Travel Trade Monthly Issue 23

Middle East and North Africa Edition

September 2011, Issue 23

TOUR: MALTA Malta may be a small country, but its tourism sector has big ambitions. With visitor arrivals on the up, the island has turned its attention to promoting itself as a cultural haven in order to draw in even more tourists.

A rise in tourist activities, corporate offerings and internationally popular sporting events, have helped to significantly raise tourist numbers in Qatar, allowing the increasing players in the country’s travel and tourism industry to yield positive results.

14 EXCLUSIVE: BRAND TRAVEL When it comes to choosing an airline or hotel, travellers will often opt for a name they know and trust. The fame of a brand can often be as important as the quality.

20 In This Issue MARKET UPDATE INVESTIGATION: Low Cost Airlines VISIT: Qatar EXPLORE: Algeria ONSITE: Korea TOUR: Malta LONG HAUL: South Africa TRAVEL TALK TRAVEL CHANNELS EXCLUSIVE: Brand Travel WHO’S MOVED RENDEZVOUS NEWS & EVENTS SEPTEMBER 2011

ISSUE 23

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VISIT: Qatar

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TRAVEL TRADE WEEKLY Managing Editor Mary Kammitsi mary@traveltradeweekly.travel Journalists Rita Kasziba Duncan MacRae Marianna Keen Design & Layout Elina Pericleous Sales & Marketing Maria Demetriadou Brighite Ess Dominique Tennant Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +357 22 820888 Fax: +357 22 318958 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: info@cyprint.com.cy

Rezidor: Impacted MENA, Recovering Europe While the European hotel market is gradually recovering, the Middle East and North Africa have been strongly impacted by the ongoing turmoil in parts of the region, according to Rezidor’s latest interim report.

W

ith 11.7 percent increase recorded in the second quarter (Q2) of the year, the hotel group’s revenue grew to EUR226.7 million (USD328.4) from EUR203 million (USD294 million) in the corresponding period in 2010. On a like-for-like basis, revenue rose by 3.9 percent. During the three-month period revenue per available room (RevPAR) increased by three percent to EUR70.7 (USD102.4), while likefor-like occupancy accounted for 66.7 percent. The group’s profit after tax totalled EUR4.7 million (USD6.8 million).

In the first six months of the year (H1) Rezidor’s revenue increased by 13.7 percent from EUR368.7 million (USD533.9 million) in H1 2010 to EUR419.3 million (USD607.2 million). RevPAR like-for-like grew by 4.5 percent to EUR63.3 (USD91.6), and like-for-like occupancy stood at 61.2 percent. Loss after tax amounted to EUR-12.7 million (USD-18.4 million).

Kurt Ritter, president and CEO, Rezidor,

elaborated on how the result varied in certain regions.

“We see a continued recovery in the European hotel market although the overall macroeconomic conditions remain uncertain. Our hotels in Eastern Europe noted a particularly strong development with continued RevPAR improvement and growth in fees. Western Europe also showed strong growth. The political turbulence in North Africa and the Middle East has a bigger impact than in the previous quarter. A substantial drop in management fees from Bahrain, Egypt, Tunisia and Libya, together with a weak development in South Africa compared to a very strong summer during the 2010 Worlds Cup had a negative impact on group margins.”

While the Middle East and North Africa both witnessed a fall in occupancy and rate, some countries sustained a positive result.

The heavy impact of the political unrest resulted in likefor-like RevPAR decline of 27.8 percent, attributable to a lower occupancy (-23.1 percent). While Libya (-77.9 percent), Egypt (-54 percent), Tunisia (-51.4 percent) experienced a robust drop, Saudi Arabia (+15.8 percent) and the UAE (+10.7 percent) saw a solid increase.

Corp Executive Dubai: Record Results

MENA Exchange Rates Accurate as of 29/8/2011 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 (LYD)

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

1USD= 3.67 5.96 3.75 1,507.5 0.37 0.71 47.42 0.27 3.64 0.38 1.36 7.81 10,583 213.9 72.51 1.20

Just after a year of its launch, Corp Executive Hotel Apartments Al Barsha, Dubai, has exceeded all expectations and recorded a robust first half year (H1).

With a year-to-date average occupancy of 98.82 percent recorded in H1, the hotel surpassed the previously forecasted 81.94 percent.

Michael Noblet, president, CEO, Hospitality Management Holdings (HMH), commented on the impressive result. “Corp Executive Hotel Apartments has been one of the best performing hotels in the highly competitive Al Barsha area as well as a top grosser in our portfolio. We are truly proud of this superb property that is owned by Al Shafer General Contracting and brilliantly located within minutes from the Mall of Emirates. It offers ultra-spacious accommodation, excellent facilities and heart-warming service at outstanding rates.”

The key feeder markets making up the sound result were GCC, Europe, Asia, US and Australia, and the hotel enjoyed a healthy mix of all kind of travellers, noted Aamir Pervez, general manager.

“We are pleased to report strong financial results

despite the difficult market conditions. From the very start, our strategy has been to drive business across all vertical sectors that has given us a steady mix of corporate, long-stay, leisure, ecommerce and FIT segment which in turn kept our figures firm.”

The rest of the of year looks equally promising for the hotel.

Besides its service, Noblet attributes the success to the emirate’s high profile. “Dubai is the ultimate fantasy destination for those seeking sun, sand, sea and shopping in a safe environment. It is equally attractive for corporate travellers with a convenient and vast global airline network, unbeatable business facilities and flawless communications services.”

Dubai is the ultimate fantasy destination for those seeking sun, sand, sea and shopping in a safe environment SEPTEMBER 2011

- Low Cost Airlines

Low Cost, High Expectations Since introducing the concept of budget travel into the region, low-cost carriers (LCC) have gradually increased their market share, expanded their network and posted profitable results. Yet for the year so far, regional unrest and soaring fuel prices have presented these carriers with a tough test.

Rita Kasziba writes

T

he low-cost model, introduced to the region by Air Arabia in 2003, has substantially revolutionised air travel.

Through innovative business approaches, LCCs have fast gained ground to rival renowned legacy airlines.

In the last months’ however, unfavourable business environments spared no airline and Air Arabia was no exception. The carrier suffered a net income decrease of 14 percent in the first three months of the year and was forced to put on hold plans to launch a hub in Jordan.

In the second quarter of the year, however, Air Arabia reported steady growth in profit, revenue and passenger traffic, despite the tumultuous market conditions, underscoring the airline’s ability to react to shifting patterns in demand and the environment, noted Sheikh Abdullah Bin Mohammad Al Thani, chairman, Air Arabia.

“Air Arabia has consistently shown its resilience to dynamic market conditions. The second quarter of this year has seen fuel price averaging to 46 percent increase in the market fuel bill compared to same quarter of correspondent year. The political turmoil of the region has continued with further escalation in several countries. Despite the challenging market conditions, Air Arabia has achieved steady growth and solid profits for the second quarter, thanks to our focused business model and appealing product.”

Despite the existing challenges of the steep increase in oil prices and the political unrest, the airline anticipates a positive outlook for the rest of the year.

SEPTEMBER 2011

“We remain confident about the outlook of lowcost travel in the region amidst market ambiguity, continuous challenging conditions and rising trend in fuel cost,” added Al Thani.

Jazeera Airways has witnessed a continuous increase in demand, which resulted in sound

financial and operational results. Since inception in late 2005, Jazeera Airways Group has been profitable every year until 2009, when the group registered a net loss for the first time ever due to the overcapacity that was dumped in the market by government airlines and new players.

In the past, the only option available for air travel used to be the legacy carrier.

National Air Service (NAS) Company responded to this need by introducing Saudi Arabia’s first low cost carrier in 2007 and called it nasair 3

- Low Cost Airlines As a direct response to the situation, the group launched the ‘Turn-Around Plan’ with the aim of solving the external challenge by resizing its own operations internally and to bring the group back to profitability. Ever since, the group and the airline has continued to see record performance, and has just reported the fourth consecutive quarter of profits as well as leading market-share position on most routes it operates.

LCCs vs. Legacy Airlines Providing value for money, the relatively young LCCs were led to challenge long-established legacy airlines with solid brand-awareness boosted by extensive promotional campaigns.

The competition is fierce, and everyone preserves a slice of the sky, noted Simon Stewart, CEO, nasair. “In the past, the only option available for air travel used to be the legacy carrier. National Air Service (NAS) Company responded to this need by introducing Saudi Arabia’s first low cost carrier in 2007 and called it nasair. Our brand has rapidly gained strength, especially in our home market of Saudi Arabia.”

Despite the steep rise in oil prices and the ongoing turmoil in some countries in the region, the airline has steadily enhanced its operation and continued to deliver sound results. “nasair is expanding at a rapid pace and is constantly adding new destinations to its network,” added Stewart.

“Our focus is to become a data-driven airline and we drive high performance through structured performance measurement. These measures are consistent across the organisation and are set such that nasair can achieve the highest global standards. Due to these measures, nasair productivity has increased by more than 30 percent since 2009 putting it amongst the best performing LCCs in the region. Over the last few years, the team has systematically indentified opportunities across all cost elements and Jazeera Airways

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Air Arabia

delivered major cost saving projects. However, artificially increased fuel prices and underdeveloped infrastructure are affecting our overall cost adversely.”

