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WTM Buyers’ Club Members’ Edition 2013

WTM Business ®

The exclusive magazine for WTM Buyers’ Club members ®

PREDICTING THE FLOW OF TOURISTS AROUND THE WORLD Timetric’s Tourism Potential Index: providing new insights into international market growth

NEW NAME, SAME CLUB... WTM rebrands its exclusive buyers’ club

TRAVEL TECH TRENDS

The industry in a digital age

WTM. MEANS RESPONSIBLE TOURISM

Celebrating WTM WRTD and connecting rural communities

THE RISE OF MEDICAL TOURISM EU cross-border directives and their impact on travel

INTEGRATE TO ACCUMULATE Bridging the gap between aviation and tourism

PLUS: CRUISE | LUXURY | ONLINE TRAVEL | HOTELS | SPORTS TOURISM | AVIATION | INDUSTRY NEWS 4483_24_WTM_business_Cover_F.indd 1

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CONTENTS

Contents 44

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11 Welcome Simon Press, Senior Exhibition Director WTM

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A Question of Tourism WTM Buyers’ Club members explain why WTM is so vital to them

12 WTM Buyers’ Club The latest industry news for members

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WTM CEO Round Tables Blue-sky thinking: highlights from this year’s four round-table discussions

14 The Future is Bright Senior executives and future leaders have their say at WTM Decision Makers TV 18 News A round-up of the latest travel and tourism news

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Speed Networking Maximum networking in a minimal timeframe WTM. Means Responsible Tourism Professor Goodwin explains more

about this year’s World Responsible Tourism Day programme 42 Future of Technology in Travel Highlights of this year’s Travel Tech Show at WTM 43 A Taste of ILTM at WTM The launch of WTM’s biggest ever luxury programme 44 UNWTO – Integrate to Accumulate UNWTO Secretary-General Taleb Rifai talks about bridging the gap between aviation and tourism


CONTENTS

Operations Director Alexander Collis Managing Editor Denise Burrows Assistant Editor Charlotte Mainprize Art Director Simon Marriott Digital/Web Production Sam Raza 48

Airlines – The Gloves Are Off Gulf airlines continue to shake up the status quo

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SPECIAL FEATURE Predicting the Flow of Tourists Around the World Timetric’s tourism potential index: providing new insights into international market growth

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Sustainable Solutions BATA looks at some of the key challenges facing the aviation industry today, including the 3rd runway at Heathrow

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Luxury Tourism Sub-Saharan Africa set for luxury tourism expansion

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Romantic Breaks The rise of sustainable luxury tourism: our top romantic hot spots

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Sports Tourism – A Positive Legacy The LLDC explains how the London Olympics will continue to have a positive effect on British tourism long after the event itself Splashing Out The cruise market is currently showing a healthy growth – we find out why sea and river cruises remain hugely popular Responsible Tourism ICTP talks to WTM Business about delivering travel and tourism to rural communities Fitness for the Mind and Body Current wellness trends within a competitive market

75 Medical Tourism What effect will the latest EU crossborder directives have on those shopping around for the best medical treatments? 80 Hotels Cater for Generation Y The hotel industry’s attempts to engage the 30-something consumers of today 82 Travel Technology Paul Richer examines which travel technology trends businesses should capitalise on The and Caribbean LGBT Tourism 85Americas How is a gay traveller different to any other traveller? Out Now shares findings from the world’s biggest global reserach initiative into LGBT markets 88 Online Travel Sustained growth but tougher competition – we look at the increasing success of OTAs

Accounts Controller Martin Reece Project Services Lewis Sherman, David Cross, Alex David Operations Manager Alena Kravchenko The 2013 World Travel Market Official WTM Business is published under contract by IMO Business Ltd to help guide delegates around the exhibition and to provide them with essential reference information both during and after the event. © Reed Travel Exhibitions, a division of Reed Elsevier Inc. The publisher encourages readers of this magazine to recycle the publication when it has ceased to be of value as a reference source. International Media Organisation, 1 Bridge Lane, London NW11 0EA, UK Tel: +44 (0)208 123 1002 Fax: +44 (0)208 181 8633 E-mail: corporate@imobusiness.com Website: www.imobusiness.com All material in WTM Business is strictly copyright & all rights

93 Crisis Management Flight plan – John Strickland explains the challenges currently facing airlines and how some carriers are weathering the changes 96 Middle East Regional round-up 115 WTM Africa 2014 sees the launch of Africa Travel Week which is all set to become the leading B2B exhibition for Africa’s travel industry 120 WTM Career in Travel WTM’s student programme aims to attract young people into the travel industry

are reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system without prior permission of the publishers and Reed Travel Exhibitions. Colour transparencies & photos submitted for publication are sent at the owners’ risk & while every care is taken, neither the publishers nor their agents accept liability for loss or damage however caused. The publishers & Reed Travel Exhibitions can accept no liability whatsoever of nature arising out of nor in connection with the contents of this publication. Opinions expressed within the articles are not necessarily those of International Media Organisation Ltd nor Reed Travel Exhibitions & any issue arising there from should be taken up directly with the contributor. World Travel Market and WTM trademarks are owned and protected by Elsevier Properties SA and Reed Exhibitions Limited used such trademarks under licence.

imo

International Media Organisation

WTM Business 2013

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INTRODUCTION

Welcome Dear WTM Buyers’ Club member Through the pages of WTM Business, I would like to take this opportunity to warmly welcome you to World Travel Market 2013. This year we have renamed our club for buyers to WTM Buyers’ Club from WTM Meridian Club, which celebrated its 21st anniversary at WTM 2012. The key objective of World Travel Market is to facilitate business deals for the industry, which means giving you, the senior buyers, access to the very best facilities to conduct business negotiations with the widest range of exhibitors. WTM 2012 saw more than 8,000 WTM Buyers’ Club members attend the event, helping the show to generate a record £1.8 billion. This year we anticipate WTM will facilitate more than £2 billion in industry deals thanks to the array of business opportunities available, especially the highly successful Speed Networking sessions on the Monday and Thursday mornings. For the first time, WTM is offering its buyers an exclusive session. Research company Timetric will present its top 10 countries with tourism growth potential in South Gallery Rooms 15 &16 from 2pm on Wednesday 6 November. There’s also the latest business intelligence, insight and expert opinion to help you keep track of trends and developments. This includes a programme spotlighting the world’s super powerhouse countries as well as the highly-lucrative sports tourism sector. Thursday’s Business Talk sessions are not-to-be-missed with both nofrills pioneer Barbara Cassani and London Deputy Mayor for Business and Enterprise Kit Malthouse speaking in the WTM Knowledge Theatre from 11am. This year WTM Business is more membership focused with more interviews, Q&As, discussions, tips and opinions than ever before. We are constantly trying to improve our communication with members and would like to hear your views and feedback on WTM Buyers’ Club and on what we can be doing better. May I wish you an enjoyable and productive week of business at World Travel Market 2013. Simon Press Senior Exhibition Director World Travel Market

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WTM BUYERS’ CLUB

Same Club, New Name, More Benefits… WTM Buyers’ Club Manager, Raj Thakkar, provides a useful summary of WTM Buyers’ Club, describes the changes to membership and explains how members can get the most out of their time at WTM 2013 Welcome to the WTM Buyers’ Club, the leading business network for Travel Buyers. There have been a few changes in the club over the last year, most noticeably its name. To reflect the nature of the club, we at WTM made the decision to rename the Meridian Club to the WTM Buyers’ Club. The exclusivity and values of the club have not changed. WTM Buyers’ Club will also increase its international presence by becoming an integral part of WTM sister shows, WTM Africa and WTM Latin America. Why the name change? WTM Buyers’ Club has played a key role in the growth of WTM over the past two decades. The name change to WTM Buyers’ Club will help to further establish WTM as the event to conduct and conclude business deals at. It also creates consistency with fellow Reed Travel Exhibition’s events, including Arabian Travel Market (ATM), which operates the ATM Buyers’ Club. 2013 is the perfect time to rename WTM’s key buyers’ club following Meridian Club’s 21st anniversary at WTM 2012. WTM Meridian Club has led the way for more than two decades in giving buyers the right environment and opportunities to conduct business with the global travel and tourism industry. The name change to WTM Buyers’ Club will see WTM continue and improve upon its offer to buyers to make sure it provides the perfect business environment to negotiate with exhibitors.

New benefits for members We have taken the opportunity to look at what the club offers its members, and following a members’ survey we are delighted to offer the following benefits to our members at WTM 2013: • Dedicated entrance and fast-track registration • Cloakroom and bag-drop service • Complimentary refreshments including sandwiches and drinks • Improved Wi-Fi services in WTM Buyers’ Club lounges • Complimentary massage & relaxation facilities

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In addition to the new benefits, there are also a number of key features for you to take advantage of on site: • WTM Speed Networking sessions • Dedicated lounges • Private meeting rooms to invite exhibitors and trade visitors • Wednesday evening networking reception • Exclusive access into the top 60 future travel destinations research findings • Dedicated WTM members’ club magazine – WTM Business

WTM 2013 Take advantage of a range of benefits before, during and after WTM 2013. Receive over £1,000 in free benefits as well as exclusive fast-track entry, access to WTM Buyers’ Club lounges, refreshments and a complimentary Welcome Pack at the event. A copy of Timetric’s research report is available for all members – please ask for your copy at the WTM Buyers’ Club Lounge. Timetric Research Session Wednesday 6 November Time: 14.00 - 15.00 Location: South Gallery Rooms 15&16


WTM BUYERS’ CLUB

The World’s Leading Travel & Tourism Events Organiser Leisure Travel Portfolio

The leading global and regional events for the travel and tourism industry

2 - 3 May 2014 Cape Town

23 - 25 April 2014 São Paulo

3 - 6 Nov 2014

23 - 26 September 2014

Paris

5 - 8 May 2014

Luxury Travel Portfolio

The leading ‘by invitation only’ events for the luxury travel community

CANNES 1--4 DECEMBER 2014

CAPE TOWN 28-30 APRIL 2014

SHANGHAI 2-5 JUNE 2014

KYOTO 17-19 MARCH 2014

MEXICO 22-25 SEPTEMBER 2014

LONDON 1-3 OCTOBER 2014

IBTM Global Events Portfolio

The leading events for the incentive, business travel and meetings industry 18-20 November 2014

24-26 March 2014 Abu Dhabi

17-19 September 2014

Beijing

AFRICA 10-12 June 2014 Orlando

September 2014 India

28-30 April 2014 Cape Town

18 - 19 February 2014

Sports Travel Portfolio

The premier events for the sports travel industry

27-30 October 2014 Villa Erba, Como, Italy

Reed Travel Exhibitions is part of Reed Exhibitions Ltd. Gateway House, 28 The Quadrant, Richmond, Surrey TW9 1DN, UK. T: +44 (0)20 8271 2134 E: enquiry@reedexpo.co.uk www.reedtravelexhibitions.com

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DECISION MAKERS TV

The future is bright… Hear what the senior executives and future leaders have to say about the travel industry on these three hugely popular WTM TV channels – Decision Makers TV, Destination Leaders TV and Future Travel Leaders TV…

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DECISION MAKERS TV

etting behind the big organisations and speaking to the top executives about what motivates them, how they got to where they are and plans for the future is what Decision Makers TV does. Since its launch in 2012 (after demand from WTM audiences to receive more regular content) the channel, through a weekly video series, has been speaking to major companies in the travel arena. And it has proved so popular that two new portals have been created – Destination Leaders TV and Future Leaders TV. Destination Leaders TV features senior heads of tourism of National Tourist Boards discussing highlights, trends and challenges in destination marketing, while Future Travel Leaders TV profiles the bright and enthusiastic individuals set to be the future leaders of tomorrow in the travel industry. Providing an insight into how these ‘future leaders’ entered the business, their first experiences and their roles and aspirations, this channel is invaluable for any young person who’s thinking about entering the travel market. And where better to grab the senior executives than at the WTM conference? WTM along with WTM Vision Conferences (which this year are taking place in Russia, China, Brazil, Dubai and Italy) has been bringing senior leaders and the wider industry together for years, to pivotally find out how times are changing. This is principally done through keynote speeches, panel discussions and networking events. This year, WTM will be the biggest ever, with the spotlight shining brightly on three growth sectors: Travel Technology, Luxury and Business Travel. Decision Makers TV founder, Micaela Juarez, has been identifying other trends: “Big data – knowing your customers’ likes and dislikes (which can boost customer

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service efforts), attracting and keeping staff (plus poor pay for those starting in the sector), lobbying government with one voice (over industry taxation and oppressive regulation) and the sustainability issue are all set to be hot topics.” Juarez has been tackling some of the debates that are a key part of WTM on her blog, including the issue of Big Data – which, as Juarez realises, is a Big Issue! Data is being generated constantly all over the world – so gathering and using that information is vital in such a competitive market, and it’s crucial for those in travel and tourism to it get right. Of course it’s complex, especially on the technology front – but the amount of sales generated could be eye watering. And it really is that serious. Victoria Sanders, former Managing Director of Teletext Holidays, says: “You can be the best website in the world, but if you don’t know what your customer is doing, if you don’t know who your customers are… or what they want to buy, you might as well close down.” And as Juarez says on her blog: “Yes, it’s Big Brother, but at least BB doesn’t give us socks for our birthday when we really want the latest iPad.” Juarez is also keenly aware that the ‘sustainability’ issue is springing up again and again… On her blog post ‘The Hot Potato is Still Green’ she hears from senior executives in the industry, with CityJet CEO, Christine Ourmières, talking about one of the elements most lay people cannot get their head around – fuel. For her, sustainability issues include getting planes from point A to point B using as little fuel as possible, managing the weight on the flight and so on. But there’s a whole range of areas sure to be discussed from over-building to waste management and generally ensuring sustainable practices are undertaken for the sake of the environment, the people in it and the consumers – of which an amazing 70% expect travel companies to

build sustainability into their product offer. Travel Technology Initiative’s chairman, Peter Dennis, says: “Being ‘green’ should be uppermost in everyone’s mind. For guides of good practice, a great place to head is the Travel Foundation; they’re online and cover different areas of travel and tourism.”

Micaela Juarez, Head of Marketing and Communications WTM and founder of Decision Makers TV

For more information www.decisionmakers.tv www.destinationleaders.tv www.futuretravelleaders.tv

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DECISION MAKERS TV

Decision Makers TV

Destination Leade

rs TV

John Wales, CEO, Encore Tickets Ltd On technology: “Customers want easy booking – we do three-quarters of our bookings online. We’ve had to evolve over the last few years. People want 3 easy clicks to book, they want to see where they’re sitting in the theatre, they want restaurants close by, they want the full service online as if they are speaking to a human.” “We continue to improve on our online offering, we have had to upgrade all of our infrastructure to make it so seamless and quick. Consumers are more demanding; if someone’s online they want an online version for a site so we adapt our sites for the mobile user. For us it’s all about conversion and sale. Trends are all online, three years ago we were 50% online, now we are 75% online.” Diane Bouzebiba, Managing Director, Amadeus, UK & Ireland On business travellers: “From a business traveller point of view the big thing that our customer is telling us about is balancing the cost of business travel management against the absolute requirement from the business traveller for convenience and flexibility. It’s this constant dilemma between cost management, traveller needs and the technology that solves that dilemma. Also, when we look at the 21st century business traveller there are trends that are merging the business and leisure traveller; business travellers are expecting the same sets of information that they would see as a leisure traveller and vice versa.” Derek Jones, Managing Director, Kuoni UK On luxury: “I think even if you have the money in the bank, there has been a move away from the bling holiday: the one that is just about the glitz. People don’t seem to look at luxury in those terms anymore. Luxury now is more established, it is understated and quietly confident. People (consumers) are much more relaxed about continuing to invest their money, because it seems like a wise choice.” Craig Dean, CEO, Web Applications Group On Big Data: “It’s not good enough to stick a few pictures online anymore. Firstly, social networking and social graphs are not just buzzwords, they are part of the next generation in terms of the way they communicate and identify themselves. Secondly, it’s not good enough just to put a few text descriptions, they (young people) want to see reviews, they want to see their friends saying this is great, they want to see video clips.”

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Laurence Logan Lechchumanan, Deputy Director for Tourism Malaysia UK & Ireland “There is a need to educate the trade as we are the people that sell a destination… An agent is very important, and for them to advise their clients about a destination is very crucial for us. We think a platform where we can start training people about the products is crucial, and hence we came up with a programme – Master Malaysia launched at WTM last year… The amount of people logging in just to learn a be a ‘Master Malaysia’ is very encouraging.” Ian Scott, UK & Ireland Director for Dubai Tourism and Commerce Marketing “Strategy is now 95% digital. It’s best if I don’t tell the story as I’m a director of a tourist board, so If I can get mothers, families, other people who have been there to share their story I think that’s more


DECISION MAKERS TV

Future Travel Leaders TV

powerful. That’s what we’ve done this year, distributed a series of videos through micro sites such The Telegraph and Guardian and women’s lifestyle press such as Easy Living, plus lots of videos out through networks as well which can be very targeted towards demographics.” Markly Wilson, Director of International Marketing for the New York State Division of Tourism. “When I was doing this job, 9/11 occurred, obviously it did have its impact but when the time was right I came here and connected with people like you, the tour operators and the travel agents, those who were selling New York, and shared with them what we were experiencing, and what we were doing about it. It was extremely important to keep in touch with them…” Chris Lee, Trade Marketing Manager for the Tourism Authority of Thailand “One of the biggest challenges is a purely economic one. It is being driven by our government and it’s what we call Air Passenger Duty (APD). This has made a big difference particularly to long haul. If you take perhaps an average flight price of £800 to get you to Thailand nearly half that now is just tax! So this is a major thing, the CEO of PATA recently called it a ‘detention tax’ it’s almost like it’s trying to keep us in the country. This is a big issue and something we need to work on together.”

Lee Nicholson, Ground Training Instructor, Thomson Airways “Even if I’m working in the office no two days are the same. I’m very lucky because I’m officebased for part of the year, and for another part of the year I’m traveling around the world. The opportunities are there in the travel industry and I must admit all the lovely discounts are great!” Stacey Smith, Field Sales Manager, P&O Cruises and Cunard “One of the biggest things that we’ve done in the last couple of months has been to regain confidence in cruising. We’ve seen the prices go down, and we really want to, as an industry, bring those prices back up and bring back the real value of cruising. So in July we brought out our vantage fares, which was backed up by a price promise that no matter when they booked they were not going to get a better price. It also offers them a choice of car parking, on-board credit and coach. We are going out there and doing something completely different, to give people a reason to book early and not to wait, and not to obviously slash the prices down.” Chris Dalrymple, Head of Ecommerce, On The Beach Ltd “We’re very quick to put new things and new functionality lines live on the website. We’re agile, embrace new ideas and we’re fairly entrepreneurial, that’s important because it means we’re always trying and testing new things, there’s a real kind of test and learn ethos in the business. And we’re quick to react, for example, this year we’ve seen a huge adoption in mobile, which means that in terms of project priorities mobile comes very early.” Paul Lau, Performance Marketing Specialist, Teletext Holidays “It’s very dynamic with travel, there are so many products, people looking for a lot of holidays constantly and a lot of people providing solutions for them. And because it’s so dynamic you can always learn from it. And the people are so friendly, you can always learn from mentors – people who’ve been in the industry longer.”

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NEWS ROUND-UP

News Round-up Taleb Rifai Re-elected as UNWTO Secretary General
 With no-one to contest him, the Secretary General, Dr Rifai has held his position for a second term, after being re-elected at the 20th Session of the UN World Tourism Organization’s biennial General Assembly held at Victoria Falls, Zambia/Zimbabwe. Having held the position for four years, he has retained his role for a second term by default. As he looks to the future, Dr Rifai said he was keen to point out that he not only welcomes scrutiny, but rather encourages it. While commenting on the industry, Rifai said: “We cannot live in a world that is static; everything changes. Reform is not just a character or a passion. We have no option but to keep reforming and keep changing.”

Philippine Airlines to Begin Heathrow Flights
 Emerging market, the Philippines, is set to re-establish direct flights to Europe after a 15 year absence, with flights from Manila landing at London’s biggest airport, Heathrow, this November. It will be the quickest route at an average of 12.5 hours. Last year, one third of the estimated 349,000 European visitors to the Philippines were from the UK. In the first half of 2013, there were 60,234 arrivals from the UK. The airline will use a Boeing 777-300ER aircraft and operate five times a week, with the eventual aim of daily flights.

Gatwick Gains New Indonesian Route
 Keen to expand its global reach, National carrier Garuda Indonesia plans to start direct flights between Jakarta and Gatwick in May 2014. According to Stewart Wingate, Chief Executive of Gatwick, the UK is one of the largest markets to Indonesia with 160,000 people travelling to the country on business and leisure, so it’s vital that this key market is serviced efficiently. He adds: “At Gatwick, we’re playing our part by investing in the airport and, with our airlines, opening new routes to growing economies such as China, Russia, Turkey, Vietnam and now Indonesia. We look forward to welcoming Garuda Indonesia later this year.”

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Indian Ocean Islands Unite to Create VITO The Vanilla Island Tourism Organisation (VITO) has joined the United Nations World Tourism Organisation (UNWTO), and will be introduced to the global media at WTM 2013. Members of VITO are Reunion (France), Madagascar, Comoro Islands, Mauritius, Mayotte and the Seychelles, with the Maldives joining recently in September. The Indian Ocean region is now a strong player on the global field of travel and tourism, and this was the key message at the ongoing re-birth of the Vanilla Island Tourism Organisation (VITO) recently held in the Reunion Islands. Minister of Tourism for the Seychelles and VITO president Alain St Ange explained a 10-point plan, looking at issues such as accommodation, travel, an online presence, reaching out to the cruise market, etc. Pascal Viroleau, Head of the Reunion Island Tourism Board, said Reunion will work with Vanilla Island member destinations, airlines and stakeholders to further the expansion and influence of the Vanilla Island Tourism organisation. • STOP PRESS Alain St Ange used the Top Resa Tourism Trade Fair in Paristo to publicly welcome Maldives as the latest member state in the organisation. Maldives is now determined to play its part in full as a Vanilla Islands member; they welcomed the plan to have a Vanilla Islands Village at the Tourism Trade Fairs to bring together the seven islands. Sri Lanka and Zanzibar are already in deep discussion and are hoping to confirm joining the organisation in 2014. Peace Celebrations
 On Tuesday 5 November at 2pm WTM will host The International Institute for Peace through Tourism (IIPT) award ceremony, marking its 25th anniversary. Ten people who significantly contributed to the cause in the last century will be honoured, while the occasion will also mark the launch of the First World War Centenary in 2014. Those being honoured are Nobel Peace Laureate, Woodrow Wilson, who helped establish the League of Nations; the International Committee for the Red Cross; George C Marshall for setting up the Marshall Plan; Mahatma Gandhi; Nelson Mandela; King Hussein; Dag Hammarskjold; Martin Luther King Jr; Oscar Arias; and Aung San Suu Kyi. “The struggle for peace and its continual maintenance is one that affects everyone in the world of travel and tourism. WTM 2013 is therefore proud to host an event which honours such luminaries whose work had such an impact on their own times and which resonates today. As we prepare for the centenary of World War One, now is a good time to reflect on the necessity of trying to bring peace to the world,” said Simon Press, Reed Travel Exhibitions Director WTM.

