lang Lasalle has identified a range of developments around Saudia Arabia, ranging from road works to resorts, which the company says are set to boost tourism in the next decade. A number of airports are undergoing expansions, including King Abdulaziz International Airport in Jeddah which will increase handling capacity to 80 million passengers per year. Madinah Airport is also slated for an upgrade. In an attempt to bolster domestic tourism to the city, Saudi’s General Authority of Civil Aviation will increase the facility’s capacity to 14 million by 2030. Additionally, Makkah’s first international airport has been approved; it is set to replace the existing dirt airstrip. A 450km high speed railway is in the works, expected to be used by up to 50 percent of pilgrims once completed. Haramain High Speed Rail will run from Madinah through Jeddah to Makkah, connecting not only the holy cities, but economic cities in Madinah and Jeddah as well. King Abdullah Economic City (KAEC) will include a seaport with capacity for 500,000 tourists or pilgrims, as well as a station for rail link to the holy cities According to Jones Lang Lasalle, the trip to either of the holy cities could be undertaken from Jeddah in less than 90 minutes using this service. 7
- Saudi Arabia King Abdullah Economic City
The Holy Mosque in Madinah is being expanded, with the Haram (sacrosanct zone around the mosque), extended to accommodate half a million pilgrims at any time. The northern plazas of the mosque are also being extended. A number of large scale developments are underway in Makkah, including Jabal Omar which is expected to include at least 10,000 hotel rooms and cover 1,800,000m2 Jabal Khandamah is a similar, though smaller project located on 600,000m2 of land to the east of Makkah’s religious centre. According to Jones Lang LaSalle, the development aims to replace the old buildings, streets and narrow alleys with high quality new buildings. King Abdul Aziz Road will receive a 3.5km mixed use development, including hotels, residences and commercial real estate. n Jeddah
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Economic Cities
Saudi in Brief Capital: Riyadh Currency: Saudi Arabian Riyals (SAR) Language: Arabic Madinah
A string of economic cities are under development in Saudi Arabia, providing deregulated zones for business pursuits. The most prominent of these, King Abdullah Economic City (KAEC) will become the first real estate ever available on a freehold basis in Saudi. KAEC has been established in a central location between Makkah, Madinah and Jeddah and the first stage of its development is expected to conclude in 2011. Other economic cities include: Knowledge Economic City in Madinah (to be completed by 2020); Jazan Economic City, northwest of Jizan City (2020); and Prince Abdulaziz bin Mousaed Economic City in Hail (2025). According to Saudi Arabia’s General Investment Authority, the cities will promote economic diversification and create more than one million new jobs. In a country with a non religious tourism industry dominated by business, the investment opportunities represented by the free zones are expected to boost travel into the country.
Hotels Mohammed Arkobi, general manager of Fairmont Makkah Clock Royal Tower, identified Saudi as the fastest growing market in the region for the hospitality industry. Indeed, the frenzy of new developments has backed up his words. The Clock Royal Tower is set to open this year, Mövenpick’s Hotel and Residence Hajar Tower Makkah has just added 797 rooms to its inventory and a range of other hotels have been signed around the country. According to Arkobi, Fairmont is also eyeing developments in Riyadh, Jeddah and Madinah. A Belle Vue hotel is in the final stages of completion in Damman, however no official opening date has been announced. Mövenpick Resort Al Waha will open in 2011 at Al Khobar, with another Mövenpick planned for Riyadh in 2013. The first Staybridge Suites property in Saudi Arabia will open in Riyadh in 2011, under an agreement between InterContinental and Al Hokair Group. Hilton Worldwide has declared an intention to open a property in every major city - an ambition that will be realised upon the completion of the recently signed Hilton Al Khobar, planned for 2013. Hilton’s Riyadh property is also under development and scheduled for launch in that year. Thai company Dusit has signed a management contract for Dusit Thani Jeddah, also due in 2013. JULY 2010
- Greece
Old Favourite Sailing on Troubled Waters Greece has historically been a firm fixture in the top five European tourist destinations, with operators priding it as a country that sells itself. However, a recent economic meltdown and subsequent civil unrest have jeopardised the tourism industry, which accounts for more than 15 percent of the country’s GDP. Laura Warne writes
F
rom historic Athens, one of the world’s oldest cities, to the trendy boutiques of Thessaloniki or the quiet romanticism of Santorini, Greece has a host of diverse tourist attractions that draw visitors from around the world. However, the tourism industry faces a list of challenges long enough to rival the county’s celebrated attractions and an uncertain future is bearing down on the Mediterranean icon. Despite a strong start to 2010, with passenger arrivals up 10 percent, recent riots in Athens have disrupted the all important summer holiday traffic. Operators claim up to 27,000 room nights have been cancelled in the capital as a direct result of the civil unrest. Bookings from the UK and Germany, two of Greece’s largest source markets, have visibly slowed since the country’s debt crisis began to escalate. Operators dealing with the Middle East hold out more hope than others, due to habitual last minute booking behaviours and a trend towards more exclusive, luxury focused travel. Philippe Saad is the managing director of Eden Yachting, a Dubai-based charter company that partners with local operators to promote a fleet of 185 yachts across Greece. He pointed out that Greece was one of the 10
Cruising in Greece
closest European destinations for Middle Eastern residents, with GCC nationals and expatriates particularly fond of visiting the country’s islands during the summer months. According to Saad, Bank of Greece statistics show that Middle Eastern visitor numbers increased by 25.5 percent from 2008 to 2009, despite a six percent fall in the total number of visitors to Greece. “It would be unrealistic to think that the recent civil unrest will not have any impact, however I believe this is currently of more concern to visitors to Athens itself,” said Saad. “I spoke to a couple of our operators who informed me that there have been no problems on any of the islands. “The charter operators are well aware of the impact that these kind of disturbances can have on the industry and are eager to uphold the reputation of Greece as a top holiday destination.”