Amid soaring fuel prices, LCCs tend to be more vulnerable, especially in certain countries of the region.

Some seven percent of capacity in the region is LCCs and that number is expected to increase “The fuel prices charged to us in the Kingdom of Saudi Arabia are artificially inflated compared to the region. nasair is forced to pay as high as 8-52 percent more for jet fuel inside Saudi Arabia compared to the neighbouring countries,” explained Stewart.

“As our principal competitor in the country receives heavy fuel subsidies, this puts further pressure on us to compete and deliver low cost services to the customers. We have held off as long as possible to pass on these added costs to our customer base but are now taking steps to do

this. Hence an unfair business environment is indirectly impacting the customers whom we are continuing to try and serve.”

With more and more carriers emerging in the Middle Eastern sky, the region’s airlines, and LCCs in particular, are likely to face further challenges.

“The aviation industry has always been dynamic and our competitors vary as we operate between many different markets in the region. In Saudi Arabia we sit in a region of financial growth, in the most stable country, which itself benefits from robust demand for religious tourism and increasingly mobile and affluent citizens. Our market will therefore continue to be attractive to new and existing competitors. The Saudi travel market is growing at a high rate, both inbound and outbound. Some seven percent of capacity in the region is LCCs and that number is expected to increase by two-three percent per annum till 2015. However, the general operating environment is difficult,” noted Stewart.

Newcomers, New Challanges The Middle Eastern skies will soon welcome a new airline, IndiGo. The world’s fastest growing LCC, according to the Centre for Asia Pacific Aviation, is expected to create fierce competition upon commencing flights between New Delhi and Dubai on September 1, and connecting Mumbai and Dubai one month later, noted Aditya Ghosh, president, IndiGo. “I am sure our customers will love flying internationally with us. IndiGo will keep its promise of providing low fares on international routes as well.”

Amidst the continuous challenges, the region’s airlines and LCCs in particular look to revive traffic and overcome the negative outcome of the first half of the year, caused by demand softening due to political unrest and increased operational costs, and emerge stronger than ever. n SEPTEMBER 2011

- Qatar

A Rising Star in the Middle East A rise in tourist activities, corporate offerings and internationally popular sporting events, have helped to significantly raise tourist numbers in Qatar, allowing the increasing players in the country’s travel and tourism industry to yield positive results.

Travel Trade Monthly investigates the changes experienced in the rapidly expanding sector.

By Marianna Keen

D

espite the opening of a large number of new hotels since the beginning of the year, average occupancy rates for all hotels in the country reached 63 percent in the first six months of this year compared with 61 percent for the same period in 2010, according to the semi-annual report released by Qatar Tourism Authority (QTA).

The number of tourists to the nation saw a 12.3 percent increase in the first half of the year, with the number of GCC visitors registering the highest growth rate at 39.1 percent, reaching 398,570 visitors, up from 286,484 in the same period of 2010.

Qatar ranked a high third in the Middle East and North Africa region in the Travel and Tourism Competitiveness Report 2011, released on March

6 by the World Economic Forum (WEF).

According to the report, Qatar benefits from a safe and secure environment (ranked 28th), highquality human resources in the country (ranked 18th), good tourism infrastructure (34th), and excellent air transport infrastructure (21st).

According to QTA, Qatar has never sought the mass tourism that other countries have and the product has deliberately placed the country in the high end, niche tourism market. The government of Qatar has been proactive in expanding the offering available to tourists, including the extension of events from sports to conferences, looking into the future with the procurement of 2022 FIFA World Cup and an application by the Emir of Qatar for the country to host the ceremonial first leg of the 2016 Tour De France.

Tourism and business has been diverted from the Arabic countries mainly to the GCC region, especially to Qatar

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Doha

Qatar in Brief Capital: Doha Currency: Qatari Riyal (QAR) Language: Arabic Sports Tourism and Events According to QTA, Qatar has for some time now been recognised as a sporting destination, hosting international events and championships in tennis, golf and MotoGP, with world class facilities such as the Aspire Zone, Khalifah tennis stadium and the Losail race track, providing it with stature in this sector.

Average hotel occupancy rates in January registered at 74 percent, spurred by the 2011 AFC Asian Cup finals and other events in Doha, including the Qatar ExxonMobil Open 2011 and the Qatar Motor Show held at the Doha Exhibitions Centre. This strong performance continued through the month of February, with occupancy rates increasing from 60 percent in 2010 to 66 percent this year. During the months of March, April and May a slight decrease in occupancy rates was recorded.

Safak Guvenc, general manager, W Doha Hotel and area manager Qatar, Starwood Hotels, confirmed a rise in demand. “Our occupancy [at W Doha Hotel] is higher than in 2010 because in January we had the Asian Cup, so the month was much stronger than January 2010. The growth continued in February.

Running into April, May, June and July there was continued growth in occupancy for us at W Doha. Most of the hotels were sold out [during the Asian Cup finals] and also the projects are starting for 2022.”

SEPTEMBER 2011

- Qatar Looking towards the future of the industry Guvenc added: “I foresee the same things happening in September, all the way to December.

We will have Tribeca (film festival) coming in at the end of October; and later we have the World Petroleum Congress which is going to be really big; followed by the Arab Games.”

Fabien Chesnais, general manager, Mövenpick Hotel Doha, noted that the increase in projects due to the upcoming FIFA World Cup is expected to be pivotal for the industry. “Qatar’s development and marketing exposure is definitely benefiting all hotels in Qatar, and also the line-up of projects in the run up to World Cup 2022 is quite impressive, and every year business is getting better.” As a consequence, the hotel has carried out a full renovation of guest rooms and suites, with upgrading of food and beverage outlets and facilities, as well as meeting facilities and services, in the pipeline.

Walid Nabil Ali, corporate director of sales and marketing, International Hospitality, which was recently formed to manage three existing properties in Doha, including the five-star Le Vendôme Hotel, the four-star Best Western Hotel-Doha and the three-star Al Seef Hotel, agreed that a focus on events has attracted tourists, though competition is high. “This [rise in occupancy in spite of growing population of hotels] is brought about by the efforts of the Qatar Government, with the support of QTA, to attract more tourists and tremendous efforts to host more and bigger events. My sales team has been vigilant enough to increase our occupancy by 15 percent. Competition is tougher as compared with 2010 but with our strategy set in place for the last quarter, I am positive that we will achieve our target for the year.”

One major approaching event from QTA is Doha Park, which will be held from October 6 to November 17, ending with Eid al-Adha celebrations. Held in collaboration with the Economic Group, the festival will occupy 30,000m2 of the new event area near the Doha Exhibition Centre and is set to be the biggest entertainment event in Qatar. Encompassing

Illustration of Lusail Stadium, Qatar World Cup 2022

more than 100 entertaining events and attractions, including an amusement park, an international circus, theatrical plays, concerts, a 3D cinema and performances by folkloric bands depicting the heritage of Qatar and other Arabic countries, the event is hoped to appeal to nationals and expatriates as well as international tourists. A wide media marketing campaign involving print, TV and radio will be launched in Qatar and neighboring Gulf countries in order to attract more visitors and tourists from the region, especially now that QTA figures show strong growth for GCC tourists.

With all three of its hotels being dry hotels, International Hospitality has experienced high regional demand, with healthy expectations for the future. “I am expecting 35 to 40 percent of business to come from the Middle East.

Advertisements were in some of the most prominent newspapers in Saudi Arabia before summer, which brought a considerable amount of business during the summer season,” remarked Ali. Additional occupancy will emanate from events in Qatar, as in December, Le Vendôme Hotel and Best Western Hotel-Doha will accommodate media guests for the Arab Games, and all three hotels have been chosen to house the delegates of the World Petroleum Congress. In a push to further its competitive stance, Ali explained: “Since booking engine websites are becoming part of travellers’ lifestyle nowadays, we are also planning to build one that will cater to our properties as well as offer assistance to the hospitality industry here in Qatar.”

Attracting Tourism Political unrest and turbulence across the Arab world prompted many travellers to change their destination of choice, with the effects continuing to be noticed, and Qatar is considered to be one of the countries to benefit from the situation. Emel Atikkan, general manager, Kempinski Residences & Suites, Doha, explained the displacement in tourism that has been experienced and how this has affected occupancy at the hotel.

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“Tourism and business have been diverted from the Arabic countries mainly to the GCC region, especially to Qatar, especially after the unrest in Bahrain, and we saw an increase in travellers from Saudi Arabia, UAE, Oman and Kuwait. We noticed a major increase from Western European countries, mainly Germany, France and Italy, as well as the Levant and Asian countries, like Japan. At the same time we noticed a decrease in the following nationalities: US, UK, Australia and Ireland.”

Qatar’s development and marketing exposure is definitely benefiting all hotels here Guvenc expressed that he has experienced quite different trends in occupancy for W Doha Hotel with regard to effects from political unrest. “If you compare the market, GCC has been positively affected, but not in Qatar, because Qatar is very limited on leisure business; it is mostly corporate.”