Closer links between the tourism industry and air transport policies required Over half of travellers get to their destination by air, so a closer link between tourism and transport polices is vital. The General Debate of the 20th Session of the UNWTO General Assembly called for measures to increase connectivity. Issues that were looked at include visa facilitation, making airports more visitor friendly, fair taxation, open skies and the impact of low-cost airlines. UNWTO is working with the International Civil Aviation Organization (ICAO) on making progress on these issues.


NEWS ROUND-UP

UNWTO Tourism Highlights 2013
 New destinations have opened up to the travel market, with China reaching the No 1 spot, and this evolvement has put tourism in the forefront in terms of socio-economic progress, infrastructure development – and making it a massive creator of jobs (1 in 11). Overall, the market’s looking strong according to UNWTO. Travel is identified as one of the largest and fastest-growing sectors in the world, having incrementally increased over the years. This practically unshaken growth has led to a landmark 1,035 million tourist arrivals in 2012, with an anticipated 1.8 billion by 2030 (according to UNWTO longterm forecast Tourism Towards 2030). And from region to region, UNWTO has noted Europe’s continued growth despite the recession, with the Americas showing strong results for a number of destinations. In Africa, South Africa is driving Sub-Saharan growth, with Tunisia making a recovery, and the Middle East demonstrating mixed results. Asia and the Pacific – for the second year in a row – have found themselves top of the leader board as the fastest growing region.

Asia Set to Dominate World’s Top 10 Airports by 2016 According to OAG, the market leader in aviation intelligence, Asian airports will account for half the world’s top 10, with Beijing moving from No 2 to become the world’s largest airport by seat capacity in the next three years. Beijing will overtake Atlanta while Jakarta, Singapore and Hong Kong will enter the global top 10 alongside current Asian member Tokyo Haneda. This leaves America knocked out the park, with it set to go from four to two airports, and losing its place in the global top ten. Europe is expected to go from three to two, while Istanbul is forecast as the world’s third-largest airport in 2016. Changing economies have shifted the travel market around the world.

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easyJet leads the way in adopting Amadeus’ new improvements easyJet is surely set to maintain its place as No 1 carrier as it implements new cutting edge technology to help travel agents book low-cost carriers. And it’s all thanks to Amadeus, the leading technology partner for global travel. easyJet is the first to become a light ticketing airline in the Amadeus system, whose recently-announced enhancements include a system that lets agents from around the world book low-cost carriers with the same booking flow used for traditional carriers making the whole process easier. Key functionalities include increased flexibility, full mid and back-office integration and sales reporting and seamless availability flow. David Doctor, Head of Distribution Marketing at Amadeus, said: “easyJet and Amadeus have been working closely together since 2007, and it’s a pleasure to see the successful relationship delivering more benefits for the travel agency community.”

East African Countries Head Towards Combined Tourist Visa At a recent summit in Entebbe, hosted by President Museveni, Rwanda, Kenya and Uganda have united to implement ‘one’ tourist visa among the three countries, with comments that the remaining EAC members, Burundi and Tanzania, can join when they are ready. They want this – and unrestricted travel by using national identity cards – to be in place by January 2014. A source close to the action in Kigali said: “There is a lot of growing tourism exchange between Kenya, Uganda and Rwanda. We want to encourage tourists from overseas to come and visit all three countries because of the different attractions they offer… Even more important, every citizen in our countries holding a Kipande (ID document) will be able to travel by road, rail, or air using the national ID cards.”

Africa Travel Week launches in Cape Town

The young use travel to enhance their CVs

The South African market is looking healthy, and the World Tourism Organisation (WTO) predicts inbound tourism to Africa will triple by 2030. In light of this, Reed Travel Exhibitions is launching Africa Travel Week at the Cape Town International Convention Centre, from 28 April – 3 May next year. The event combines WTM Africa, IBTM Africa and ILTM Africa, integrating Africa’s inbound and outbound markets for luxury tourism, leisure travel and the MICE/business travel sector. Michael Njogu, Head of Market Managers (East Africa) at Private Safaris Africa said: “After exhibiting at the successful ILTM Africa this year, we created many valuable business opportunities with quality buyers. By participating in all three events at Africa Travel Week, it will give us a greater platform to meet and network with new buyers… all on our doorstep. We are truly looking forward to being part of Africa Travel Week next year.” • Turn to pages 115 and 166 in this magazine to find out more about WTM Africa Travel Week.

Austerity measures have seen young travellers shun ‘leisure’ travel in favour for travel that helps them improve their CVs and employment potential. WYSE Travel Confederation’s New Horizon’s III research shows that 22% want to travel to learn a language, with 15% travelling to gain work experience, and a further 15% travelling for study. This is a big shift from 2007, when taking a holiday was citied as the main reason for travel for over three-quarters of young people. This has now fallen to 47%. ‘Cultural tourism’ is also popular with this young group, who are keen to live as the locals do. David Chapman, WYSE Travel Confederation Director General, said: “The change in motivation behind traveling is one of the starkest shifts in trends the youth travel sector has seen in the last five years. It’s fascinating to see from the research how people now see travel as an integral part of their future with such uncertainty surrounding jobs and with so much uncertainty in the economic climate.”


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WTM Business 2013


A QUESTION OF TOURISM

A Question of Tourism WTM’s Buyers’ Club – the leading business network for travel buyers – has been facilitating networking and lucrative deals for 22 years. WTM Business asked some of its members to share their industry insights and explain why WTM is so vital to their business.

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A QUESTION OF TOURISM

First established as the Meridian Club some 22 years ago, the WTM Buyers’ Club has an average global membership of around 14,000 and a reputation for generating genuine business leads, facilitating networking and negotiations, leading to contracts being signed. Its members represent some of the industry’s most senior travel buyers and decision makers. Here they talk global trends, innovation and what WTM means to them.

Carol Cooper Owner/Director Small Families Holidays

Q How many years has your business been involved with WTM?

James Jones Asia and Africa Product Manager The Lotus Group

Andrew Grieve Managing Director Discover Travel & Tours

Q How has WTM Buyers’ Club membership helped your business? As a buyer of European travel products, the WTM Buyers’ Club provides Discover Travel & Tours with useful opportunities to meet with product vendors across many of our destinations. Q What aspects of WTM have proved most useful to you in the past? WTM provides great opportunities to buy European products in one place over four days. It is genuinely the World Travel Exchange. Q Can you tell us a little about key trends in destination management this year? From the US market Italy, France and UK are our growth areas. Ireland seems to have punched above its weight with US clients.

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Q How has the WTM Buyers’ Club membership helped your business in 2013? It’s important for us to meet hotels and suppliers who don’t normally come to the UK or don’t have UK representation. It’s also good to find out about new hotels and suppliers. At WTM is good to get a feel for the year ahead and plan marketing for the upcoming seasons. Q What aspects of WTM have proved most useful to you in the past? Meeting new suppliers to fill in gaps in our portfolio and selling the benefits of working with us to hotels and suppliers have been the most important aspects to us at WTM, particularly when we were looking to grow our within the industry. Q What do you feel have been the most significant global trends for your sector of the travel industry this year? The gradual recovery of the UK economy has played a big part in our success and is reflected in some positive trends such as increased forward-bookings. The strengthening of sterling against some currencies has also encouraged growth in certain underperforming areas such as South Africa.

We have been in operation for 14 years so our business has been involved in WTM since then, but as individuals working in the trade we have been attending for many years. Q Can you tell us why your membership with the WTM Buyers’ Club is important for your business? How has it helped you? WTM is the one event in the UK where we can source new products, find prospective new associates and meet with current suppliers. It’s almost guaranteed that all destinations that we are interested in will have representatives at the show. Q What aspects of WTM have proved most useful to you in the past? Mondays – what we like to call the ‘serious buyers’ day. We get so much more work done on this quieter day and because the exhibitors know that we are serious buyers there is different atmosphere. Also, the speed networking event – which we attended for the first time last year – was hugely successful for us. Q What do you feel have been the most significant global trends for your sector of the travel industry this year? Definitely later bookings, also fewer holidays per family. Previously we were selling summer holidays in addition to another break out of season – that’s changed this year. However, we still have more single parent families wishing to travel long haul than ever before.


A QUESTION OF TOURISM

Daniel Evans Head of Contracting Secret Escapes How do you plan for WTM? We’ve got a team of about ten contract managers who will attend the event. We’re predominately AT WTM looking for new suppliers - and have them all under one roof on our doorstep is an opportunity not to be missed. We all pre-register around 6-8 weeks beforehand, with a view to spending as much time doing business during the 4 days as possible.

How do you find new suppliers? Once I’ve registered, I go to the My WTM account area to search suppliers and set up appointments. This year we will plan some of our time around WTM Speed Networking. I attended last year, got around 40-50 business cards – it was really useful and it unquestionably translated into business for us.

Adil Qayyum Founder and CEO, SME Promotions Q What do you feel have been the most significant global trends for your sector of the travel industry this year? The emergence of wellness tourism as one of the fastest growing segments in the travel industry.

Q Can you tell us why your membership with the WTM Buyers’ Club is important for your business? How has it helped you? WTM Buyers’ Club membership is crucial to our place in the tourism industry – I wouldn’t even think to miss out on such a serious business event. Each year I have signed exclusive contracts with our counterparts and also met with fellow business partners. I have no doubts in highly recommending it as a vital event for our whole industry. Q What aspects of WTM have proved most useful to you in the past? The Speed Networking session is good for improving business relationships. Much of my planning is conducted through the Monday session, as I get to meet many new suppliers. What’s more important is that they come to me, instead of my running around the show floor. This saves me valuable time, not to mention energy!

Q Can you tell us a little about key trends in wellness this year? Wellness has been the buzzword in the industry for a while now, with the spa and treatment experience focusing on health benefits in addition to pampering Helen Greenhow effects. In 2013 we have been noticing an even bigger shift Product Manager towards providing wellness options rather than pampering. More spas and resorts are learning how to integrate treatments with special food and activities in order to create a health enhancing experience. We are aware of resorts adopting the Wellness buzzword, but not being able to deliver the experience. Additionally, solo travellers are dominating this sector of the market. Busy schedules and the desire not to have to satisfy other people’s needs on holiday are the main reasons there is an increasing percentage of people travelling solo on a spa or wellness holiday. There is no stigma attached to focusing on oneself anymore and in fact this segment is growing faster than others. Savvy spas and wellness resorts are addressing this sizeable market by providing no single supplements, busy activity schedulesw and sociable facilities such as sharing tables at meal times.

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WTM CEO ROUND TABLES

Blue-sky thinking World Travel Market, in partnership with Amadeus, the leading technology partner for global travel, held a series of WTM CEO Round Table events throughout 2013 that will help provide the framework for organised debates on the future of travel and tourism. The aim was to create an instrument for identifying and appraising influential and active developments and trends. A comprehensive White Paper of all four events will be unveiled at this year’s Travel Tech Show at WTM, in the headline slot at the Travel Technology Theatre conference programme. Here we provide a brief round-up of the highlights of each, a mere taster, with more information available on the WTM website and live at The Travel Tech Show at WTM.

Future of Mobile in Travel 14 senior executives from the travel and mobile industries attended the first WTM CEO Round Table, The Future of Mobile in Travel, in London on 2 May. With the world of technology moving ever faster and technological devices keeping it spinning at an accelerated rate, discussion turned to how businesses can navigate their way through the minefield of complications. Different strategies by devices Consistency of products was a main theme. A website needs to look the same across all devices: computer, phone and tablet. As Mark Maddock, UK & Ireland CEO, lastminute.com summed up: “People switch devices something like 23 times a day.” Most of the representatives viewed ‘Mobile’ as including smartphones and tablets as subsectors. However, Google Industry Head of Travel, Dan Robb explained how the search giant treated mobile and tablet differently from desktop for CPC (Cost Per Click) rates. He also noted that tablets should be front-of-mind for travel companies looking for a mobile strategy, saying: “Tablet queries originally came from affluent customers, but

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as the price of tablets has come down their use is more mass-market, and a lot of use is now family based.” Looking forward is also key. Comtec’s Product Director highlights rumours that the next iPhone could have a screen size comparable with smaller tablets. Issues slowing mobile progress Battery life, connection speed, roaming charges, and payment were discussed as well as how customers are turning off their phone signal, making it important that wi-fi connections are available and strong. Another ‘often overlooked’ issue is making payments, with Endacott noting that tablet-using housewives and silver surfers revert to the desktop machine to book. Diane Bouzebiba, MD UK & Ireland Amadeus, mentioned they’d recently updated their booking tool Amadeus Travel Management, so that it is fully mobilecompliant, and that includes payment. Opportunities The round table talk turned to how it is vital to work with the ‘mobile’ technology to make the most of opportunities. With more

consumers sharing their experiences in ‘real’ time over mobiles and posting reviews to websites, businesses must capitalized on this trend. Considerations Consumer trends, paid search, ROI and geo-location were take-away issues. The panel discussed how mobiles are particularly strong for late bookings using geo-location to pinpoint nearest available properties and rooms, while booking the main family holiday are not done on mobiles. Another issue is tracking the customer across devices and platforms – a vital tool for marketing and distribution ROI, which often falls short as cookies and the customer can be lost. Andy Cocker, Chief Marketing Officer at Skyscanner, said that the ROI from desktop and tablet paid search was similar, with mobile lagging behind. This year, the metasearch site will receive more search queries from mobile than from desktop. Robb adds that a simple ‘click to call’ function on your phone site or app can drive business to call centres.


WTM CEO ROUND TABLES

Inspiring the future of luxury and honeymoon search The event took place in London on 13 June and was attended by 11 senior executives from the travel industry. The topic under discussion was ‘Inspiring the Future of Luxury and Honeymoon Search’. The event was chaired by On Holiday Group CEO, Steve Endacott. What is luxury? Paying extra for that ‘something special’, getting a top service from the provider no matter who they are, and the idea that luxury is personal to you appeared to be key definitions of luxury. Most also agreed properties need to be 4 or 5-star, but John Bevan, MD of Spafinder.com, said that, during his time as MD of OTA Voyage Prive, a 3-star property in Venice received such high customer satisfaction scores that it remained on the books. Is the internet an effective way of marketing luxury trips? The round table agreed that it does more harm than good for various reasons: a) companies that aren’t luxury use combinations of pay per click advertising and search engine optimisation to drive themselves up the ranks of Google searches for luxury holidays, which means b) getting to the ‘real’ luxury operators takes time. Consumers also expect unrealistic deals. They discussed sites such as Groupon, offering cheap deals to luxury hotels, leaving a customer who can’t afford to drink at the bar unsatisfied. However,

Danny Waine, Director Perfect Weddings Abroad, said the internet is a powerful marketing tool for companies, with his OTA generating 95% of all leads via the web thanks to people making more specific searches than simply under the luxury banner. How the internet can help traditional travel sales? Carol Hay, Director of Caribbean Tourism Organisation, talked about how higher net users are happy to do plenty of research but when it comes to booking they want someone to do it for them: “They want to talk to someone and share it with them.” Kuoni only generates 5% of bookings online, seeking to make sales in a more traditional way, rolling out a high-street presence, with customers able to download full itineraries and pictures of their potential trips on their smart phones in store. However, he admitted the company can do more to exploit in-store technology such as tablets. But overall what is suggested is the best marketing is word of mouth. Luxury market and personal recommendations Endacott argued the people who work in a resort know it best and more should be done to access their knowledge. The panel also spoke highly of Cruise.co.uk’s forum allowing customers to ask their own questions, and

considered whether tourist boards could do something similar. Laurence Logan Lechumanan, Deputy Director UK & Ireland, Tourism Malaysia, added that allowing the online community to promote a destination gives it more credibility than the country’s government. Also discussed was how internet-savvy consumers want more refined customer feedback sites, a trend Feefo is seeking to service. Endacott proposed more should be done to show things like the age or marriage status of a reviewer so he could ensure a review he is reading is relevant to him.

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WTM CEO ROUND TABLES

Inspiring the Future of Family & Cruise Travel Search The third WTM CEO Round Table, Inspiring The Future of Family and Cruise search, took place in central London on 11 July – the event was chaired by On Holiday Group CEO, Steve Endacott. What comprises the modern family? How modern families have changed was discussed, with ‘2.2 children’ a thing of the past, and this needs to be reflected by travel suppliers and technology. Also discussed was how parenting has changed, with some niche operators recognizing this and adapting well online. And, as Steve Endacott, CEO OnHolidayGroup points out, fundamentally, “kids have changed too,” saying they are less interested in playing on a beach and want to play with their XBox or iPad. Connectivity is paramount in his opinion. Why are family holidays hard to search for online? Does the cruise sector have an online presence? Does it need one? Guests were divided – some felt both sectors were let down by search, some felt social media was overlooked and some thought the industry was being a bit too hard on itself. Julia Lo Bue-Said, Managing Director Advantage Travel Centres, said: “I don’t think online is meeting the needs for families. If you are trying to search for something which is unusual… it can be very difficult.” Which led to the idea that travel agents – not technology – is the answer. Not everyone agreed; the idea the two could work in conjunction was suggested. How is social media helping customers and companies? The importance of reviews and other people’s opinions matters greatly in the family and cruise sector. Seamus Conlon pointed out that cruise.co.uk has more than 100,000 cruise reviews on its site and that people come to the site specifically to read the reviews. Dean Harvey

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suggested that cruise companies should host social media within their own sites to create a community. A discussion about TripAdvisor ensued and the overwhelming consensus was that experience rather than star ratings is better, though filtering was an issue. In the current economic climate, how important is price in family/cruise sectors? There was hot debate around the prices being higher in the summer, but as Dermot Blastland, former MD at TUI Travel, suggests: “It’s not that summer is expensive, it’s that the rest of the year is so cheap.” A look at pricing restructuring followed and the idea that cruising is sometimes devalued by discounts. So what can be done? The onus is on the industry to get a grip of the technology issues Dean Harvey stressed: “The industry owns the problem because it is not providing the content.” While Lo Bue Said noted: “Google doesn’t index the smaller specialists so the casual user might not find them.” While Blastland was positive about the millions of people the industry takes away every year from online bookings.


WTM CEO ROUND TABLES

Inspiring the Future of Business Travel and City Breaks The event took place at the Grange St Paul’s Hotel in the City of London, on 5 September and was attended by 11 senior executives from the travel industry. How is business travel booked? A hot topic currently, representatives firstly believed more business travellers book via Online Travel Agents (OTA) than traditional Travel Management Companies (TMC). Andy Washington, MD UK and Ireland Expedia, said: “Up to 40% of business travel booked through the company is unmanaged.” And Mark Maddock, MD of lastminute. com, added: “More and more small businesses are becoming more flexible (towards self-booked business travel) as long as you have the good search criteria.” Also discussed was convenience of the hotel’s location. Why use a TMC? John McEwan, Board Member, Holidays Please, argued that a company deciding to employ a TMC for the first time is a sign of its maturity, with the suggestion that smaller companies are more likely to book through OTAs. McLeod added that TMCs also help companies meet their duty of care to employees.

Will online reviews change business travel? The representatives agreed that reviews would never have the same impact that they’ve had on the leisure market. Also argued was that business travellers often go back to a property time and time again but won’t boast about it. McLeod said: “The reason for keeping quiet is they like to keep it to themselves... If everyone goes to it they push the price up.” The future of business travel? There was talk on emerging markets, such as China, which prove difficult to infiltrate. Targeting the ever-popular tablet was seen as a must. Waite also suggested low-cost airlines, such as easyJet, will need to adapt elements of the business travel experience such as offering frequent flyer rewards. Sinclair-Barnes predicted the trend towards business travellers making fewer but longer trips that are more of an ‘experience’ will continue. Business travel and the city break experience It was agreed that business travellers extending their trips was a growing trend, which was said to be particularly

noticeable in long haul inbound trips to the UK from countries like Singapore or New Zealand. McEwan added these kinds of packages allow agents a chance to win business as they can offer the additional human touch to any booking. Agents and the city break The need for agents against online booking terminals was hotly debated, with the idea that a knowledgeable agent can organize something good quickly, while Andy Washington, MD UK and Ireland Expedia, argued that a knowledgeable agent will still have problems competing online. Ian Taylor, Executive Editor Travel Weekly, argued that online information overload will help good agents to compete. How city breaks are booked It was suggested that knowing the demographics of the person is vital to fulfill a successful city break, as they want different things at different times of life. Age was proved to make a difference to how a break is booked, and adding extras to a package, such as a spa treatment, would add value. London’s place in the top ten hot spots was confirmed. n

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WTM BUYERS’ CLUB/SPEED NETWORKING

How do you achieve maximum networking in a minimal timeframe? Join the WTM Buyers’ Club Speed Networking sessions of course!

WTM’s Speed Networking events are a not-to-be-missed opportunity for buyers and exhibitors to meet face-to-face and talk business. Having proved so successful in previous years that an additional session was added, the event facilitates discussions between exhibitors and buyers, providing an invaluable opportunity to make key contacts for WTM and beyond. How it works Buyers and exhibitors meet for five-minute slots to discover if they have similar business interests to pursue. Exhibitors can identify the contacts most relevant to them by using the ‘guide to buyers’ provided in advance, which gives a detailed insight into the buyers’ needs. Exhibitors move from buyer to buyer, making contacts, pitching products and discussing new opportunities – maximum networking in a minimal timeframe. When and where Speed Networking kicks off WTM on Monday morning, helping exhibitors and buyers to start making connections from the offset. A second session held on Thursday provides a final chance to network and extend business opportunities beyond the event. Monday Speed Networking: 9.00 - 10.00, WTM Knowledge Theatre - GV750 Thursday Speed Networking: 9.00 - 10.00, WTM Knowledge Theatre - GV750

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WTM BUYERS’ CLUB/SPEED NETWORKING

Straight from the buyers

WTM Buyers’ Club members share their experiences of Speed Networking

WTM’s Speed Networking events are a not-to-be-missed opportunity for buyers and exhibitors to meet face-to-face and talk business.

Andrew Grieve, Managing Director, Discover Travel and Tours “As a buyer of European travel products, the WTM Buyers’ Club provides Discover Travel & Tours with useful opportunities to meet with product vendors across many of our destinations. The Speed Networking event held during WTM provides a ‘fast & furious’ buying session with buzz and bite.” Damian McDonough, Director, Transfers4travel “The Speed Networking session allowed me to meet approximately 30 suppliers and swap contact details, many of which have been followed up with further meetings and signed contracts. I would recommend it strongly and will definitely be attending this year.”

Dorine Naeye, Managing Director, DN Travel and Events “Through Speed Networking I discovered not only new products, but opportunities I would not have imagined.” Foo Sze Zhaun, Business Development Manager, Corporate Information Travel “The Speed Networking session is definitely useful – especially in initiating first contact with new suppliers.” Francis Ennuson, Travel Consultant, IMEX Travel Events Promotion “Speed Networking was educational and inspirational!” Franco Campazzo, Product Director, Eden Viaggi “Speed Networking provides the best and quickest opportunity to meet new potential business contacts. I would definitely recommend it.”

Holly Monahan, Luxury Travel Manager, Absolute Travel “As a first-time attendee, Speed Networking was especially valuable as I was able to quickly assess which suppliers to meet with more extensively. It made my overall WTM experience more efficient and productive.” Daniel Evans, Head of Contracting, Secret Escapes “Speed Networking was probably the best use of an hour I’ve ever had at WTM! Lots of suppliers in one room and several good deals have been struck because of it.”