Greek coast
Operators are well aware of the impact that these kinds of disturbances can have on the industry and are eager to uphold the reputation of Greece as a top holiday destination Cruising Greece Recent unrest is not the only issue facing the tourism industry in Greece; infrastructure concerns, including a lack of high end accommodation and wildly varying standards throughout the islands are also challenges, particularly for operators dealing with discerning Middle Eastern clients. JULY 2010
- Greece However, Saad said cruising was one way to get around these issues. “The infrastructure problems that tend to plague the Greek tourism sector are less apparent when onboard a luxury yacht as, in effect, your hotel moves with you and the standard remains consistent,” he said. “Middle Eastern clients are used to being pampered and typically look for a yachting vacation that will deliver them the best of their destination in terms of scenery, interesting niche shopping, clubs and restaurants, whilst at the same time being well looked after onboard their selected yacht. “The crewed yachts have a captain, cook and one or two hostesses/deck hands onboard to cater for the guests’ every need.” The Ionian and Cyclades island groups were the most popular destinations for Middle Eastern clients, according to Saad, largely due to their natural beauty, easy cruising and the reputation of islands such as Mykonos and Santorini. “Our guests are not so focused on travelling to visit the ancient sites, but are happy to include them in excursions ashore if they are close by,” he added. Development and Delays Dolphin Capital Investors currently has six projects under development in Greece, including golfing complexes, resorts and private holiday villas. Brand partnerships for these properties include big names such as Kempinski, Gary Player, The Oberoi and Aman Resorts. In May, 2010, Dolphin Capital launched
residence sales of its coastal Aman at Porto Heli resort and residential development in Peloponnese; sea view residences between one and four acres will range in price from EUR3 million (USD3.7 million) to EUR20 million (USD24.8 million).
It would be unrealistic to think that the recent civil unrest will not have any impact Katerina Katopis, investor relations director at Dolphin Capital, said the Middle East was one of the company’s key target markets for holiday home investors, along with Russia and the UK. Residences will be built as they are sold; construction on the resort has begun and the hotel is expected to be operational in early 2012. However, Katopis admitted that Greek bureaucracy was the bane of most developers, and extended waiting periods were not unexpected. “When you develop a project like this, the biggest challenge is Greek bureaucracy – getting through the red tape and the permits involved in development,” she said. “It all takes a very long time.” Katopis said this was largely the reason that many major international brands had not entered the Greek market, despite its historic tourism appeal. “We are starting to see more – Starwood, InterContinental and Marriott have all come
into the country and others are on their way,” she said. “This will bring more high end tourism to Greece.” Also located on the Peloponnese coast, further cementing the area’s reputation as Greece’s high end destination, is the newly opened Costa Navarino development. More than a decade in the making, Costa Navarino will eventually include a golf course, residences and a range of resorts. Starwood opened its first resort in Costa Navarino, The Romanos, in early June, 2010, with The Westin Resort, Costa Navarino scheduled to open on July 1, 2010. In 2012, Starwood plans to introduce its W Hotels brand to Greece with the opening of W Athens, Astir Palace Beach. Air Links Athens enjoys excellent connectivity with the Middle East and North Africa region. The capital’s international airport is linked to Air Arabia, Egypt Air, Emirates, Etihad, Gulf Air, Libyan Airlines, Middle East Airlines, Qatar, Royal Jordanian, Syrian Air and Tunisair. A range of European carriers also service the MENA region from Athens. Domestic airlines and ferry services link the capital to surrounding islands and private road, sea or helicopter transfers are also available. n
Greece in Brief Capital: Athens Currency Euro (EUR) Language: Greek
Greek islands
Aman at Porto Heli site JULY 2010
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- Brand Travel
Travel Industry Reveals What’s in a Name Hotel rating systems can vary wildly across the Middle East alone, not to mention the rest of the world. With the traditional star classification under constant threat of becoming obsolete, hotel companies are instead placing emphasis on well known brands to attract customer loyalty and repeat business. Laura Warne writes
Hotel Missoni Kuwait
A
bu Dhabi Tourism Authority recently launched its new, flexible hotel classification system, designed to address the industry’s numerous complaints about rigid star ratings. However, many hotel companies are already attempting to work outside traditional ratings, promoting themselves either by brand standards or by market segments such as mid-scale, budget or luxury. Creating brand promises – and living up to them – is all important for today’s hotel industry and in the brand-savvy Middle East, making a name for yourself is vital for success. Legacy Brands Many of the world’s major hotel brands already operate beyond the star system to a degree, relying on their brand promise and customer loyalty programmes to stimulate business. Thanks to years of marketing and worldwide expansion, names such as Hilton, Marriott and Accor all evoke their own familiar identity in the minds of regular travellers. However, operating worldwide across a range of different classification systems can be challenging 12
Armani Residences at Burj Khalifa
and brand dilution is a serious concern. French brand Sofitel kicked off a new expansion plan in early 2010, after shedding a host of existing hotels that no longer lived up to the brand’s expectations. In order to preserve the preferred level of quality for Sofitel properties, the company cut its worldwide inventory from 206 hotels in 2006 to 130. Similarly, Jeff Strachan, vice president of sales and marketing, Middle East and Africa for Marriott Hotels International Limited explained that the Marriott brand strictly enforced its fundamental principals of reliability, cleanliness, comfort and great service. “Our brand standards are stringent; they are rules that our general managers live by,” said Strachan. “They cover every facet of the business from hardware to software, from product to process. “Naturally the brand standards evolve as technology evolves and we incorporate those new standards into new hotels and renovations.” He added that the common traits of all great brands were consistency and reliability. “Customers buy reliability and they want to know what they are getting, no surprises,” said Strachan.