Business Tourism A rise in corporate travel to Qatar has been noted by hotels, with some carrying out renovations to become more competitive. “With the completion of the renovation of the hotel, we are gearing up to hit the market with full force showcasing a very competitive product and we have great expectations for a strong performance in 2012,” expressed Chesnais of Mövenpick Hotel Doha.

Atikkan highlighted that the increase in tourism based projects and an overall increase in investments in Qatar is growing the business travel market. “A lot of international companies originally based in UAE are now opening offices in Doha, and also many new international companies that have never been to the GCC region are now considering to explore the new possibilities in the country, due to the large number of upcoming projects.”

SEPTEMBER 2011

- Qatar According to QTA, Qatar has firmly established itself as a place that hosts large scale events and, as a result, it will host the World Petroleum Congress this year, the biggest event staged in Qatar so far. In addition, it will host the World Chambers meeting in 2013 and a major United Nations conference in 2012. New projects this year include the opening of the Qatar National Convention Centre at Education City, which will bring to Qatar some of the highest profile events and conferences. The upgrading of Doha Exhibition Centre, to cater for bigger and more diverse events, is currently taking place and 2012 will see the opening of a new exhibition centre in the heart of the city.

The strategic location of the Kempinski Residences & Suites, in the diplomatic, financial and central business district, close to Qatar International Exhibition Centre and an attractive venue for cocktail receptions and dinners, has allowed it to attract clientele from across the MICE segment.

“Our corporate bookings are continuously growing. They increase by about 15 percent year on year and I think this will continue. We are multioperational, so meeting and incentives groups are also growing but not as strongly as the corporate

SEPTEMBER 2011

business,” commented Atikkan.

According to QTA, the authority has formed strong relationships with key international organisations representing MICE buyers and planners in countries including the UK and Germany. In September, Qatar will be hosting around 40 MICE buyers and planners from Germany for four days so they can experience the unique destination. The authority is trying to capitalise on all the bilateral relations between Qatar and various countries that they have signed Memorandums of Understanding for in tourism cooperation. QTA is also having great relations with World Tourism Organisation (UNWTO) and is using their expertise to increase the potential of the local market.

Hotel Developments New hotel openings in Qatar will be competing for a slice of the growing corporate sector as well as leisure tourism. Premier Inn Doha Education City is being built to serve the area that comprises Qatar International Convention Centre, the universities, a major new hospital and a science and technology park, with opening

scheduled for early 2013, informed Darroch Crawford, managing director, Premier Inn Hotels. “We expect the hotel to be very popular with individuals, couples, families and groups visiting Doha.”

Marriott International plans to open three new properties in Qatar this year – Renaissance Hotel, Courtyard by Marriott and Marriott Executive Apartments Doha City Centre. Miet Saelens, director of public relations and marketing communications, expressed the properties’ offering.

“Our hotel complex has 17 meeting rooms, including a 740m2 grand ballroom, all equipped with state-of-the-art facilities and technology, and all located on one floor. There is also an exhibition centre being built right next to the three hotels.

The complex is set to offer close to 600 rooms and nine unique food and beverage options”.

With regard to the affect of 2022 FIFA World Cup on tourism, Saelens added: “In our opinion the announcement has not increased tourism yet; however, many international companies are investing in fields other than oil and gas, such as real estate, telecommunications, technology and education.”

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- Qatar Starwood is on schedule to open a St. Regis hotel in the fourth quarter of this year, informed Tareq Derbas, general manager of the hotel. Senior executives from St. Regis Doha took part in a major tourism push in China in June, as leading luxury properties in the Middle East sought to attract tourists from one of the world’s fastestgrowing markets. St. Regis Doha is being promoted as the ideal vantage point for travellers seeking luxury and bespoke service. Another hotel scheduled to open in Doha later this year is InterContinental West Bay. The five-star hotel, targeting both business and leisure travellers, is expected to open in December, confirmed Rania Keedy, director of sales and marketing for the hotel. Towering 214m, it will provide an additional 536 rooms to the capital city.

Mandarin Oriental Hotel Group will open a hotel in Qatar in 2014, located in the Musheireb development. Mandarin Oriental, Doha will be one of four hotels included in the Musheireb project, adding another 900 rooms to the city.

The Musheireb project will be built in six phases, with the first completed in 2012 and the last expected to open in 2016. The first phase includes the construction of the Diwan Amiri Quarter, which comprises Diwan Annex, Amiri Guard and the National Archive, and a Heritage Quarter that includes the Eid Prayer Ground and four heritage houses. The mixed-use development will also create a new commercial business hub as well as residential options.

Christoph Mares, operations director for Europe, Middle East and Africa, Mandarin Oriental Hotel Group, expressed the shared target of the hotel and the development. “The Musheireb project is set to transform the city and together with the developers, Dohaland, we have a vision to create a spectacular and prestigious luxury hotel that will form the centrepiece of this new urban development.”

With no construction date yet provided, another major project underway in Qatar is Amphibious 1000, a luxury resort located in the middle of a marine reserve. Conceptualised by Italian architectural firm, Giancarlo Zema Design Group, the resort will feature four semisubmerged hotels, each featuring 75 suites, including underwater rooms. Its design looks like a big aquatic animal stretching out from the land into the sea, with two arms extending for a total of 1km. Along the arms there will be gardens, a fitness area and an outdoor theatre, and the resort will also feature an interactive museum on water life and transportation via aluminium yachts equipped with observatory globe.

According to QTA, there are currently 77 new hotels and 42 hotel apartments under construction in Qatar. When operational, this will bring a total of 21,107 new rooms to the Qatari hospitality market, many of which are luxury hotels. This year alone, a stock of 6,369 hotel rooms, comprised of 25 hotels and 10 hotel apartments, are expected to enter the market.

Air travel Qatar Airways recently held a workshop for the corporate travel trade to discuss product updates, showcase upcoming new routes and highlight popular summer tourist destinations. The airline has expanded routes to Doha from throughout the world this year, including new routes to Bucharest, Budapest, Brussels, Stuttgart and Aleppo as well as twice-weekly flights to Shiraz, its third Iranian destination, daily flights to Venice and entry into Canada via Montreal.

The airline has since launched flights to the Saudi Arabia city of Medina, with four services per week, as part of a massive capacity expansion in the Kingdom, which also included increasing Jeddah and Riyadh flights to twice daily and Dammam flights to four times a day. This

Our corporate bookings are continuously growing

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corresponds with data released by QTA’s semiannual report, suggesting that Saudi Arabia has recorded the largest increase in visitors from 148,168 in 2010 to 238,361 visitors from January to May of this year (a 60.87 percent increase), while the UAE came second. Services to Dubai also rose to 11 per day, while daily non-stop flights to Calcutta were introduced. Routes to be debuted later this year include the Bulgarian capital, Sofia, from September 14; the Norwegian capital, Oslo, from October 5; the Ugandan city of Entebbe from November 2 and the capital of Azerbaijan, Baku, and the Georgian capital, Tbilisi, both on November 30. According to QTA, with Qatar Airways being the fastest growing airline in the world and now flying to 100 plus destinations, many travellers are deciding to spend an extra couple of days in Qatar to break up long-haul flights.

Bahrain Air also receives healthy demand on its flight to Qatar, commented Naeem Mahamoor, marketing manager. “We fly twice a day to Doha.

Our hub is Bahrain and most of our passengers from Doha go to the Indian Sub Continent, Levant and Sudan. Over all we have seen an approximate five percent decrease in growth this year in comparison with the first half of 2010. In the last three months things are looking upbeat and flight loads have been very good.”

Bahrain Air opened its second sales and ticketing office in Doha, to cater to the travel requirements of its passengers. At the grand opening on May 26, Ibrahim Abdulla Alhamer, managing director of the airline, emphasised that Qatar is a key route. “There is increasing demand for our flights in Doha from both Qatari nationals and the expatriate community.”

Also anticipated to improve air services the New Doha International Airport opens in late 2012 and when fully operational, will see 50 million passenger movements a year according to QTA with the aim to target five percent of these travellers to spend an extra two days in Qatar.

Travel to Qatar is evidently on a rise, from both Qatari residents as well as from international tourists, particularly from the business travel sector. As new projects throughout the country come into full operation and the travel and tourism industry, as well as the Qatari economy, is boosted, with a plethora of events, activities and sights on offer, leisure tourism is expected to increase at a rapid pace. According to the WEF report, in order to further improve the country’s competitiveness in the travel and tourism industry, Qatar should continue to improve its policy environment and also further its focus on environmental sustainability. n SEPTEMBER 2011

- Algeria

Algeria Builds Towards a Brighter Future Below standards in infrastructure and the lingering threat of terrorism have greatly hindered Algeria’s tourism industry, causing it to lag behind its neighbours Morocco and Tunisia over the years. New tourism-related developments could, however, change the fortunes of the nation’s tourism sector, as Travel Trade Monthly discovers.

Duncan MacRae writes Algiers

A

lgeria is only now beginning to focus on developing a tourism industry, having been reliant on its oil and gas industry over the decades.

It has got off to a stuttering start though, and there is no doubt that security concerns have severely dented the nation’s fledgling tourism sector. At the beginning of the year, political protests and additional incidents led to a number of countries urging visitors to exercise caution if going to some traditional touristic areas in the Algerian desert.