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Jaal Shah, Managing Director, Travel Designer India Pvt Ltd “Speed Networking is the ideal way to kickstart your WTM. It not only gave me a chance

to enter some important business discussions, I was able to find some interesting new products.” Kanai Morarji, Founder, Kanstra “The concept of Speed Networking is great – I met a good number of people who I connected well with. I would recommend it to others and will surely be a part of it this year too!” Lucy Di Martino, Executive Director, Hotels Around the World “I have attended WTM for many years and welcome the opportunities provided by Speed Networking sessions. Through these meetings I have been able to meet many new suppliers who have broadened my objectives to continually offer new products and services to my clients.” Nocos Aroditis, Managing Director, Exalt Travel Ltd “Speed Networking at WTM gave me the opportunity to meet with a lot of new suppliers, some of whom I am currently working with!”

Rob Hetem, Sales and Marketing Director, Tamrich Tours “WTM Speed Networking sessions allow participants to decide beforehand which specific buyers they would like to meet, automatically increasing the likelihood of successful interactions. Our session put us in touch with eight quality leads and I would definitely recommend this format as the way to go about interactions.”


SECTION HEADER HERE XXXXXX

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JUST A DROP

Imagine sending your child out to walk four miles before school, to fetch water in a jerry can that weighs nearly 20kg when full. Picture them standing ankle deep in a stagnant pond, scooping up and drinking the muddy water. Then consider that this water is guaranteed to make them sick with a life-threatening disease such as dysentery, diarrhoea or cholera. This is the harsh reality for many families in some parts of the world. Consequently, a child dies every 20 seconds from a water related disease.

Just a Drop Just a Drop is an international water aid charity with a very simple plan: to give people clean water. It’s a small charity – created by former World Travel Market Chair, Fiona Jeffery – which supports poor communities through the construction of wells, boreholes, pipelines, hand pumps and latrines, and establishes health and sanitation programmes. It works with corporate partners, largely from the travel industry such as Thomas Cook Children’s Charity, Hayes and Jarvis, TUI Travel and Stella Travel Services. Just a Drop has come a long way since Fiona learnt that just £1 can deliver clean water to a child for up to 10 years. In fact to date, the charity has carried out over 130 projects across 31 countries, reaching an estimated 1.5 million people. The types of projects carried out have included constructing a Charco dam for a Masaai community in Tanzania; building water houses for three primary schools in Mexico; installing rainwater tanks for elderly and vulnerable people in rural Uganda; and providing latrines and sanitation facilities for schools and community centres in India.

Just a Drop at WTM This year at WTM, Just a Drop is asking visitors and exhibitors alike to consider what they can spend £1 on in the modern world today. The answer, of course, is not very much – perhaps half a cup of coffee, or a large bag of crisps… The charity wishes to encourage all visitors to the show to donate £1. Not only does this provide a child with clean water for 10 years, it also reflects the charity’s ethos that by everyone giving a little, collectively we can make a big difference.

Support Just a Drop Whether your workplace wants to sponsor a project, choose Just a Drop as your Charity of the Year, or as a beneficiary of an event, please do get in touch to discuss how Just a Drop and your organisation can work together. The charity has a strong ethos of working in close partnership with corporate partners and where possible, will match supporters with specific projects to ensure that they see the tangible difference their funds have made. Just a Drop also welcomes regular donations from individuals, as this allows it to plan ahead and continue its life saving work long into the future.

Visit the Just a Drop team at their stand in the Main Boulevard or for more information, please visit www.justadrop.org or e-mail: kelly.railton@justadrop.org or telephone: 020 8910 7752.

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EVERY 20 SECONDS, A CHILD DIES FROM WATER BORNE DISEASES

Our mission is to reduce child mortality by delivering clean, safe water where it is needed most. So, when you next turn on the tap… Just Think. Just a Drop. £2 a month could provide a child with clean, safe water for life. To donate, please visit www.justadrop.org Registered Charity No: 1100505


Responsible Tourism

WTM. Means responsible tourism With responsbile tourism gathering global momentum, and an increasing trend for sustainable travel, the industry needs to sit up and take note. Harold Goodwin, Professor of Responsible Tourism Management at Leeds Metropolitan University and WTM Responsible Tourism Advisor, explains more about this year’s UNWTO World Responsible Tourism Day programme.

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Responsible Tourism

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Responsible Tourism

TM, in association with UNWTO, hosts the world’s most comprehensive, searching and thoughtprovoking agenda on responsible tourism. Created to inspire, push the boundaries, question long-held beliefs and opinions, and highlight good practice, World Responsible Tourism Day (WRTD) is the largest programme of its kind in the world.

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Expert panels The WRTD programme kicks off on Tuesday 5 November with seven panel discussions, each with 4–5 brief presentations by experts from the industry and beyond, combine with a discussion chaired to illuminate the issues and ensure that there is time for your questions to be put to the panels. Martin Brackenbury is chairing a panel on Decarbonising Travel and Tourism with speakers form Sustainable Aviation, Thomas Cook and InterContinental Hotels, along with the President and Co-Founder of Calasi, an exciting new online tool which enables consumers to choose the least carbon polluting carrier. Xavier Font is chairing a panel on certification’s contribution to Responsible Tourism with Jenny Rushmore, Director of Responsible Travel at Trip Advisor; Sean Owens, Sustainable Product Manager at TUI UK & Ireland; Andrea Nicholas of Green Tourism Business Scheme; and Rebecca Hawkins of the Responsible Hospitality Partnership. I will be chairing a panel looking at new business models with four leading innovators talking about what makes their model different and why it works. Jose Dominic, from Kerala in India, will talk about CGH Earth Experience Hotels; Richard Hearn will look at village enterprises and Village Ways; Glynn O’Leary will talk about Transfrontier Parks Destinations and opportunities for communities in South Africa; and Roberto Daniele, who researches Entrepreneurship and Marketing for Hospitality & Tourism at Oxford Brookes will talk about the range of new entrepreneurial models which are emerging. Following last year’s lively debate, we have four panellists talking about how they are approaching the challenges of child protection. Mark Tanzer of ABTA, chairing the discussion, will be joined by Stephanie Ossenbach of Kuoni; Bharti Patel, Chief Executive Officer, ECPAT UK; Amanda Read & Karen Tatom of the UK Border Force; and

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Krissy Roe of responsibletravel.com The panel will also address the business opportunity presented by proving good quality travel opportunities for people with disabilities. In 2011 we focused on the market, in 2012 we asked whether the industry was doing enough, concluding that it needed to do more. This year we have four panellists talking about what can be done to take responsibility both for welcoming and providing additional opportunities for people with disabilities. Responsible tourism should be seen as a business opportunity. Justin Francis of responsibletravel.com, along with four highly qualified panellists, will be exploring how a responsible tourism ethos can benefit business. There will also be the opportunity to learn how responsible tourism can be used to enhance product quality, improve the destination experience, secure marketing advantage and win repeats and referrals, with the panel asking how does the responsible tourism agenda enable you to differentiate your product and secure attention? This year’s event has been extended to address employment issues with a panel chaired by John Swarbrooke, Professor of Tourism and Hospitality at Manchester Metropolitan University. The panel comprises Kevin Curran, a trade union voice from the London hotel industry; Ufi Ibrahim, of the British Hospitality Association, who will be addressing the issues of employment in hospitality; Andy Smyth, Accredited Programmes Development Manager at TUI UK; Claire Steiner of the Global Travel and Tourism Partnership & Chair of ITT Education and Training Committee; and Vicky Wolf Business Development Manager, ABTA – all of whom will be addressing the issues around training and progression in the sector. The distinctive WTM Speakers’ Corner on Responsible Tourism celebrates the right to free speech. It provides an audience for speakers to share and debate their views on Responsible Tourism. Climate change WTM WRTD itself falls on Wednesday 6 November. Launched in 2007 in conjunction in UNWTO, this year’s WRTD sees a major change in format as BBC journalist Stephen Sackur heads up a panel discussion ahead of the World Responsible Tourism Awards, which celebrate their 10th anniversary this year. With carbon a big issue in responsible tourism this year, the panel will be asking how the industry can adjust to changes in climate

taking place around the world and make a significant contribution to reducing carbon pollution. The travel and tourism industry contributes about 5% of global CO2 emissions with air transport accounting 40% of the travel and tourism sector’s emissions around 2% of global emissions and the proportion of carbon pollution resulting from travel and tourism is expected to increase according to current predictions. In 2008 the European Union decided to include aviation in its Emissions Trading System from 2012, but subsequently deferred the requirement for airlines to surrender emission allowances for flights into and out of Europe until after the 2013 International Civil Aviation Organization (ICAO) General Assembly in September 2013. The price of carbon in the EU consequently hit record lows due to an oversupply of credits and the number available has been reduced. The travel and tourism industry is an important source of economic development and livelihood in many developing countries – for many it is one of the few ways of earning vital foreign exchange. However, ETS, APD, fuel tax all have costs – many of which raise important issues of intra-generational equity. The panel will answer Stephen’s questions about what can be done by the industry to tackle the consequences of climate change and its contribution to causing it. The discussion will be recorded, live streamed and will be available on the WTM websites after the show for some months. The three industry experts joining Stephen will be Gerald Lawless, President and Group Chief Executive Officer, Jumeirah Group; Johan Lundgren, Deputy Chief Executive TUI Travel PLC; and Marthinus van Schalkwyk, Minister of Tourism in the Cabinet of South Africa, the former Minister of Environment who led the SA delegation to the United Nations Framework Convention on Climate Change negotiations for five years. The water issue The United Nations has declared 2013 the International Year of Water Cooperation, arguing that water resource management is crucial, impacting on almost all aspects of our lives, especially health, food production, water supply and sanitation. Addressing the industry’s contribution to the problem and its solution will be Mark Watson of Tourism Concern, leading the team arguing for the motion with support from Oliver Kopsch of DecRen Water Consult and David Read, Chief


Responsible Tourism

6 Nov 2013 For a full responsible tourism event programme please take a look at the official WTM Catalogue or visit www. wtmresponsibletourism.com

Executive of Prestige Purchasing. The industry’s record is being defended by James Whittingham, Group Environment Manager of TUI Travel PLC; Inge Huijbrechts, Vice President of Responsible Business at The Rezidor Hotel Group; and Robert McCann, Corporate Responsibility Manager Environmental Sustainability at InterContinental Hotels Group. The motion being debated is: “This house believes that the tourism industry will not do enough to achieve appropriate reductions in water usage without regulation by national governments.” This promises to be a lively event and one not to be missed! Volunteering Thursday 7 November sees two panels. The first, Taking Responsibility for Volunteering, follows on from last year’s lively panel on volunteering and focuses on what the industry can do to improve volunteers’ experience and ensure maximum benefit for communities. Panellists include Nikki White of ABTA and Sallie Grayson of peopleandplaces. The final panel of this year’s show centres on what contribution tourism can make to the maintenance of the cultural heritage sites. What should the industry be doing to ensure that heritage buildings and museums are sustainable? Addressing the question are Dr Simon Woodward, a tourism and heritage expert from ICRETH at Leeds Metropolitan University; Dr Jonathan Foyle, Chief Executive of World Monuments Fund Britain; Oliver Maurice, Director International National Trusts Organisation; Vanessa Ward, Business Support Manager, Durham Cathedral; and Chris Warren, who will be talking about the value of local cultural heritage in rural Australia. This year’s programme is varied and diverse, reflecting the range of issues and opportunities which need to be addressed if tourism is to contribute to making better places for people to live and visit – in that order. n

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THE TRAVEL TECH SHOW AT WTM

The future of technology in travel With travel technology changing the face of the industry there has never been a more important time to stay ahead of new developments. WTM Business takes a look at this year’s Travel Tech Show at WTM and asks WTM Buyers’ Club members why technology is crucial for their business.

his year sees the travel and technology section become an event in its own right – The Travel Tech Show at WTM. The biggest travel technology event in the UK, it provides a dedicated focus and resources for the purchasing of technology, along insight and debate from industry leaders. 2013’s programme will focus on four key areas: technology, social media, mobile and blogging. Senior Exhibition Director WTM, Simon Pressm said: “The first edition of The Travel Tech Show at WTM is poised to be a great success with a number of new exhibitors taking part. The continued growth of the travel technology region merited the launch of a new event within WTM, with its own dedicated resource. I am delighted with the response of the travel technology industry.”

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For full event details Visit www.wtmlondon.com/Content/ The-Travel-Tech-Show-at-WTM

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Andrew Grieve, Managing Director Discover Travel & Tours OTAs will consolidate as there is only room for a limited number of big global gorillas all selling same flights, hotels, cars, etc. The travel industry will adopt more standard industry software to manage basic business processes – enterprise resource planning, HR, performance management, sales forecasting, modelling. Big business systems will trickle down to smaller medium-sized players as implementation costs fall.

hotel chains – in particular hotel marketing groups – to pool their direct links with operators and try to challenge the increasing power of the online providers such as Expedia. The way that different types of travel are booked will change, with straightforward arrangements such as hotel-only bookings being made directly by clients, while more complicated itineraries will be made through agents. The increasing use of social media will change the way clients decide where to book, with more people reliant on the recommendations of their peers and more informal marketing channels such as amateur travel blogs or straightforward holiday snaps on Facebook. The challenge for agents and operators is to ensure that their booking technology can access the increasing amount of products bookable online, to get the clients’ attention and to retain to secure bookings.

James Jones, Asia and Africa Product Manager Online travel providers will continue to grow, particularly as access to booking technology becomes the norm for even the smallest product providers such as B&Bs. Hotel chains will increase their direct bookings with clients, and also with tour operators through direct links with operators’ reservations systems. There will be increasing alliances between

Helen Greenhow, Product Manager, and Stella Photi, Founder of Wellbeing Escapes Hotels are finding it easier to distribute directly to the consumer and this trend will continue as technology becomes more sophisticated. It will require tour operators and agents to provide even more value to their client base, and more specialist experience travel companies will emerge. n

WTM Buyers’ Club members were asked: “How do you see that technology will change the travel industry in the upcoming years?”


A TASTE OF ILTM AT WTM

a taste of ILTM at wtm

®

A Taste of ILTM at WTM WTM’s biggest ever luxury programme launches this year

uxury hits WTM in a big way this year, with the introduction of the first dedicated luxury lounge. ‘A Taste of ILTM at WTM’, which proved highly successful at the 2011 and 2012 events, brings the ILTM experience to WTM, reflecting the growing importance of luxury travel. The programme brings together some of the most prestigious travel providers in the industry for two days of pre-scheduled appointments with luxury buyers, meetings in a bespoke business lounge and champagne networking. Taking place on 4–5 November, the event provides two days of pre-scheduled appointments with luxury buyers designed to create new contacts and initiate business discussions. Each 15-minute meeting will help connect buyers and key decision makers with suppliers in an exclusive luxury lounge. The event will comprise only the most prestigious luxury travel providers and brings WTM’s sister event ILTM to a WTM audience. Attendees will be matched to relevant buyers for a series of up to 30 pre-scheduled meetings to network in style. Designed to maximize the networking potential with key luxury buyers, participants in the luxury programme will be given a dedicated furnished private pod with a personal logo graphic and wi-fi connectivity. n

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Thank you to our Official Media Partner

“I am delighted with the response WTM has had to the first ‘A Taste of ILTM at WTM’. The event brings a dedicated luxury focus to WTM for the first time, bringing new products to the event floor and new buyers, improving the overall offering of WTM for all participants.” Reed Travel Exhibitions’ Director WTM, Simon Press

Luxury Travel Trends Euromonitor’s recent Global Travel Trends Report identified that inbound tourism from the BRICs is expected to record the sharpest growth in Europe, leading to CAGRs of between 5-10% over 2012-2016. Shopping is forecast to be the main driver of this growth, with luxury brands and 4 and 5-star accommodation set to benefit. Specialised tours designed for BRICs are beginning to emerge as a result of this, designed to allow visitors to experience a region, visit its vineyards and food manufacturers, and shop at its luxury brand outlets.

For full event details Visit www.wtmlondon.com/luxury

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UNWTO

Integrate to

Accumulate UNWTO Secretary-General Taleb Rifai talks to WTM Business about bridging the gap between aviation and tourism.

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ourism celebrated an important milestone in 2012, when over one billion international tourists travelled the world for the first time in a single year. Among these tourists, over half arrived at their destination by air. The extraordinary growth of international tourism over the last decades – from 25 million tourists in 1950 to over one billion traveling today – is as much due to advances in air transport as to the rise of the middle class, the growing wealth in industrialized and emerging countries, and the forces of globalization. This expansion is projected to continue well into the future. UNWTO´s long-term forecasts indicate that by 2030, international tourist numbers will swell to 1.8 billion, 52% of which will arrive at the visited destinations by air. Indeed, the growth of air transport is intrinsically connected to the expansion of tourism.

Aviation and tourism have a fundamental symbiotic relationship. Tourism represents air transport´s primary, albeit dominant, end user. Aviation is an integral and central part of the tourism value chain. However, in spite of the clear linkages between tourism and aviation, these two sectors remain strange bedfellows. Towards integrated policy For a more sustainable and competitive growth, tourism and air transport need to come closer together and work towards an integrated policy position. Yet many challenges remain impeding this goal of integration. Despite the interdependency and multiplier effect, many countries have separate sectorial policies on air transport and tourism. This results in fundamental and often conflicting disconnects, and a lost opportunity to maximize the potential of both for the economy and society. Along the same vein, studies from the

World Bank have shown that connectivity is closely correlated with important economic variables including the degree of liberalization of air transport markets. Yet today, air service reciprocity continues to take precedence in too many countries over an assessment of the broader economic and social benefits of open markets. Air connectivity could be improved through carefully designed regulatory liberalization encompassing market and capital access in the context of tourism and trade, notably in terms of more ‘open skies’, freeing up air carrier ownership and control restrictions, and developing a global framework that goes beyond bilateralism. Taxation and visa facilitation Unbalanced taxation and stringent visa processes likewise remain as challenges for the consolidated growth of tourism and aviation. While taxes are a fundamental and

Aviation and tourism have a fundamental symbiotic relationship. Tourism represents air transport´s primary, albeit dominant, end user. Aviation is an integral and central part of the tourism value chain.

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UNWTO

legitimate tool for governments worldwide, there is a growing concern regarding a proliferation of levies on both air transport and tourism. This trend can actually spell damage to the economy, in particularly in those destinations, which are greatly dependent on air travel. In many cases, taxes and duties are a clear market distortion and a trade barrier as they hamper fair competition between destinations. Travellers’ mobility poses another challenge. Many travelers are still very much limited by complicated, time consuming and expensive visa procedures. In 2011, there were 110 million international tourists who were required to obtain a paper visa to visit any of the G20 countries. A joint study carried out by UNWTO and the World Travel and Tourism Council (WTTC) in 2012 showed that easing visa processing will stimulate tourism demand, leading to economic gains and job creation – by as many as 5.1 million more jobs in 2015. An integrated, collective vision Tourism and air transport are communicating vessels and there is a growing need to

position them collectively as a strategic sector and speak with one voice at national and international level. Our challenge at UNWTO is to pave the way for growth where both tourism and aviation play a central role. As such, connectivity, visa facilitation and fair taxation remain as our key policy priorities to secure the sustainable growth of our sector. Over the years, UNWTO has worked to bring stakeholders together to discuss how air transport industry can best contribute to the development of tourism, advocating better coordination among airlines, tourism destinations and airport authorities bolstered by support at national level. At the global level, we have been working with UN sister agency the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA) to steer us in positioning travel and tourism as a strategic sector, with air transport as its core. Only by joining hands can aviation and tourism reap the maximum benefits of overall economic advancement and sustainable growth. n

Our challenge at UNWTO is to pave the way for growth where both tourism and aviation play a central role. As such, connectivity, visa facilitation and fair taxation remain as our key policy priorities to secure the sustainable growth of our sector

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AIRLINES

The gloves are off Gulf airlines continue to shake up the status quo Nadejda Popova, Senior Travel and Tourism Analyst at Euromonitor International, examines new business models being implemented by the aviation giants in the Gulf.

he big three (Emirates Airlines, Etihad Airways and Qatar Airways) in the Middle East have been going head to head over the last couple of years in an effort to build on their global positions. This has not been without some resistance from governments keen to protect their national carriers from the competition posed by the Middle Eastern giants. The Gulf players have been facing protectionist barriers from foreign governments in Canada and Germany, among others, which are making it difficult for the trio to expand in these markets by refusing to grant further landing rights or the entering into alliances with national carriers. Despite this, these Middle Eastern airlines are thriving and are constantly on the look out for new routes and attractive deals. However, they are adopting new business models which are having an adverse influence on the industry.

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Etihad intensifies the level of competition Etihad has been on a rather large global shopping spree since 2011, reinforcing the statement made by the Chief Executive of Qatar Airways, Akbar Al Baker, that “if you can’t beat them, join them”. The Abu Dhabibased airline has been on the look-out for the best deals, acquiring stakes in Air Berlin (29.2%), Air Seychelles (40%), Virgin Australia (8.56%), Aer Lingus (almost 3%), Jat Airways (49%) and Jet Airways (24%), with the list growing every month. The aim of the carrier is to further strengthen its strategic position in the global airline industry and its route network in an effort to feed into its hub. Speculation is rife that Alitalia has approached Etihad about a possible deal which could involve the Abu Dhabi-based airline purchasing a stake in the European carrier. All these moves clearly outline the business model of the carrier to become a strategic partner of financially struggling airlines

through equity investment in an effort to boost sales rather than become member of an alliance. Emirates – the largest of them all Emirates Airlines is by far the biggest airline in the Middle East, with over 39 million passengers carried over 2012/2013, and strongly benefiting from the first mover advantage. Despite the serious impact of fuel prices, which accounted for more than 40% of its costs in 2012, the revenue recorded by the airline reached US$19.9 billion, dwarfing that of any other player in the region. The airline benefits from its large capacity, modern fleet and diverse route network. Emirates Airlines has been aiming for strong growth and is continuously investing to become the largest and best connected airline in the region. The carrier is reaching out to destinations it sees as very lucrative, with a growing fleet awaiting 20 new deliveries in 2014. However, the airline, like most other


AIRLINES

players, remains vulnerable to the rising cost of jet fuel, and to the instability stemming from the Arab Spring and ongoing wars, as well as Europe’s financial woes. Etihad, on the other hand, is much smaller in size, with over 10 million passengers carried in 2012 and revenues of US$4.8 billion for the year. Unlike Emirates which relies on the Airbus A380, Etihad has a more varied fleet which allows it to unrestrictedly offer new routes to smaller destinations. Both airlines are strongly against the joining of global alliances, convinced that they can hurt their brands. Instead, the carriers rely on code-sharing and bilateral agreements. Two of the biggest moves have been the codesharing agreements between Emirates and Qantas Airways and Etihad and Air FranceKLM, which have helped to boost traffic and create more connections between their respective hubs and regions.

Data supplied by

Emirates Airlines

Saudi Airlines

Qatar Airways

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Etihad Airways

New horizons to be explored The big three are certainly keeping their finger on the pulse, exploring opportunities in emerging markets such as Brazil and India as well as growing their hubs to cater for increased passenger flows. Emirates Airlines should continue to target long-haul routes, increasing flight frequency. North America and Latin America will be key to growth, notably in light of the economic recovery in the US and promising growth in Latin American markets. Rising incomes and interest in travel are combining to make Latin America a significant source region of the future. For example, Brazil is expected to record much stronger growth in arrivals over the forecast period compared to the review period, at 34% versus 12%, welcoming a total of 7.5 million tourists by 2017. In India, outbound tourism is expected

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Market share of the top five Middle Eastern Airlines by brand, 2012

to witness growth of 10% over 2012-2017 in terms of number of trips, which both airlines have been tapping into. Etihad took advantage of regulatory changes in the Indian air travel industry and acquired a 24% stake in Jet Airways, which has opened the door to second- and third-tier cities in the country. Emirates on the other hand flies to 10 destinations in India, but is this sufficient to take full advantage of this growing market?

