TTM March issue 5

Page 1

Middle East and North Africa Edition

EXPLORE: DUBAI After a building boom of epic proportions, followed by a harsh reality check in 2009, the tourism industry in Dubai is now setting itself up for a more sustainable future. New projects are on the way, but development is slower, operators are more cautious and the focus is edging towards new, more diverse source markets.

Offering proximity, economy and cultural contiguity, Egypt remains an ideal destination for travellers based in the Middle East and North Africa. Numbering among the longest serving tourism destinations in the world, the country continues to grow and develop.

10 ONSITE: SINGAPORE Despite a difficult period for the global tourism industry, Singapore recorded its fifth consecutive year of increased tourism arrivals from the Middle East in 2009. In the coming year, the country is set to open two major new resort and entertainment districts and will play host to a range of high profile events, including the first ever Youth Olympics.

InMARKET ThisUPDATE Issue NEWS INVESTIGATION: Car Rental VISIT: Egypt EXCLUSIVE: Budget Travel EXPLORE: Dubai ONSITE: Singapore TRAVEL TALK TRAVEL TIPS TOUR: Austria WHO’S MOVED RENDEZVOUS LONG HAUL: Nigeria NEWS & EVENTS MARCH 2010

ISSUE 5

14 2 3 4 6 9 10 14 16 17 18 20 21 22 24

VISIT Egypt

6

www.traveltradeweekly.travel


TRAVEL TRADE WEEKLY Deputy Editor Laura Warne Journalist Louis Dillon Savage

In response to current skepticism over upcoming MENA hotel projects, HVS Global Hospitality Services has released suggestions for the maximum supportable investment per room for hotel developments across the region, based on current demand and RevPAR.

Design & Layout Elina Pericleous

Q

Sales & Marketing Jane Davidson Marianna Tsiamas Danielle Bragg Tina Georgiou 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

HVS Suggests Safe Investment Levels to Reassure Hotel Developers atar’s capital, Doha, commanded the highest supportable investment per room at USD470,000 for a five star property; USD375,000 for a four star; USD255,000 for a three star; and USD150,000 for a two star. Abu Dhabi and Dubai followed with the second and third highest supportable figures for the four and five star categories. Dubai commanded USD390,000 per room for a five star property in the current economic climate. However, the report pointed out that in the recent past, five star rooms in Dubai were costing developers USD500,000 to USD800,000; current economic conditions globally and hotel market realignments regionally would make such investments non-viable for several years to come, according to HVS. Damascus, Amman and Cairo had the three lowest supportable investment levels for four and five star

hotels, with HVS reporting that the maximum supportable investment for a five star hotel in Damascus was USD215,000 per room. In terms of RevPAR, the report listed Abu Dhabi as the top earner for five star properties, at USD215, while Doha topped the four, three and two star categories. The lowest RevPAR for four and five star properties was found in Cairo, at USD85 and USD111 respectively. Damascus had the lowest RevPAR for three and two star properties, at USD55 and USD35 respectively. However, the report stated that growth in international investment and businesses, along with a rise in intra-regional travel, would lead to an inevitable convergence in average rates. Therefore, it concluded that, despite the currently low RevPAR results, long term investors developing hotels in Damascus, Amman or Cairo would reap rewards in due course.

Maximum Supportable Investment per Room and RevPAR across MENA (USD) Abu Dhabi Amman Beirut Cairo

MENA Exchange Rates Accurate as of 22/2/2010

Damascus

Currencies shown in red are fixed against the US Dollar

Doha

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)

2

CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar

1USD= 3.67 5.49 3.75 1501 0.37 0.70 45.63 0.28 3.64 0.38 1.36 8.23 10080 205.76 71.91 1.26

Dubai Jeddah Kuwait Manama Muscat

Min. Max. Average

5-star

4-star

3-star

2-star

Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR Investment RevPAR

420,000 215 260,000 118 359,000 186 280,000 111 215,000 117 470,000 191 390,000 192 280,000 141 300,000 156 355,000 161 350,000 183

335,000 172 170,000 88 200,000 106 187,000 85 150,000 85 365,000 173 295,000 157 200,000 106 200,000 116 275,000 149 275,000 133

200,000 113 105,000 58 119,000 68 113,000 59 97,000 55 255,000 132 186,000 113 150,000 84 130,000 82 172,000 111 172,000 95

112,000 73 70,000 38 61,000 35 73,000 38 59,000 35 150,000 81 111,000 74 100,000 59 72,000 51 110,000 70 110,000 60

Investment RevPAR Investment RevPAR Investment RevPAR

215,000 1111 470,000 215 330,833 161

150,000 85 365,000 173 237,250 124

97,000 55 255,000 132 152,250 88

59,000 35 150,000 81 91,917 56 MARCH 2010


Sharjah Launches the UAE’s First Tour Operator Training and Certification Scheme The Sharjah Commerce and Tourism Development Authority (SCTDA) has inaugurated a new training and licensing programme for tour guides and tour operators in the emirate. Designed in accordance with international standards, the system is intended to improve the quality of tourist services in Sharjah by standardising and regulating industry practices. Until the launch of the new system in late February, tour operators had not been required to be licensed to operate; they are now required to undergo a certification procedure. The programme was developed through a partnership between SCTDA and the Sharjah Skyline College training institute.

MARCH 2010

Mohamed A Al Noman, director general of SCTDA, said that the programme was the first of its kind in the UAE, and drew on an in-depth study of tourism industry practices within Sharjah. “Our analysis of this study led us to the conclusion that a standardised operating basis is needed in order to ensure that Sharjah continues to enjoy its status as a world class tourist destination,” he said. The course has been divided into separate sections, differentially targeted at beginners and experienced tour guides. Al Noman said it was crucial that tour operators and guides were equipped with a comprehensive knowledge of the emirate, its neighbouring regions and their attractions.

Abu Dhabi to Pursue Home Port Status Developing a dedicated home port cruise terminal could deliver at least 50,000 new annual visitors to Abu Dhabi, according to a study commissioned by Abu Dhabi Tourism Authority (ADTA). Sheikh Sultan Bin Tahnoon Al Nahyan, chairman of ADTA, said there were substantial gains to be made by transforming Abu Dhabi from a port of call to a home port. “These [gains] include incremental increases in hotel guest stays, indestination spending by both guests and crew, the opportunity to deliver a richer destination experience to cruise liner guests who fall into our high end visitor target and to further engage with them, with a view to prompting return visits,” he said. “ADTA is now looking to actively engage key stakeholders, including the Department of Transport, Abu Dhabi Terminals and Abu Dhabi Airports Company in the development of a sustainable cruise tourism development blueprint. “There has been heightened interest among major cruise lines with respect to Abu Dhabi’s cruise development, as evidenced by an all time high of about 150 ships calling at Mina Zayed this current cruise season.”

3


CAr rEnTAL

On the Road: Driving Trends in the Middle East According to experts, car rental in the Middle East is as diverse as the region itself, with each country presenting its own quirks and idiosyncrasies.