It is hardly a great advertisement for the country, yet a concerted effort is being made by the Algerian government and tourism industry stakeholders to develop a tourism sector that will be attractive, and

safe for visitors in the years ahead.

Sara Travel and Tourism Agency, based in France, acknowledges the concerns that many tourists have regarding Algeria, but it works hard to put travellers’ minds at ease.

Tarek Behloul, agreement director, Sara Travel and Tourism Agency, admits that the nation’s sector has to improve.

These days, Algeria can become the gateway to Africa “Algeria’s tourism industry has been so slow to develop over the past 10 years because the whole world does not trust in the country’s security. I think it will develop in the years to come, though, especially after what happened in Tunisia, Libya and Egypt. These days, Algeria can become the gateway to Africa.”

Security The Algerian government has been working to improve the security situation. In 2009, a 1,000 police unit was formed to operate at tourist sites across the country.

Sara Travel and Tourism Agency is showing faith in the nation’s tourism sector, with plans to branch out into other markets within the industry.

“We plan to build a hotel with a spa at a beach location. We are always searching for other ways to make our clients more relaxed, and are

Algeria in Brief Capital: Algiers Currency: Algerian Dinar (DZD) Language: Arabic, Berber searching for partners from around the world to work with,” Behloul added.

Tax breaks offered by the Algerian government are a major incentive for would-be investors.

VAT has been reduced from 17 percent to seven percent for services related tourism, including hotels, spas, restaurants and car rental companies, until December 31, 2019.

Smail Mimoune, Minister of Tourism and Handicrafts, commented that there are well over 500 investment projects underway in the country, which is expected to create about 75,000 jobs.

“Most of the planned investment projects to build tourist facilities in luxury hotels require a guarantee of skilled labour in several specialities.”

It is vital that, as the industry progresses, investors place a strong focus on sustainable development and resource development.

Improved infrastructure Hotel group Accor is one company that is keen to develop its presence in Algeria and by the end of this year, will have a network of seven hotels throughout the country. Marine Todesco, communications officer, Accor, explained that the company has plans to further increase the number of hotels in Algeria after the current year.

Monument of the Martyrs SEPTEMBER 2011

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- Algeria “Accor continues to develop in order to reach a network of 36 hotels, like ibis and Novotel, in almost the whole of the country. This is helped by attractive banking measures, as well as tax and customs exemptions. Algeria, while developing itself as a touristic destination, has taken the plunge into a vast project of building basic substructures. For example, the east-west highway and large water transfers that will have a very important impact on tourist mobility, as well as the improvement on health conditions, which enables big hotel groups, such as Accor, to see good opportunities for tourism in Algeria.”

With the improved infrastructure, including the construction of a convention centre in Oran, there has been a sharp upturn in Algeria’s business tourism, according to a recent report by Euromonitor International. The report stated that, although business tourism remains a niche, it has great potential and several large-scale projects are underway.

We can’t really measure the impact of local insecurity on the image of the country Accor’s investment, which is a joint venture with Algeria’s Mehri Group, is estimated at EUR220 million (USD316 million). A further EUR17 million (USD25 million) is being ploughed into the development of ibis Algiers Airport Hotel, located in the new business district of Bab Ezzouar, which opened in 2009.

Algeria’s Ministry of Transport has set aside a budget of USD9.6 billion for large transport infrastructure projects, including the modernisation of airports, railways and ports. A total of USD8.2 billion is being spent on larger developments, such as the east-west highway.

The latest Algerian government figures regarding the number of visitors to Algeria are from as far back as 2006 so the current situation is unclear.

M’zab valley

That year, there were 1.64 million tourists in the country, but the minority of these were foreigners. Just 29 percent of them were from abroad, with the rest considered to be Algerian’s visiting relatives within the country.

With numbers appearing to have remained low the government and those working within the industry are eager to make changes, and it is hoped that the infrastructure improvements, along with improved security, can encourage tourism.

Algeria, while developing itself as a touristic destination, has taken the plunge into a vast project of building basic substructures Accor’s Todesco feels that there needs to be far greater promotion of the country to travellers from abroad.

Madagh beach - Algeria

12

National Gallery of Fine Arts

“Concerning tourism, as we understand it, there is no real promotion towards the country’s exterior. The majority of Algerian people migrate for holidays in Oran, Annaba.”

Although it is clear that security concerns have negatively impacted Algeria, Todesco believes that these effects will not be long-lasting.

“We can’t really measure the impact of local insecurity on the image of the country. However, after what happened in January, it took 15-20 days for tourism to take up its normal activity again.”

Behloul, of Sara Travel and Tourism Agency, also believes that while security can always be improved, everyone needs to work hard to promote Algeria as a safe country to travel to, something the company has been working hard on.

“Our business develops by working with tourists.

We make them trust in Algerian security and offer them everything they need.”

With a clear, concerted effort being made by the government and those working within the tourism sector, Algeria is drawing investment.

Time will tell if it also manages to draw the tourists in their droves. n SEPTEMBER 2011

- Korea

Korean Inspiration and Aspiration With remarkable growth and global integration over the past years, South Korea has transformed itself into a high-tech industrialised economy and has become one of the first countries to recover from the global financial crisis. Steady developments, fuelled by heavy investments, have gradually paved the path to Korea’s tourism boom.

Rita Kasziba writes

W

ith continuous progress and sound marketing campaigns under the ‘Be Inspired’ slogan, Korea has witnessed dramatic improvement in tourism and aspires to further develop the industry. Seung Hyan Hwang, regional director Dubai office, Korea Tourism Organisation (KTO), commented on the tourism traffic.

“Tourism arrivals in Korea touched 8.87 million in 2010, up from 7.81 million in 2009; therefore, the objective of the three-year ‘Visit Korea’ campaign is to target 10 million visitors by 2012.”

Korea has enjoyed eminent attendance from its two major source markets, Japan and China, but visitor numbers from the Middle East have also sharply increased.

“When KTO opened its Middle East office in 2004, down the years the destination emerged as excellent value-for-money. GCC arrivals in 2010 touched more than 8,600, compared to some 5,300 in 2009. Saudi Arabia was number one followed by the UAE. Therefore, we are optimistic that the numbers will jump even further as we have been running a lot of successful consumer and trade oriented campaigns to increase awareness,” added Hwang.

Despite the increasing visitor numbers, Korea has not yet fully taken advantage of the Middle Eastern market.

“Korea is still a new destination for travellers from this region. Language and religion is no bar for local tourists as they have been the most experienced travellers in the world visiting two to three countries each year. We will continue our efforts to participate in more consumer shows and thus increase the awareness of the destination. Tourists from this region are still unaware of the visa on arrival status which we are trying to highlight in all the consumer shows,” elaborated Hwang.

To further support travel professionals in the region, the organisation has introduced an innovative e-learning training programme.

“Korea Specialist was launched during the last quarter of 2010 to educate the travel trade on Korea's tourism industry. To ensure maximum participation from GCC agents, a time frame was SEPTEMBER 2011

Hyangwonjong Pavilion, Lake Seoul

given to complete the course and win trendy electronic gadgets. Towards the end of the promotion, over 300 agents had completed the course successfully with UAE taking the lead followed by Saudi agents,” said Hwang.

Airlines Due to the existing economic ties, and the significant number of Korean nationals living and working in the UAE, Korean Air has witnessed a significant increase in passenger numbers, noted Michelle Koh, assistant manager corporate communications, Korean Air. “Korean Air currently operates to Dubai (DXB), Cairo (CAI) and Tel Aviv (TLV) in the region.

In 2010, compared to 2009, travel on the CAI route increased by 11 percent, while it rose by 39 percent in DXB, and 40 percent in TLV, representing a total of 32 percent growth.

Although the majority of travellers visit Korea for leisure, there are also many business travellers since many Korean construction companies’ offices are based in Dubai; also many tourists visit Cairo for pilgrimages.”

The airline is to step up its MENA operations.

“Also, the carrier has been putting in continuous effort to strengthen the MENA region and it hopes to see results by end of 2012,” added Koh. From the Middle East, Emirates, Qatar Airways and Etihad operate scheduled flights to the country.

Hotels The latest addition to Seoul’s accommodation offerings, Sheraton Seoul D Cube City Hotel, is slated for grand opening on September 16. The

Korea in Brief Capital: Seoul Currency: South Korean Won (KRW) Language: Korean first and only five-star accommodation in southwest Seoul will offer 269 rooms and suites and anticipates guests from all over the world, noted June Jung-Hwa Na, marketing communications manager. “We expect to have guests coming from overseas, including the US, Japan and China, for business or for leisure. We have learned that more and more travellers are coming to Seoul from the Middle East. We are planning for Middle East food and beverage promotion for the residents and even travellers in the future.”

Hilton is to enhance its Korean portfolio with the opening of the 460-room Hilton Conrad Seoul in the first quarter of 2012, while Banyan Tree’s latest Korean property has recently celebrated its first anniversary of operation, noted Alfonso Romero, general manager.

“Banyan Tree Club & Spa Seoul has been successfully located in the market as a unique urban resort since it opened in the summer of 2010. It has developed an excellent reputation for customer service and unique concept of hotel.”