Hotel Missoni Kuwait
“Middle East clients are very well travelled ... they appreciate brands and they can tell you exactly about our hotels in different cities throughout the world.” JULY 2010
- Brand Travel People recognise a brand represents a certain high-degree of quality, style and sophistication Newcomers A number of brands that have made a name for themselves in other industries – fashion, for example – have joined the hotel scene in recent years, hoping to attract business through existing brand knowledge. Palazzo Versace led the way as the first fashion-branded hotel, according to Soheil Abedian, president of Palazzo Versace, who approached House of Versace with the idea in 1998. Following the success of Palazzo Versace Gold Coast, Australia, a Dubai property is under construction and is expected to open in early 2011. Abedian explained that Versace had already gone beyond dressing people, to dressing the environment with its homeware collection – and that a destination resort was the next logical step. “People recognise a brand represents a certain high degree of quality, style and sophistication,” he announced during the early construction of the Dubai property. “When it comes to branded hotels, people understand the brand represents so much more than just clothing – it is a lifestyle experience which embraces the sophistication of the specially designed furniture and bed linen to fine dining and luxurious bespoke facilities.” Continuing the fashionable trend, Armani has recently opened its first hotel and residences, inside the landmark Burj Khalifa, Dubai JULY 2010
and Hotel Missoni Kuwait is set to open in late 2010, marking the second property for Italian fashion and interiors house Missoni. In conjunction with Rezidor Hotel Group, Hotel Missoni Kuwait will adjoin Symphony Centre – a luxury boutique shopping emporium. As with other fashion hotels, Missoni will add its own personal touches, such as exclusively designed Missoni bathrobes and slippers, Missoni fragrances and linens from Missoni’s homeware range.
Beyond the hotel industry, brands are increasingly playing a prominent role in the marketing of food and beverage outlets, as well as entertainment and theme parks. The Middle East has seen an influx of celebrity-endorsed restaurants, golf courses and bars, not to mention the highly anticipated Ferrari World Abu Dhabi, which is set to capitalise on the well known Italian performance car brand.
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- Indonesia
Home Away From Home: the Islamic Archipelago Indonesia is the world’s largest archipelagic state, fourth most populous nation and is home to the densest concentration of Muslims on the planet. In other words, it is a string of island paradises, offering a wealth of culture and a warm welcome for Middle Eastern visitors. Louis Dillon Savage writes Prambanan, Central Java
I
ndonesia has been actively courting the Middle Eastern market for more than a decade, maintaining a presence at Arabian Travel Market for the past 15 years. However, according to Rita Sopia, director of international promotions in the Middle East and Africa for the Indonesian Ministry of Culture and Tourism, the people of the country have proven to be its greatest promotional asset. She pointed out that Saudi Arabia was Indonesia’s largest, and fastest growing, Middle Eastern source market. Despite the economic downturn, visitation from Saudi Arabia increased by 35 percent in 2009 compared to 2008. Sopia said that growth had only strengthened this year, with first quarter results showing 45 percent increases on the same period in 2009. She said that contact between the people of the two countries had been ensured by annual Hajj and Umrah pilgrimages by Indonesians, which fostered friendship and familiarity. “Because of the pilgrimages, Saudi people know about Indonesian people, about the culture and a little of the language,” she said. According to Sopia, the UAE is the second strongest Middle Eastern source market, with numbers from the country bolstered by interest from Indian expatriates. Sopia said that though UAE figures were 14
Goa Batujajar
currently small, they were growing and Indonesia was trying to stimulate interest. “Even though there are fewer visitors from the UAE, their expenditure is higher,” she said. Attractions Indonesia offers a broad spectrum of activities for tourists, ranging from black water kayaking, hiking, surfing and diving, to luxury shopping and resort style leisure. Despite the many options, Sopia said Middle Eastern travellers to the country tend to focus their attention on the island of Java. The island is home to the country’s major metropolitan areas, as well as Indonesia’s most popular tourism site, the Borobudur temple. Sopia said it was the combination of metropolitan bustle and visual appeal that
Art Centre, Bali
attracted Middle Eastern tourists to Java. “Middle Eastern travellers come for shopping and for panoramas,” Sopia said. “This is why they stay in and around Jakarta.” Sopia pointed to the more than 40 malls in Jakarta as evidence of the city’s strong offering. Sopia noted that while first time visitors focused their stays on Java and Jakarta, Middle Eastern tourists were common return visitors, often taking repeat trips to range further afield. Surabaya, the provincial capital of East Java, was named as a popular destination for secondary visits, as well as Bandung in West Java. The small island of Bali, culturally distinct from the rest of Indonesia, was also named as an emerging destination. Sopia noted that Bali had proven most popular with younger visitors from the Middle East, JULY 2010
- Indonesia Jakarta
drawn by the island’s cultural differences and famed nightlife. As a Muslim nation, Islamic visitors from the Middle East will find prayer rooms, mosques and halal food all easy to locate. Hotel Development Starwood has two properties in the pipleline for Bali. The W Retreat and Spa Bali is slated to open in November 2010, and the Sheraton Bali Kuta Resort is due in 2012. Jumeirah has a resort under development in Bali, with no fixed launch date. Accor has announced eight new hotels in Indonesia to open by 2012. These include: n Pullman Legian Nirwana, Bali (2010) n Mercure Padang, West Sumatra (2011) n ibis Bali Kuta, Bali (2011) n All Seasons Bangka, on the island of Bangka in (2011) n ibis Balikpapan in Borneo (2011) n All Seasons Gajah Mada, Jakarta (2012);
Connectivity
n ibis Manado, North Sulawesi (2012); n ibis Surabaya Basuki Rahmat, East Java
2012).