Possibly not. The change in the regulations in India is certainly reinforcing the attractiveness of the market to foreign investors, with it set to become a true battlefield in terms of highquality service, fares and connectivity. Who will win remains to be seen? n For further insight, please contact Nadejda Popova, Senior Analyst – Travel and Tourism, at nadejda.popova@euromonitor.com

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DETERMINING POTENTIAL

Predicting the flow of tourists around the world Predicting the flow of tourists around the world is a challenging task at the best of times, but with current economic uncertainty in advanced economies and volatility in emerging markets, not to mention bouts of social unrest and extreme events, predictive modelling is proving to be a hazardous occupation. Danny Richards of data analysis firm Timetric talks to WTM Business about their new Tourism Potential Index, which provides valuable new insights into international market growth. here are certain fundamental conditions that are required for a country’s tourism sector to really flourish, and conversely there are conditions that severely undermine growth opportunities. By assessing how these fundamentals change over time, one can determine the likely path of tourism flows to country destinations. Whilst there is no proverbial crystal ball to forecast long-term flows, by assessing these conditions on a frequent basis, one can generate some confidence in a leading indicator to project volume changes over the short to medium-term horizon. Timetric’s Travel and Tourism Intelligence Center has devised a model that provides a standardised view of the degree to which a country’s tourism industry has the potential

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to grow. This model incorporates the very latest high frequency data from official sources, unique insights from Timetric’s media monitoring technology and regular surveys of highly engaged industry players, as well as assessments of internet searching trends and expert opinions. The Tourism Potential Index (TPI) is built on five weighted dimensions: prosperity, attractiveness, competitiveness, convenience and significance. The prosperity dimension takes into account changes in key economic variables, such as economic growth, incomes and unemployment in the country’s major source markets. The attractiveness dimension considers the destination’s attractiveness to leisure and business tourists – the former dealing with such matters as health and safety, the environment, major tourists sites and events, and the latter to foreign investment,

WTM Timetric Seminar Wednesday 6 November 14.00–15.00 South Gallery Rooms 15 & 16 Visit www.wtmlondon.com

The Tourism Potential Index (TPI) is built on five weighted dimensions: prosperity, attractiveness, competitiveness, convenience and significance

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trade and business operating conditions. Attractiveness is also assessed on how the country’s tourism ‘brand’ is developing. Competitiveness incorporates changes in exchange rates, relative inflation trends, and changes in costs for key travel and tourism services. Convenience deals with the ease with which tourists can travel to, get in and travel around a country. Finally, significance assesses the importance of the tourism sector to the overall economy, marketing efforts and investment in travel and tourism-related property and infrastructure. The TPI is also risk-adjusted, in that a country’s final score in the index also incorporates an assessment of the degree of risk of (or actual occurrence of) an event that would greatly deter tourists, including such issues as political unrest, disease pandemics and natural disasters. n


DETERMINING POTENTIAL

Poland stands at the top of the rankings for competitiveness, primarily owing to the slowdown in tourism-related price inflation and its competitive currency. High unemployment, which has risen to over 13% in mid-2013, undermines domestic tourism potential. The government has been ramping up expenditure on tourism, and the country’s hosting of Euro 2012 has helped to improve its tourism brand. Consumer prices in Poland are relatively low, and in the restaurants and hotels category of the CPI, inflation has slowed sharply. The Zloty has also weakened this year against the Euro, improving the competitiveness of the country’s tourism sector vis-à-vis others in the region. Poland is receiving significant funding from the EU to improve its transport infrastructure, but the benefits will take a few years to be realised.

Japan’s tourism sector has been thriving in recent months, enjoying a boost to competitiveness from the depreciation in the yen, as well as clearly diminishing anxiety over the fallout from the nuclear disaster in early 2011. The relaxation of visa requirements for some countries in the region is also a factor in improving the country’s standing in the convenience rankings. Singapore is one of the few stand-out performers in the TPI, given its relatively high scores for prosperity, significance and convenience. However, the country’s potential is still undermined by competitiveness issues, and as costs continue to rise and the Singapore dollar strengthens, this could further detract from the country’s overall potential.

Poland

Japan

Brazil’s position in the attractiveness component of the TPI is boosted by its hosting of the 2014 FIFA World Cup, which is expected to draw hundreds of thousands of tourists. However, on the whole, Brazil fares poorly in the TPI, owing to the troubled economies in many Latin America markets. On the competitiveness front, the current depreciating trend in the real is a positive for the country’s tourism potential, but there are growing expectations that prices for key tourism-related services will soar ahead of and during the World Cup, which Brazil’s tourism board fears will have a negative impact in terms of the post-World Cup legacy.

Singapore remains at the top of the TPI rankings, continuing to benefit from a high score for prosperity, reflecting the buoyant economies in key source markets such as China and Malaysia. Singapore also scores the highest in the significance dimension. It maintains a reputation as a relatively safe destination, and investments in new attractions have been paying off. Singapore is one of the world’s key business centres in Southeast Asia, and foreign direct investment from the US jumped by 17% last year. Singapore’s tourism industry is subject to a relatively low level of risk in terms of political unrest, but soaring property prices and immigration are issues of contention.

Brazil

Singapore For more information on Timetric’s TPI model and other technology solutions please visit www.timetric.com

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AVIATION

Sustainable solutions According to the British Air Transport Association, aviation provides the only realistic link to BRICS and other emerging economic countries, facilitating inward tourism and investment. And with opinion on a third runway at Heathrow very much divided, Simon Buck, BATA’s Chief Executive, asks how the UK can remain competitive by looking at some of the key challenges currently facing the aviation industry.

Aviation is a globally interconnected industry and needs a global solution to address its emissions in a cost effective manner without introducing competitive distortions.

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AVIATION

his year has seen much debate over the future of UK aviation – with current hub airport Heathrow operating at 98% capacity, further expansion is needed to ensure that Britain can continue to compete globally. Many agree that the solution is to increase capacity at Heathrow by building a third runway, but with the Mayor of London, Boris Johnson, calling for development of a new hub airport, opinion on the subject is very much divided. The Transport Select Committee has recently rejected calls for a new hub airport east of London and urged the Government to sanction the third runway at Heathrow. BATA Chief Executive Simon Buck explains the importance of aviation in economic recovery, and takes a look at how UK aviation is faring environmentally, economically and globally. The UK’s economy needs to compete in both established and emerging markets. This requires excellent aviation connectivity right across the country, ensuring the UK has both vibrant point-to-point airports and sufficient world-class hub capacity. This means prioritising a favourable planning and regulatory regime and developing a bold aviation policy – providing for new airport capacity where it is required. To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear commitment to such measures being put in place, as part of a new aviation policy that truly maintains the UK’s status as an international hub for aviation. BATA believes that the UK needs extra capacity. It is up to the Airports Commission to make the final recommendations, which won’t be before summer 2015, and for Government to then take the decision. The remit of the Airports Commission is ‘to maintain the UK’s status as an international hub for aviation’, but BATA believes that both hub capacity and non-hub capacity should be increased where and as required. It does not favour any one scheme or project, but there have been a number of recent reports from a wide range of professional business and notfor-profit organisations – including the IoD, CBI and London First – that provide the evidence for provision of extra capacity, especially in the constrained south-east. Increasing the UK’s hub capacity beyond its current constraints and developing further non-hub capacity where required is essential to maintain the UK’s competitive position. The Airports Commission needs to take an holistic approach and consider wider issues such as more competitive visa and tax regimes, efficient border operations and general airport connectivity as the quick

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wins on capacity have already been achieved. Airlines are crucial in the development of the business case for any decision on airport capacity, they must be fully involved and have their views taken into account during the Commission’s consultation and decision-making process.

Sustainable Aviation BATA believes that the UK is on track to meet the government’s 2050 target for an 80% reduction in CO2 emissions. Although aviation accounts for only about 2% of man-made global green house emissions, UK aviation came together several years ago under the strategy group Sustainable Aviation – a world first initiative to help develop a roadmap for reducing future CO2 in which BATA plays a leading role. The UK’s Sustainable Aviation Road Map For Aviation combines an assessment of growth in demand – derived from UK government forecasts – with Sustainable Aviation’s own analysis and judgement concerning the available mitigation opportunities, and the extent to which it will deliver improvements in carbon efficiency. The Road Map shows that UK aviation can accommodate significant growth before 2050 without a substantial rise in absolute CO2 emissions. However, aviation is a globally interconnected industry and needs a global solution to address its emissions in a cost effective manner without introducing competitive distortions. Unilateral targets to limit UK aviation emissions will lead to those emissions being produced elsewhere and market distortion. So far, BATA members are making substantial investments in orders for new aircraft from the Boeing 737MAX to the new Airbus A350 as well as replacing older aircraft with new ones such as the Boeing 787 and Airbus A380. All these aircraft offer a step change in fuel efficiency and hence carbon emission reductions, compared to the aircraft they are replacing. Our members are

also participating in a number of operational improvement trials exploring ways to minimise CO2 emissions by making flight paths more direct and allowing planes to climb and descend without delays. Sustainable Aviation must also consider how the aviation industry can balance growing demand with the Government’s policy on noise reduction to reduce the number of people significantly affected by aircraft noise. BATA members have supported Sustainable Aviation in producing a ‘Noise Road Map’. Published earlier this year, it demonstrates that an increase in noise from UK aviation with greater flights over the next 40 years can be prevented. This can be achieved through the development and introduction of quieter aircraft alongside the implementation of better operating procedures and improved land-use planning. The Noise Road Map concludes that aircraft innovations and engine technology, operational advancements and better land-use planning offer the potential to reduce UK aviation noise output by 2050 compared to 2010, despite a forecast growth in flights. BATA members are committed to collaborating with other industry colleagues to trial quieter arrival and departure techniques for their planes coming in and out of UK airports. Following the publication of the road maps on CO2 and noise, Sustainable Aviation is

The Road Map shows that UK aviation can accommodate significant growth before 2050 without a substantial rise in absolute CO2 emissions.

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AVIATION

The Third Runway

Heathrow’s proposals at a glance Heathrow unveiled 3 options for a proposed runway earlier this year to the Government appointed Airports Commission, claiming that each would prove quicker and cheaper than a new hub airport. New runway location

Heathrow in 2013

To the south-west

To the north-west

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Estimated Cost £18bn £17bn £14bn Max Flights 480,000 740,000 740,000 702,000 Housing Lost 850 950 2700 Ready by 2029 2026 2025 People affected by noise 243,000 -20% -15% -10% Length of new runway (m) 3,500 3,500 2,800 Data as provided by Heathrow in ‘Airports Commission: Long-term hub capacity options’ report, July 2013

now focusing on delivery. A 2013 Progress Report will cover full details of its work against strategic goals in the last few years. Beyond this, working groups on climate change, operational improvements and communications will continue to focus on delivering the CO2 Road-Map. Additionally, the organisation will explore how the aviation industry and academic research programmes can be improved. The CO2 mitigation opportunities assessed and promoted by Sustainable Aviation include reductions in fuel-burn enabled by improvements in air traffic management and in operational practices; the impact of adopting the next generation of aircraft whose fuel-efficiency characteristics are already known, and whose impact on fleet fuel efficiency can therefore be estimated with some confidence; the potential impact on fleet-average fuel efficiency of future aircraft types whose fuel efficiency characteristics are not yet known; and further reductions in CO2 footprint made possible by the use of sustainable alternative fuels in place of fossil-based kerosene. The road map also considers further potential reductions in UK aviation’s net CO2 emissions via market-based measures in which aviation can support CO2 reductions in other sectors. Since CO2 is a well-mixed gas, the geographical or sectoral distribution of its emission has little bearing on the resulting climate impact. Market based measures can therefore play a role in ensuring that the most cost-effective CO2reduction opportunities can be pursued, irrespective of sector or geography. Through Sustainable Aviation, BATA is currently reviewing specific work activities to focus on over the next two years. In addition to the on-going airline commitments to invest in new aircraft technologies, further work on CO2 emission reduction is key. So far it is clear that how sustainable aviation fuels are developed, scaled up and introduced into day-to-day operations is very important as is how quickly operational trials can be turned into business as usual operations.

Air Passenger Duty (APD) and Economic Growth A PwC report earlier this year found that that abolition of APD could bring a lasting boost to the UK economy, generating a net tax gain for the Treasury and creating almost 60,000 new jobs. The GDP boost to the UK economy would amount to at least £16 billion in the first three years and abolition of the tax would pay for itself by increasing revenues from other sources such as income tax and VAT. This net benefit, even after allowing for the loss of APD revenue, would be almost £500m in the first year. APD simply makes the UK uncompetitive on the international stage – it is rated by the World Economic Forum as being 139 out of 140 countries

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Heathrow A third runway or not? Against: The Mayor of London, Boris Johnson • A third runway is not a viable stopgap – a brand new hub airport could be delivered 2-3 years after the third runway • Even with a third runway – there would be little scope for future growth • Of all the people in Europe currently affected by aircraft noise, almost one third are affected by Heathrow, which also has severe air quality issues • It would be a shorter runway and unable to handle larger aircraft Source: Transport For London

For: Heathrow Airport Report • A third runway at Heathrow is the fastest, most cost effective and most practical route to meeting the UK’s international connectivity needs • Building from our existing strength can connect the UK to growth more quickly and at lower cost. Starting again from scratch will cost the taxpayer more, take longer and will not deliver an airport that’s in the right location to help the UK win the global race • A third runway at Heathrow would deliver greater economic benefits to the UK than any other currently proposed transport infrastructure project Source: Heathrow Airport Limited’s report to the Airport

Commission, July 2013


AVIATION

when judged on competiveness of aviation taxes, above only Chad. At a time of austerity, when every penny counts, APD is another barrier to travelling. It can affect a family holiday to Spain or Florida that needs to saved up for over many months, or an emergency domestic trip from London to see Granny in Glasgow or Belfast – when the passengers are hit by the ‘double dip’ effect of being charged APD at £13 on both legs of a return journey – making their journey twice as expensive from a tax perspective as a return flight to Turkey or Morocco. It also impacts on those who have family and friends overseas, but may not be able to afford to see them often. This particularly affects somewhere like the Caribbean where, because of the banding system used by the tax, passengers pay more than if they were travelling to the West Coast of the USA. With large settled communities from the Caribbean islands and other

Commonwealth states now living in the UK, many families have to save up – sometimes for years – for a big trip back to their native homeland. The UK aviation industry has a major role to play in economic recovery. Not only does aviation support and create skills and jobs, it provides the only realistic links to BRICS and other emerging economies countries, facilitating inward tourism and investment. It is essential for an island, a trading nation like the UK, to have a thriving aviation industry able to provide comprehensive and competitively priced air links with other trading partners around the world. There are numerous challenges facing the UK aviation industry. Of these, the key issues include APD, airport capacity and the environmental impacts of aviation. Rather than the imposition of national or regional targets schemes and legislation, we must focus on the adoption of global solutions for a global industry. n

The British Air Transport Association (BATA) is the trade body for UKregistered airlines, with members representing all sectors of the industry. In 2012, BATA members employed 73,000 people, operated four-fifths of the UK commercial aircraft fleet and were responsible for some 96% of UK airline output, carrying 131 million passengers and 1.1 million tonnes of cargo.

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LUXURY TOURISM

Sub-Saharan Africa set for luxury tourism expansion Paz Casal, Travel and Tourism Analyst at Euromonitor International, explains why the region holds remarkable potential for companies looking for new growth markets.

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purred on by improved stability, record economic and tourism growth and a shift towards affluent travel, unprecedented potential is emerging in luxury tourism in sub-Saharan Africa. The region’s tourist arrivals increased by 3.8% in 2012, higher than the global average of 2.6% and second only to Asia Pacific. This performance was fuelled by strong economic growth and rising disposable incomes, with business and leisure visits to domestic and regional destinations growing in number, alongside an increase in the number of arrivals from the BRIC countries. In 2013, Euromonitor International forecasts that five of the top 10 most rapidly expanding economies globally will be in sub-Saharan Africa. The region holds remarkable potential for companies looking for new growth markets, with a number of multi-national hotel chains already tapping into the luxury travel industry. In 2013, according to consultancy W Hospitality Group, the hotel development

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pipeline in sub-Saharan Africa is up by a massive 23%.

International chains invest in luxury brands The supply of luxury hotels in sub-Saharan Africa is increasing as both local and international chains seek to capitalise on the increasing number of leisure and business tourists. Kempinski, Europe’s oldest luxury hotel group and one of the first to provide luxury hotels in Africa’s emerging markets, will continue to expand this year with two new hotels in Ghana and Kenya, while Starwood is increasing its luxury portfolio with three new Four Points by Sheraton, one in Benin and two in Nigeria (Lagos and Ibadan), set to open by 2015. IHG also has big expansion plans for its

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% CAGR

Arrivals (’000 trips)

New model of luxury travel The dynamics of luxury travel have changed worldwide to welcome the growth of a younger consumer base in Generation Y, which prefers brands with a voice and personality. Conspicuous consumption is giving way to quality at the best value, unique experiences and new destinations. According to a 2011 report by ILTM, the Middle East and Africa is the third fastest growing region in terms of luxury travel. South Africa, Namibia, Kenya, Botswana and Zambia stand out as the most popular destinations for luxury adventure tourism, while Uganda and Rwanda are also gaining in popularity. The rise in family and multi-generational travel is also important, being associated with personal enrichment experiences for all members of the family. The emergence of a new breed of luxury travellers has, however, not shifted the focus away from traditional tourists, but while comfort, service and exclusivity still play an important role in luxury travel, new elements, such as a growing desire for authenticity, experiential travel and sustainability, are acquiring increased importance. These new trends will favour the growth of sub-Saharan Africa as a luxury destination, offering holidays that allow travellers to help local communities as well as ecotourism locations boasting a beautiful and uncontaminated natural environment.

16.0

6.0

60.0 4.0 40.0 2.0

20.0

0.0

0.0 Kenya

Mozambique 2012

South Africa 2017

Uganda

2012–17 CAGR %

Chinese arrivals to key sub-Saharan countries (2012-2017)

InterContinental Hotels & Resorts luxury brand, including one in Uganda and a second in Senegal. The company will also open a Crowne Plaza in Nigeria. To better service the luxury segment of the market, in 2012 Hilton Worldwide launched its first Conrad-branded luxury property in subSaharan Africa, the Conrad Pezula Resort & Spa in Knysna, South Africa. The Dubai-based luxury five-star hospitality group Jumeirah is looking at Luanda, Abuja, Lagos and Accra as potential prime business locations for its luxury brand. The company also has its sights set on South Africa, Mauritius and the Seychelles, with the latter having more airline connections to the United Arab Emirates. In addition, as airline links improve between Asia and Africa, a number of Chinese airlines are seeking to invest in hotels in the destinations to which they fly. Chinese travellers represent a huge opportunity for luxury travel Emerging markets are expected to be the key drivers of global luxury travel over the next five years, with sub-Saharan Africa being no exception. Driven by China’s increasing business links with Africa as well as the growing interest of leisure visitors in subSaharan African culture, beaches and wildlife,

the rapidly growing Chinese middle and affluent classes are expected to be a key driver of growth of sub-Saharan luxury travel. China is already the fourth largest tourism source market for Kenya. Furthermore, in 2012, South Africa was China’s fastest growing outbound market, with a 68% increase in outbound trips on the previous year, and this growth set to continue over the next five years. With the number of outbound Chinese tourists expected to increase, it is important that African countries understand the consumption patterns of Chinese tourists and work to attract this new group of visitors by effectively customising services to suit their requirements. According to the Hurun Research Institute, Chinese tourists spend an average of €813 (US$1,070) per trip solely on tax-free shopping. Destinations should benefit from this trend by offering high-quality souvenirs from skilled craftsmen. The acceptance of credit cards issued by China Union Pay (CUP) and other popular Chinese payment solutions such as Fapiao and Alipay as well as a presence on Chinese social media networks such as Weibo and Renren are tactics that businesses should be adopting in order to attract a larger number of Chinese tourists to the region. n

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luxury tourism – romance

Luxury Tourism

Romantic Breaks 5-star travel is undergoing a revolution with more travellers now seeking ‘authenticity’ from their trip. We take a look at the rise of sustainable luxury and some of the top romantic hot spots of 2013.

uxury travel has always meant the most exclusive of locations, the highest standards of service and the resorts carrying serious status. However, a new report from Euromonitor International shows a new trend in the demands of the luxury traveller – the growing desire for authenticity. The report shows that the traditional criteria of a luxury break remain, but that luxury travellers are increasingly considering new elements – including ecotourism, sustainability and responsible travel – when booking holidays. These new trends favour luxury holidays that allow travellers the opportunity to experience untouched natural environments in a luxury fashion; think private islands and untouched coral reefs. This trend is set to be become increasingly significant as emerging markets, set to become leading global economies by 2020, drive an increase in demand for luxury hotels worldwide. But what locations are likely to benefit as a result of this trend? WTM Business takes a look at some of 2013’s travel hotspots where luxury meets authenticity and asks: is this the new face of luxury? n

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The Seychelles Long-time favourite of luxury travellers, this archipelago is home to no less than two UNESCO World Heritage sites, including the world’s largest raised coral atoll. Tourism has long been a key concern in the area, but a recent marketing coalition with nearby island nations demonstrates a drive to attract new visitors. Newly-wed British royals William and Kate put the Seychelles in the headlines in 2011 by spending their honeymoon on North Island, proving the destination really is fit for a king… Maldives It’s difficult to pick just one location from the island nation that is indisputably one of the finest luxury retreats around, but for those seeking a destination where heaven comes equipped with spas, bars and infinity pools, Cocoa Island is hard to beat. The resort’s 33 excllusive villas

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are built on the water, and come with a sizable private deck providing the perfect launch pad toward the coral reefs and marine life surrounding the island. Should you manage to emerge from your private slice of paradise, luxury spa treatments and fine dining await on the island itself. Brazil Brazil continues to gain momentum as a luxury travel hotspot especially for honeymooners and, with the legalisation of gay marriage earlier this year, a boom in LGBT honeymoons is on the cards. Few locations can match the country for biodiversity, which is home to more plant and animal species than anywhere else. Trinidad & Tobago Tobago has been named ‘Home of the Best Eco Destination in the World’ by the World Travel Awards, and ‘No 1 Eco-Destination in the Caribbean’ by the

Caribbean Travel Awards committee in previous years, and last year it picked up tourism’s highest accoldade – the ‘World’s Best Tourism Destination’. The award, which is offered to countries that have complied with UNESCO, the EU and the UN’s principles on fair and ethical tourism, cements Tobago’s place as one of the finest eco-destinations in the world and as such makes it a perfect combination for those looking for a luxury, romantic, eco holiday. Raja Ampat National Geographic named this Indonesian archipelago in its 2013 Best Trips, comparing it to Eden. Dubbed the ‘Amazon of the Oceans’, Raja Ampat has single reefs that contain more species than the entire Caribbean. Luxury travellers can head to the private island of Batbitim, where an exclusive eco resort surrounded by untouched reefs awaits.