T

he UAE’s expat dominated demographic sets it apart from other countries in the region, with a tendency towards long term rental, according to Neil Munro, sales and marketing manager for Hertz UAE. By comparison, other destinations tend towards short term rentals, dominated by fly-in fly-out business travellers and augmented by short stay leisure tourists. According to Naresh Gakhar, senior manager of sales and marketing for Al Muftah Rent A Car, Qatar is one such market and has remained strong throughout the global downturn because of its reliance on MICE business. In Saudi Arabia Gina Costa, commercial director of Hertz in the Middle East and Africa, said business day trips between Jeddah and Riyadh were common practice among visiting business people. According to Sam Eltibi, general manager of Dollar Thrifty Dubai, rentals from Gulf nationals are driven by short term rentals during holiday seasons. Gakhar said that these travellers preferred luxury vehicles when renting. However, Eltebi said preferences had been impacted by the global downturn. “Before 2009, there was a greater demand for 4WD or luxury cars,” Eltibi said. “However, 2009 saw many tourists tightening their belts and spending with caution, so the rentals of small to mid-sized cars increased. “We expect this trend to continue in 2010. Also, Gulf families prefer minivans – these get fully booked during the region’s major holidays, such as Eid.” Gakhar said the car rental market in the Middle East

4

was growing due to the lack of a developed transport system. “Car rental plays an important role in filling that gap,” he said. However, Costa and Munro said the various transport infrastructure projects underway in the region were not a threat, and would stimulate car rental by encouraging people to travel more. “With the development of regional train networks, the ongoing social and economic integration of the Gulf, and the rise of low cost airlines, people simply have more opportunities to travel - therefore, more car rental,” Munro said. Costa emphasised the importance of low cost carriers in stimulating the industry by creating a new market for travel. “Ryanair essentially created a new market in Europe by allowing people to travel who could not do so previously,” she said. “I believe in the GCC we’ll see the same thing - the market will be a good mix of both business and leisure, and for car rental it is purely an opportunity.” According to Eltibi, rental in the Gulf was often affected by local climactic conditions. “In the Gulf, because of the hot weather conditions for most of the year, there are not many road trips across the region,” he said. “People prefer to fly to other countries and rent cars to travel within the country; people rent cars to visit places that are less than a four hour drive away.” Future development in the Middle Eastern car industry will be driven by modernising practices,

according to Costa, while Gakhar indicated that local operators would continue to expand. Costa estimated that the uptake of online technology in the Middle East lagged behind western markets by approximately five years. She pointed out that customers originating within the Middle East still preferred to pay cash, and to pursue business on a face to face basis. This tendency was partly attributable to technical issues, with the slow uptake of internet services mirroring a deficit in the latest security practices. “The mechanisms have not been in place here to protect the consumer,” Costa said. This is set to change, however, with a concerted effort to drive the online segment in the Middle East. Costa and Munro stressed that while price was not the overriding factor in Hertz’s business model, the savings offered by online business would ultimately attract a greater portion of the local market. Munro also noted a trend towards the internationalisation of the internet, and said he expected the advent of more Arabic friendly web services to generate increased interest in the online channel. Another tendency identified by Munro was an increased interest in environmentally friendly options. He said that a small but growing number of corporate clients had expressed interest in carbon offsets for their fleets, while the possibility of introducing a collection of green vehicles to Hertz’s Dubai fleet was currently under consideration. MARCH 2010



EGYPT

Developers Thinking Outside the Pyramid Offering proximity, economy and cultural contiguity, Egypt remains an ideal destination for travellers based in the Middle East and North Africa. Numbering among the longest serving tourism destinations in the world, the country continues to grow and develop. Louis Dillon Savage writes

The nile river

B

eyond Egypt’s premier attractions, a range of options are available to suit travellers of every ilk. According to Riham Wahid, director of the international public relations department at the Egyptian Tourism Promotion Authority (ETPA), Egypt

has the ability to satisfy all tastes. “Egypt possesses products as diverse as diving; desert tourism; sun, sea and beach; cultural tourism; night life; city breaks; sightseeing; golf tourism; and yachting tourism,” she said. Wahid said European markets comprised the

largest source markets for the country, but that visitors from the Middle East also claimed a significant share. The main source markets to Egypt in 2009 were Russia, the UK, Germany, Italy, France, Poland, Libya, Saudi Arabia, the US, and Ukraine. Libya represented a newly emerging source

red Sea Coast resort Towns on the rise The Red Sea Coast is a busy hive of resort development, despite having remained until recently one of the few unexploited seaside locations in Egypt. According to ETPA, hotspots include Hurghada, Marsa Alam and El Gouna, the last of which has been selected to pilot the government’s drive towards sustainable tourism development. With the addition of the developing resort town at Sahl Hasheesh, the coast is becoming a leading destination for resort focused escape tourism. The Red Sea Coast is serviced by airports at Marsa Alam and Hurghada, which both receive Egyptair’s domestic flights, as well as direct routes from various European countries. ETPA names Marsa Alam, which features a strip of more than 80km of resort complexes, as the top spot for enthusiast diving on the Red Sea. Well preserved coral reefs and an abundance of pelagic (medium depth dwelling) species are the location’s key attractions for recreational divers. According to ETPA, Hurghada is the undisputed favourite resort among Egyptians and visitors from around the world who love sunshine, sea and diving. At least 100 tourist developments of varying levels of luxury stretch for 20km along the Hurghada coast. 6

MARCH 2010


market, with Wahid naming tourism from this country as a key trend in visitor arrivals As a whole, the Middle Eastern region provided Egypt with 15 percent of its total tourist arrivals in 2009. Wahid stressed that Egypt continued to focus on developing tourism in the country by improving infrastructure and encouraging investment. “Egypt is always working on projects which push tourism forward,” she said. “For example: the recently opened

Qibash road in Luxor, which connects Karnak temple in the north to Luxor temple in the south.” She also said that the country’s historical attractions, such as temples and museums, were undergoing continuous renovation by the Supreme Council of Antiquities. Wahid noted that the Crown Jewels Museum in Alexandria was currently completing a four-year renovation as part of this programme. Other developments in the country include the recently completed EUR2 million (USD2.7 million) renovation of the Baron Resort Sharm El Sheikh; the opening of the Mercure Dahab Bay

View on the coast of the Gulf of Aqaba; and the opening of The Breakers Diving and Surfing Lodge at Soma Bay. Upcoming hotels include two Kempinski properties in 2010; the first, Kempinski Nile Hotel, will open in early 2010, while Kempinski Sharm El Sheikh is due in the middle of the year. The Nile Hilton is undergoing renovations to become the Nile Ritz-Carlton, which will be completed in 2011. Ritz-Carlton has flagged its Palm Springs property for opening in 2012. Le Méridien Cairo Airport will also open in 2012.