(late
A range of connections are available between the Middle East and Indonesia, making access to the country a simple matter. Indonesian flag carrier Garuda flies between Dubai and Jakarta, as well as offering internal connections for travellers interested in exploring the archipelago. Emirates also operates a route between Jakarta and Dubai, while Etihad links the Indonesian capital to Abu Dhabi. A connection between Jakarta and Doha, Qatar is maintained by Qatar Airways. Gulf Air offers flights to Jakarta as a connection from Kuala Lumpur, Malaysia supplementing the carrier’s flights from Riyadh, Saudi Arabia to Malaysia (via Bahrain).
n
Borobudur According to Indonesian tourism authorities, the Borobudur temple complex is the world’s largest Bhuddist monument and Indonesia’s most visited tourism attraction. Located on Java, the same island as Jakarta, the temple was built in the ninth century and restored in the 1970s. The complex covers more than 15,000 m2, stands more than 40m above ground and features 504 Buddha statues and 2,672 intricately carved relief panels telling Buddha’s life story.
Indonesia in Brief Borobudur Temple, Central Java
Capital: Jakarta Language: Bahasa Indonesia Currency: Indonesian Rupiah (IDR)
Borobudur Temple, Central Java
JULY 2010
15
Dr Benno Boer
Ghaith Al Ghaith
Programme Specialist, UNESCO “The Arab States in the Gulf have established themselves as important oil and gas producers and exporters. This caused a lot of social and economic transformation. Very important international airports and airlines have been established, and destinations such as Dubai, Doha, Abu Dhabi and others are now very well known in the world. The leaders and the people have wisely developed their countries as peaceful locations that are highly attractive for business. Massive coastal and marine development projects have been developed more recently, and this has generated even more visibility. In the past, large scale coastal construction was mainly based on gas and oil facilities, harbours, and desalination plants, but now it includes massive man-made islands for human living, as well as airports, hotels, etc. In addition much of the coastline has been used to establish weekend recreational housing. There is a huge change that took place in the last fifteen years. When I first came to the Gulf in the late 1980s, there were plenty of beautiful remote beaches, and undisturbed coastal habitats. A lot of this has now been converted into man-made structures.”
CEO, flydubai “flydubai’s aim is to make travel a little less complex, a little less stressful and a little less expensive and thereby encourage more people to travel more often. We are committed to growing the markets we fly to and we have already seen success with this in other markets, including Beirut, which has seen a 33 percent increase in traffic, Amman which gained a huge 40 percent increase, and there has been a 22 percent increase across all Egyptian routes since flydubai started operations last year.”
We are committed to growing the markets we fly to
Massive coastal and marine development projects have ... generated even more visibility Ghaith Al Ghaith
Christian Rainalter
Christian Rainalter General Manager, JAL Fujairah Resort and Spa “This region moves at a very fast pace and the recent events that led to the crisis have, unfortunately, impacted our sector as well. From years of double digit growth we had to face for the first time the reality present in most of the other regions worldwide. This meant reviewing everything from basic operational procedures to added value offerings, keeping always in mind the quality aspect JAL Fujairah Resort and Spa was able to build over the past years and ensure we would not compromise on it. The most important aspect is assessing your key strength and understanding what guests are looking for, then communicating this to each member of the team. It is a challenge but this is what will prepare us better for the future once conditions will improve.”
It is a challenge but this is what will prepare us better for the future once conditions will improve 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
JULY 2010
Hotel gadgets at Richbond Mesidor Chambre
Hottest Summer Destinations Over the past month, Travel Trade Monthly spoke to travel agents throughout the Middle East to find out where their clients were travelling this summer. Destinations with culture and heritage were high on the list, particularly those that could also offer comfortable accommodation at high quality international hotel chains. Adventure and experiential travel options were also in demand – activities such as visiting indigenous tribes, temples and hiking were popular with travellers heading to South East Asian destinations. Finally, one of the most tried and true holiday pursuits – spa tourism – remained a key focus for travellers looking to de-stress, detoxify and rejuvenate over the summer months.