SPORTS TOURISM – THE OLYMPICS

A hotel as legendary as St Petersburg itself

Managed by the distinguished British hotelier Sir Rocco Forte since 1997, the historic Hotel Astoria continues to offer consistently excellent standards of traditional Russian hospitality, and a high level of service. Today Hotel Astoria offers 168 rooms including 87 suites renovated in 2013, new restaurant «Astoria Café» with Russian cuisine, two banqueting halls with historical interiors and six meeting rooms. Online bookings at: www.roccofortehotels.com Hotel Astoria, 39 Bolshaya Morskaya 190000 St Petersburg Russia Tel: +7 812 494 5757, E-mail: reservations.astoria@roccofortehotels.com

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Luxury Hotels and Resort WTM Business 2013

Abu Dhabi, Brussells, Berlin, Frankfurt, Munich, Florence, , Rome, ST. Petersburg Geneva, Edinburgh, London, Manchester, Prague, Sicily COMING SOON: Jeddah, Marrakech, Cairo


SPORTS TOURISM – THE OLYMPICS

A positive legacy Figures recently published by London & Partners show an increase in both visitor numbers and spend in London during 2012, demonstrating that the Olympic displacement effect anticipated by some has been mitigated. Peter Tudor, Director of Venues for the London Legacy Development Corporation, tells WTM Business how the London 2012 Olympics will continue to have a positive on British tourism long after the event itself.

he Games have revitalised the UK’s image worldwide. The profile of established London landmarks was given a boost through the staging of the Games in these distinctive locations, and newer venues gained worldwide TV exposure. The opportunity to stage the greatest show on earth was the perfect showcase for talents of the UK’s event industry, and a great advertisement for holding business events here in Britain. The venues in the spectacular Olympic Park quickly gained iconic status, and the memories of the summer of 2012 have created a major draw for leisure and business visitors to London and the UK. The particular legacy for us at the Legacy Corporation is our beautiful new park, which has already begun to open up to the public less than a year after the Games. This area of London used to be something of an industrial wasteland, but now it is a new public park, with eye-

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catching landscapes, tranquil gardens and the famous venues from the Games. The north of the park opened this year, and the south – redesigned by James Corner Field Operations who gave New York the hugely popular Highline park – will be fully open by the spring 2014. Renamed Queen Elizabeth Olympic Park, the location of the 2012 Games is now a new destination for the capital, with new venues for events and a fascinating new tourist attraction in the shape of sculptor Anish Kapoor’s Arcelor Mittal Orbit tower. We have already welcomed over 700,000 people to the park with our opening series of summer concerts by the likes of Bruce Springsteen, Jay Z and Justin Timberlake, as well as world-class athletics in the stadium. A key aspect of our legacy work has been to ensure that all of the Olympic Park’s permanent venues have secure futures and continue to attract sports tourists to the capital. The new face of the park includes The Copper Box Arena,

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SPORTS TOURISM – THE OLYMPICS

The stadium will be a year-round multi-use venue for sports, cultural and community events that will generate hundreds of new jobs, attract many thousands of visitors and act as a catalyst for further economic investment and growth in the area

The London Legacy Development Corporation promotes and delivers physical, social, economic & environmental regeneration in Queen Elizabeth Olympic Park and surrounding area, in particular by maximising the legacy of the Olympic and Paralympic Games. For more information: Legacy Corporation: www.londonlegacy. co.uk/about-us Press Office at the London Legacy Development Corporation Tel: +44 (0) 20 3288 1777 or email: pressoffice@ queenelizabetholympicpark.co.uk a flexible new event and sports space with 7,000 seats; the new Aquatics Centre with Zaha Hadid’s spectacular swimming pool complex; ArcelorMittal Orbit – a truly unique visitor destination and hospitality venue high above the Park and The VeloPark, with the award winning Velodrome at its heart. The Olympic stadium reopens in 2015 and will host major international sporting events including UK Athletics, the 2015 Rugby World Cup and premiership football. The stadium will be a year round multi-use venue for sports, cultural and community events that will generate hundreds of new jobs, attract many thousands of visitors and act as a catalyst for further economic investment and growth in the area. In addition, the extensively landscaped parklands are a destination in themselves. Anyone coming to the capital will need to book an extra day to visit East London! When London bid for the Games, legacy was at the heart of the promises made, and we are now delivering on these promises. There will be no venues left vacant at London’s

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Olympic Park because the Legacy Corporation has ensured that all of the permanent spaces have operators appointed to run them in legacy. Similarly, the park is already a tourist destination in its own right, and we have been able to start opening it less than a year since the end of the Paralympic Games, a first for any host city. The park will be a place to live, work and play and the investment opportunities reflect this. New housing developments around the park will create new communities, and the Legacy Corporation is already partnering with property developers. With its exciting and varied new landscapes, the park can be home to a wide range of complimentary attractions and events, and the Legacy Corporation is looking at these opportunities now. Expect some exciting announcements in the coming year. n

Minister for Tourism, Hugh Robertson, commented:

“Tourism in Britain has never been stronger and the industry is making a big contribution to the economic recovery. Following the success of last year, with the Olympics and Diamond Jubilee, more people are coming to Britain, spending more money and enjoying all the great things this country has to offer.”


CRUISE THE WORLD’S MOST BEAUTIFUL WATERWAYS

EUROPE + MEDITERRANEAN

Come and see us!

CroisiEurope is proud to reveal the charms of France’s canals in the regions of Alsace-Lorraine, Burgundy, Provence and Champagne on board a collection of new hotel barges, with a maximum capacity of 24 passengers.

Europe zone -Entrance N7 STAND N°EM1605

Launched 37 years ago, CroisiEurope is Europe’s market leader in river cruising, with 30 vessels operating on more than 15 rivers as well as along various European coastlines. As owner, operator and manager of all its vessels, CroisiEurope is able to offer products that are renowned for their high quality while being very attractively priced. CroisiEurope takes you away for so much less, but still includes it all.

CroisiEurope also offers exceptional coastal cruises in the Adriatic on board an intimately sized cruise ship, the “MS Belle de l’Adriatique” accommodating just 200 passengers.

CroisiEurope invites you on the Mekong. Step onboard one of the only ship that sails up the Chao Gao Strait to Ho Chi Minh City: a 4-star, colonial-style ship, the “MS RV Indochine” which accommodates 48 passengers. CONTACT INFORMATION : Headquarters (France) - 12, rue de la Division Leclerc - F-67000 STRASBOURG - France Phone : 00 33 3 88 76 44 44 - Fax 00 33 3 88 32 49 96 WTM Business 2013 63 info@croisieurope.travel - www.croisieurope.travel


CRUISING

Splashing out on a

cruise

Deborah Harris investigates the popular cruise market, which is showing healthy growth despite the economic downturn… and she finds out why more and more people worldwide are booking sea and river cruising holidays than ever before. any sectors have been affected by the recession, but remarkably some industries haven’t felt the effects quite as starkly as others – and this includes cruising. It’s an industry that has ridden the storms of the economic downturn well, though not totally unscathed. The debt crisis and the unforeseeable and, thankfully, rare tragedy of the Costa Concordia, which sank off the coast of Tuscany in January 2012, left its mark. It impacted on the cruise line revenues by about -5.1% from the first 2012 estimate, made in November 2011, according to Cruise Watch Market, an industry data monitor. But the cruise market continues to grow year on year. According to Cruise Market Watch, the cruise industry has an annual passenger compound annual growth rate of 7% from 1990–2017. And leading the way, despite its small hold, are river cruises which, according to the CLIA, has seen a 10% yearly passenger growth during the last five years. Since last year the overall market has grown by 4.8%, and is valued at £22.61bn; 450,000 liners are cruising the seas and rivers of the world. But it hasn’t been an

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easy ride. The industry literally doubled in size in the Noughties, going from 200,000 berths to an astonishing 400,000. Faced with ships that couldn’t be filled, and a hike in oil prices, cruise companies were left offering bargain basement deals to attract continuing and increased custom. But it’s swings and roundabouts, with predictions of price rises in the next five years, bringing music to the ears of those who believe cost may finally match the product. And the UK market is growing, too. “A record 1.7 million British passengers are taking cruise liners – accounting for one in eight package holidays, when five years ago, we were one in 13,” says Andy Harmer, Director of CLIA. Cruise companies are looking at the market – they are decreasing ship building and moving into the recycling business, with money being spent on refurbishing existing fleets. And they’re making better use of onboard space (utilising outdoor space and expanding use of deck space, etc), telecommunications and restaurant upgrades, and more. Sounding good? Well, it should. But it’s not for everyone. On a recent trip to Venice, I was astonished when I first caught sight of the Grand Canal from the Vaporetto, and it was then that I also spotted the ocean

cruise ships lining the banks. If anything is going to persuade you to take a cruise, it’s seeing these stunning beasts in the flesh. But the impact they have on the locals is something I had no real knowledge of and while I was there protestors were brandishing banners to show their disdain at these ships entering Venice. The list of issues include liners dropping off more people on a day then actually live in the city and there’s concern over them damaging the old foundations of this fragile World Heritage Site. But it’s complicated, for despite the Venetians’ gripe, the ships generate one in six jobs in the city, and pressure group Venessia.com are realistic. “We are not against cruise ships but we want to preserve Venice and need to find a satisfactory solution for everyone,” explains spokesperson for the organization, Matteo Secchi. “All we ask is that cruise lines do not enter the San Marco basin.” Robert Ashdown, CLIA secretary General for Europe, explains the situation: “We have recognised the need to move away from current navigational routes for some time but there were no alternatives in place.” However, he continues. “We attended a meeting in July at which five viable proposals were developed. Each of


CRUISING

The cruise industry is the fastest-growing travel sector in the world. Keeping our guests and crew healthy, safe and secure, protecting the environment, and providing an industry-leading workplace are fundamental to our business. CLIA

the various options is being worked up by their proponents for submission and evaluation by the relevant authorities in preparation for a decision being taken later in the year. It is difficult to provide more concrete assessments until we see the final submissions but a report is expected mid-October, when the environment minister will announce his decision. By the end of the year we expect to see a long-term sustainable plan for cruise ships to Venice put in place.” Cruise liners are offering an affordable and simple hop into the city just for the day, and off again in the evening service. But it’s important for both sides to take a pragmatic standpoint. As Harmer says: “Like most industries we’ve faced challenges not least the economic challenges but actually cruise is proving to be incredibly resilient.” The reality is people want to visit the world easily and in comfort, so the market is growing and the UK is a part of that: “I would say the biggest trend in cruise is that (British) people now want a cruise from a UK port, so the percentage of people taking a cruise from the UK has grown, now there are 19 ports to start a cruise holiday. The market continues to grow and show great innovation.” n

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GENTLY CRUISE THE WORLD’S MOST BEAUTIFUL WATERWAYS LIFE IN THE SLOW LANE Launched 37 years ago, CroisiEurope is now the European market leader in river cruising, with 30 vessels operating on more than 15 rivers as well as along various European coastlines. s owner, operator and manager of all its vessels, CroisiEurope is able to offer products that are renowned for their high quality while being very attractively priced. CroisiEurope takes you away for so much less, but still includes it all.

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Today, CroisiEurope is an international company carrying over 200,000 passengers each year, 50% of whom come from outside of France. River & coastal cruising – a different approach The leisurely pace of river and coastal cruising allows travellers searching for meaning, tranquillity or enjoyment to truly experience the culture of a region or a country. Having been built with people in mind, on a human scale, CroisiEurope’s vessels are the perfect size to be able to moor in towns, allowing its cruise passengers to not only to take part in many excursions by coach but also to walk to the historic city centres. With a maximum capacity of 200 passengers, there is a warm and convivial ambience onboard, which makes it easier for passengers and crew to meet and get to know each other. On the rivers of Europe With a presence throughout Europe, CroisiEurope offers several destinations from the South on the Guadalquivir River in Spain, the Douro River in Portugal and the Pô in Italy, as well as to the East of Europe cruising the Danube and the Rhine rivers from Amsterdam to the Black Sea. CroisiEurope has also continued to extend its presence on the rivers of France. Recently a second ship, the MS Cyrano de Bergerac, was inaugurated in Bordeaux, while a fourth vessel has been introduced on the Seine River. Currently, CroisiEurope boasts the largest fleet of vessels in France: four vessels on the Seine, two on the Gironde, the Garonne and the Dordogne, three on the Rhone and a dozen on the Rhine.

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On the canals of France In order to offer a wider product range, CroisiEurope is proud to reveal the charms of France’s canals in the Alsace-Lorraine and Burgundy regions, with Provence and Champagne soon to follow. Come onboard these new hotel barges, with a maximum capacity of 24 passengers, and discover some authentic landscapes and traditional typical villages in a peaceful atmosphere, in close proximity to local life and activities. On the Mekong River The mythical river par excellence, the Mekong originates in the heart of the Himalayas and flows into the China Sea after a 4500 km journey. We invite you to step onboard one of the only ship that sails up the Chao Gao Strait to Ho Chi Minh City and the lake at Tonle Sap followed by a visit to the ancient sites at Angkor. The 48-passenger “MS RV Indochine” is a four-star, colonialstyle vessel whose interior is clad entirely in exotic wood and is a haven of well-being and comfort. Coastal cruises Having introduced a cruise programme in Croatia in 2007, CroisiEurope offers exceptional coastal cruises on the Adriatic Sea from April to November. New for 2013 is an exciting cruise in the Mediterranean to the crossroads of Byzantine and Christian civilizations in Cyprus, Bethlehem and Jerusalem. Operating from November 2013 to March 2014, this innovative cruise is on the “MS La Belle de l’Adriatique”, an intimate cruise ship accommodating just 200 passengers and a truly unique vessel in its class. n Contact information Headquarters - 12, rue de la Division Leclerc - F-67000 STRASBOURG - France Phone: 00 33 3 88 76 44 44 Fax 00 33 3 88 32 49 96 info@croisieurope.travel www.croisieurope.travel


RESPONSIBLE TOURISM

The last

100 METRES

Professor Geoffrey Lipman, Director of Greenearth & President of ICTP, and Kate Holmes, Operations Director of GATEtrip, tell WTM Business how GATEtrip’s Responsible Tourism Investment Platform is delivering Travel and Tourism to rural communities. he fight for the ‘last mile’ – the expression used to describe the communications connections that feed into people’s homes – is hotting up. Microsoft, Google and even Facebook are pushing to bring the Internet to the two thirds of the world without it. The recently launched initiative, GATE Impact Partners, is investing heavily in ImpactWIFI: low-cost, high-speed and long-distance Internet access for rural communities. The opportunities for education, healthcare, gender equality and employment that stem from universal access to the web are enormous – and the economic

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activity associated with it will massively boost global GDP according to the World Bank. Yet the formula ‘Internet access = jobs’ is hugely simplistic. A rural village in Kenya’s sprawling Rift Valley will soon be able to plug into the last mile through ImpactWIFI, but the last 100 metres of productively engaging in the broader economy will still remain a challenge – unless we do something about it. It is here that Travel & Tourism can be a revolutionary change agent at the macro level, because the infrastructure and service that goes with people’s desire to travel can be a great catalyst for jobs across the economic spectrum, in manufacturing, agriculture,

transport and the like. This is why governments in the G20, OECD and UN system are increasingly identifying Travel & Tourism as an economic and jobs dynamo for the new green economy. But it’s in pushing the development agenda at the micro level – the so-called base of the pyramid – that the biggest opportunity exists. Why? Because even the most remote community has a potentially attractive and interesting product to offer, if it can successfully and sustainably be brought to market, be it wildlife, natural scenery,


RESPONSIBLE TOURISM

handicrafts, or economy. In the remote and spectacular corners of Africa, in small islands, in rural networks across the planet where villages will increasingly be connected to the global Web through ImpactWIFI, the potential for new Travel & Tourism products and circuits is enormous. And with this productive connectivity there will be huge potential for investment and jobs in infrastructure, service education and capacity building that Travel & Tourism demand generates. This will provide an opportunity to breathe new life into fading rural communities and help slow the growth of ultra-urbanization, as well as create linkages with the new UN Sustainable Development Goals that will underpin the green growth transformation. A key to unlocking that potential is the rapid growth in Impact Investment in recent years. This is investment by organisations and individuals in projects that meet high social responsibility standards, with measurable results and strong financial returns. ‘Doing well by doing good’ has been estimated to be a trillion dollar market in the next decade. A recent change in US securities legislation will unlock this potential even further, allowing companies to more easily solicit registered investors. This US market liberalisation is being closely watched by financial markets anxious to encourage more global liquidity. In anticipation of this financial regulatory evolution, New York-based, GATE Global Impact (GGI) has developed a cutting-edge, regulatory compliant, electronic trading platform for Impact Investments. “A new investment and development paradigm will be unleashed as new regulations and consumer and stakeholder demands combine with financial technology and social media in order to accelerate the global deliverance of good,” according to Vince Molinari Founder of GGI. Not only will this platform be the engine that helps bring socially responsible funding to last mile ImpactWIFI through GATE Impact Partners, it will also deliver on the last 100 metres of connected Travelism (Travel & Tourism), through its GATEtrip window that

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will link newly-connected Travel & Tourism entrepreneurs in even the remotest parts of the world to Impact Investment capital. At the same time, travel research and strategy network Greenearth.travel will ensure that projects are assessed and measured for green growth and economic performance, following closely the principles and processes of the UN Global Compact and engaging local and international agencies in the public, private and informal sectors. As a first step it will be trialled in rural Kenya, to serve as a template for similar initiatives across Africa. ICTP will be looking for projects to list on the Compact’s new Action Hubs. The programme will empower communities to take advantage of their newly found connectivity, drive capital to support the highest standards of Travel & Tourism training (distance learning) and build quality visitor facilities and services. This will include a community-based approach to green growth development that includes accommodation, education, training and service/quality standards In bringing Internet access to rural communities, empowering those communities to unlock their Travel & Tourism potential through web-based Impact Investment platforms and directing the development of mixed-use, community-led green growth eco-systems, GATE Global Impact and Greenearth.travel will help connected communities sprint the last 100 metres. n

About ICTP The International Coalition of Tourism Partners (ICTP) is a grassroots travel and tourism coalition of global destinations committed to quality service and green growth. ICTP engages communities and their stakeholders to share quality and green opportunities including tools and resources, access to funding, education, and marketing support. ICTP advocates sustainable aviation growth, streamlined travel formalities, fair coherent taxation, and investments for jobs. ICTP supports the UN Millennium Development Goals, the UN World Tourism Organization’s Global Code of Ethics for Tourism, and a range of programs that underpin them. More information on ICTP can be found online at www.ictp.travel


A Discovery to Share

www.bulgariatravel.org

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WELLBEING TOURISM

Fitness

for the mind and body Does anyone know what a ‘soul-detoxing voyage of self-awareness in a holistic ambience’ really means? Helen Greenhow, Product Manager, at Wellbeing Escapes, skips the airy adjectives and cuts to the chase to bring us her top 5 current wellness trends.

ellness has been the buzzword in the travel industry for a while now, with the spa and treatment experience focusing on health benefits in addition to pampering effects. For certain, wellness travel is showing a growth year on year, with increasing numbers of people focused on lifestyle management, seeking to improving health and happiness. In 2013, we noticed an even bigger shift to providing wellness options rather than pampering, with more and more people

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becoming aware of the concept of preventative health rather than waiting to have an ailment and then seeking to solve it. After all, we take a car for an annual service rather than wait for it to break down, so surely we should invest in our own health in the same way, and ‘top it up’ along the way? More spas and resorts are learning how to integrate treatments with specially adapted, healthy food and activities in order to create a health-enhancing experience. We’re also aware though of resorts adopting the ‘wellness’ buzzword

but not being able to deliver a genuine experience – this is where we come in, as we invest time and effort sifting through to find and test authentic places where you can actually achieve a result, as opposed to those places just ‘jumping on the band wagon’, which will leave you disappointed, possibly frustrated and out of pocket. There’s a real difference too in terms of spa treatment protocol, the choice of products used and techniques applied, quite simply going to a badly trained therapist can actually cause more harm than good. It’s not worth the risk.


WELLBEING TOURISM

5 current wellness travel trends by Wellbeing Escapes Connection We are social animals and connection with others is an integral part of wellbeing. With the rising technology overload, the increase of single households and long hours at work, people, particularly in urban areas, are feeling more disconnected and sometimes lonely. When it comes to their travel they want the flexibility to be able to travel independently, in order to reconnect with themselves, but also the opportunity to come together with like-minded people. They want parts of their wellness and spa holidays to include the chance to share experiences and interact with others. We have been including more group activities like cooking classes, as well as shared dining tables, to satisfy this growing need. Busy schedules and the desire not to have to satisfy other people’s needs on holiday are the main reasons there is an increasing percentage of people travelling solo on a spa or wellness holiday. There is no stigma attached to focusing on oneself anymore and in fact this segment is growing faster than others - more women than ever are leaving their husbands and kids at home for some guilt-free ‘me time’, knowing they will return happier, more patient and better able to cope with the daily ‘juggle’, so their family and relationships as well as health benefit too in the long-run. Local treatments The ideas of having a Thai massage in Greece or a European medical style Thalasso programme in Bali doesn’t quite fit... and why should it? The best treatments draw on local culture and traditions that have been passed down through the generations. The delivery is more authentic and local communities are supported by using local skills, plus

more and more spas are creating their own organic product blends using locally-sourced ingredients, which help you feel even more connected to the place you’re visiting. Fitness goes outdoors and experiential The sight of rows of people on treadmills in luxury hotels is quite depressing. There are so many ways to stay active and kick-start fitness and also discover the local area. The idea is to get people to experience stunning scenery on their holiday whilst they get fit – often providing a welcome distraction from tired muscles! Our own Flexible Fitness and Alpine FlexFit packages pioneered this in our industry by giving guests the choice of a daily fitness activity that gets them outdoors, trying new activities and, during our Alpine FlexFit range, training at altitude to really boost fitness. Results and evidence based wellness It’s all about wellness right now with spas becoming associated with frivolous pampering. Wellness holidays on the other hand are credible, providing environments where treatments, healthy food and nutritional advice are being integrated alongside a choice of

activities to create a greater health-enhancing experience. With governments looking for ways to improve their nations’ failing health and the associated costs, studies are popping up from credible sources proving the health benefits of many therapeutic treatments and wellness practices. At last! Fitness for the mind Meditation is on everyone’s mind at the moment – literally! A few years ago people would have looked at you weirdly if you said you meditated; now it’s a top tool being harnessed by high-powered execs looking for an edge over their competition. Meditation, mindfulness, positive psychology, these are just some of the tools that are being used to improve people’s brain power. The benefits range from greater clarity, focus and a more positive outlook to even weight reduction (reducing the release of cortisol) and healthy ageing in the body, so this is more than just a mental workout; your whole body benefits. As more people cotton on to meditation and travel to make the space to learn more about it, it’s clear that with such a great range of benefits, why wouldn’t you do it? n

Wellbeing Escapes was founded in 2005 by Stella Photi, a professional working mother who was well aware that city life can be fun, vibrant and busy but it can also be stressful, hectic and draining. That’s why she started Wellbeing Escapes – to give people a stress-free service with the very best health, fitness and relaxation holidays, handpicked and often created by our team, coupled with exclusively negotiated packages to give clients the best possible deal, to provide more treatments at a lower price than if a client went and booked directly wwith the hotel or resort. For more info visit www.wellbeingescapes.com or phone +44 207 644 6111

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MEDICAL TOURISM

EU Cross-Border Directive Proceed with Caution According to Renée-Marie Stephano, President of the Medical Tourism Association, “the basic principle that citizens are free to move within the EU to shop for the best medical treatment available at the most affordable prices is a crucial precept to medical tourism opportunities.” She highlights the changes that the latest EU directives will make to the evergrowing medical tourism industry and offers her opinion on the wider issues at play.

n the fringes of Europe recently, the dreams of dozens of North Africans were ended in the early hours when Spain’s paramilitary Civil Guard rounded up the group of would-be immigrants looking to escape to the relative prosperity of Europe. The incident not only underlines the lengths that immigrants from outside the continent will go to grasp a better life, but runs contrary to underpinnings of the European Union, where goods, services, capital and people can move freely within the 28-member states. As the EU Directive on Cross-Border

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Healthcare solidifies the rights of a new generation of Europeans to choose in what country they would like to travel for medical attention, treatments and procedures, member states are grappling with the principles of freedom and the potential upshot from their social and economic liabilities. From the northern-most point in Finland to the southern tip of Cypress, EU citizens have the rights to healthcare within their own country or – if they choose – the freedom to travel to another state within the EU for healthcare. The softening of borders under the EU Directive is expected to provide the impetus for increased medical tourism

opportunities among Europeans eager and willing to travel within member states for healthcare. Framework for Medical Tourism What many of these newly created health travellers may not have known is that they already had those rights. Passage of the EU Directive on Cross-Border Healthcare did not increase or reduce these movements, but rather provided a formal framework from which individual healthcare systems could operate medical tourism functions. Among the developments from the directive are rules pertaining to access, safety and

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Following the cross-border directive, patients will still be able to travel anywhere within the EU for healthcare as long as the treatment is available at a cost on par than in their home countries

quality standards regarding care and medical technology, cooperation between member states including the transfer of information, what treatments patients are entitled to and, more importantly, when. Up until now, many patients who travelled from one EU member state to another for healthcare faced delays in financial reimbursements and doubt concerning where they could or could not go outside of their own country for care. Following the passage of the cross-border directive, patients will still be able to travel anywhere within the EU for healthcare as long as the treatment is available at a cost on par or lower than that in their home countries. Each EU state is now required to establish a direct payment or reimbursement system, which may eliminate the need for some patients to pay upfront for services. Patients

will still have to cover the cost of their travel and accommodation and will not be compensated for healthcare outside the EU. Angst and Austerity Approval of the directive comes at a time when European governments are in the midst of imposing austerity measures to confront a continent-wide debt crisis while stemming an elevated tide of immigration that some fear is cutting into already scarce medical resources. The directive has only intensified the focus on immigration, which was already a hot-button topic among EU members. Nationalistic fervour, particularly in the United Kingdom, has even spawned calls for a crackdown on ‘hit-and-run’ tourists or migrants who take advantage of the EU’s free movement of people and travel to wealthier EU member states for work.