Historic Hotels Egypt is one of the oldest tourism destinations on the planet, featuring in ancient guidebooks and noted by the ancient historian Herodotus as the greatest concentration of wonders in the world. Development has continued apace since then and the country boasts several historic hotels - some of which have been preferred by royals and wealthy tourists for more than a century. Three of the six hotels selected by Accor for its global Sofitel Legend collection can be found in Egypt The Winter Palace at Luxor, The Old Cataract at Aswan and Sofitel Cecil Alexandria. Riham Wahid, of ETPA, named these properties, along with the Cairo Marriott and the Mena House Oberoi Hotel in Cairo as the most historically important hotels in the country. Both the Old Cataract and Winter Palace hotels will be overhauled as part of their inclusion in the Sofitel Legend inventory. According to Francoise Parguel, media liason for Sofitel in the Middle East, renovations at the old cataract have been underway since 2008. The property will reopen in 2011, at which point work will commence at Sofitel Winter Palace. MARCH 2010

7


Sahl Hasheesh Sahl Hasheesh is one of the major upcoming resort destinations on the Red Sea Coast. Under development by the Egyptian Resorts Company (ERC), it is located 18km south of Hurghada International Airport. The first two stages of the 41 million square metre project are currently under construction, with 69 percent of total investment space sold. The master plan for the third and final stage is currently under review with the WATG resort design company. According to Emanuela Rebecchi, public relations manager for ERC, currently operating hotels at Sahl Hasheesh include: Pyramisa Hotel; Palm Beach; Premier Le Reve; and the Old Palace, which is being renovated into the Marriott at Sahl Hasheesh. Hotel and residential developments under construction include: Little Buddha; Andalusia; Serenity; Pharoanic Village; Paradise Gardens; Veranda; Azzurra; Baron Palace; Ocean Breeze; and Zoser, among others. Baron Palace Sahl Hasheesh is due to open in late 2010, featuring 650 rooms and suites, as well as a multi-purpose MICE complex with multiple ballrooms capable of hosting 600 guests.

Cairo Marriott

El Gouna

Cairo

Greening the Desert The Egyptian government is pushing ahead with initiatives aimed at promoting environmentally friendly hotel practices in the country. The difficulty of sourcing environmentally friendly expertise and materials in Egypt has led the government to develop its own green rating system tailored to local conditions. The Green Star Hotel initiative has been developed by a public/private partnership as a three-tiered rating system intended to identify and certify the level of sustainability at a 8

particular property. The initiative aims to raise awareness of sustainable practices among hotel staff, guests and developers. El Gouna on the Red Sea Coast has been selected as the pilot destination for the project; it was chosen for its pre-existing environmentally friendly focus. Featuring 14 hotels, including large international brands such as Sheraton, Mövenpick and Club Med, all properties in El Gouna have already been allocated ratings

ranging from three to five green stars. In an independent move towards sustainable tourism, Abu Dhabi based Jinan Hotels and Resorts has signed on to develop the ecofocused Ein Shanda hotel at the inland Dakhla Oasis. Ein Shanda will consist of 25 suites, 40 rooms, 10 tents, shopping centres, a spa, swimming pool, food outlets and a bar. The hotel will also include a cultural centre, set in a separate building, with a museum, conference hall and library. MARCH 2010


BUDGET TravEL

Finding Value for Money in the Home of Seven Star Prices The rise of low cost airlines, combined with new accommodation options and a global market bent on cutting costs at every turn, has led to a boom in budget travel options across the Middle East.

P

articularly in Dubai, a city once famous for ultra luxury holidays at extraordinarily high prices, the mid market and budget sector has been developing at a rapid pace over the past few years. According to Darroch Crawford, managing director of Premier Inn Middle East, this new market shows no sign of slowing down. “In Dubai, around 3,000 international budget hotel brand rooms are now open from Premier Inn, Holiday Inn Express and ibis alone,” said Crawford. “Each of these major brands has plans for further expansion in the region and within a few short years, good quality affordable accommodation from one of the main brands will be available in every major GCC city.” Premier Inn recently opened its third hotel in Dubai, at Dubai International Airport, and has hotel openings scheduled in Doha and Abu Dhabi in 2011. The brand is also targeting Muscat, Riyadh and Jeddah. Crawford said Premier Inn’s properties enjoyed a diverse and loyal customer base, which included senior business executives, trainee pilots, aircraft engineers, conference delegates, sporting groups, short break holidaymakers, stopover passengers and families. Rather than a backlash against high prices or a

response to the current economic downturn, Crawford insisted that the popularity of budget travel actually reflected a changing mindset that was common among global travellers. “The budget sector is here to stay,” said Crawford. “People are wising up to the value and reliability on offer from both budget hotels and budget airlines alike; this is driving more travel and many more short breaks. “Once visitors have tried Premier Inn they become regular customers, choosing the brand over higher priced alternatives because they know that we provide everything they need without the overheads of additional services that they don’t.” Low cost airlines such as Air Arabia have played a major role in this behavioural change, according to Daniel Hajjar, CEO of Layia Hospitality. Layia recently launched a new alcohol-free economy hotel brand, Day & Night, to target the latest generation of business travellers. “Day & Night will be a contemporary brand offering refined budget accommodation for the emerging breed of new executives – executives that have recently graduated and who are hooked to their iPhone and Apple computer,” said Hajjar. “The internet plays a major part in their lives, whether for research purposes or for social networks.” There are five Day & Night properties expected

(L-r) Darroch Crawford and Sheikh Ahmed Bin Saeed Al Maktoum MARCH 2010

Daniel Hajjar

to open in Abu Dhabi over the next five years and Hajjar said the company was in early stage negotiations to take the brand to Saudi Arabia, Egypt and Iran. While he said the initial client mix would be 85 business and 15 percent leisure travellers, Hajarr expected the gap between business and leisure to be reduced over time. Although the Middle East has surprised some critics with its eager adoption of the budget sector, Crawford admitted there were still challenges to overcome. “We have found that almost every business customer seems to expect a corporate rate, even if the hotel’s published tariff is extremely low,” he said. “It may take time to educate the market that budget hotel prices are as low as they are because every guest pays the same rate.” He added that the dramatic increase in hotel room supply, combined with a softer market, was driving prices down to a level that may be unsustainable in the long term. “However, I believe that this is a temporary correction and that prices will gradually increase again from autumn this year, although not to the over-inflated levels of two years ago,” said Crawford. 9


DUBAi

Where To From Here? After a building boom of epic proportions, followed by a harsh reality check in 2009, the tourism industry in Dubai is now setting itself up for a more sustainable future. New projects are on the way, but development is slower, operators are more cautious and the focus is edging towards new, more diverse source markets. Laura Warne writes