Technology Trends In Flight In the latest trend from low cost airlines, cut rate carriers are moving away from expensive and weighty integrated in-flight entertainment systems. The low cost sector has traditionally offered in-flight entertainment as an ancillary service, but utilised similar systems to those used by all-inclusive airlines. However, with a low rate of use among passengers, bulky in-seat systems are increasingly being deemed wasteful by airlines seeking to shave weight and shake every dollar from their flights. Ian Derbyshire, CEO at Thomas Cook UK and Ireland, said only one in 10 passengers were using existing in-flight entertainment
Apple iPad JULY 2010
systems on the Thomas Cook airline. Portable multimedia devices such as the Apple iPad are being looked to as the solution, with airlines loading the gadgets with a range of entertainment options and renting them to passengers. Thomas Cook Airlines has adopted the Sony Playstation Portable (PSP), while Australian airline JetStar has opted to trial the iPad. The trend has already been picked up by inflight entertainment system providers, with Bluebox Avionics (who have provided content for Jet2 and Air Baltic), adapting their product for delivery via the iPad. By charging similar rates for access, but with a much lower outlay on hardware, the use of portable devices has the potential to shake up low cost in-flight entertainment in the long term. In Room Gadget-friendly devices and connectivity are at the top of the list for many travellers – both business and leisure – when choosing hotel rooms. Sony Gulf ’s latest additions to its hospitality range highlight the changing in-room demands. Among the products that Sony recently presented to leading Gulf hoteliers was the Bravia Hotel Interactive Television Series. The leading favourite was listed as the brand’s new 40 inch LED Hospitality TV. New gadgets for guests included bedside iPod dock clock radios, a media hub that integrates connectivity for laptops and smart-phones, plus digital photo frames. n
Here are the latest top destinations for Middle Eastern travellers: UK Malaysia China South America Africa India Vietnam Cambodia Laos Czech Republic (particularly the spa city of Carlsbad which has 12 natural thermal springs and a variety of spa packages).
Laos
Brazil, South America 17
- Germany
Re-energising Europe’s Conference Centre Not only is Germany one of the Middle East’s key source markets for tourism, it is also one of Europe’s top performing inbound destinations. Recent increases in travellers from the Gulf have prompted even greater connectivity and promotions for the Middle East. Laura Warne writes
Neuschwantstein Castle
G
ermany is a well established business and leisure tourism hub with excellent ties to the Middle East, both in terms of connectivity, industry and cultural understanding. The mild summer months are particularly popular for family holidays, with the country offering a host of natural, cultural and shopping experiences. Despite being hit by the financial downturn, particularly in terms of event tourism, Germany is forging ahead with development plans that include new hotels, airport facilities and non-stop flight from Germany to the Middle upgraded public transport infrastructure. East,” he said. “By operating these flights, Air Berlin is offering Air Connectivity an attractive product to business travellers as well Air Berlin will launch its first flights to Dubai as to holidaymakers.” later this year, with three weekly flights to begin Rainer Schwarz, managing board spokesman for from November. Berlin Airports, added that the new destination Connecting flights will link Dubai to other brought the industry a step closer to its goal of German hubs (including Cologne, Dusseldorf, establishing Berlin as an east-west aviation hub. Karlsruhe-Baden Baden, Frankfurt, Munich, Berlin Tegel Airport, currently the busiest in the Nuremberg and Stuttgart), as well as Russia, country, is scheduled to close in 2012, with the Scandinavia, Zurich, Vienna, Graz and introduction of the new Berlin-Brandenburg Barcelona. International Airport (BBI). An additional Airbus A330-200, stationed in Upon completion, BBI is expected to handle all Berlin, will be dedicated to these new flights. commercial flights to and from Berlin. The Joachim Hunold, CEO of Air Berlin, said the new airport is currently under construction; it is destination reflected Air Berlin’s desire to make scheduled to open in late 2011, but reports the most of tourism opportunities in the Middle suggest it may be delayed until 2012. Eastern market. There is already strong connectivity to Germany “The service to Dubai is Air Berlin’s first regular among Middle Eastern carriers. 18
Cologne
From the UAE, Emirates flies to Munich, Frankfurt, Dusseldorf and Hamburg, while Etihad services Munich and Frankfurt. Qatar Airways flies to Munich, Frankfurt and Berlin; Oman Air flies to Frankfurt and Munich; and Gulf Air operates services to Frankfurt. Lufthansa, Germany’s national carrier, is one of the world’s largest airlines and offers a range of direct routes and connections from the Middle East. Hotel Development Accor opened its latest mid-scale Novotel at Munich Airport in June, 2010. The 257 room airport hotel includes conference facilities and a travel lounge with updated information on flight schedules. According to Peter Verhoeven, chief operating officer of Accor Hotellerie Deutschland, this hotel marks 35 years since the opening of the first Novotel in Germany. JULY 2010