Most of the migrants from poorer member countries take on jobs that the host population has little interest in, spend money and increase business competiveness in their temporwary homes. When the EU was formed in 2004, the initial immigrants weren’t much of a financial burden. They were either young enough to demand little in the way of medical care or were past the age in which the state had to foot the bill for their education. Rights to Social Benefits But, now as both their ages and life requirements have expanded, the principle of free movement has thrown into question their rights to social benefits. Nowhere is the issue talked about more than in the United Kingdom. Some Government officials believe foreigners – within the EU and outside – are stripping Britain’s cash-strapped National Health Service in epidemic proportions, costing the United Kingdom billions of dollars each year. Throwing fuel on the fire, a leading NHS surgeon claimed earlier this year that Britain had become the ‘world’s maternity wing’ and an attractive destination for expectant mothers to give birth. Thousands of others travel to the country for cancer, HIV, kidney and infertility treatment – and then

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MEDICAL TOURISM

About the author

Renée-Marie Stephano leave without paying, he said. Those concerns began to build last year when the wife of a wealthy businessman admitted that she travelled to London to specifically give birth to two boys and three girls by Caesarean section. As a Nigerian national, she said she was not eligible to receive free treatment through the NHS, but it was highly unlikely that she would be made to repay the more than $200,000 in treatment costs. Since then, an investigation by the Daily Mail revealed that health tourism costs the United Kingdom some 24 million pounds in unpaid NHS bills including one for more than 217,000 GBP. The newspaper also reported that for every £100 spent by the NHS, only £23 had been reimbursed. In response, a leading British healthcare official went as far to say that anyone with a ‘questionable’ residency status should be issued only a temporary NHS number and be charged for anything other than accident or emergency related care. Strain on the Healthcare System The strain on the health system has prompted Germany, Austria and the Netherlands to join forces with Britain to curb free movement and put an end to rampant abuse of benefits by EU tourists. The four members want to make

Ms Stephano is the president of the Medical Tourism Association®. She is also the editor-in-chief of the Medical Tourism Magazine®. Having a background in international marketing relations and law, she provides a valuable service to the Medical Tourism Association® in these fields. Contact her at Renee@MedicalTourismAssociation.com or visit http:// medicaltourismassociation.com Tel: +561.791.2000.

it harder for people from other member states to gain access to healthcare benefits within weeks of arriving in an EU country. British Prime Minister David Cameron said he was determined to end his country’s reputation as a ‘soft touch’ on immigration and welfare. Beginning next year, arrivals from the EU will be stripped of jobseeker benefits after six months unless they can prove they’ve been actively seeking employment and stand a ‘genuine chance’ of finding it. The UK is certainly not alone in its frustration. The Dutch government intends to fight ‘the abuse of social security systems’ and the German president of the European Parliament has said that the EU must hand back some powers to nation states while strengthening its role in other areas if it is to regain public trust and reverse the tide of skepticism in countries like Britain. A nationwide poll conducted in August reported that almost half of the UK population above the age of 50 said they would vote to leave the EU. If re-elected in 2015, the

British Prime Minister has vowed to hold a referendum on EU membership and, thus, throw a curve in the path of Europeans moving about freely within the region for healthcare. Balancing Act Public dissatisfaction is nothing to underestimate. Healthcare is commonly the single biggest driver of government spending – for all nations. Look no further than the United States where every dollar spent by Uncle Sam is another dollar spent involuntarily in taxes. More government spending not only invariably amplifies resident fear, but inevitably mitigates freedom and opportunity. The basic principle that citizens are free to move within the EU to shop for the best medical treatment available at the most affordable prices are crucial precepts to medical tourism opportunities. Balancing economic prosperity with access to appropriate healthcare then becomes not only the lifeblood to countless at-risk patients, but the EU itself. n

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HOTELS

Hotels cater for Generation Y

Michelle Grant, Travel and Tourism Manager at Euromonitor International, examines the hotel industry’s attempts to engage the ‘30-something’ consumers of today. he hotel industry is preparing for the next generation of guests – Generation Y. With Generation Y (those born between 1981 and 1990) consumers entering their peak working years, global hotel companies are reaching out to these travellers by embracing mobile technology, incorporating social media and updating the design and style of their brands. To trumpet these changes and attract Generation Y to their brands, hotel players are shifting towards more digital marketing and user- generated content. Growing up connected and bored with traditional marketing techniques, it can be difficult to reach Generation Y with many not particularly brand loyal. Although travel is a high priority

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for this generation, it also suffers from high unemployment, with many still living at home.

own content to the television in their room in addition to offering free Wi-Fi.

Mobile connectivity is imperative Being the first generation to grow up connected to the internet, Generation Y consumers are comfortable with technology and are often early adopters. According to the Pew Research Center, 81% of US consumers between the ages of 25 and 34 have smartphones, while 37% own a tablet. As a result, hotels are increasingly looking to connect with these travellers through mobile channels. They are building mobile websites and apps for booking rooms, but are also getting creative by launching gaming and concierge apps. The newly-launched brand hub by Premier Inn will allow guests to check in via an app as well as stream their

Engaging with social media According to Boston Consulting Group, 79% of Generation Y use social media platforms. Generation Y consumers use these platforms not only to post about their lives but also to research and review brands. Complaints and compliments are now seen by a wide audience and can be broadcast in real time through mobile devices. As a result, hotels have set up social media monitoring teams to address both negative and positive feedback from Generation Y. However, the instant response expected by Generation Y puts extra pressure on the hotel industry to respond quickly and effectively to both the positive and negative experiences shared on


HOTELS

Hotels connect with this generation differently Even marketing strategies have changed to reach this generation which tends to be sceptical of traditional marketing. For example, in June 2013 Hampton Inn started a new campaign in the US targetted at Generation Y. The campaign centres on seven Generation Y influencers as they travel across the country documenting their trip through social media. The 30-second spot was only shown digitally on the Hulu and MTV websites, with some media elements on Pandora. Holiday Inn Express revived its Stay Smart campaign in June 2013 and updated it for Generation Y by creating the website StaySmart.com for user-generated content.

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

Generation Z

Generation Y

Generation X

Baby Boomer

Source: Euromonitor International Note: Generation Z born between 1991 and 2010; Generation Y born between 1981 and 1990; Generation X born between 1965 and 1980; baby-boomers born between 1946 and 1964.

Global Population by Generation in 2012

The brand teamed up with comedian Jason Jones to produce videos and photos showcasing smart and funny advice. The brand is also working with websites College Humor and BuzzFeed, which are popular among Generation Y in the US, to create humourous content. Marriott reinvents itself for Generation Y Marriott took a bold step in June 2013 with a completely new identity for its eponymous brand to reach this new generation of digital and design-savvy travellers. It unveiled a new and simplified brand identity, represented by a single ‘M’ followed by the tagline ‘Travel Brilliantly’. The new brand was supported by a full multi-media budget to include television, mobile and digital advertising2012 and the website 2017

www.travelbrilliantly.com The campaign will run for several years. In an attempt to engage 16.0 with guests, Marriott launched a co-creation platform which encourages the submission 14.0 of ideas in categories such as Technology, Eat & Drink, Work & Play, Health12.0 & Wellness, Style & Design and Outside the Box. It also 10.0 where launched a mobile app game, Xplor, guests can compete to win Marriott Rewards 8.0 points. It remains to be seen, however, if this 6.0 brand overhaul will be enough to truly reach out to the fickle Generation Y. Content 4.0 and mobile games may not be innovative enough to really have an impact2.0 on this generation, although smart marketing is 0.0 happening needed to broadcast the changes at Marriott, such as mobile check-in and its ‘great room’ lobby concept. n 2012–17 CAGR % % CAGR

Updated design for the Apple and Ikea generation Growing up with third-place destinations such as Starbucks has contributed to Generation Y preferring to work in public spaces rather than hotel rooms. As a result, hotels are updating their lobbies to encourage a more social atmosphere via design touches. More of an emphasis is being placed on creating communal spaces with comfortable chairs and tables to facilitate gatherings. These areas are also being enhanced by the addition of televisions, games consoles and other types of games, such as arcade games or pool. For example, Pod 39 in New York has added a Play Room with board games and table tennis tables. Hotel companies are also rethinking their rooms, incorporating technology, design, sustainability and localisation to respond to consumer demands. For example, Accor’s Novotel has launched a new room prototype with a bed which is designed in such a way that guests can sleep, work and read in it. It is raised and has an upholstered headboard which is comfortable to lean against. There is also an adjustable side table that can be used in conjunction with the bed or a chair.

Data supplied by

Number of people (000s)

social media. A good example of delivering an authentic social media experience which resonates with Generation Y is the @HiltonSuggests twitter handle, which was launched in 2012. Hilton recruited staff from all departments within its hotels to monitor and respond to tweets within their city, with recommendations even if the person is not staying at a Hilton establishment. This has proved to be an effective way to deliver proactive customer service.

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TRAVEL TECHNOLOGY

Travel Technology: minefield or goldmine? Travel technology has exploded in recent years, changing the face of the industry and the way in which we purchase. But which trends should businesses capitalise on? Paul Richer, Senior Partner of travel technology consultancy Genesys, tells WTM Business the companies to emulate and the right direction to take. hen we look to organisations leading the way in technology, Google is frequently mentioned as a trend-setting, innovating company. It is leading the world in search and the provision of consumer information, introducing advanced technology such as Google Glass, its wearable computing and communications device, and experimenting with technology such as autonomous, self-driving vehicles. Arguably though, the stand-out organisation that travel companies should be emulating is Amazon, which has developed its business model to become a supremely excellent online sales organisation. Its technology has a big role to play in this, but Amazon is much more than its technology. So what is it that Amazon does so well? In essence it combines small business behaviour with big business buying power. Amazon has been utilising ‘big data’ before that term came into common use. It is tracking everything you buy or look at and using this information to make relevant offers on its home page that are personalised to you. The technology used to achieve this is uncannily good – with all the data it is pulling in from its many customers it has a vast information pool from which it can make intelligent inferences about the products you might like to purchase. Interestingly, there seems to be minimal criticism about Amazon’s use of its customers’ data in this way. Consumers seem to have no objection to their buying habits being monitored, whether it is by Amazon or some of the supermarket loyalty schemes that also utilise data in this way. The ability to secondguess what a customer may wish to purchase is, of course, precisely what a small travel agency would be doing – getting to know its customers, their travel likes and preferences, and then suggesting holidays that customers might like based on this information. Amazon’s customer service can be

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considered on two levels. Firstly: the shopping experience. Amazon clearly works hard at ensuring that the product information shown on its web pages is comprehensive and easy to digest. The navigation between pages is intuitive and easily comprehensible, and the process of making a purchase is simple and obstacle free. Menu and navigation options are carefully grouped to make them easier to absorb. New items such as Your Cloud Drive are introduced without spoiling the overall look and feel with which customers are familiar. Secondly, there is Amazon’s post-sales customer service. The organisation is very amenable about returns and refunds and has set up easy ways in which to despatch items back. When you need to speak to someone, it has a helpful call centre. Once again, this is a big business doing its best to act small. It is not technology-driven per se, but technology enables the way in which the organisation operates. Amazon has embraced mobile technology. As with its website, Amazon has worked hard to make sure its mobile app is easy to use and provides all the functionality and information needed to make the sale. The app is fully integrated with Amazon’s other systems to ensure that all the information and utility of its website is available on a mobile platform. Amazon’s barcode reader allows customers to scan and reorder products from their smartphones by simply scanning the relevant barcode. Amazon has reached a size where it has real buying power. In spite of the great shopping experience and customer service, customers would not be shopping on Amazon if its prices were too high. So how does the travel industry shape-up in comparison to Amazon? Are we embracing the technology that Amazon is using? Are we seeing in the latest travel technology trends that we are learning from major players outside of travel?

Big data and personalisation are certainly on the travel agenda, but the technology that allows a company to know its customers and personalise its website for each individual customer does not come cheap. The integration of customer and product databases to display content on a web page that is relevant to the individual is complex. For travel, it requires attributes to be added to the customer and product databases so that they can be matched and for this information to be instantly available to build web pages on the fly. Properly implemented, such technology can give organisations a real competitive edge in the market. Whilst this type of technology will not be easily accessible to smaller travel companies due to cost and the difficulties of implementation, they will continue to have the benefit of a more intimate relationship with customers. Another key consideration for travel companies is the quality and design of their


RESPONSIBLE TRAVEL TECHNOLOGY TOURISM

websites. From the smallest to the largest, there is simply no excuse to have anything less than a website that is easy to navigate and has all the information the customer needs to make a sale. Design trends in websites evolve over time. By and large travel companies are ontarget with the design of their websites. Testing out new ideas to see whether they improve usability is often key to getting the most from your site. A customer service technology trend that is being increasingly introduced is the ‘My Account’ facility, which allows customers to log in and see their bookings, make payments and buy extras. This is a sales opportunity that requires technology to interrogate bookings and send out emails promoting the purchase of extras that have not yet been bought, and should be considered the future of online purchasing. It is being developed by larger travel companies that control their own technology, as well as the technology companies that power medium and smaller sized businesses. The travel industry is embracing mobile technology. Airlines, in particular those that do not need to show photos of their product, are doing a great job of developing mobile apps for bookings, check-in and other functions. However, there is a trend towards

households using tablets around the house rather than desktop computers. Leisure holiday companies need to jump on this trend and develop their websites so that they look good on tablet displays and have navigation that can be used by pointing and swiping with a finger rather than a mouse. The first few travel companies are using responsive design for their online presence, so their sites automatically adapt to the device being used by the consumer. This is a trend that all travel companies need to address. Most travel companies are engaged with social media, having Facebook pages, Twitter feeds and YouTube video channels. Travel is a visual industry - there are many variables to be discussed, the size of the swimming pool, the closeness of the beach, the quality of the food, and so on. Social media channels are perfect for this, so if your travel company is not engaging on social media, it needs to be. As new entrants come into our industry, they are using technology to gain customers. A prime example being Airbnb, an infomediary business that acts as a go-between for travellers and accommodation provider that is taking a significant share of the holiday stay market. Google Field Trip also has the potential to take a significant share of the destination services and guide market. It provides

information on points of interest that are close to you – art gallery openings, restaurant openings, shopping, nightlife and music – all local and tailored to your specific location. The travel industry needs to keep moving forward, embracing new technology and riding the trends to stay ahead of the game. In an era where technological innovation is driving success, we should all be asking – what can technology do for my business?

Paul Richer is Senior Partner of Genesys, a management consultancy specialising in providing advice on technology for the travel, tourism and hospitality industries. He has coauthored several reports examining the impact of technology on the distribution of travel and has chaired many online travel conferences. For further information, please visit www. genesys.net

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Andrew Grieve

You say... We asked a number of WTM Buyers’ Club members how technology has helped them Andrew Grieve, Managing Director Discover Travel and Tours Q Technology is playing an increasingly big role in the travel market – as a buyer, can you tell us what technological systems are most crucial to your business, and why? Reservations, accounts systems, sales management, HR & performance management systems, pay-per-click management systems and survey software are all key. They strip our admin staff cost and give us real-time results and management info. Perhaps most importantly, our tech systems enable us to sell and deliver our product, and to service our customers’ needs. James Jones, Asia and Africa Product Manager, The Lotus Group Q What changes has your business undergone as a result of new travel technologies? The new travel technologies of the past 15 years have helped us provide a quicker service to our clients, tailor make more complicated travel arrangements than previously and also source a wider range of products. The rise of online booking directly by clients has presented a challenge, but also an opportunity. We’ve had to be more proactive about where we source our accommodation products and use a wider range of suppliers, particularly those providing XML booking links. The opportunity has come from providing a better service and customer experience than when clients book directly, we can prove to clients that we’re better than technology alone. New travel technologies and the flexibility they provide have definitely given us a competitive advantage over companies that lack efficient booking systems. Carole Cooper, Owner/Director Small Families Holidays Q Technology is playing an increasingly big role in the travel market – as a buyer, can you tell us what technological systems are most crucial to your business, and why? We have an in-house reservations system, but as a group organizing tour operator we don’t

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use CRS – we go directly to the airlines for group bookings for flights and the same with hotels. The Internet and web are our biggest and most useful tools. Q What changes has your business undergone as a result of new travel technologies? It’s eased our workload in as much as we now have in-house systems for all of our bookings and accounting needs. Making contact with suppliers is much easier via the wewb.

Carole Cooper

Adil Qayyum, Founder and CEO, SME Promotions Q What do you feel have been the most significant global trends for your sector of the travel industry this year? Online interactive technology nowadays is in really great demand by the industry. We have to take serious note and meet relevant experts. The world can be just a single click away if the correct technology can be adopted. Q Technology is playing an increasingly big role in the travel market – as a buyer, can you tell us what technological systems are most crucial to your business, and why? Online hotel booking systems, transfers, destination e-commerce and social media are really workable these days and we are keen to develop more viable contracts with them. The future of travel and tourism is in the hands of e-commerce technology. Helen Greenhow, Product Manager and Stella Photi Founder of Wellbeing Escapes Q How do you use technology to help inform your buying decisions? We use the web for research regarding reviews and client satisfaction and also distribution of the product in our market and among the larger market place. If the product is widely distributed in the general travel market we are less likely to add it to our portfolio. Q What changes has your business undergone as a result of new travel technologies? We have been able to introduce an online booking engine and become more accessible with pricing and bookings to our clients.

Adil Qayyum


LGBT TOURISM

The $180-billion dollar question

“How is a gay traveller different to any other traveller?” The global potential value of the lesbian, gay, bisexual and transgender (LGBT) leisure travel market is set to reach a record (US)$181 billion in 2013. CEO and founder of Out Now, Ian Johnson, shares some findings from the world’s biggest global research initiative into LGBT markets.

ut Now is conducting the world’s biggest global research initiative into LGBT markets. LGBT2020, which measures consumer spend, purchasing habits and brand preferences across 22 countries, is the world’s largest LGBT research study ever undertaken. Each year, as part of the ongoing research project, Out Now measures the value of the global LGBT tourism industry, which hit a record US$180billion in 2013. For the past three years, the market has grown at a faster rate than the general travel and tourism market. LGBT2020 has measured a net expansion exceeding 7% annually since 2010 – as more consumers become

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part of the reachable LGBT market. As well as a growing accessibility for LGBT markets globally, another key reason for this trend is an increasing willingness among LGBT people themselves to ‘come out’ and join this reachable LGBT market. Increasing access to LGBT consumers through defined channels to market is also driving growth. As more people around the world find they enjoy general community support, this increasing aboveaverage rate is likely to continue. The two top spending markets are the US (US$52.3 billion) and Brazil (US$22.9 billion) and the fastest growing markets are Mexico and Brazil. In terms of the trends developing over the coming years, Out Now anticipates that the LGBT market can confidently be

expected to outperform the general market as a result of both supply and demand factors. As more LGBT people feel comfortable self-identifying as LGBT they become both more visible to – and reachable by – tourism marketers. Additionally, the immense growth in travel companies targeting the segment has meant it is no longer a difficult decision for organisations to decide to target LGBT people. The market has more double-income households without children and has a demonstrated propensity for leisure travel – LGBT tourism is a market trend with quite some way to run in terms of growth rates and total market expansion. In the UK market more than one in five lesbians is already a mother so knowing

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Luxury honeymoons

The global growth in gay and lesbian honeymoons is one of the hottest growth trends in the dynamic LGBT market. As more destinations – such as the UK and France – introduce marriage equality laws, many LGBT people are rushing into wedlock, with a profound impact for the tourism industry. More gay and lesbian weddings clearly lead to more lesbian and gay honeymoons and already some key trends have developed in the 12 or so years since the Netherlands became the first place to introduce equal marriage to all its citizens. The Out Now LGBT2020 global research initiative reveals that the global honeymoons market is big – and getting bigger. LGBT2020: Do you want to get married? (Source: Out Now Global www.OutNowConsulting.com)

TOTAL GAY/LESBIAN POPULATION (in millions) 15.1

3.1

15.1

USA UK France Germany TOTAL

3.2

4.2

15.1 million 3.1 million 3.2 million 4.2 million 25.6 million

ALREADY IN UNION/MARRIAGE

HOPE TO MARRY IN FUTURE 100

100

80

Germany France

60

80

60

20

40 USA

14% 11% 15% 12%

0

62% 60%

52%

France UK

UK 40

Germany

71%

USA

20

0

In the US, UK, France and Germany there are more than 16 million gays and lesbians hoping to marry. Out Now is premiering its latest addition to its ONBC Training system during WTM 2013 – in the form of the new ONBC Honeymoons training module. This new training contains a wealth of practical information to help the industry provide great products and services that really understand gay and lesbian weddings and honeymoons.