Since its opening, the hotel has welcomed a significant number of travellers from the MENA region. “Many Middle Eastern and North African guests have stayed at Banyan Tree Club & Spa Seoul. Since we had successful business with Middle Eastern companies, we get many inquiries for staying with us.” n 13

- Malta

Malta Develops its Tourism in a Cultured Style Malta may be a small country, but its tourism sector has big ambitions. With visitor arrivals on the up, the island has turned its attention to promoting itself as a cultural haven in order to draw in even more tourists, as Travel Trade Monthly discovers.

Duncan MacRae writes

M

alta has had an active tourism industry since the mid-1950s. Over the years, the industry has grown from very humble beginnings to reach traditional peaks, a maturity stage and also the periodic times of decline from which the industry recovered by reinventing itself to adapt to changing travel trends.

Tourism in Malta today accounts for a healthy 12 percent of GDP, at times reaching up to 24 percent, and presents an important pillar in an economy which diversifies its composition via the additional development of high-end manufacturing, financial services, online gaming and transhipment amongst others.

Government policy is to grow tourism in a sustainable manner with the objective over the next 10 years being to maintain summer volume levels pretty much at where they currently stand, whilst channelling growth into the off-peak months, thereby reducing the impacts of seasonality.

In 2010, Malta received a record number of tourists, over-performing strongly compared to its European and Mediterranean counterparts by attracting 1.332 million tourists, up 12.7 percent over 2009. During the same year, expenditure by tourists also reached record levels.

Carlo Micallef, group head of segments marketing, Malta Tourism Authority, noted that this year has also started off strongly for the tourism sector, with the summer season broadly retaining last year’s record performance.

“Our expectation is that, by and large, the year should end very close to 2010’s level. The reason for the impressive increase in visitor numbers has largely been put down to an increase in the number of airlines offering budget flights to the island. Over the past few years, we have thoroughly understood the relationship between the availability of adequate airline routes and seat capacity to link Malta to its source markets and have worked very hard to maintain and sustain such routes in the most cost-beneficial way possible.”

The vast majority of visitors are holidaymakers, but corporate travel, as well as medical tourism, is also on the up.

In recent years, Malta has marketed itself as a 14

Marsaxlokk village

medical tourism destination and a number of health service providers are developing the industry.

Presently, the country is gearing up to put more of a focus on its cultural offerings, in a bid to further bolster its tourism sector. In 2018, Malta’s capital, Valletta, is expected to be recognised as a European Capital of Culture (ECoC).

Creative directions In June, Imagine 18, a collection of conference and workshops, was organised by Valletta 2018 Foundation, a new entity set up to devise and implement the vision and strategy of the ECoC bid.

Karsten Xuereb, project coordinator, Valletta 2018, indicated that Imagine 18 had shown that the ECoC process could act as a powerful stimulus to those already engaged in the cultural sphere, but importantly, it could also provide a voice to those who wish to see Valletta 2018 as the catalyst to explore totally new creative directions.

Valletta is a must-visit for anyone who comes to Malta. It is full of culture and history “Imagine 18 had the hard job of asking people from a range of backgrounds and ages to think ‘vision’, an abstract concept, and not begin to draft actual programmes of the ECoC year. We have seen some surprising and esoteric angles come to the fore. None are thought of as beyond belief at this point, as we are at the start of the

Malta in Brief Capital: Valletta Currency: Euro (EUR) Language: Maltese 2018 visioning process. We’ve had the science workshop imagine an ECoC without participants, calling on us to use virtual technologies. On the other hand, we’ve had young people, a group of school students, talk to us of the role of family, one of Malta’s most traditional aspects, as something to celebrate in our ECoC. They also voiced the need for educational structures and curricula to allow them to be more creative, explore, experiment, fail and learn,” added Xuereb.

Several key themes were highlighted by all working groups. These included the notion of Malta’s traditional heritage and cultural assets being updated and made relevant to contemporary society – a fusion of past and present in cultural activities.

Another was the need to see the ECoC process as a chance to discuss Malta’s identity and celebrate its roots as a country at the fringe of Europe, the southernmost point of the European Union – but also at the heart of a rich, cultural area, the Mediterranean Sea. Mario de Celis, director of business development, The Victoria Hotel, believes that Malta has a great deal to offer in the way of culture.

“Valletta is a must-visit for anyone who comes to SEPTEMBER 2011

- Malta

Valletta Malta. It is full of culture and history. It has churches, palaces and two forts. It is simply a must for anyone who wishes to experience culture. Valletta being the capital of culture should attract more people. I expect it will draw people to Malta in their thousands.”

During the build up to 2018, the Malta Tourism Authority will market the country as an ideal cultural destination not just for its heritage sites but also in terms of contemporary culture. It is hoped that the image of the country overseas will be that of a dynamic destination where events take place on a great scale.

“We expect a considerable increase in the number of tourists visiting Malta, especially from those markets where the country is already seen as a cultural destination,” Micallef explained.

“Malta and Gozo, and in particular Valletta, have a lot to offer the cultural discerning tourist.

Situated in the heart of the Mediterranean, most of the major civilizations bordering this sea left their heritage on the islands.”

Nicholas Borg, director of sales, CHI Hotels & Resorts, which owns three properties in Malta, described Valletta as the country’s showcase.

“It is a 16th century monument, yet with modern attributes. Its many museums of fine art, culture, history and modern political history are second to none.”

Heritage sites Valletta is also a UNESCO World Heritage Site, built by the Knights of Malta after the Great Siege of 1565.

The country is currently a net beneficiary of EU Structural Funds, which are being used to improve a vast range of the country’s general infrastructure, ranging from the road network to sewage treatment and from waste management to generation of alternative energy sources. They are also being used to renovate historic centres,

including restoring walled towns, and preserving and protecting unique, world-class megalithic sites.

Other funds have been specifically allocated to enhance private sector driven intervention in product development and human resource development. The huge works being undertaken in Valletta coupled with public transport reform and the government’s vision for the regeneration of the Grand Harbour area are all steps that will ultimately prove beneficial for the country’s tourism industry, according to Micallef.

“Tourism features in the government’s top priorities and the Malta Tourism Authority is to work hand in hand with the industry stakeholders to ensure that the industry’s interests and requirements are given top attention by all parties concerned.”

The Victoria Hotel’s de Celis feels that the government is truly playing its part in helping to make the most of the country’s cultural offerings and improve the tourism sector.

“The government is working hard to help improve the country’s tourism industry, but there can never be enough. There is construction work going on that will improve the industry a great deal. An opera house that was destroyed during the World War is being rebuilt and there are new houses of parliament. The roads are also being modernised.”

De Celis also had praise for the work the tourism authority has done to help boost the nation’s industry. “The tourist board has being doing a lot to promote Malta as a touristic destination. I think they have been marketing the country well abroad, although I feel that tour operators could do more and would like to see them promote Malta more aggressively in order to help attract more tourists here.”

He also believes that airlines making Malta easily accessible will continue to play a major part in

the development of the country’s tourism industry. “The number of tourists has really gone up a lot in the past four years due to low-cast carriers operating more flights to Malta. We have experienced a significant increase in tourists from the likes of Scandinavia, the UK, Germany and, in particular, Spain and Italy. This is because the accessibility from these two countries is especially good now.”

The Victoria Hotel would also like to welcome more Middle Eastern and North African guests.

Recent political unrest in the region, however, has led to Air Malta temporarily cancelling its one and only route between there and Malta, as Ray Borg, section head of marketing support services, Air Malta, explained.

“The airline is not flying to Middle East and Africa, following the war in Libya. Once the conflict is over, we plan to re-establish the flight network to Libya ( which was operating daily) and possibly other destinations in the area.

Presently, the route network is being reviewed by a newly appointed commercial chief officer and CEO who are working on a new network strategy for Air Malta.”

Borg, of CHI Hotels & Resorts, feels that it is only a matter of time before the island begins to attract more visitors from these regions.

“Over the next decade, Malta will keep developing its offering and it will become more and more familiar with emerging markets. Japan, South Korea, China and other far Eastern markets are already making some significant in-roads and certainly Malta is very much on their radar.

“The Middle East and North Africa are avenues for more business. Of course, the recent developments in the North African continent have left a negative impact, but as things settle down and the economy regenerates, so will international travel. As the North African countries develop further, Malta will become more and more of an acclaimed centre for education and training,” Borg added.

“The opportunities are endless and, looking further into the future, I see Malta attracting a new breed of tourist, the one concerned with green matters and interested not only in agrotourism but also in the conservation of the planet in general.” n

Luzzu SEPTEMBER 2011

15

- South Africa

A World Wide Appeal for All Seasons The diversity that South Africa offers has allowed tourism to span many sectors, and since hosting the 2010 FIFA World Cup, sports tourism is becoming a key focus for seasons otherwise experiencing low tourist numbers. Travel Trade Monthly assesses the broad reach of South Africa’s travel and tourism industry and its appeal to the emerging MENA market.

By Marianna Keen

P

opular from the famous Stellenbosch vineyards to the diverse attractions of the Garden Route and the Transkei mountains, South Africa (SA) is a key destination of choice, ranking second in SubSaharan Africa and 66th of 139 countries overall in the Travel and Tourism Competitiveness Report 2011, released on March 6 by the World Economic Forum (WEF).