Burj Al Arab Hotel Dubai Mall

10

D

ubai’s tourism industry was hit hard in 2009, as the global financial crisis transformed the city from an extravagant destination into an unaffordable one in the eyes of many business and leisure travellers. Estimates from Ernst & Young suggest there was a reduction in RevPAR of up to 35 percent in Dubai accommodation outlets over 2009. Hoteliers were divided over the best strategy to adopt in the face of this downturn; some chose to boost occupancy by lowering rates, while others held out in the hope of a market upswing. In November 2009, the industry was further rocked by hospitality giant Dubai World’s plea for an extension on its debt repayments, which was followed by a government bailout and company restructure. While industry sources have accepted that there will be no return to the dizzying heights of Dubai’s boom years, many are now reporting a

slow improvement in the market, with positive growth expected to pick up in late 2010. With recovery in sight and improvements registering in both revenue and occupancy figures, travel professionals in Dubai are warning developers not to lose faith in the destination. According to Frederic Bardin, senior vice president of Arabian Adventures, Dubai remains the fourth or fifth most expensive destination in the world. “However, even if yields and revPAR continue to drop, we don’t want developers to stop building,” he said. Bardin pointed out that Dubai had seen previous industry panics over the disparity between supply and demand. “In 2003 hoteliers got worried about oversupply and developers stopped building new projects – then two years later we were faced with increased demand and a shortage in supply,” he said. “A lot of people thought we looked snobbish when we were turning away business in the MARCH 2010


boom times, but the hotels simply couldn’t give us the rooms. “The demand is increasing; if development stops now, there will be no new openings in two or three years when we need them and we will again be forced to reject business.” It is perhaps due to its rapid expansion that Dubai has struggled to find a comfortable balance between supply and demand. “None of new Dubai existed 20 years ago,” explained Bardin. “Dubai is one of the most modern cities in the world and one of the most talked about cities in the world – this in itself is a reason to visit.” Tony Williams, senior vice president of resorts and projects at Emirates Hotels and Resorts said the recent market adjustment was inevitable. However, he pointed out that Dubai had followed wider trends in both the boom and bust times. “Let’s admit that between 2006 and 2008, the sheer volume of demand created a bubble in Dubai that was really symptomatic of an overall bubble in the rest of the world – people had money to spend and they were spending it here,” said Williams. “Then everybody got a bit of a wakeup call in late 2008 and early 2009. Since then, the hotel industry has adapted well and is becoming more realistic in hotel pricing.” There has also been a substantial increase in mid-range and budget options in Dubai, opening the destination up to a wider range of clientele. Hotel brands such as Premier Inn, Holiday Inn Express and ibis have all entered the market, opening multiple properties in the city. Flydubai, Air Arabia and other low cost carriers are also contributing to the diversification of the tourist market into Dubai, boosting short-haul tourism throughout the Middle East region.

The fate of high profile properties such as Trump International Hotel and Tower on the Palm Jumeirah remains vague, while other projects have been cancelled altogether. However, despite the prevailing moods of reservation and cautious optimism, there remains a healthy level of development in Dubai. According to the STR Global Construction Pipeline Report, released in January, Dubai is leading the rest of the Middle East in terms of development. The emirate reported 30,222 rooms in the total active pipeline, with 15,563 rooms in the construction phase.

The highly anticipated Burj Khalifa opened in January 2010, with one of its many hospitality offerings, Armani Hotel Dubai, officially launching in March. Armani Hotel Dubai features 160 guest rooms and suites, plus eight restaurants and a range of retail outlets stocking Armani products. The hotel was developed as a collaborative project between Giorgio Armani S.p.A and Emaar Properties; future Armani properties are planned in other Middle Eastern destinations. Mövenpick Hotels and Resorts is on the cusp of a major injection of new inventory in Dubai, with seven hotels opening in the city throughout 2010 and 2011.

A Show of Confidence Dozens of hotel projects in Dubai have been delayed or put on hold indefinitely, with many developers choosing to adopt a wait-and-see approach to the market. MARCH 2010

11


Dubai view from the Burj Al Arab Hotel

Jumeirah Beach

While the brand has been present in the Middle East market for many years, it has previously only operated one hotel in Dubai. The new properties will include Ibn Battuta Gate Hotel; Royal Amwaj Resort and Spa; Oceana Hotel and Spa; Mövenpick Hotel Deira; Mövenpick Hotel Jumeirah Beach; Mövenpick Hotel and Residence Laguna Tower; and Mövenpick Residence at The Square Dubai. Toufic Tammim, vice president of sales and marketing for Mövenpick Middle East, outlined some of the changes the brand had seen over the years. “Since Mövenpick moved into the Middle East 15 years ago, the Dubai market has become more varied,” said Tammim. “Previously, local corporations and government conferences were our major market; there was the beginning of a leisure market, but it was not enough to sustain the tourism industry. “Then Dubai started to open up to the world. The Dubai Department of Tourism and Commerce Marketing’s (DTCM) efforts have been phenomenal; they have put Dubai on the map and made tourism its most important sector. “We started seeing more and more international companies opening regional headquarters in Dubai, as well as continued growth in exhibition facilities and the MICE segment.” Tammim said Mövenpick’s new range of accommodation options were strategically planned to take advantage of the varied nature of Dubai’s appeal. “Jumeirah has its own beach leisure clientele; the Palm naturally attracts luxury holidaymakers, honeymooners and the rich

Dubai skyline 12

MARCH 2010


Dubai Marina

Events to remember DTCM and other industry bodies remain committed to bringing new events, exhibitions and conferences into Dubai. May is a standout month for the travel industry, with three of the sector’s biggest annual events all taking place in Dubai. The month kicks off with Arabian Hotel Conference (AHIC), to be held at Madinat Jumeirah between May 1 and 3. Key speakers at AHIC will include representatives from Etihad Airways, Jumeirah Group, Rezidor Hotel Group, Jones Lang LaSalle Hotels and Kingdom Hotel Investments. According to Jonathon Worsley, chairman of co-organiser Bench Events, intelligent and targeted investment is vital for the industry as Dubai and the rest of the Middle East recovers from the global downturn. AHIC is followed by Arabian Travel Market (ATM), held at Dubai World Trade Centre. ATM is expected to draw more than 2,000 exhibitors and 15,000 visitors from around the world. This year will see the return of Travel Agents’ Day and Careers Day, both to be held on May 6. MARCH 2010

Travel Agents’ Day was introduced in 2007 to foster the latest travel and tourism education, through a range of seminars. Careers Day offers onsite interviews, workshops and seminars, as well as occupation and training advice for visitors planning their next career move. Careers Day also gives exhibitors the chance to find new candidates for employment. The new Zone 8 concept will be launched at ATM 2010, providing a relaxed area for informal networking away from the busy main floor. Rounding out the trinity of events is The Hotel Show on May 18 to 20, also to be held at Dubai World Trade Centre. In 2009, The Hotel Show featured 758 exhibitors from 41 countries, attracting 8,474 visitors from 77 countries. The Hotel Show is divided into four zones: Interiors and Design; Operating Equipment and Supplies; Security and Technology; and The Resort Experience. The Seven Star Conference and Middle East Spa Summit run alongside The Hotel Show.

and famous; then there are shopping holidays, corporate travel and the more traditional areas of old Dubai,” he explained. Naturally, he said, the wide range of tourism attractions in Dubai draws a similarly diverse group of travellers. “As the main gateway to the GCC, Dubai will remain a magnet for blue-chip companies, major events, incentives and the leisure market,” said Tammim. “Because of Dubai’s position between Asia and Europe, these two areas will remain key markets. “However, the GCC market is not to be underestimated; it remains a magnet for weekend tourism, summer holidays and shopping trips.” Tammim also suggested that falling rates may attract price-sensitive

Indian travellers, while China remained a source market to watch for the future. Theme Dreams Tour operators and travel agents across the UAE, including Bardin, agree that the development and completion of theme parks would be a huge boost to the leisure market into Dubai. Some progress has been made in this arena, with Aquaventure Water Park opening at Atlantis The Palm in late 2008. Dubailand has also opened several offerings, including Dubai Autodrome in MotorCity, Global Village and Dubai Sports City. However, the fate of longed-for big name attractions such as Universal Studios and DreamWorks Animation Theme Park remain up in the air.