- Germany “The Novotel Munich Airport is an important step in the development of Accor’s network in Germany and an especially appealing and strategically important milestone on our way to profitable growth,” said Verhoeven. In May, Rezidor Hotel Group opened Radisson Blu Fürst Leopold Hotel in Dessau. The former Steigenberger property has 204 rooms and brings the company’s portfolio of hotels in operation and under development in Germany to 51 properties. The hotel originally opened in 1994 and was renovated between 2004 and 2006. It was already operating as a Radisson Blu hotel before this latest re-opening. Starwood plans to open The Westin Hamburg in the country’s north in March, 2012. The property will feature 244 rooms. In 2009, InterContinental Hotels Group (IHG) signed a franchise agreement with Foremost Hospitality GmbH to introduce 20 new Holiday Inn and Holiday Inn Express properties across the country’s key cities by 2016. The first of these, Holiday Inn Express Berlin City Centre – Alexander Platz, opened in early 2010. The next, Holiday Inn Berlin City Centre – Potsdamer Platz, is expected to open in March 2011. Events Upheaval As a major MICE destination, Germany was hit hard by the economic crisis in 2009. Certain segments of the industry fared better than others, however, with hotels coming out at the bottom of the heap. During 2009, the number of events fell by 1.5 percent in event centres and 5.3 percent in special venues. Hotels, on the other hand, saw a 14.9 percent decline in the number of meetings and events. In total, the German industry saw a decline in events of 10.9 percent over the year and a 4.8 percent drop in attendance. However, authorities remain optimistic for recovery, citing strong demand for large scale events, despite the crisis. Munich
JULY 2010
Munich
Furthermore, Germany is home to two of the travel industry’s largest annual events – IMEX and ITB. IMEX is a worldwide exhibition for meetings and incentive travel; the 2010 event saw 3,500 exhibitors from 157 countries, more than 3,800 hosted buyers and nearly 9,000 visitors. IMEX 2011, to be held in Frankfurt, is scheduled for May 24 to 26, 2011. ITB is one of the world’s largest travel shows, attracting tour operators, booking systems, carriers, hotels, destination authorities and suppliers for the travel and tourism industry. Held annually in Berlin, the next edition is scheduled for March 9-13, 2011. Munich Munich is the favourite German destination for Gulf travellers, with more than 77,949 arrivals and more than 270,891 overnight stays in 2009. Tourist arrivals from the Gulf increased by 22 percent in 2009, compared to the previous year. Munich Tourist Office capitalised on this interest with strong participation at the 2010 Arabian Travel Market, promoting the city’s shopping Berlin
opportunities, historical architecture and parks and gardens. According to tourism officials, the city is well prepared to welcome Arab travellers; many of the city’s luxury hotels offer halal menus and Arabic speaking staff, while others reserve entire floors for regular visitors from the Gulf. Munich’s shopping district includes the exclusive Mazimilianstrasse, which is home to top couturiers, as well as a range of department stores and souvenir shops. Family holidays are particularly welcomed by the city’s tourism industry, with Hellabrunn Zoo a popular destination for children. By venturing just outside of the city limits, tourists can also visit the Alps or Neuschwantstein Castle, which receives more than one million visitors per year. n
Germany in Brief Capital: Berlin Currency: Euro (EUR) Language: German Bavaria
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- San Francisco
Northern California’s Golden Gateway The city of San Francisco, located in California on the west coast of the US, boasts a host of iconic tourist attractions, hotels and cuisine. It is one of Emirates’ key US gateways and the city’s ties with the Middle East could be set to strengthen following a new co-operative agreement with Jordan. Laura Warne writes Downtown San Francisco
C
elebrated highlights of the coastal city include the Golden Gate Bridge, Chinatown, Fisherman’s Wharf, the Castro district, Union Square and the infamous former prison island, Alcatraz. San Francisco has a good reputation for opera, theatre and other cultural events – it is often referred to as the most European of all US cities, a claim supported by its characteristic fog. America’s Cup Bid In February, 2010, BMW Oracle Racing, representing San Francisco’s Golden Gate Yacht Club, won the prestigious America’s Cup yacht race. City officials have since expressed a desire to host the 34th America’s Cup, which is expected to be scheduled for 2013 or 2014. San Francisco is rumoured to be a firm favourite; event officials have announced that they will confirm the 34th America’s Cup venue by December, 2010. Family Ties In late April, 2010, San Francisco confirmed Amman, Jordan as its 17th sister city – the first in an Arabic speaking country. Gavin Newsom, mayor of San Francisco, and Omar Maani, mayor of Amman, signed a declaration strengthening ties between the two cities, committing to partnerships in areas that covered tourism, sports, art and culture. “San Francisco has an established international reputation for economic innovation and cultural 20
Golden Gate Bridge
diversity,” said Newsom at the ceremony. “Our sister city relationship with Amman will expand our relationships throughout the world and forge new and stronger cultural and economic ties across peoples and borders.
Our sister city relationship with Amman will expand our relationships throughout the world Hotel Upgrades According to San Francisco’s tourism department, the city has more than 32,000 hotel rooms on offer, ranging from five star and boutique luxury hotels to internationally branded mid-range and budget options. More than a dozen of the city’s hotels have recently completed major refurbishments. San Francisco Marriott Marquis, renamed from San Francisco Marriott, re-opened its doors in February, 2010, after a USD22 million upgrade, focused largely on the hotel’s ballrooms and meeting areas. Following a USD30 million upgrade, Wyndham Hotels and Resorts announced that Parc 55 hotel San Francisco would be branded as a Wyndham hotel from April, 2010 onwards. The redesigned Parc 55 Wyndham San Francisco-Union Square now features upgraded guestroom, and extended event facilities. It has also been recognised nationally for its energy management strategies.