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this and targeting family-relevant product to these customers can also be a smart move. For 2014, Out Now is especially focused on providing strong business-to-business products to help clients deliver superior product to consumers via the most effective channels. Previously, LGBT travellers tended to use specialist travel companies to plan their holidays. This is now changing, with far fewer LGBT operators, and mainstream suppliers working harder than ever before to understand how to meet LGBT consumers’ travel needs. Mainstream travel companies are beginning to better understand the LGBT market, and to create more inclusive marketing strategies. “How is a gay traveller different to any other traveller?” The answer varies according to where they are travelling from and to, but some common concerns abide. For example, today in America, only 44% of LGBT are ‘out’ to all the people in their workplace. But when on holiday they often need to ‘come out’ repeatedly, especially if travelling as a couple. From the point at which they book with their travel agent, to arriving at the hotel and encountering a variety of staff – at the restaurant, ordering room service, checking in – LGBT couples are presented with multiple situations in which they must declare their status. They want to behave like any other couple without feeling that their environment is inhospitable. And yet, less than half Americans are ‘out’ where they work, a surprising figure amongst people they actually already know!
 What should be a relaxing holiday can often be a series of ‘coming out’ moments, which can be stressful if you aren’t comfortable that staff are gay friendly. This is a holiday reality for almost all gay and lesbian people, especially those that travel with their partner, and one that Out Now works with the industry to help address, especially through training. More lesbians and gay men are now choosing to not hide their true selves on holiday. The industry has to prepare to


LGBT TOURISM

JW Marriott Resorts Cancun, Mexico 45 managers from key customer areas at the JW Marriott Cancun Resort & Spa and CasaMagna Marriott Cancun, Mexico, attended a dedicated Spanish-language workshop, and 850 resort staff received online training. Patricia Trejo, Training & Quality Manager with JW Marriott, explains: “Out Now Business Class has been a real solution for Marriott in helping our managers understand the more detailed issues of training that help us deliver superior service as well as the ONBC online training in Spanish. This has now been used by more than 800 of our team in both of our Cancun resorts to make sure the customer-facing staff our guests connect with are able to deliver for them the very best levels of welcoming service. ONBC Training has been key to this for us at Marriott in Cancun.”

make sure that the promises made to gay and lesbian tourists in advertising pitches are delivered in terms of a genuinely welcoming and relaxed experience. A growing number of mainstream travel companies work with Out Now to focus both on crafting effective representational communications strategies, as well as increasingly understanding the imperative need to provide product with well-trained staff to deliver on their marketing promises. One of the key implications here is the provision of well-designed staff training. Out Now has created the world’s largest global LGBT tourism networking association, ONBC - Out Now Business Class. ONBC delivers online staff training for members in four languages (Spanish, French, English and German) to customer-facing staff working in the travel industry worldwide. For management, ONBC delivers free access to the LGBT2020 research for more than 20 key markets globally, connecting them with key decisionmakers and LGBT media products globally. ONBC has partnered with the world’s leading travel agent resource OTT, to deliver complimentary training to agents working in markets around the world and connect them to customers. Using region-targeted marketing packages, we teach relevant communications that accurately portray the high quality of product on offer, are genuinely empathetic to consumer concerns and truly LGBT-welcoming. Research shows that consumers select from hotels, destinations and travel agents that not only want their custom, but that demonstrate the understanding that gay and lesbian people want what everyone else wants when they travel – to relax and feel comfortable truly being themselves when they are on holiday. The training is proving to be very powerful. Clients not only deliver better products, they reach a global audience of consumers wanting to buy these products, a win-win for industry suppliers and LGBT customers alike. The objective of ONBC’s staff training program is to ensure a staff understands LGBT customers’ specific concerns, and can effectively communicate that they are comfortable with LGBT guests. Managers can access networking and additional education tools allowing them to have the best possible insights into the latest trends and data in this dynamic market. Out Now also delivers bespoke workshops for management in strategic locations for clients globally. n

Biog Ian Johnson Ian is the founder of Out Now, and has for two decades been recognised as one of the world’s foremost authorities on marketing to lesbian, gay, bisexual and transgender (LGBT) customers. Out Now Global has been relied upon by many of the world’s leading brands including Lloyds Banking Group, Barclays, Citibank, Hilton Hotels, IBM, Toyota, TUI, German National Tourist Office, Lufthansa, Merck; and delivers a comprehensive range of tailored solutions focused on research, strategy, communications and training. With consulting activities across more than 20 countries – including the US, Canada, UK, Netherlands, France, Spain, Italy, Germany, Israel, Mexico, Brazil, Argentina, South Africa and Australia – Out Now fulfills a unique global agency vision as being the leading local LGBT marketing specialists, worldwide. The Out Now Global LGBT2020 Study sees the agency continuing to break new ground, with the world’s most comprehensive research analysis ever of LGBT people’s lives – delivering insight about people living in 25 countries, right across the world. For the world’s best business-to-business networking LGBT trade association, join Out Now Business Class www.OutNowBusinessClass.com www.OutNow.travel www.OutNowConsulting.com www.OutNowBusinessClass.com www.LGBT2020.com Interested in learning more? Visit YouTube.com/GayMarketing the ONBC LGBT Village at stand facebook.com/GayMarketNews EM1555, or go to: www.OutNow. travel or www.outnowconsulting. com/lgbt2020

Useful resources

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ONLINE TRAVEL

Sustained growth but tougher competition Angelo Rossini, Travel and Tourism Analyst at Euromonitor International, investigates the ever increasing success of online travel agencies (OTAs).

nline travel recorded another strong performance in 2012, growing by 8.4% to reach US$524 billion, or 25% of global travel and tourism sales. Online travel growth was especially strong in the emerging markets, with Asia Pacific recording the highest increase of 19%. Global online travel growth is expected to remain steady over the next five years, posting a CAGR (compound annual growth rate) of 9.5%.

O

Consolidation among online intermediaries 2012 saw the strong growth of Expedia and Priceline, which are becoming the dominant players among online travel agencies (OTAs). This is resulting in market consolidation, with Sabre, the world’s third largest online travel retail player, asking Expedia to power its US Travelocity OTA in 2013, and the world’s fifth largest player OdigeO asking Priceline to power hotel bookings for its eDreams, Opodo and Go Voyages OTAs. Orbitz, the world’s fourth biggest online travel retailer, which has also been suffering from competitive pressure in recent years, may be the next company to be involved in some form of consolidation.

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While in the advanced economies Expedia and Priceline appear to dominate the online travel retail scene, some OTAs in the emerging markets are achieving record performances. These include the Chinese Alibaba Group and Ctrip and the Indian MakeMyTrip. Hotel companies suffer as online travel agencies grow The success of OTAs in the last decade has also meant the start of rising competition with direct suppliers, especially airlines and hotels. Airlines, led by low-cost carriers, have been quite successful, managing to dominate online sales in the air transportation industry and negotiate very low commission with OTAs and other intermediaries. Hotel companies, due to the different nature of their competitive environment, are suffering more from the rise of OTAs and the high commission they charge. Competition between OTAs and hotel chains is expected to intensify in the next few years as hotel companies increasingly invest in online technology and promotion in order to save on commission. An example of this trend is the Room Key website, created by six leading hotel chains.


Number of peop

Alibaba Group- Holding Ltd Ctrip.com International Ltd Wolf.com Holdings Ltd

ONLINE TRAVEL

Hotel Reserbation Service GmbH MakeMyTrip Indis Pvt Lyt 0

5,000

10,000

15,000 20,000

25,000

30,000

35,000 40,000

US$ Million 2012

Number of people (000s)

Social and mobile The next few years are expected to see the growth of another important player in online travel advertising, with Facebook’s role in this industry growing thanks to the forecast rise of more targeted social advertisements. Social media functionality is also behind the growth of peer-to-peer travel services, driving the emergence of new players such as Airbnb, HouseTrip and HomeAway in holiday rentals, with peer-to-peer and sharing services also growing in car rental and touring. The last couple of years particularly, however, have seen a sharp rise for the mobile channel in the travel industry. Still insignificant in 2010, mobile bookings reached a double-digit share of online sales for some key players in the OTA and hotel categories in 2012, and are expected to continue to grow rapidly in 2013 and beyond. The mobile channel is especially suited to travel and tourism sales (and customer service) and as such is expected to play an important role in this industry as well as further shake up its competitive environment. Hotel Tonight is an OTA focusing on mobile sales only, and specialising in last minute deals. The mobile channel is expected to drive the rise of more such new players over the next five years. n

Data supplied by

300,000 250,000

US$ Million

200,000 150,000 100,000 50,00 0 2011

2012

2013

2014

2015

2016

North America

Western Europe

Asia Pacific

Australasia

Latin America

Eastern Europe

2017

Middle East and Africa

Source: Euromonitor International Note: Travel comprises travel accommodation, transportation, car rental and tourist attraction sales

% CAGR

New players rising Within online travel retail, the last few years have seen the rise of metasearch engines, which are acquiring a growing importance in the industry due to consumers increasingly using the internet to look for travel deals. Their growth has attracted important players, with Priceline buying Kayak, Expedia acquiring a majority stake in Trivago, TripAdvisor moving decisively towards this area and Google also entering it. There has been much speculation in recent years about the more direct involvement of Google in the travel industry. So far, this has not happened and the company, as it has always stated, has only been looking for new platforms to capture advertising investment from travel companies, including its Google Flights and Hotel Finder metasearch engines. Online advertisements on Google have proved very effective in boosting the share of online travel, with Priceline’s Booking.com OTA attributing its rise in share to such advertising. In 2012, Priceline is estimated to have spent US$1.1 billion and Expedia US$0.9 billion on advertising on Google, thus providing a good reason for Google to continue to focus on that area of business.

2011

Online Travel Sales by Region: 2011-2017

Expedia Inc Priceline.com Inc Sabre Corp Orbitz Worldwide Inc OdigeO Group Alibaba Group- Holding Ltd Ctrip.com International Ltd Wolf.com Holdings Ltd Hotel Reserbation Service GmbH MakeMyTrip Indis Pvt Lyt 0

5,000

10,000

15,000 20,000

25,000

30,000

35,000 40,000

US$ Million Source: Euromonitor International

2012

2011

Top Global Online Travel Agencies by Value Sales: 2011-2012

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WORLD FOCUS: ISRAEL

The hidden gems of

Israel

Israel, officially the State of Israel, is a country on the south-eastern shore of the Mediterranean Sea. We find out more about the country that boasts such amazing beauty and diversity…

seven hour drive from north to south and a two hour drive from east to west, Israel is a compact country offering a diverse and varied holiday destination for the UK traveller. Whether it be the vibrant Mediterranean hotspot of Tel Aviv, the historic city of Jerusalem, the Dead Sea with its enriching air quality and superb spa treatments or the Red Sea diving haven that is Eilat – Israel has it all. Tour operators use the services of local guides to create a holiday that is not only a journey of discovery, but one where you come away feeling as though you have immersed yourself into the local culture creating memories of a lifetime.

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Jerusalem Jerusalem is globally known for its history spanning back 7,000 years. Divided into

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quarters – The Jewish Quarter, Muslim Quarter, Armenian Quarter and Christian Quarter – the Old City of Jerusalem is undoubtedly one of the most historic cities in the world, and the atmosphere that surrounds it is one of ancient tales, stunning architecture and a fascinating religious past. Tel Aviv Known as the city that never sleeps, Tel Aviv is a place where you can enjoy the beach by day and party by night. Situated on the west coast overlooking the Mediterranean Sea, the city is renowned for its beautiful beaches, cuisine, buzzing nightlife and cosmopolitan culture. The Dead Sea Throughout history the Dead Sea has attracted tourists and locals alike for its unique properties that help to soothe and

revitalise the mind, body and soul. Located 400metres below sea level, with 330 days of sunshine a year, the area contains a unique mixture of extra oxygen and bromine which helps visitors relax and rejuvenate. Getting to Israel could not be easier with British Airways and EL AL Israel Airways offering twice daily flights from London Heathrow to Tel Aviv, and EasyJet flying to Tel Aviv daily from London Luton. The accommodation choice leaves visitors to Israel spoilt for choice as the country has not only the big name brand hotels, but also the smaller boutique style hotels scattered throughout cities allowing visitors more time to really make the most of their time exploring the surroundings. To discover more about Israel, visit www.thinkisrael.com


SECTION HEADER HERE XXXXXX

The STory of The LoaveS and FiSheS The masses have always been well fed in Israel. It’s a melting pot of races and creeds, whose culinary traditions have turned simple home cooking into world class dishes. Tel Aviv has the highest number of sushi restaurants outside Tokyo. The gastronomic trail in Israel runs through traditional, ethnic, fusion and modern slow food. People dine out on stories of famed chef Meir Adoni’s asian-french dishes at his new Michelin star restaurant from Paris to New York. From its hidden gems to its visible jewels, Israel is indisputably the land of a million stories. To read more of them and to download a special guide go to thinkisrael.com

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CRISIS MANAGEMENT

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CRISIS MANAGEMENT

Flight Plan Political unrest, environmental upheaval and economic recession are difficult circumstances to mitigate, with some airlines flying whilst others struggling. Airline consultant John Strickland explains the challenges currently facing airlines and how some carriers are weathering the changes.

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irlines in the northern hemisphere, particularly in the US and Europe, are facing challenging economic times. Financial crisis, economic recession and rising fuel prices are not only impacting on airlines but also on individuals who have less available to spend on air travel and are therefore travelling less. A number of airlines have gone bankrupt over recent years. With Europe as the most difficult market in the world in terms of economic conditions, European airlines are being hit hard. For airlines to succeed – as seen with easyJet and Ryanair – they need to be cutting their cloth according to their means. However, whilst it is not easy to succeed in these financially challenging times, some airlines are managing to do so. The industry as a whole has been through a lot of consolidation. Air France and KLM have been merged for several years, Lufthansa has bought some smaller companies, including Swiss and BA and Iberia have come together under holding company IAG (International Airlines Group). Whilst contending with these difficult

financial conditions, airlines must also find a way to absorb rising fuel costs. Fuel prices are already high and expected to go higher over the long term. Sustainable fuels and alternatives to petroleum-based kerosene are being sought, but apart from the challenge of finding the right kind of fuel, the industry must also consider how a viable fuel can be produced in sufficient volumes – in short, we are a still a long way off. However, many airlines are placing massive orders for new aircraft with more-fuel efficient engines. In terms of long haul aircraft, the Boeing 787 Dreamliner is now in service and burning somewhere in the region of 20% less fuel per passenger. Short-haul aircraft Boeing 737 Max and Airbus A320 NEO (new engine option) are designed to burn considerably less fuel ahead of any improvements that may be brought about by new biofuels. In these challenging conditions, good crisis management is ever more essential. Being able to weather environmental disasters, wars, civil unrest and emergencies is crucial to airlines’ survival, and in recent years we’ve had some excellent examples of airlines rising to the challenge. Iceland Air is a prime example – having already survived the economic crisis and the bottom falling out of Icelandic markets, the company was faced with the enormous challenge of having to

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CRISIS MANAGEMENT

Peter Davies

contend with a major volcanic eruption, which prevented flights in and out of the country, and in European airspace in general, for more than a week. The effects of this hit numerous airlines – especially in Europe. Those airlines that couldn’t fly into Europe had to show incredible adaptability – Iceland air actually flew planes out of Glasgow for several days when Reykjavik was out of action. Air Malta has also shown incredible resilience – in addition to the impact of political problems in Libya, it’s faced competition with competitors such as Ryanair and has survived by making changes to its fleet, its network and to its approach on pricing and product. It is also worth considering Aer Lingus, which is going through the challenge of a difficult relationship with Ryanair, an airline that is both shareholder and competitor. Adaptability is incredibly important in crisis management. In the instances of Iceland Air and Air Malta we have seen smaller carriers able to reinvent themselves. Whilst smaller airlines are susceptible to going out of business more easily, they can also manoeuvre more quickly, with the caveat of strong and focused management. Certainly small is beautiful in that sense. Regardless of size, airlines must be able to effect change and react flexibly in order to survive. They must be good at managing their cost base to absorb unexpected shocks. They must be willing to think the unthinkable in case something goes wrong. n

Peter Davies was appointed CEO of Air Malta 45 managers from key customer areas at the JW in March 2011 and has recently been elected Marriott Cancun Resort & Spa and CasaMagna on the IATA Board of Governors. With over Marriott Cancun, Mexico attended a dedicated 35 years’ experience in aviation, Peter is a Spanish-language workshop, and 850 resort staff recognised expert in successfully restructuring received online training. Patricia Trejo, Training & ailing businesses and unleashing their potential. Quality Manager with JW Marriott, explains: Previously he has served as CEO for Air “Out Now Business Class has beenAirlines a real solution Southwest in the UK, Caribbean in for Marriott helpingand our SN managers understand Trinidad & in Tobago Brussels Airlines inthe more detailed issuesperceived of trainingwisdom that helpand us deliver Belgium. Against market superior servicePeter as wellDavies as the ‘saved’ ONBC online training expectations, both SN inand Spanish. This has now from been extinction used by more Caribbean Airlines andthan created airlines a reputation 800 of oursustainable team in both of our with Cancun resorts to for excellent service.staff Both carriers make sure the regional customer-facing our guests continue to operate in their respective markets and make a major contribution to regional economies. During a long and distinguished career with DHL, Peter served as Chief Operating Officer for DHL Express in the United States, and previously as Regional Director, DHL Europe, where he established the company as Europe’s leader in Express Delivery. Providing excellence in customer service is the driving force behind his business achievements, and Peter is a compelling speaker on delivering outstanding service and leading cultural transformation. • You can hear Peter speak at WTM this year. Head for the WTM Stage – Platinum Suite 3&4 on Tuesday 5 November at 3.30pm to hear Peter’s seminar, Airlines in Transition: Pushing the Boundaries, Facing the Challenges, organised by JLS Consulting.

Whilst smaller airlines are susceptible to going out of business more easily, they can also manoeuvre more quickly, with the caveat of strong and focused management.

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KATARA HOSPITALITY, SHAPING AN ICONIC LEGACY There is much more to being a world-class hospitality organisation than just owning, managing or developing hotels. At Katara Hospitality, our appreciation for the past powers our aspirations for the future. Decades of experience,

an innovative mindset and meticulous attention to detail enable us to craft unique masterpieces that set new standards for others to follow. With us, it is all about our boundless passion for creating legendary hospitality, building on our heritage.

Katara Hospitality Building, PO Box 2977 Doha, State of Qatar T +974 4423 7777 F +974 4427 0707 info@katarahospitality.com www.katarahospitality.com


WORLD FOCUS: MIDDLE EAST

Arabian knights Qatar Recent years have seen Qatar gain momentum as a transit hub, mainly due to Qatar Airways’ expanding route network, including long-haul destinations in the Far East, as well as in Australasia and the Americas, with passengers connecting via Doha. This has created a large stopover market for the Peninsula and has positioned Qatar well on the global tourism map. In response, travel retailers have introduced stopover packages in a bid to encourage tourists to see the country and experience some of its activities and attractions, in the hope that they will return or at least generate positive word-of-mouth publicity. Qatar is increasingly positioned as a business hub in the Middle East, competing with countries such as Dubai and Abu Dhabi. An increasing number of trade events and exhibitions are taking place in Doha, including the well-known UN Climate Change Conference, which took place in 2012. Sports events have also been a major magnet for business tourism, and preparations for the FIFA World Cup in 2022 are also boosting business. Doha is also a diplomatic hub in the region and conferences aiming to stabilise countries affected by the Arab Spring have attracted many political delegations. As Qatar prepares for the 2022 FIFA World Cup, hotels are rushing to supply the country with enough rooms to cater for the large number of visitors expected during the event. Developments began as early as the end of 2011, with tens of new hotels coming to the market each year. This is causing competitive activity as hotels struggle to maintain high occupancy levels. The country is likely to be oversupplied during the years ahead of 2022, and the challenge is on to ensure that hotels can continue to draw business after the event is over.

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WORLD FOCUS: MIDDLE EAST

Middle Eastern tourism has rebounded this year with an estimated increase in international arrivals of 13% according to UNWTO. WTM Business takes a closer look at how Middle Eastern countries are faring in the travel market.

Bahrain Like many regional destinations, Bahrain is still being targeted for hotel developments. Many major global hotel brands are expected to come to the market during the forecast period and that includes the Rotana Bahrain Hotel expected in 2013, Staybridge Suites in 2014, Al Seef Centro, Bahrain Bay Arjaan, and Ibis Manama Seef; as well as a Four Seasons Hotel set for completion in 2015 and a JW Marriott Manama in 2016. So while a majority of hotels in the pipeline are luxury hotels, there are also budget hotels expected for this market, and these will be ideal for lower budget travellers who want to attend the annual Formula 1. Bahrain’s main source market remains Saudi Arabia, and although this is a great advantage in light of this market’s proximity, ease of access and cultural affinities, there is also a need for the Kingdom to diversify its source markets away from the KSA. Saudis can drive into Bahrain from Khobar and Dammam travelling just a short distance and find a haven of leisure and entertainment which is absent back in their home country. Saudi Arabia is also an important outbound destination for Bahrainis notably for the Hajj and Umrah pilgrimage to Mecca.

Yemen remains a ‘hidden secret of Arabia’ with an unparalleled leisure travel and tourism product to offer. The country has three classified UNESCO World Heritage Sites and one UNESCO Natural Heritage Site, which is the very unique Socotra Island. This island is labelled as the most alien-looking place on earth, offering a wealth of fauna and flora that does not exist anywhere else. Yemen could be a leading leisure travel and tourism destination in the MENA, and as soon as a sense of guaranteed safety returns to this country it could be very easy to lure back hundreds of thousands of leisure tourists to the country. After a decline in 2011, there was some growth in tourism flows inbound in 2012, mainly thanks to the larger number of Yemeni expatriates travelling back to the country to visit friends and family. Yemen has revised its long-term development plan for travel and tourism following unrest, and is now focusing on recovering precrisis travel and tourism levels and to improve transportation infrastructure to make access to key destinations easier.

Some data supplied by

Yemen

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Lebanon Lebanon experienced two unique years in terms of number of arrivals in 2009 and 2010. It seemed the country was back to its heyday, with more than two million visitors in 2010 and global media praising the outstanding offerings of this tourism destination. While travel retail witnessed a decline in demand for inbound packages in 2011 and 2012, tourism flows outbound remained a good business driver as Lebanese tourists continued to travel abroad, and to an increasingly diverse number of destinations. Although tourism flows outbound declined in 2012 because of the difficult economic conditions, the number of trips was still significant, and existing players were able to introduce innovative products and services to maintain their profit margins.

Iraq The Kurdistan area in Iraq is emerging as an area of growth, with capital city Erbil seeing some significant developments in recent years. The Kurdistan Investment Authority is working towards attracting more interest in the region and beyond. A range of tourism, real estate and trade-related projects taking place in the area has contributed to the growth of business travel. Kurdistan is now attracting residents of the region in search of attractive employment opportunities, and this is also benefiting the country’s leisure tourism industry. Airport and travel accommodation developments are also taking place as the area’s tourism evolves in both the country and the wider region. The past two years has seen a large number of global names entering the Iraqi travel accommodation category. Rotana was one of the first to target Erbil and is developing its first outlet there. This move was followed by other major names targeting Iraqi Kurdistan. These include Marriott, InterContinental Hotels Group, Hilton Worldwide and Best Western. These operators are all motivated by the strong boost in business tourism that is being seen in parts of the country, with outlets being developed to cater for this type of tourism predominantly, although others cater for religious tourists in the cities of Najaf and Karbala. The air transportation industry has seen some significant developments in recent years, with more than 20 airlines resuming flights to the country after years of inactivity. Regional airlines were the quickest to return, including the likes of Emirates, Etihad and Turkish Airlines. Turkish Airlines dominates this market in terms of capacity, while the low-cost segment is beginning to expand thanks to the presence of flydubai, Air Arabia and shortly Kuwait’s Jazeera Airways. Religious tourism has been the backbone of Iraq’s tourism industry for many years. The country has been a preferred destination for Iranian pilgrims visiting Shi’a shrines in Karbala and Najaf for many years.