13


SinGAPOrE

Mega Resorts Defy Sluggish Global Market Despite a difficult period for the global tourism industry, Singapore recorded its fifth consecutive year of increased tourism arrivals from the Middle East in 2009. In the coming year, the country is set to open two major new resort and entertainment districts, and will play host to a range of high profile events, including the first ever Youth Olympics. Laura Warne writes

Singapore City

A

ccording to the Singapore Tourism Board (STB), the country welcomed 117,000 visitors from the Middle East in 2009, which represented 2.7 percent growth on 2008 arrivals. Total visitor numbers reached 9.7 million visitors in 2009, according to Jason Ong, STB area director for the Middle East and Africa. “While the number of travellers from the Middle East in comparison to our overall global numbers is small, the Middle East has been growing at a higher pace than the majority of our mature markets,” said Ong. “The Middle East is viewed as an important market by STB, because the island holds a number of cultural and modern attractions that appeal to visitors from that region.” Following a tourism slowdown, attributed to the H1N1 virus and global economic downturn, December 2009 saw a distinct rise in visitor arrivals to Singapore, with 971,000 visitors. As a result, STB is predicting a strong performance in the year to come. “The rebound in tourism arrivals in the last quarter of 2009, and the continual increase in 14

Outdoor dining in Singapore

visitors from the Middle East, reaffirms Singapore’s position as a top global destination for family vacations and business trips, with its ever-changing offering of top tourist attractions, bustling retail, delectable dining, world class business events facilities and a wide selection of quality accommodation,” said Ong. “With the opening of two long awaited multibillion dollar integrated resorts and the launch of new international events, STB is anticipating this to be a bumper year for visitor numbers.”

Wyndham in Singapore Wyndham Hotel Group, which operates more than 7,000 hotels and 11 brands across the world, recently announced its entry into Singapore with two new hotels; Ramada Singapore at Zhongshan Park and Days Hotel Singapore, also at Zhongshan Park. Both hotels are expected to open in 2014, according to Tom Monahan, executive vice president of international development for Wyndham Hotel Group. MARCH 2010


Singapore river

Chinese new Year

Singapore Sling Currency: Singapore Dollar (SGC) Capital: Singapore Languages: English, Malay, Mandarin Chinese, Tamil “Singapore is one of the most important business and leisure destinations in the Asia Pacific region and we are thrilled to introduce our Ramada and Days Inn brands to the market,” said Monahan. Events A range of events are planned for 2010 in Singapore, many of which are being held for the first time. The Asian Fashion Exchange, Grand Singapore Sale and World Gourmet Summit are all tipped to attract Middle Eastern guests, either as participants or visitors. On the business front, Singapore will host the Food and Hotel Asia exhibition in April and will launch the first World Cities Summit in June. The Singapore 2010 Youth Olympic Games, a new sporting event, will feature 3,600 international young athletes between 14 and 18 years of age.

The event, taking place in August, is expected to attract 500,000 spectators from around the world. In September, Singapore will host the world’s only Formula One night race for 2010. Chinese New Year celebrations, which take place throughout January, February and March, are also major drawcards for tourists to Singapore, particularly those from the Middle East. In 2009, the event attracted a 29.9 percent increase in travellers from Iran, 21.1 percent increase in travellers from Saudi Arabia, and a 9.8 percent increase in travellers from the UAE. “For travellers who really want to experience a different culture, a trip to Singapore during the Chinese New Year festivities is an absolute must,” said Ong.

Marina Bay Sands Marina Bay Sands is a new integrated resort destination featuring a luxury hotel, convention and exhibition facilities, theatres, entertainment, shopping and dining districts. The first phase of the development, including 1,000 hotel rooms, is expected to open in late April. The second phase is planned for later in the year. Highlights of the development include: Sands SkyPark, offering 360 degree views of Singapore’s skyline; Sands Expo and Convention Centre, which will be able to host more than 45,000 delegates, 2,000 exhibition booths and 250 meeting rooms, along with the region’s biggest ballroom; and The Shoppes at Marina Bay Sands, featuring retailers such as MARCH 2010

Bally, Cartier, Gucci, Hugo Boss, Louis Vuitton, Prada and Tiffany and Co. Broadway hit The Lion King will debut in one of Marina Bay Sands’ two theatres later in the year. Thomas Arasi, CEO of Marina Bay Sands, said the development would reshape the hospitality industry in Singapore over the next decade. “Marina Bay Sands is a destination all by itself and is a long term commitment to growing tourism in Singapore and the region,” said Arasi. “Beyond the numbers and economic benefits ascribable to Singapore, Marina Bay Sands will be a very big part of creating a new mystique, inviting image and buzz in the tourism, convention and business communities across Asia and across the world.”

resort World Sentosa Resort World Sentosa is a family destination resort development on Sentosa Island that comprises six luxury hotels, four of which are already open, a luxury dining and retail promenade, a marine park and Southeast Asia’s only Universal Studios theme park. “Universal Studios Singapore, which is due to open its doors to the young and young at heart within the next month, will host the world’s biggest collection of DreamWorks Animation attractions, featuring 24 rides and attractions, 18 of which are either world-firsts or adapted for the park,” said STB’s Ong. The USD4.32 billion project will boast 1,800 hotel rooms and conference facilities for 12,000 delegates. Hotels include: the ultra-luxury Crockfords Tower; Hotel Michael, named for US architectural icon Michael Graves; Spa Villas, featuring an assortment of water bungalows and beach cottages; Hard Rock Hotel; the contemporary Festive Hotel; and Equarius Hotel, situated on the doorstep of a forest.

Chinese new Year 15


Fawaz M Matar

Ali Al Haji

CEO of Seef Properties

Executive Manager at the Saudi Commission of Tourism and Antiquities (SCTA)

“The cruise industry is an important component of the tourism sector in Bahrain and our agreement with Royal Caribbean fits in well with our vision of boosting inward tourism to the kingdom. The cruise sector is presently a fledgling one in Bahrain and we hope to play a prominent role in helping its growth by generating regional awareness about cruise holidays. Hopefully, Bahraini and GCC residents will also begin seeing cruises as a viable vacation option. We look forward to a steady stream of passengers from the ship coming to Seef Mall for the remainder of the season.”

“SCTA's aim is to help local travel agents become more proficient, organised and customer oriented and we believe that the Galileo system can help them achieve these goals.”

Hopefully, Bahraini and GCC residents will also begin seeing cruises as a viable vacation option

Sherwin Sevillena Senior Manager of Research and Development at OITE (Oman Travel Mart organiser) “Tourism is a backbone of every economy and Oman Travel Mart will serve as a convergence point for travel and tour operators to attract local and international tourists to explore the various opportunities and destinations in the country." Sherwin Sevillena

Travelport’s presentation to Saudi travel agents

Fazal Muhammed Travelport's KSA Country Director “Our focus is to maintain high levels of customer satisfaction and loyalty by rolling out enhanced GDS technology and services to all corners of Saudi Arabia. We look forward to delivering our best to travel agencies in the Hofuf region so that they are equipped with the tools needed to achieve their long term goals.”