The Westin St Francis completed a USD40 million restoration project in mid-2009. The project included a USD12 million transformation of common areas and guestrooms in the historic main building, as well as a complete redesign and development of the penthouse level, which features six signature suites. Hilton San Francisco Union Square has spent USD80 million over the past five years to upgrade its 1,908 guestrooms and suites. Upgrades include a new Urban Tavern restaurant, Starbucks lobby café and extensive spa and fitness facilities. Air Connectivity Emirates operates a daily 16 hour flight to San Francisco from Dubai. n
San Francisco in Brief State: California Language: English Currency: United States Dollar (USD) Bay houses
JULY 2010
Ali Abdulla Al Shamsi
Ali Abdulla Al Shamsi
Etihad Airways has appointed Ali Abdulla Al Shamsi as general manager of its Abu Dhabi hub, based at Abu Dhabi International Airport. Al Shamsi has more than 23 years of experience within the airline industry and has previously held positions with Emirates Airline and Gulf Air. He joined Etihad in February, 2010, as assistant head of hub at Abu Dhabi International Airport. James Hogan, CEO of Etihad, said that Al Shamsi was the natural choice to take on the most senior role at Etihad’s busiest airport, adding that the promotion was part of Etihad’s strategy to attract and develop top Emirati talent from across the UAE.
Amadeus Gulf
Shafeekh Azeez
Global distribution systems provider, Amadeus Gulf, has appointed two new executives to its UAE sales team. Shafeekh Azeez has been appointed as director of sales for Dubai and the northern emirates. Azeez was previously commercial manager at Al Rostamani Travel, where he worked for nearly 10 years. In total, he has more than 12 years of travel industry experience within the region and holds bachelor and master degrees in business administration. Jauhar Abdul Gafoor has been appointed sales manager for Abu Dhabi. Gafoor previously worked as technical support manager at Amadeus – he held this role for 10 years, covering markets such as Bahrain, Oman, Syria and the UAE.
Thomas Tapken City Seasons Group has promoted Thomas Tapken to the position of managing director. Tapken joined City Seasons in late 2009 as group general manager for the company’s four existing properties. His new role will place greater emphasis on business development and the acquisition of new properties. Tapken will continue to oversee the operation of the existing hotels. He has more than 25 years of experience in the hospitality industry, including a successful career with Mövenpick Thomas Tapken Hotels and Resorts.
Wataniya Airways Commercial Team Kuwait based Wataniya Airways has boosted its commercial department with four new appointments. Joe Ghazal has been appointed director of marketing. Ghazal has more than 15 years of experience in marketing and advertising across Kuwait and the Middle East. Charles Johnson has been appointed director of product. He previously worked for the Virgin brand has spent 15 years working in the aviation industry in Australia, Kuwait and the US. Mahmoud Al Azzam has been appointed international sales director. Al Azzam has worked primarily for Royal Jordanian Airlines in a range of countries throughout the region. Finally, Mark Senior has been appointed to the position of holidays product manager, with plans to create infrastructure and operations for the new Wataniya Holidays brand. The brand will expand the airline’s services and products, tailored specifically to leisure travellers. Senior has more than 20 years of experience in the travel and tourism marketing sector, having worked in the UK, Bahrain, Qatar and the UAE. 22
Wataniya Airways’ new commercial department JULY 2010
Q&A with Martin Kolb Martin Kolb is the general manager of R Hotels – a newcomer to the increasingly popular hotel management scene in the Middle East. With ties to the royal family of Ajman and a strong focus on recruiting experienced hospitality professionals, R Hotels is making its first move in Saudi Arabia, with its sights firmly set on the rest of the GCC. Kolb spoke to Travel Trade Monthly, offering insight into the challenges of hotel management in the Middle East. Martin Kolb
Travel Trade Monthly: Firstly, can you been selected to manage all of these hotels. please tell me about R Hotels – its history They will all be new build hotels and will all carry and general business model? a well known international brand. Martin Kolb: R Hotels is a hotel management and owning company founded about one year ago by R Holding, which is owned by the ruling family of Ajman. R Holding has interests in construction, finance and building – the company had purchased two particular buildings and converted them into hotels, then hired a management company to run them. Unfortunately, the management company did not work out, so R Holding founded their own hotel management company – R Hotels They found out that managing hotels was quite challenging, so I was contacted to come in and run the company for them. Since I started, I have been applying changes, sorting out problems and creating management structures for these two hotels. We have Ramada Ajman, which is very popular with the corporate market and crew from Sharjah airport, and Ramada Downtown Dubai, which is in a fantastic location with views of Burj Khalifa. Now that the company is working well and we have established a professional management system, we are ready to offer that service to other hotel owners. Our message to hotel owners is that you do not have to change your hotel to a new name or a new brand, but you can bring in a professional management company to improve your business. We are a classic management group – to the outside world the company keeps its logo, its façade and its identity. This is particularly interesting for local family businesses — in the past five years, Dubai hotels were always full, but now times have changed and you need to have solid management structures to ensure guests keep coming back to your hotel.