South Africa comes in at a high 14th for its natural resources and 55th for its cultural resources, based on its many world heritage sites, its rich fauna, its creative industries, and the many international fairs and exhibitions held in the country. The 2010 FIFA World Cup is thought to have reinforced South Africa’s position as a key international tourist destination, although feedback from players in the industry suggest the full potential of the event’s impact may be delayed due to the global economic crisis, and an increase in hotel rooms has actually led to decreases in occupancy.

We have not noticed a significant increase - this could be due to the global economy rather than the World Cup Meanwhile, despite threats from the world economic climate, South Africa benefits from price competitiveness (37th), as well as infrastructure, with air transport infrastructure ranked 43rd and a particularly good assessment of railroad quality (47th) and road quality (43rd), according to the WEF report.

Overall, policy rules and regulations are encouraging, ranking 31st, an improvement since the last assessment, with well-protected property rights and few visa requirements for visitors. Areas which require work if the travel and tourism industry is to be improved include safety and security, which remains of serious concern (ranked 129th), as is the level of health and hygiene, where South Africa is ranked 88th.

16

Cape Town

Sports Tourism South Africa is continuing to expand its focus on sports tourism, partly as a means of balancing seasonality in some other areas of tourism. World Sport Destination Expo’s research revealed that the travel industry’s fastest growing sector would post record profits and contribute 14 percent of overall travel and tourism receipts globally by the end of 2010. Estimated to be worth more than USD600 billion, around 12 million trips a year are taken for the specific purpose of sports tourism and this sector is growing at six percent a year, according to official estimates.

Over the years South Africa has successfully demonstrated its ability to host major international sporting tournaments, including 1995 Rugby World Cup, the 2003 Cricket World Cup, the 2007 inaugural World Twenty20 Cricket Championships, the 2009 Indian Premier League (IPL) and, the biggest of them all, the 2010 FIFA World Cup. Sport in SA is a multibillion-Rand industry and contributes more than an estimated two percent to gross domestic product.

Hotels Despite the success of the sector over the years, some hotels in South Africa are not feeling significant benefits from the most recent major sporting event. Roelof Troskie, managing director, Village & Life, owner of The Bay Hotel, which underwent renovation in anticipation of

South Africa in Brief Capital: Pretoria, Cape Town, Bloemfontein Currency: South African Rand (ZAR) Language: Afrikaans, English and others

the 2010 FIFA World Cup, commented that only marginal effects have been observed. “We have not noticed a significant increase; this could be due to the global economy rather than the World Cup.” As a leisure destination, The Bay Hotel has a limited but loyal business traveller market, however with very little business in either sector coming from MENA countries, the hotel does not market directly to the region, according to Troskie.

Sharla Da Cruz, travel trade administrator, Legacy Hotels & Resorts, remarked that The Wheatbaker has experienced low demand.

“There has been a decrease in business from all segments due to oversupply of hotel rooms.” The Twelve Apostles Hotel and Spa in Cape Town, which re-launched its spa on August 1, also noted that demand has diminished, according to Jill Wagner, marketing manager, The Red Carnation Hotel Collection South Africa. “We’ve noticed a decrease in all types of travel.” She added that less than one percent of business comes from the MENA region, so a contract with a representative in the market was not renewed.

A more positive affect is being experienced by SEPTEMBER 2011

- South Africa The Westin Cape Town, suggested Philma Gomes, director of sales and marketing. “The success and full effect that the 2010 FIFA World Cup has had on our country is becoming more and more evident in future year bookings associated with business tourism, coupled with international association events and incentives.”

At the same time, the hotel has noticed a steady flow of guests from the MENA region. “Our reach to the MENA region is channeled through extensive collaboration with our strategic support offices and sales teams based in this particular region. Not only does South Africa offer the ideal climate that appeals to travellers from this region, but as the southern African region acts as a gateway to the rest of Africa we do see a loyal following of guests from MENA to our hotel all year round,” commented Gomes.

The hotel is considered well positioned for MICE tourism, and with little change in the geographical source market mix, business travel is expected to remain flat year-on-year, Gomes further indicated.

Hyatt Regency Johannesburg has noted an increase in arrivals and in business travellers, reveals Marietta Lee, director of sales and marketing. “We have seen an increase in arrivals.

There has been a rise in the number of business consultants, mainly from Europe and India.”

Under five percent of guests come from the MENA region.

MICE Tourism With six big congress cities and venues in South Africa, including Johannesburg, Cape Town, Pretoria, Durban, East London and Kimberley, the country is pushing to become one of the most desirable business tourism destinations, commented T. Taubie Motlhabane, acting global manager for business tourism, South African Tourism (SA Tourism). “Business Tourism is a clearly identified mandate of South African tourism and is part of the tourism growth strategy of the government of South Africa. A Kruger National Park

SEPTEMBER 2011

dedicated business tourism unit within SA Tourism is tasked with the marketing of South Africa as a MICE destination and in a few months the National Conventions Bureau (NCB) will start to operate.” The continued development of infrastructure is key to the sector’s growth and with the 2010 FIFA World Cup raising the world’s awareness of the country’s capability of hosting events of any size, in the next five years South Africa will host over 200 association meetings that will see over 300,000 MICE arrivals into the country, according to Motlhabane.

Business Tourism is a clearly identified mandate of South African tourism and is part of the tourism growth strategy of the Government Johannesburg, as one of the official host cities of the 2010 FIFA World Cup, has seen a lot of developments, including the Gautrain, which links Johannesburg and Pretoria to the O.R Tambo International Airport and benefits delegates attending Sandton Convention Centre, a leading congress venue. The centre hosts the largest business tourism centre in Africa, pointed out Motlhabane.

Another major international convention venue is Cape Town International Convention Centre (CTICC), which has hosted high profile events such as World Economic Forum and FIGO World Congress, and is currently undergoing expansion. The Council for Scientific and Industrial Research Convention Centre in Pretoria, which is committed to sustainability, and the International Convention Centre in Durban (ICC) will also be promoted to become desirable destinations for conventions. The East London International Convention Centre (ELICC) is new on the scene, and another new Clifton Beach, Cape Town

congress centre has also been constructed in Kimberley. Other world class venues, as well as a huge number of conference spaces in hotels and the stadiums built for the 2010 FIFA World Cup are also being used for conferencing.

Marthinus Van Schalkwyk, minister of tourism, unveiled EcoThanda, South Africa’s first sustainable meetings directory, which provides an online listing of South African suppliers whose products and services have been vetted and approved for sustainable practices by an independent consultant, according to Motlhabane.

“We hope to increase tourism's total contribution to the economy from R189 billion (USD26.3 billion) in 2009 to R499 billion (USD69.4 billion) by 2020, the number of domestic tourists from 14.6 million in 2009 to 18 million by 2020, and to create 225,000 new jobs by 2020. This sub-sector is ideally placed to address some of the seasonality challenges that are difficult to meet through leisure tourism alone,” remarked Van Schalkwyk.

Tourism Diversity Other popular, long standing areas of tourism in South Africa include wine tourism, luxury travel, safaris and outdoor sports, as well as being a frequented back-packing destination. South Africa's wine and tourism industry will be presenting the first combined trade fair for wine tourism, known as Vindaba, from September 25 to 27, 2012, in an effort to give the sector a boost.

In addition to broadening the country’s appeal, South Africa’s tourist board has introduced a marketing campaign, 20 Experiences in 10 days, aimed at increasing demand from emerging markets. Although the MENA region appears to represent only a very small proportion of visitors to the nation currently, this is hoped to improve.

Sports events are continuing to be considered as a driver of tourism, however their diversion of state finances from other areas are being increasingly acknowledged. South Africa considered a bid for the 2020 Summer Olympics, according to sports and recreation minister Fikile Mbalula; however, a final decision by the government not to bid was said to be due to considering the money better spent on bringing services to the masses of poor living in the country.

This final decision resonates positively on the country’s economy and its travel and toursim industry considering the recent WEF report, which calls for improved safety and security and health and hygiene, with poverty an inevitable root for both. n 17

James Hogan

James Hogan

CEO, Etihad Airways.

“We expect the Abu Dhabi Government Employee Travel Programme to become an increasingly important part of our business, and will be working hard to ensure it offers the highest standards of service and the best value to one of our most important customer segments.”

We expect the Abu Dhabi Government Employee Travel Programme to become an increasingly important part of our business

Salem Al Mamari

Mohammed H. Mattar

Director general of tourism promotions, Sultanate of Oman’s Ministry of Tourism.

Divisional senior vice president, Emirates Airport Services.

“The launch of new resorts and hotels will be welcomed, as are developments, as demand can be very overwhelming during peak seasons. We also need to broaden the base of mid-range and budget hotels as this segment is attracting more patrons. There are beautiful niche properties, such as Sahab Hotel at Jabal Akhdar and Sifawy Boutique Hotel at Jebel Sifah, that opened in June, which have high-quality five-star appeal.

Regional projects, such as these and Millennium Hotel at Mussanah, are at the heart of our tourism strategy to spread the benefits of tourism to all of Oman.”