Peter Hill

Peter Hill CEO of Oman Air “Sri Lanka has proven to be a welcome addition to the ever expanding Oman Air network. We have reasons to believe that our customers are thrilled with this destination, as Sri Lanka has everything a tourist wants to explore, experience and see. Our service to this destination is also viewed as a boon by the many Sri Lankan expatriates working in Oman who have started using our services.” Sri Lanka

Tourism is a backbone of every economy 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

MARCH 2010


Tech Tips: in-Flight Entertainment Gets Down To Earth with new Technology Keep a lookout for Media On Demand (MOD) technology - soon to be available to ground based commercial vehicle operators in the Middle East. The technology, most familiar in its in-flight entertainment guise, will allow travellers to call up an array of media offerings on screen. Movies, music, digital TV, video games and internet access are all offered by the system, which will be launched in the Middle East in March. Designed by Taiwanese company FUNTORO Inc, the technology can support up to 54 monitors and has been designed for commercial vehicles ranging from trains and coaches to taxis and vans. Joddie Gray, vice president of operations at Urban Trans, an international transportation consulting firm, said the introduction of the

technology could pave the way for a road transport renaissance. “Creating an enjoyable travel experience is an important incentive,” said Gray.

“Whether for entertainment purposes or for a daily commute to work, technology should be an integrated part of any public transport system.”

Funtoro’s MOD system

Technology should be an integrated part of any public transport system

Thrifty Advice for Addressing Occidental Mistakes The unique cultural heritage of the Middle East sets it apart from the world of old Europe - the source of some of the tourism sector’s most lucrative demographics. Sam Eltibi, executive director of the Dollar Thrifty automotive group in Dubai, shared his observations on the expectations of visitors from Sam Eltibi

outside the Middle East and offered his advice for addressing any tension that might arise. Luxury Cars “We have had issues when it comes to renting certain luxury cars,” Eltibi said. “We need to take more than one ID card for insurance purposes, and we get complaints that this is not a requirement in other places such as Europe.” Eltibi said that insurance requirements in the Middle East tended to differ from those in Europe, and recommended explaining these differences to the customer – in most cases, simply educating the customer was enough to smooth any ruffled feathers. Culture Shock Keeping the customer informed of local laws was also a must, Eltibi said. “Most people aren’t aware of the driving etiquette and driving laws in the Middle East region and frequently break them,” he said. “For example, most parts of the Middle East have a zero percent tolerance on drinking and driving,

MARCH 2010

where as there is a certain limit allowed in Europe.” Again, customer education is the answer. “If we know the customer is new to the region, we explain the driving etiquette before issuing the car and present the customer with leaflets of the driving laws,” Eltibi said. Time is Finite The final issue that Eltibi flagged was the time it took for the authorities to process breaches of the law. “It sometimes takes time for authorities to process traffic fines, and we sometimes receive these notifications after the car has been returned, which frequently causes a ruckus from the customer,” he said. In this case, damage control is the only way forward: keeping good records and cross referencing with information provided by the authorities can help prevent disputes, Eltibi advised. “We have to provide evidence like the time and, in the case of speeding cameras, images of when the violation took place,” he said. “This evidence is usually easily obtained by the authorities.” 17


AUSTriA

The Hills Are Alive with the Sound of Tourism Over the past five years, arrivals from the Middle East to Austria have increased by 125 percent. It is now one of the fastest growing markets for Austrian tourism. Laura Warne writes

Hallstatt

I

n 2009, Austria received 97,000 guests from the Middle East, generating 331,000 overnight stays. Despite a five percent decrease in arrivals from the Middle East, mainly attributed to concerns about the H1N1 virus, Klaus Ehrenbrandtner, Middle East director for the Austrian National Tourism Office (ANTO), said the country performed well overall in 2009.

“We did better than many other countries in Europe,” said Ehrenbrandtner. “We still had a decrease in 2009 due to the economic situation, but it was only negative one percent, in comparison to a very good result in 2008. So in fact we gained market share.” Overall, Austria recorded 32.3 million arrivals and 124.3 million overnight stays in 2009. “The Middle East’s share may still look quite small, Salzburg

Carinthia, in the Eastern Alps

Austria in Brief Capital: Vienna Currency: Euro Language: German

18

but it is one of the fastest growing markets for Austrian tourism and has become the third biggest overseas market, after North America and Japan,” said Ehrenbrandtner. “Most of our guests do still come from Germany, the Netherlands and other European countries, but it has been ANTO’s policy to focus on the overseas market in recent years. “Figures show we were right in doing so, however some people in the trade are still not aware that Austria has been in the top ten list of countries with the highest international arrivals and tourism receipts worldwide in recent years.” Ehrenbrandtner pointed out that according to figures published by the World Tourism Organisation (UNWTO) Austria receives approximately three times as many guests as Switzerland and only 10 percent fewer guests than its popular neighbour Germany. From Cities to Mountains Austria’s diverse tourism offering enables visitors to combine a stay in historic city centres such as Vienna, Salzburg or Innsbruck with a visit to the alpine region of the country, without travelling for more than two or three hours. MARCH 2010


Swarovski Wein a Sparkling Success in vienna

Swarovski Wein, vienna

For the Middle East market, Vienna, Salzburg and Zell am See are some of the most frequently visited regions in Austria. The province of Tirol, with its capital Innsbruck and mountain resorts of Kitzbühel and Seefeld are also popular. Up and coming destinations include the Gastein Valley and the province of Carinthia. The Gastein Valley features natural springs and spa tourism, while Carinthia is known as the land of the lakes – it has 1,270 lakes in an area one quarter the size of Abu Dhabi.

The Alps

Timing is Everything According to Ehrenbrandtner, there have been recent shifts in travel periods for visitors from the Middle East. “More and more Middle Eastern MARCH 2010

Swarovski Crystal Worlds, a combined art gallery and Swarovski store in Tirol, was established in 1995. According to ANTO, it is now Austria’s second most visited site, after the Imperial Palace in Vienna. Following the success of Crystal Worlds, the company launched its new centre, Swarovski Wein, in December, 2009. Based in Vienna, the three storey centre features works by international artists and displays some

tourists visit our country now in the months of May and June, and also September and October,” he said. “This may be due to Ramadan, but May and June are also very popular because everything is blooming and blossoming, and the weather is really pleasant in those months.” He added that in the regions popular with Middle Eastern tourists, many hotels cater specifically to this market by providing connecting rooms and Arabic cuisine. “Particularly in Vienna, Salzburg and Zell am See, faithful Muslims will have no problem finding halal food,” said Ehrenbrandtner. “Some of the facilities originally provided for guests have also become very popular with the local populations, like shisha tents in the inner city of Vienna. “It is important to know that Islam is the second biggest religion in Austria and has a long tradition here.”

famous Swarovski products, providing a unique shopping environment. Markus Langes-Swarovski, a member of the Swarovski Executive Board, said Austria’s capital city was a strategic tourism location. “We chose Vienna for a reason, as it is a city that has served as a melting point between east and west for centuries and is a cultural platform – both in a historical, classical sense and as a modern, trend focused urban centre,” said LangesSwarovski.

with modern facilities. Shangri-La Hotel Vienna will feature 207 rooms for business and leisure guests, including three presidential suites. Flights The Austrian Airlines Group has flagged ongoing expansion in the Middle East, with a new scheduled

service to Amman, Jordan launched in 2009. The group now flies to 15 destinations in the Middle East, including Dubai, Damascus, Astana, Tehran, Cairo, Erbil, Riyadh and Jeddah. From the Middle East, a range of airlines operate regular flights to Vienna, including Emirates, Qatar Airways and Royal Jordanian.