Too many people in this region have burnt their fingers in the past few years
Travel Trade Monthly: Will R Hotels invest in its own properties, or focus solely on management of others? Martin Kolb: The word from our owner is that we are willing to put money into a hotel when we feel that it makes sense to invest. However, I have no clear instruction to seek out properties for purchase. Too many people in this region have burnt their fingers in the past few years by buying too many hotels too quickly, without enough investigation and thought. R Holding has a specific company dealing in buying and selling real estate, but my focus at the moment is on management.
Travel Trade Monthly: What future destinations are you interested in? Will R Hotels look outside the Middle East? Martin Kolb: Since our deal with the Saudi
Travel Trade Monthly: What management contracts have you embarked on so far? Martin Kolb: We have entered into a contract
Arabian fund, we have received other management requests from Saudi companies, which we are happy to discuss. If someone comes to us from Lebanon or another country and asks for our help, then I will not categorically say no. But I want to be honest and the fact is that particular markets will have other companies that are more experienced in that region – our expertise is in the GCC and we need to grow here first. I believe it is important to be honest from the beginning – people may not want to hear it at first, but that is the way you build trust and confidence.
with a fund in Saudi Arabia that is building 12 hotels in the limited service sector across the country. These hotels will be two to three star properties to be built over the next five years and we have
Travel Trade Monthly: What are the greatest challenges that you face in this role? Martin Kolb: The challenge we have is that
JULY 2010
Our message to hotel owners is that you do not have to change your name or brand, but you can bring in a professional management company to improve your business owners have not realised that we have a recession; they used to get 50 percent return on investment per year and now they are surprised that things have changed and they’re not getting that anymore. It takes time to adjust to these new realities. There is such a surplus of hotels and with the inflation in rooms comes a deflation in rates and occupancy levels. On top of that, companies have hired cheap labour to boost profit margins, but that only works for as long as demand is higher than supply – and now it is the other way around. My team is made up of very experienced professionals – there is not one person on my team that does not have at least 10 years of experience with an international chain. It may take time to convince people of the merits of professionals, but quality of staff is very important. n 23
UAE Set For Summer Festivals Full of Surprises Two of the UAE’s largest summer promotional events – Summer in Abu Dhabi and Dubai Summer Surprises – have both officially opened, flooding the market with a host of tourism specials. Summer in Abu Dhabi, which takes in Al Ain for the first time this year, will run until August 4, hosted by Abu Dhabi Tourism Authority (ADTA). Throughout the festival, ADTA and its stakeholders, including more than 30 four and five star hotels across the emirate, will offer a onefor-one campaign for GCC travellers. The promotion includes free air seats, complimentary room nights, meal deals, discounted attractions and free tours. Faisal Al Sheikh, events manager at ADTA, said the promotion was the authority’s largest ever
stakeholder programme. “We have gone to great lengths to raise the bar for this year’s Summer in Abu Dhabi offering and we look to encourage visitors from the UAE, GCC and further afield,” he said. Major international attractions at the event include the Lord of the Dance show, Fantasy on Ice performance and New York’s Big Apple Circus, which will make its Middle Eastern debut on July 23. Dubai Summer Surprises has also officially kicked off, running until August 7, with its own host of traveller promotions offered by participating airlines, hotels and other providers. Partners in the festival include Atlantis The Palm, Cinestar Cinemas, Dubai Shopping Malls Group And Dubai Dolphinarium. Spa packages are also a major drawcard for this
Big Apple Circus
Dubai Summer Surprises Dubai, UAE, June 17 - August 7 (www.mydsf.ae) Major shopping and entertainment event covering various venues across Dubai, specifically targeting family holidays during summer.
Outdoor Adventure Dubai Dubai, UAE, October 8-10 (www.outdooradventuredubai.com) Adventure sports, outdoor clubs, equipment specialists and holiday destinations.
Summer in Abu Dhabi Abu Dhabi and Al Ain, UAE, June 24 – August 4 (www.summerinabudhabi.com) Festival of family entertainment events covering eight venues across Abu Dhabi and Al Ain, featuring performers from more than 15 countries.
GITEX Technology Week Dubai, UAE, October 17-21 (www.gitex.com) Technology solutions for hotels, businesses and consumers.
India International Travel Market Bengaluru, India, July 10-12 (www.iitmindia.com) A showcase for tourism, leisure, hospitality and related industries. India International Travel Market Bengaluru, India, July 10-12 (www.iitmindia.com) A showcase for tourism, leisure, hospitality and related industries. Cityscape Dubai Dubai, UAE, October 4-7 (www.cityscapeglobal.com) Networking, conference sessions and round table events for the real estate market, including hotels and other tourism developments.
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year’s event, with nearly 40 of Dubai’s top day spas offering discounts of up to 50 percent, as well as two-for-one offers and other promotions. Organisers for both Summer in Abu Dhabi and Dubai Summer Surprises are expecting record crowds at their 2010 events.
Hotex Fair Syria Damascus, Syria, October 19-22 (www.hotexfair.com) Fair for Arabic and foreign companies in tourism and travel, including hotels, restaurants and equipment suppliers. World Travel Market London, UK, November 8-11 (www.wtmlondon.com) Global event for the travel industry – four day business to business event promoting a range of destinations and industry sectors to international travel professionals. Blossom Japan Tokyo, Japan, January 18-21, 2011 (www.blossomjapan.com) A new invitation-only luxury travel exhibition focusing on the Japanese market.
JULY 2010