“The opening of the new Emirates First Class Lounge allows us to provide our customers with a consistent, high-quality Emirates experience both on the ground and in the air, starting from their exclusive chauffeur drive airport transfer and dedicated airport check-in counters, to luxurious lounge facilities and then our award-winning service onboard. Lounges are an integral part of the Emirates experience, and reaffirm our dedication to offering the very best to our customers.”

Lounges are an integral part of the Emirates experience Stephan Kaminski

Mohammed H. Mattar

Stephan Kaminski General manager, Kempinski Grand & Ixir Hotel Bahrain City Centre.

“Running a world-class hotel requires the best talent in every department across the property. We have a great mix of long-term members of the Kempinski family coupled with professional experts from worldwide luxury hotels, to form an award-winning crew.”

We also need to broaden the base of mid-range and budget hotels as this segment is attracting more patrons Salem Al Mamari

Running a world-class hotel requires the best talent in every department across the property 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 18

SEPTEMBER 2011

The Middle East Embraces Responsible Tourism Throughout the world, there has been an ever-increasing focus on responsible tourism since the 1990’s. Companies have been striving to continue to grow and develop, while minimising any negative impact on the environment and encouraging economic growth for societies.

Jerash, Jordan

T

he three pillars of sustainable development for companies within the industry are social, economic and environmental issues. This can involve companies improving working conditions and access to the industry, making positive contributions to the conservation of natural and cultural heritage, embracing diversity, and being culturally sensitive.

In the Middle East, one expert on the matter believes that Jordan and Oman are leading the way in this regard. Justin Francis, co-founder, responsibletravel.com, noted that these countries have been consistent in implementing responsible tourism strategies over the years.

Oman’s fourth International Conference on Responsible Tourism, held in Muscat in 2010, is testament to this. The event drew an Al Ain Wildlife Park

SEPTEMBER 2011

international crowd of organisations which all supported the nation’s bid to develop its tourism sector in a responsible manner.

Oman, as well as Jordan, is to be applauded for their efforts, Francis explained.

The Middle East, as with all tourism destinations around the world, has an important role to play in the future development of sustainable tourism “Oman has a commendable approach to embracing responsible tourism and has been working to promote that for a number of years.

Similarly, Jordan has made great strides forward in terms of its commitment to responsible tourism. We have worked closely with the country in developing a guide to Jordan and it has a wealth of local stories to tell, and it is embracing them.”

One international organisation that has put a great emphasis on its responsibilities is TUI Travel, which recently released its latest TUI Travel Sustainable Development Report. The report shows that the company has saved around USD26 million due to environmental initiatives between 2008 and 2010. A total of 92 percent of the travel group’s businesses have developed and are implementing sustainable strategies. Other notable achievements documented in the report include the fact that TUI Travel’s mainstream businesses have signed up to the Child Protection Code, and TUI Travel Airlines are soon to take delivery of 13 Boeing 787 aircraft with exceptional environmental performance.

Francis believes that Middle Eastern organisations and governments can work together to embrace responsible tourism.

“For countries in the Middle East, as in any destination, if there is a real desire from organisations, tourism providers and opinion formers, a lot can be achieved. The Middle East, as with all tourism destinations around the world, has an important role to play in the future development of sustainable tourism.” n 19

- Brand Travel

Brand New Strategies When it comes to choosing an airline or hotel, travellers will often opt for a name they know and trust. The fame of a brand can often be as important as the quality. Travel Trade Monthly looks at the brand names in travel and tourism that are branching out and really making names for themselves.

Duncan MacRae writes Jumeirah Beach Hotel

T

he global tourism industry is more competitive than in the past, also indicating a strong brand name that people recognise and have faith in is more important than ever before.

Branding can create an emotional attachment to a company, a feeling of involvement and a sense of higher quality surrounding something as simple as a name or symbol.

Morgan Holt, strategist, Wolff Olins, a brand consultancy company, noted that companies need a strong presence in their markets, and those operating online need a stronger presence than ever.

“Digital makes it easier for customers to access hotels and airlines direct, so it’s essential for travel and tour operators to be extremely clear about the value they offer. Branding introduces customers to the value and reassures them that a longer relationship will be worthwhile.”

20

According to Holt, creating and developing a strong brand in travel and tourism is particularly difficult.

“Travel and tourism is an incredibly crowded space. Global companies are vying with local operators for customers, and competing on price means shifting very high volumes and relentless attention to what the competition is doing.

Creating a new proposition in this industry is essential, but mind-blowingly difficult.”

Brand Development A number of companies within the travel and tourism sector have however, spent years developing strong brands that have helped them to successfully branch out into a variety of sectors. One global company that has been doing that is Jumeirah Group.

The group was rebranded in 2005 in an effort to create a strong brand platform for local, regional and international expansion and strengthen

Jumeirah’s position as the world’s leading luxury hospitality group.

Its portfolio includes the Burj Al Arab and Jumeirah Emirates Towers, and it also manages the Wild Wadi Water Park and runs both The Emirates Academy of Hospitality Management and Jumeirah Hospitality. The group also boasts a network of hotels around the globe.

Creating a new proposition in this industry is essential, but mind-blowingly difficult The company’s existing portfolio of hotels has been successfully renamed, with the brand ‘Jumeirah’ incorporated into other names. For example, Emirates Towers Hotel was re-branded Jumeirah Emirates Towers, and its logo was changed to reflect the new corporate identity of the brand.

Burj Al Arab has, however, retained its existing identity, reflecting its position as an icon of Dubai in addition to being one of the world’s most luxurious hotels. The property will continue to be presented as the flagship of Jumeirah.

Thatcher Brown, vice president of brand strategy and management, Jumeirah Group, explained that as the hotels, waterpark and hospitality schools all relate to the same industry, it made sense for the company to expand laterally.

“There is a strong synergy between all these SEPTEMBER 2011

- Brand Travel entities. The Emirates Academy of Hospitality Management provides great career development and opportunities to our colleagues. We have recruited many graduates from there over the years, and several of our managers provide training to the students”.

One of Wolff Olins’ clients, Opodo, is another prime example of travel companies successfully breaking into other markets within the industry.

The online flights, care hire and travel business was created in the early 2000s by a conglomerate of airlines including Aer Lingus, Air France, Alitalia, Austrian Airlines, British Airways, Finnair, Iberia, KLM and Lufthansa. The purpose of the new company was to compete with the likes of Expedia and lastminute.com.

Opodo, short for ‘opportunities to do’, attempted to offer more information and expertise than other travel sites, including details of visas and vaccinations.

The company now operates out of 13 European countries, with four websites, in German, English, French and Italian. It has grown from strength to strength by acquiring other websites and, today, it has access to more than 500 airlines, 65,000 hotels and 7,000 car rentals locations worldwide.

Kate Rice, industry analyst, PhoCusWright, argued that it was the perfect time for a Opodo launch.

“The airlines love to sell from their own sites because it builds relationships with their customers, but they also need general sites to pull in other users.”

Holt, of Wolff Olins, admitted that branching out into another section of the travel and tourism industry does not come easy, though.

“It’s almost impossible to cut through unless the company is able to own a clear position in an industry that is increasingly geared towards digital innovation. Creating a positioning strategy that is backed by a commercial plan is the first stage, and the expression of the brand can then be developed to reach out to customers.”

New Markets Another Wolff Olins client was budget airline Go, which represented British Airways’ venture into the low-cost airline market.

In the mid 1990s, the market share of budget airlines grew from zero to five percent, in less than two years.

British Airways spotted that there was potential for it to move into this market, so set up Go to compete with the low-fare operators. Although the new airline would have the strength of the SEPTEMBER 2011

British Airways brand behind it, it was to be a separate company with its own name, identity, management and employees. Wolff Olins was appointed to create the name and identity for the airline in association with HHCL, a leading UK advertising agency.

When Go was eventually sold by British Airways to 3i, in 2001, it brought the company a return of GBP100 million (USD162.6 million) on a GBP25 million (USD40.6 million) investment.

A year later, easyJet bought Go for 374 million (USD608 million).

Jumeirah Group has put a strong emphasis on its branding, which goes some way to explaining why it has been so successful in its diversification within the tourism industry.

Every day, Jumeirah strives to create a meaningful difference in a very competitive luxury hotel environment, Brown explained.

“Evolving and maintaining a strong brand is critically important, as our guests and stakeholders interact with Jumeirah. Our brand development work is focused on making it easy and appealing for our target audiences to choose Jumeirah Hotels & Resorts above other alternatives. From the time our guests establish

their travel requirements and start researching to the contact point after their departure, we are challenged to fight the pressure of brand proliferation, commoditisation and the scarcity of customer attention.”

An important part of a brand’s job is to reveal to customers what their options are, and how to choose among them, Holt of Wolff Olins summarised.

“If there is a clear frame of reference, that is, if customers understand what to expect from the company’s products and services, then the brand is doing its job well. If it reveals how much better the company is than the competition, then it's doing it excellently.” n

If customers understand what to expect from the company’s products and services, then the brand is doing its job well

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Rabih Zein

Rabih Zein Rabih Zein has taken on the role of general manager of Park Inn Muscat. Rabih has been with Rezidor since 1999 where he has been entrusted with the responsibility of promoting leisure business and selling two properties in France to the Middle East market. His most significant achievements during his 13 years with the hotel group include the opening of a flagship property located at Disneyland Resort in Paris. He is moving to Oman after three years at Park Inn Nice, France. With solid sales and marketing expertise and a good command of the local language, Rabih is expected to further consolidate the hotel’s position in the competitive market.