New and Upcoming Hotels The luxury Grand Tirolia Resort opened in 2009 in the alpine region of Kitzbühel. The hotel specialises in golf, spa and MICE tourism. It is also an excellent base for ski holidays in the winter months. Shangri-La Hotel Vienna is expected to open in the last quarter of 2010, after its 2009 opening was delayed. The hotel will be located in the prestigious former Erste Bank headquarters, blending the traditional heritage of the building 19


Turkish Airlines Team

Ahmet Bozdas

Turkish Airlines has restructured its directorial team to improve the company’s performance in the Middle East. Adil Hamade, previously director of Dubai and Sri Lanka, has relocated to Beirut to enhance awareness of the airline in Lebanon. Ayse Misirli Mirza, previously director of Abu Dhabi, has been transferred to Dubai. Misirli Mirza has been with Turkish Airlines since 1998, when she launched the airline’s Abu Dhabi office. She has flagged continued expansion, including increases in the number and frequency of routes throughout the Middle East. Ahmet Bozdas will replace Misirli Mirza as director of Abu Dhabi; he was previously posted as director of Egypt.

Piers Schreiber Jumeirah Group has appointed Piers Schreiber to the new position of vice president of corporate communications and public affairs. Schreiber has 20 years of experience in international corporate communications. He has previously worked for KPNQwest, Ogilvy Public Relations, The Rowland Company (Saatchi & Saatchi) and was also a co-founder of The Communication Matrix.

renaud Cloatre Dassault Aviation has appointed Renaud Cloatre as sales director for the Middle East, based in Dubai. The appointment coincides with the opening of the company’s new regional sales office at Dubai Airport Free Zone. Cloatre joined Dassault Aviation in 2001. He is a business graduate, licensed glider pilot and private pilot.

Piers Schreiber

Simone Lange Park Hyatt Dubai has appointed Simone Lange as spa manager of Amara Spa. Lange began her career in 2005 as a spa hostess at InterContinental Berchtesgaden Resort in Germany. Her most recent post was as spa manager at Park Hyatt Hamburg. She is a trained therapist and spa operations manager, with qualifications in aesthetics, beauty, massage and finance.

renaud Cloatre

Shinu Pillai Shinu Pillai has been appointed as regional sales manager UAE and Middle East for Reed Travel Exhibitions’ (RTE) meetings and incentives portfolio, based in Dubai. Pillai will be responsible for actively marketing RTE’s full suite of meeting and incentive shows, including GIBTM in Abu Dhabi, EIBTM in Barcelona, CIBTM in Beijing, AIBTM in Baltimore and AIME in Melbourne. However, his primary focus will be GIBTM. Pillai has been based in the UAE since 1996 and has worked in the exhibition industry for nine years. He was a key player in the launch and marketing of the Business Travel Show in Dubai in 2007. 20

Simone Lange MARCH 2010


Q&A with Janet Fitzner After 18 years with Rezidor Hotel Group, Janet Fitzner has signed on as the new general manager for Radisson Blu Dubai Deira Creek – one of the city’s longest serving five star hotels. Here, she discusses the challenges and rewards of operating such a well established hotel in Dubai’s highly competitive environment. Travel Trade Weekly: What challenges do you anticipate at Radisson Blu Hotel Dubai Deira Creek and how can these be overcome? Janet Fitzner: I personally believe that the challenges we are facing are very much in line with the overall industry and market, as many challenges have arisen due to the global economic downturn. We are very much aware of the downturn in every way and we do sense it from all perspectives. There are different measures we have been taking to secure the present and to ensure a stable future. Dubai has always been a very competitive market, especially in the hospitality industry. Our property has been in this market for more than three decades and has witnessed the rapid growth and intensity of it; we have also adapted to the different cycles within this competitive market. Naturally, the opportunity to experience the different financial and economic phases over the years has helped us to better strategise and remain quite stable and somewhat solid in the recent downturn. Another major factor that has helped the hotel stay on a certain level is the well established client base that this hotel has built, maintained and strengthened over the years.

Travel Trade Weekly: What is your strategy for attracting clients to the hotel? Janet Fitzner: Having an established and quite loyal corporate base of clients, our hotel tends to have an average of 65 percent business clients. However, our location also plays an equally major role in the leisure market as it is located right on the creek and at walking distance from all the shopping and cultural landmarks. With the increase in travellers coming in from various new destinations made accessible through new flight routes, mainly from Europe and North America, the major UAE airlines are working on capturing that particular segment. We are also focusing on major emerging markets such as China, Japan and South Africa, to name a few; together with the efforts of the Dubai Tourism and Commerce Marketing, we are MARCH 2010

targeting these markets through various sales, marketing and promotional activities.

We are focusing on major emerging markets such as China, Japan and South Africa Travel Trade Weekly: As one of the first five star hotels in Dubai, Radisson Blu Hotel Dubai Deira Creek has undergone a series of renovations - are there more changes ahead for the hotel? Janet Fitzner: At the end of 2009, we finalised the process of changing our wallpaper, television screens as well as carpets of guest rooms in most of the hotel floors and reconditioned the bathrooms and the furniture of the same floors. Work is still in process at the moment and we will finalise all areas by the end of the first quarter of this year. In addition, we have completely refurbished our two presidential suites with connecting rooms. Furthermore, we have upgraded all guest room bathrooms and fitted new LCD television screens and in-room entertainment systems in all 276 rooms. We have also undergone soft refurbishments at our fitness club, including brand new massage rooms and new furnishings for the pool area. We are currently looking at maximising the potential of our outdoor leisure facilities in terms of food and beverage service, focusing on the pool side terrace area which is very unique, being a large sundeck area overlooking the creek. We plan certain projects well in advance, taking into consideration that certain things need to be done. Also, taking into consideration all of the newly opened hotels in Dubai, together with the upcoming developments, we need to ensure that we maintain a certain quality and that we are up to date in terms of facilities and amenities. The ultimate goal, of course, remains that we work towards building on our image of being the city’s preferred hotel.

Janet Fitzner

Travel Trade Weekly: How do you view the current market in Dubai - what are the major issues facing the industry? Janet Fitzner: Dubai is a fairly new tourism destination compared to other more traditional destinations. With increased accessibility of flights to key destinations and growth in business and corporate development as well as increasing leisure facilities, Dubai is expected to have a stable increase of tourism development. However, despite all of the planned developments and promising future, there is a remarkable shift in financial consumer behavior. Tourists are definitely looking for nothing else but value for money, which has been the case for almost over a year now. The industry has understood this change and therefore, we see an increase in special promotions everywhere, varying from added value benefits to discounted packages. I am very optimistic and have a positive outlook on the way that both the Dubai market and our industry is reacting and coming out of the current situation. 21


niGEriA

Oiling the Wheels of Leisure Tourism Accounting for 80 percent of foreign trade revenue and 90 percent of the government’s budget, petrochemicals dominate every aspect of the Nigerian economy, including the travel industry. However, according to insiders, this business dominated destination is ready to change tack. Louis Dillon Savage writes Abuja

E

mirates Airways has flown into Lagos since 2004, launching twice daily flights in 2009; according to an Emirates spokesperson, their market has diversified beyond the business traveller. “The Nigeria route is posting a healthy performance, both for inbound and outbound traffic, and passengers have responded positively to the additional daily flight,” she said. “Our main demographics are a combination of business, leisure and VFR (visiting friends and relatives) traffic.” The spokesperson added that Nigeria was increasing in importance to the airline, and that the company had branched into Nigeria in response to demand for a high quality direct link to the Middle East. “As the number one oil producer in Africa, naturally Nigeria attracts a huge amount of trader traffic and associated business,” she said. “The Emirates route also supports the burgeoning economic activity between Africa and the Far East, and Nigeria is an important market for Emirates Holidays.”

niger Delta Conflict Nigeria has suffered bad press as a destination, driven by an unresolved conflict in its primary oil producing region, the Niger Delta. However, Aderinwale said most reports had been exaggerated and that travellers not associated with the oil industry had nothing to fear. “Most security information being peddled about Nigeria is false,” he said. “Nigerians are very foreigner friendly. They would vacate their bed for a guest! We are great hosts.” 22

Calabar Christmas Carnival

Hafeez Balogun of Hogg Robinson Group, a global corporate travel management firm with offices in Nigeria, said many Nigerian business travellers frequently visited Dubai to establish contacts and purchase retail goods unavailable in Nigeria. He said he expected increased interconnectivity with the Middle East, brought about by the entrance of Emirates and Qatar airways into the market, to increase non-oil investment and stimulate the market. Balogun emphasised that the travel industry was still dominated by business visitors, primarily from the US. “Approximately 50 percent of all travel is for the oil and gas industry,” he said. However, he noted that the oil industry had also attracted a substantial number of Middle Eastern expatriates, including a large Lebanese community. According to Balogun, these residents were an important driver of inbound and outbound travel to the country. Attampts to diversify away from oil are intensifying, according to Ade Aderinwale of ComeToNigeria.com - an independent community committed to promoting the destination. The country’s aging oil production infrastructure and waning reserves have led the government to cast about for revenue alternatives and tourism is at the top of the list, according to Aderinwale. “Tourism is an area that is gaining attention more than ever before,” he said. “We are still expecting the tourism master plan for the country. “Foreign investors are coming into the sector and more international hotel brands are coming up.” He said that Lagos boasted the largest concentration

radisson Blu, Lagos

Development Though hospitality growth in Nigeria has been sluggish, major players are increasing their stakes. The Le Méridien Ibom Hotel and Golf Resort opened in Uyo in February, with another Le Méridien property to follow in Lagos in 2012 - the Le Méridien Ikoyi Towers. The Four Points by Sheraton Lagos is due in October and Rezidor has a number of properties flagged for the next three years, including Radisson Blu Lagos, which will open in mid 2010. of luxury hotels, however Abuja, Port Harcourt and Bauchi also offered five star hotels and resorts, in addition to attractive surroundings. Aderinwale named the warm weather of Nigeria, natural beaches, nutritious local meals and friendly people as the major draws for foreign visitors. He also emphasised that Nigeria, as a majority Muslim nation, was well equipped to cater to visitors from the Middle East. He said that the country had many mosques, including those built in the residences of prominent Nigerians and made available to the public as a gesture of faith. He stressed that the country was exceptionally welcoming to Islamic practice, making it an ideal destination for Middle Eastern visitors. “It is commonplace, especially in northern Nigeria, to witness Muslim drivers park to observe prayers. While other Muslim passengers join the prayer, the non-Muslims calmly sit and observe the proceedings with understanding,” he said. MARCH 2010



Qatar Tourism Authority release Preview of new international Motor Show Organisers of the Qatar Motor Show, to be held in January 2011, have released a preview of the event, insisting that it will stand out from others in the region with a series of glamorous, dynamic events. Qatar Tourism Authority (QTA) will partner with Q.media Events and GL Events to organise the show. Ahmed Al Nuaimi, chairman of QTA, said Qatar had emerged as a leading Gulf destination for international exhibitions, conferences and events. “Fast becoming one of the world’s leading places

to enjoy sports, Qatar has made significant investments in sports infrastructure and has already made an impact on the motor sports scene with our nighttime Moto GrandPrix and championship rally team,” said Al Nuaimi. “Qatar Tourism Authority is excited to bring the Qatar Motor Show to Doha as another exciting addition to the events calendar for Qatar and for the region.” The Qatar Motor Show, held at the Doha Exhibitions Centre from January 26 to 29, will begin with an international convention, covering topics such as environmental issues and future

trends within the industry. A display area will feature concept cars, super cars and new models from leading manufacturers and designers.

Qatar has made significant investments in sports infrastructure In addition, the area surrounding the exhibition centre will be transformed into demonstration tracks for the latest models.

Events ITB Berlin Berlin, Germany, March 10-14 (www.itb-berlin.com) A combination of trade exhibition, public exhibition and professional convention for the travel trade industry. Britain and Ireland Marketplace 2010 London, UK, March 16 (www.bim.travel) Workshop for tour operators, wholesalers and intermediaries to meet suppliers from the UK and Ireland’s hotels, attractions, ground handlers and other tourism services Moscow International Travel and Tourism Exhibition Moscow, Russia, March 17-20 (www.mitt.ru/en) International trade exhibition for trade and consumer visitors, with 157 participating destinations and more than 3,000 companies. GIBTM Abu Dhabi, UAE, March 29-31 (www.gibtm.com) International event for the business travel and meetings industry in the Gulf and Middle East region. Meeting Luxury Lugano, Switzerland, April 8-10 (www.meetingluxury.com/en) Exhibition for top end travel products. World Holiday and Travel Fair Johannesburg, South Africa, April 16-18 (www.worldtravelfair.co.za) Split between a business to business exhibition and public access, with the opportunity for on the spot selling to consumers.

24

China Outbound Travel and Tourism Market Beijing, PRC, April 28-30 (www.cottm.com) A business to business platform for international destinations and companies to introduce their products to the Chinese outbound travel industry. Arabian Hotel Investment Conference Dubai, UAE, May 1-3 (www.arabianconference.com) Interviews with hoteliers, forecasts from economists, panel discussions on the latest developments, trends and best practice in the hotel and investment industry. Arabian Travel Market Dubai, UAE, May 4-7 (www.arabiantravelmarket.com) Travel and tourism event for inbound and outbound tourism professionals, featuring destinations, accommodation, tourism attractions and airlines. HOTEC Middle East Muscat, Oman, May 7-10 (www.mcleaneventsinternational.com/events/HotecMiddleEast2010) Business to business meetings forum for hotel owners, developers and operators to meet with suppliers. The Hotel Show Dubai, UAE, May 18-20 (www.thehotelshow.com) Exhibition for hoteliers and suppliers to the hotel industry.

MARCH 2010


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.