Katie Heaton

Katie Heaton Katie Heaton has been appointed as public relations and marketing manager of Park Inn and Radisson Blu Hotels, Abu Dhabi. Heaton has been in the industry since graduating from Liverpool John Moores University in 2009 with a Bachelor of Arts degree in journalism. She spent the last four years working with various lifestyle and consumer clients. She moves to the UAE from UKbased full service branding agency, Frashfield Marketing Communications, where she worked as senior account executive with responsibility for numerous hotels, bars and restaurants. In her new role, she will focus on growing the brand presence of both properties.

Mohammad Barakat Mohammad Barakat has been appointed as director of sales and marketing of Four Seasons Hotel Amman.

Barakat first joined the hotel group in 2002, as sales manager of Four Seasons Hotel Riyadh, and later worked his way up to director of sales at the property.

In 2009 he moved to Dubai to take on the role of director of sales of The Address and later of Armani Hotel. Following his return to Four Seasons, he will offer a strategic vision and contagious energy to the company’s sales and marketing division, to maintain the hotel’s leading position in the country.

Mohammad Barakat

Patrick Ritter Patrick Ritter has been appointed as general manager of Kempinksi Ishtar Dead Sea and Levant regional director of Kempinski Hotels. He moves to Jordan after a successful 22 years with Kempinski Hotels based in Europe and Asia. Most recently he held the general manager position of Kempinski Hotel Yinchuan, China. Ritter aims to further develop the unique positioning Kempinski enjoys in the Kingdom.

Patrick Ritter 22

SEPTEMBER 2011

Q & A with Daniel Lozano Making changes to keep up with altering markets as well as economic conditions has become increasingly necessary to remain competitive in the ever more globalised world. Daniel Lozano, senior vice president, Meliá brand, Meliá Hotels International, shares with Travel Trade Monthly the changes made by the hotel chain and its plans for the future.

Travel Trade Monthly: The name change of Sol Meliá to Meliá Hotels International is said to mark the start of a new era for the hotel chain. How does the company’s marketing and brand development now differ, including its identity, performance and strategy?

Daniel Lozano: Sol Meliá has been a very successful brand for our group for more than 50 years and although it had a lot of history and a high degree of awareness within our main core markets, we now face a totally different world, where globality is a fact. Our company, with more than 350 hotels in 35 different countries, needs to become really global, and so does our corporate brand. We understood that Meliá Hotels International would perform much better as a global corporate brand because it has the power and passion of our most international brand, Meliá, but also the strength of the group and the wide brand portfolio.

Concerning the rest of the brands, which have not been altered (except for the Vacation Club brand, now called Club Meliá), we feel that the new corporate brand will be the perfect umbrella to maximise their brand equity in the most dynamic markets around the world, such as the Persian Gulf, and to seduce investors and hotel owners. The change of the brand’s name also involves a deeper transformation, as we have seized the moment to also review and update our company’s mission, culture and values. Meliá Hotels International is a great opportunity for us to enter the ‘hotel sector’s champions league’ and in accordance with expected growth, we want to be solid, coherent, responsible, excellent and innovative.

Our company, with more than 350 hotels in 35 different countries, needs to become really global, and so does our corporate brand Travel Trade Monthly: Although it primarily targets inbound business from Europe, do you think Meliá Dubai will also SEPTEMBER 2011

be popular with guests from the Middle East region? What features are considered to be most attractive to this market?

Daniel Lozano: This is a brand with the right

Daniel Lozano

standards and attributes for this city, complementing the hotel supply for both business and leisure customers and adding value to the city. There are direct flights between the UAE and Madrid and Barcelona, so there are business opportunities for this well known brand amongst Spanish travellers. Meliá Dubai will be the first Spanish hotel in the city. In addition, we believe that our tradition in Spanish hospitality can offer new experiences to customers from the Arabian region. A selection of Meliá hotels is present in major outbound destinations, such as Germany, England, Spain, Italy and more.

Meliá Dubai will be the first Spanish hotel in the city.

In addition, we believe that our tradition in Spanish hospitality can offer new experiences to customers from the Arabian region

Travel Trade Monthly: Is the hotel on schedule to open in the fourth quarter of this year?

Daniel Lozano: Meliá Dubai plans to open its doors on October 12, Columbus day.

Travel Trade Monthly: With the company focusing more on international expansion, what new destinations are on the cards for developments in the future, specifically in the MENA region?

Daniel Lozano: Before the end of this year, in

Travel Trade Monthly: Why was Dubai chosen as the location to debut Meliá in the Middle East, and why has this year been chosen as the best time to debut the Meliá addition to Meliá Dubai, we will open Meliá brand in the region?

Genova and Gran Meliá Roma in Italy, Meliá Daniel Lozano: Growth in the Middle East is Zanzibar and Paradisus Playa del Carmenone of our priorities in the coming years. We would like to position our brands in the most dynamic markets and our international attitude leads us to have a presence in all continents.

Meliá is undeniably Spanish, warm as the Mediterranean sun yet expressive as Dali. Dubai is undoubtedly Middle Eastern, passionately evolving yet proudly historic. Over time these two ancient nations have traded language, architecture and culture, evident even today.

Centuries later, the two meet once more, retracing ancient routes. As Meliá opens its doors in the heart of old Dubai, Spanish hospitality comes to the Middle East.

Mexico.

Meliá Zanzibar is a gorgeous boutique hotel that is undergoing extensive renovation, scheduled to open October 1. We have a very aggressive development plan in the pipeline, with projects in Saudi Arabia, Abu Dhabi, Sharjah, Bahrain, Qatar and Oman. Our intention is to introduce our most well known and international brand, Meliá Hotels & Resorts, and our premium brands; Gran Meliá (timeless luxury hotels with an avantgard flair) and ME by Meliá (urban lifestyle hotels and resorts), which best fit with customer demand and the investors profile in the area. n 23

INDEX 2011 to Include Product-Specific Shows Following High Demand INDEX, the MENA region’s largest and longest established interiors and design exhibition, is furthering its market lead by introducing a brand new line up of six productspecific shows.

Taking place across an additional 10 halls at the Dubai World Trade Centre from October 2225, INDEX 2011 will evolve its profile, hosting over 800 exhibitors from across 49 countries.

The focus of the six new shows under the INDEX brand will surround furnishings, inretail, kitchen and bathroom, lighting, outdoor living and textiles. Running for the 21st consecutive year, the exhibition will also showcase 20 national pavilions, providing product specification by country. INDEX will also introduce interactive features alongside each of the new product-specific show sectors, generic features, conferences, competitions,

panel discussions and CES seminars.

The enhancement of the exhibition was inspired by exhibitor and visitor demand, commented Paula Al Chami, event director, INDEX. “The introduction of the product-specific shows solidifies INDEX’s position as the ‘must attend’ design show for industry professionals from the MENA region. Based on insights and feedback we received from the market and from our visitors, 68 percent of the people wanted the show to be product-specific while the remainder wanted to see products split by the manufacturing nation, so we now offer both.

We believe this structure will allow exhibitors to effectively present their products and services to the right audience and also make it easier for visitors to navigate throughout our very large exhibition.” n

PATA Travel Mart New Delhi, India, September 6-9, 2011 (www.pata.org) Asia Pacific’s premier travel trade show with networking and contracting opportunities.

Top Resa, International French Travel Market Paris, France, September 20-23, 2011 (www.iftm.fr) An international travel and tourism trade fair for networking, doing business, innovating and keeping abreast of market developments.

The World Youth and Student Travel Conference Palau, Spain, September 20-23, 2011 (www.wystc.org) An event for organisations that serve today’s young travellers. It provides an opportunity for attendees to pursue innovative partnerships, develop creative marketing and distribution channels and access new markets.

Cityscape Dubai Dubai, UAE, September 26-29, 2011 (www.cityscape.ae) A B2B networking exhibition and conference for emerging real estate markets globally.

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The introduction of the product-specific shows solidifies INDEX’s position as the ‘must attend’ design show for industry professionals from the MENA region

Kazakhstan International Tourism Exhibition Astana, Kazakhstan, September 27-29, 2011 www.leisure.kz The eighth Kazakhstan International Tourism Exhibition in Astana caters for both the B2B and B2C markets and features a vibrant mix of inbound and outbound destinations.

CIS Travel Market St. Petersburg, Russia, October 12-14, 2011 (www.restec.ru) An event focusing on the CIS countries with airlines, tour operators, travel agencies, accommodation providers and tourist associations.

ITB Asia Suntec, Singapore, October 19-21, 2011 (www.itb-asia.com) An event where international exhibitors, Asia Pacific’s leading companies and emerging enterprises meet top buyers.

World Travel Market ExCel London, UK, November 7-10, 2011 (www.wtmlondon.com) Leading global event for the travel industry, presenting a diverse range of destinations and industry sectors and providing an opportunity to meet, network, negotiate and conduct business.

SEPTEMBER 2011