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DESTINATION FOCUS

PLEASURE ISLAND Karim El Guanaini, Vice President of Yas Island Destination Management, tells us why business is booming on Yas Island.

amed the world’s leading tourism project in 2009 at the World Travel Awards, Yas Island has a unique line up of attractions, from the rollercoaster rides of Ferrari World Abu Dhabi, to the serenity of a golden beach and turquoise waters on the coast of the Arabian Sea. Yas Island is home to the UAE’s first mega waterpark, a Championship Links Golf Course, an outdoor Music Arena and of course the famous Yas Marina Circuit home to the FORMULA 1 Etihad Airways Abu Dhabi Grand Prix. 2013 has been a successful year for tourism in Yas Island. The destination has witnessed enormous growth in the number of tourists coming to Yas Island, with the opening of Yas Waterworld in January 2013 and the increasing demand for tourism and business in the region. 2012 figures show over 3 million visitors, and early signs of 2013 indicate an estimated 4 million visitors by year-end. A widening of tourist attractions and increasing international recognition are turning Yas Island from a regional destination to a global one. Tourists are coming from as far and wide as China, India, Russia, North Africa and Europe, but they are also staying longer and sharing Yas Island’s strategic development over time. The opening of Yas Mall in 2014 is expected to ensure this boost in visitor numbers. Part of the appeal of Yas Island as a destination is its diversity. Accommodation ranges from affordable through to luxury resorts, and attractions are aimed to satisfy all ages and tastes. Visitors can choose to savour the historic brand experience of Ferrari World Abu Dhabi – with or without the thrills of a 240km/hr roller coaster ride, visit UAE’s first mega waterpark, Yas WaterWorld, or simply enjoy a leisurely round of Golf on the Yas Links Golf Course. Kayaking, windsurfing, sailing, stand-up

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paddle boarding and mangrove tours abound at Yas Beach, and the whole of Yas Island can be seen from the sky during a water plane tour from Seawings. A newly redeveloped boutique dining destination was recently introduced at Yas Marina in the last quarter of 2013, including the refurbishment of 2 existing restaurants and addition of 5 new restaurants that are expected to create a great buzz around the entire Yas Island. Yas Mall, due to open in 2014, will be one of Abu Dhabi’s premier shopping destinations. The mall will offer 450 retail units, covering 235,000 square metres of leasable place and parking for up to 10,000 vehicles. Designed as an indoor city, the mall will portray a glitzy neighbourhood interlocked with a series of glamorous streets. One of its most prominent features will be its Town Square – the largest gathering space of any shopping centre in the Middle East, a place to see and be seen. Another unique feature will be its dining experiences, with European street-like setting cafés at almost every corner offering an array of cuisines to quench every craving. As the travel and tourism industry witnesses more attractions coming on board in destinations like Yas Island, Abu Dhabi, and other Emirates, the UAE is becoming a leading travel & tourism scene. n

• During the 4-day event, visitors can expect a great selection of activities at the Yas Island stand (ME300, Hall S3) which will showcase the excitement and entertainment one can expect when visiting any of the attractions on Yas Island, like an interactive photobooth, social media competitions and prize draws with amazing getaway prizes.

“Yas Island has shown tremendous development over the past year with more improvements to be introduced soon. This year alone we launched Yas Waterworld, the award-winning mega waterpark, and Yas Marina also got revamped with the addition of five new internationally and locally acclaimed restaurants. WTM creates a vibrant and enthusiastic platform to share our updates with the industry and we expect an even greater buzz this year as travel and tourism is picking up and opportunities are endless.” Karim El Guanaini, Vice President of Yas Island Destination Management

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THE ULTIMATE LEISURE AND ENTERTAINMENT DESTINATION 2 4 20

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ATTRACTIONS 1

FERRARI WORLD ABU DHABI

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YAS WATERWORLD

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YAS LINKS GOLF COURSE

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RACING ACADEMY 13 YAS MALL * 14 IKEA 15 ACE 16 SEAWINGS

* UNDER CONSTRUCTION

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20 CROWNE PLAZA ABU DHABI YAS ISLAND

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YAS EXPRESS BUS STOPS

18 PARK INN BY RADISSON YAS ISLAND

21 STAYBRIDGE SUITES ABU DHABI YAS ISLAND

22 CENTRO YAS ISLAND

AN ALL-INCLUSIVE 25 KM 2 ISLAND WITH A FREE SHUTTLE CONNECTING ALL MEGA ATTRACTIONS

19 RADISSON BLU YAS ISLAND

UAE’S HAPPENING ISLAND FEATURING MULTIPLE ATTRACTIONS LOCATED ONLY 7 MINUTES FROM ABU DHABI INTERNATIONAL AIRPORT; 25 MINUTES FROM THE HEART OF ABU DHABI CITY, AND 45 MINUTES FROM THE BUZZING CITY OF DUBAI, GUESTS WILL DISCOVER WORLDS WITHIN WORLDS AS THEY EXPLORE THE VARIOUS CHARMS YAS ISLAND HAS TO OFFER.

FACEBOOK.COM/YASISLAND

@YASISLAND

YASISLANDAE


VISIT US AT THE ABU DHABI STAND ME300 /HALL S3

FERRARI WORLD ABU DHABI

1

The world’s first indoor Ferrari branded theme park, featuring its record breaking roller coaster, Formula Rossa which speeds up to 240 kmph.

UNIQUE WATER ADVENTURES AT YAS WATERWORLD 2 Experience the largest Emirati themed waterpark in the UAE and the world’s first aqua park with a rollercoaster ride.

YAS LINKS GOLF COURSE

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WITH THE LAUNCH OF THE REDEVELOPED YAS MARINA, IT IS NOW TWICE THE FUN! 7 Dock – dine – discover, at yas marina with an array of seamless waterfront terrace of restaurants where every meal is served with an iconic view.

HOME TO THE FORMULA 1™ ETIHAD AIRWAYS ABU DHABI GRAND PRIX 8 Imagine driving a Formula Yas 3000 or Aston Martin GT4 on the same circuit as the pros. – You can.

ONE-OFF VENUE FOR WORLD CLASS LIVE CONCERTS 6 9

An award winning golf course, designed by Kyle Phillips (a world leading golf course designer).

Staged by the du Forum and du Arena.

OPENING SOON! 13 Yas Mall will be the UAE’s second largest shopping Centre to Dubai Mall when it opens in March of 2014. The mall will include a cinema of at least 16 screens, and stores from the world’s top retailers as well as two separate department stores.

ROOMS WITH ISLAND VIEW

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Yas Island offers seven hotels (from affordable to luxury) on Yas Plaza, all hosting gourmet restaurants, entertainment, fitness and wellness venues.

YAS VICEROY, YAS ISLAND’S SIGNATURE HOTEL 17 PURE RELAXATION – THE BEACH

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Let your soul wander, swim, paddle board, or kayak away. on the shores of yas island’s only beach.

The world’s only hotel with a Formula 1 track running through it.


WORLD FOCUS: RAS AL KHAIMAH

The Growth of Ras Al Khaimah With visitor numbers doubling in two years and a spate of new hotel investments, Ras Al Khaimah’s tourism is flourishing. The emirate’s Tourism Development Authority talks development and growth with WTM Business.

he rising UAE emirate of Ras Al Khaimah has witnessed in recent years an impressive growth in its tourism sector. The destination has seen a recent influx of major international brands, such as Hilton Worldwide and Banyan Tree, opening premium luxury beach resorts and city hotels to accommodate the growing number of holiday-makers beating a track to its door. 2012 saw over one million visitors hit the Emirate, a record number and almost double 2010’s figure. Located only 45 minutes from the Dubai International Airport, Ras Al Khaimah offers domestic and international guests a temperate climate paired with a diverse landscape of mountain ranges, beautiful coastline and clean natural beaches. Home to a myriad of outdoor activities and blissful spa retreats, Ras Al Khaimah provides the perfect escape from the busy city life and the ideal opportunity for guests to explore the UAE’s adventure capital and bask in the year round sunshine. A highlight for the emirate this year has been the recent opening of the Waldorf

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Astoria Ras Al Khaimah, marking the entry of the luxury Hilton Worldwide brand into the UAE. Inspired by the Palaces of the Arabian Peninsula, the Waldorf Ras Al Khaimah brings the legendary True Waldorf Service to one of the most alluring beachfront locations in the Middle East, featuring a 350-metre private beach, outstanding spa and 18-hole championship golf course. Furthermore, Ras Al Khaimah’s room inventory will be boosted to reach approximately 5,000 rooms with the opening of another four hotels in 2014 on the manmade Al Marjan Island, including: DoubleTree by Hilton Resort & Spa, Marjan Island, and Santorini Hotel, and Marjan Island Resort & Spa, and Rixos Bab Al Bahr Resort, which will be the first ‘all-inclusive’ resort of its magnitude in the UAE. Famed for its pristine beaches, which draw visitors to the region in search of sailing, yachting and water sports, Ras Al Khaimah is a leisure destination rapidly growing in popularity. With the development of new luxury resorts and visitor numbers continuing to rise, the Emirate is cementing its place as a destination to watch. n

Statistics The main visitor source markets to Ras Al Khaimah from January until August 2013 were the UAE, Germany, Russia, Ukraine, Italy followed by UK and Czech Republic. The UAE represented 29% of total visitors to the emirate, followed by Germany with a 23% share and Russia with a 19% share. Statistics courtesy of Ras Al Khaimah Tourism Development Authority


WORLD FOCUS: EGYPT

The wonders of

Egypt

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WORLD FOCUS: EGYPT

This summer has witnessed ample changes of historical magnitude in Egypt, for no political regime can continue to exist without the wide support of its own people. These are challenging times indeed, but history has proved the resilience of Egypt: its land and its people. The British Foreign Office is not currently advising against travel to any of the Red Sea Resorts, including the world-famous Sharm El Sheikh and Hurghada as well as to St Catherine’s Monastery in the Sinai desert. In this framework, over 50 companies are travelling from Cairo to participate as sharers at the Egyptian stand, AF500, during this year’s WTM including destination management companies and international hotel chains such as Four Seasons, Intercontinental, Starwood, Hilton, Marriott, Hyatt, Helnan and many more. The Egyptian Ministry of Tourism keeps supporting its industry by extending the Charter Flight Incentive Programme, as well as comarketing the destination with British tour operators. An advertising campaign is currently being designed to showcase Egypt as an ‘endless love story’.

Statistics from the Egyptian State Tourist Office show an increase of 4% in the UK arrivals compared to 2012, and an overall increase of 6% arrivals worldwide. The diversity of Egypt’s tourism product is one of a kind – unmatched historical sites, beautiful beaches along the Red Sea Riviera and the Mediterranean coast in addition to state-ofthe-art resorts providing top quality services in magnificent locations are all accessible in less than a five hour flight from the UK. The stunning, colossal monuments of Ancient Egypt never fail to astonish. The heat, sight and the light of the desert invigorate. A romantic cruise along the world’s longest river dazzles the senses. The cool, turquoise waters rejuvenate. A first-class getaway resort in the Red Sea Riviera is pure escapism. The Mediterranean is called ‘The White Sea’ in Arabic as opposed to the ‘Red Sea’ on the other side of the Suez Canal. Still, no place has the magic, mystery and pleasures of Egypt. Travel to Egypt to discover a world of wonder. n (Information supplied by the Egyptian State Tourist Office is correct at the time of going to press.)

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RWANDA BEYOND THE GORILLAS

ECO-TOURISM PARADISE, NYUNGWE NATIONAL PARK. One of the most ancient forests, dating back to the ICE AGE. The largest montane forest in East and Central Africa. For reservations and information call us on +250 252 502 350, +250 252 573 396 Email: reservation@rwandatourism.com Web: www.rwandatourism.com


With over 700 species, discover Rwanda as a “world class birding destination�

Rwanda, a rich and unique culture

Akagera National Park, diverse wildlife

Amazing adventurous caves of Rwanda

Volcanoes National Park, home to the world famous mountain gorilla


When was the last time you visited a place that touched your soul?

Telephone: +254 (20) 273 4000 – 5 Out of Hours Office Mobile Telephone: +254 (20) 733 268888 Email: reservations@governorscamp.com www.governorscamp.com


WTM AFRICA WEEK

WTM Africa brings Africa to the world 2014 will see the launch of Africa Travel Week – an event set to become the leading B2B exhibition for Africa’s travel industry.

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omprising three co-located shows – WTM Africa, IBTM Africa and ILTM Africa – Africa Travel Week will bring together inbound and outbound markets for general leisure travel, luxury tourism, and the MICE/ business travel sector in Cape Town next spring. Research by the World Travel and Tourism Council shows that in 2011, the tourism industry accounted for 8.7% of Africa’s GPC making it the fourth largest sector, valued at US$164 billion and accounting for 8% of the continent’s jobs. Africa Travel Week comes at a point in which the travel industry is flourishing, with WTTC predicting a 4.8% growth in the sector in the next 10 years. “Reed has been exploring opportunities in Africa for sometime and the success of our first launch event, ILTM Africa, has given us the platform to now introduce two more of our global industry brands to create ‘Africa Travel Week’ and make it the leading global event for the continent’s travel industry,” said Richard Mortimore, CEO, Reed Exhibitions UK. He continued: “Because of the sheer size of the continent and diversity of its travel offering, all three brands will help bring the world to Africa and promote Africa to the world’s leading source markets. RTE is committed to the African continent and its future as a global player in the leisure, business and luxury tourism sectors.” n

WTM Africa 3 travel industry events – WTM Africa, IBTM Africa & ILTM Africa For further information on visiting and exhibiting please visit www.wtmafrica.com 1 venue – Cape Town National Convention Centre 2 – 3 May 2014 www.wtmafrica.com

Africa Travel Week

28 April – 3 May 2014 www.africatravelweek.com WTM Business 2013

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East Africa’s Tourism Industry Poised for Growth

Five out of the Top 10 world’s fastest growing economies will be in Sub-Saharan Africa, according to a recent report from Euromonitor Africa. With Sub-Saharan Africa becoming the second fastest growing region in the world, WTM Business takes a closer look at its future tourism potential.

ast Africa is showing solid economic growth, with Mozambique, Zambia, Tanzania and Ethiopia leading the way with real GDP growth of over 6% predicted for 2013. Tourism in the region has long focused on European and US arrivals, but source markets are changing with regional, Middle Eastern and Asian visitors becoming more of a priority. The economic growth is encouraging investment in travel accommodation, and international hotel chains such as Marriott and Rezidor are opening their first properties in the region in 2013. East Africa is one of the fastest growing regions in the world. In 2012, East Africa received 13.3 million arrivals and by 2017 the number of tourists travelling to the region is expected to increase by 22% to reach 16 .2 million. Currently, Western Europe is East Africa’s largest international source market, but Asia Pacific and the Middle East are expected to form a much larger proportion of East Africa’s tourism arrivals by 2017. The importance of the Chinese market in East Africa’s predicted growth is not to be underestimated. Tourist boards are actively targeting Chinese visitors, local governments are working to simplify visa processing to help encourage Chinese visitors and daily flights now connect Nairobi and Addis Ababa with Hong Kong, Beijing and Guangzhou. Economic growth, a rising middle class and urbanization all mean a growing demand for regional and business travel, enormous potential for the East African aviation industry and a need to expand the supply of good quality hotels. Naturally, with the opportunity for expansion comes the challenge of developing relevant infrastructure, securing necessary investment and implementing much needed safety strategy in aviation, but it seems that the stage is set for a boom in East African tourism. n

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For more information please go to www.euromonitor.com

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REST & RELAX... With your family and friends. Live the life, forget the time! Discover the quintessential at Essque Zalu Zanzibar and indulge your senses, surrounded by the Indian Ocean. It is a haven of peace and tranquillity. Luxurious accommodation, contemporary facilities and world class cuisine.

EXOTIC LUXURY ON THE INDIAN OCEAN

For Reservations call +255 (0) 778 683 960 or E-mail: reservations@essquehotels.com


THE NATURE LOVER, EXPLORER WILL BE IMPRESSED BY THE VARIETY AND UNIQUENESS OF WHAT CAN BE OBSERVED WHILE VISITING RWANDA Rwanda presents excellent tourism assets ranging from the natural attractions such as the world famous mountain gorilla in the Volcanoes National Park, 13 species of primates in Nyungwe National Park, about 700 species of birds, flora including the orchids, to the unique culture and heritage that make it a desirable destination for any type of tourist. Amazing adventurous caves of Rwanda

Diverse wildlife in Akagera National park

Rwanda is the safest location in East Africa allowing tourists to walk around the country’s capital city and provinces peacefully.

THE VOLCANOES NATIONAL PARK

RWANDA’S CULTURE AND HISTORY Rwanda has a rich culture evidenced in the diversity of fine crafts, rich traditions, music and dance. Sought after crafts include pottery, basketry, painting, jewelry, wood carving and metalwork.

This park is home to Rwanda’s Gentle Giants, the Mountain Gorilla. The most popular activity in Volcanoes National Park is mountain gorillas tracking though a variety of other day and overnight excursions are offered. These include day walks to visit a troop of habituated golden monkeys and to the research centre at Karisoke site started by Dian Fossey. More ambitious are the asBUHANGA ECO-PARK

cents to the peak of Bisoke, where a beautiful crater lake is nestled in the old volcanic caldera, and to the 4,507 metre Karisimbi, the highest point in the Virungas.

A window on Rwanda’s history is provided by numerous memorial sites and museums preserved around the country. A number of Community Based Tourism experiences offer travellers the opportunity to experience cultural life.

A small patch of forest located 8km outside Musanze offering nature walks, picnics and camping facilities. The forest is dominated by magnificent dragon trees and is home to a number of exquisite birds. For more information on tourism in Rwanda, please log on http://rwandatourism.com TravelRwanda @TravelRwanda


NYUNGWE NATIONAL PARK This is the largest mountain forest most 300 bird species of which two in Africa which extends from lush dozen are restricted to a handful of mountain forests on the valleys to high mountain Albertine Rift. peaks. Nyungwe has the The most distinction of forming The avian highlight of the watershed between remote Africa’s two largest river headwater of Nyungwe is the great blue turaco. systems, the Nile and the Nile was the Congo. discovered to Tours of the surrounding Nyungwe is most allur- lie in Nyungwe tea estates are also available, and a newly built ing for its primates: 13 canopy walk offers thrillspecies in all. The most important ornithological site in ing views into the verdant canopy of Rwanda, Nyungwe harbours al- this enchanted forest. AKAGERA NATIONAL PARK Lies in a relatively low altitude. It is Rwanda’s only game reserve to see up to 20 mammal species, including hippos, elephants, buffalos and on occasion hyenas.

LAKE KIVU LITTORAL

The landscape is made up of highland plateaus with a multitude of rivers including the Akagera. BIRD WATCHING Rwanda is one of the world’s hottest ornithological destinations, with around 700 species recorded in an area less than half the size of Scotland. There are 26 species endemic to the highland forests and marshes of the Albertine Rift Valley.

The Cote d’Azur of East Africa, Rwanda’s beautiful Lake Kivu is enclosed by country’s characteristic rolling hills. Lake Kivu is surrounded by three resort towns with breathtaking views, beautiful intimate villas, a variety of water sports and mouth-watering restaurants.

KIGALI CITY Is among the safest, friendliest and it is studded with small shops and stalls displaying a wide range of lovcleanest of African cities, blessed ingly executed handicrafts. with a moderate high altitude climate and is conveniently located within three hours’ drive of most of the country’s main tourist sites. Kigali boasts a range of hotels catering to all tastes and budgets. Despite these concessions to modernity, Kigali retains the feel of a garden city. The neat and compact city center can easily be explored on foot, and For more information on tourism in Rwanda, please log on http://rwandatourism.com TravelRwanda @TravelRwanda


STUDENT PROGRAMME

WTM Career in TRAVEL Travel and Tourism is the fastest growing industry in the world, accounting for an astonishing one in eleven jobs, so what more reason do you need to join the sector? Deborah Harris looks at the latest government initiatives aimed at attracting young people, especially women, into the travel industry.

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STUDENT PROGRAMME

With females making up over 70% of this sector’s work force, and with only 6% becoming board directors, this is something that should be rectified ccording to the World Travel and Tourism Organisation, the figure could actually rise significantly by 2020. While the UN World Tourism Organisation (UNWTO) reported that, for the first time, an astonishing one billion travellers crossed international borders, forecasting 1.8 billion international trips annually by 2030. These figures could even be an underestimation, according to Professor Ian Goldin, Professor of Globalization and Development and Director of Oxford Martin School at the University of Oxford. He told the World Tourism Forum in Lucerne: “If anything, the growth may be even more dramatic. Travel will possibly be the greatest creator of jobs in future.” Travel accounts for 9% of world GDP, and it’s good all-round, as encouraging travel boosts consumer and business confidence. The globalization process means that demand for travel is increasing from the emerging middle classes, whether it’s because they’ve always wanted to travel, or they just want to ‘keep up with the Jones’. Travel is also greatly being driven by the increasing purchasing power of the flourishing middle class in many developing economies, and it’s a big list, which includes China. Saint Augustine said: “The world is a book and those who do not travel read only one page.” And there are many types of tourists, from those who like to visit historical and cultural sites, to those who like activity holidays, through to luxury spa destinations.

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What is clear is that what needs to be on offer is the complete experience, and it’s out there and available to us. Which means that in every area of travel and tourism there are thousands of types of roles that need filling. So, what do students really need to get into the travel business? What helps is an enthusiasm for the industry: “My journey into travel really started when I travelled myself. I spent a year and a half backpacking around the world and then I spent four years living in Spain. When I returned to the UK I really wanted to work in an industry that I knew something about. And that’s the one thing I think we forget, of course, that we are selling holidays and destinations and dreams and experiences. I got back to the UK and chose a job with a large travel agency selling holidays. From there my career really took off,” says Andy Harmer, Director of Cruise Liners International Association (CLIA). People are needed to keep this rapidly growing industry constant, fresh and forward thinking. So getting the right students into the right jobs – and there are many lucrative and worthwhile fields to enter – is vital. With this in mind, the World Travel Market is holding a two-day conference on Wednesday and Thursday, dedicated to students keen to work in the industry, by applying the knowledge they have gained through their studies in higher education or college. The programme has been developed to educate and expose young people to the travel and tourism business, and increase student opportunities within the travel industry. Top industry professionals will be running the event, while students will be able to meet with the companies hiring following the sessions. Over the two days, students will be able to attend The Travel Tech show sessions and the World Responsible Tourism Day (WRTD) programme. These are designed to stimulate and develop student knowledge on key issues facing the industry.

Featured on the Thursday is the Institute of Travel and Tourism (ITT) Future You conference – a must-attend for anyone studying travel and tourism related subjects, with talks from those who are starting out or already making their mark. Women make up 70% of the sector’s work force, while only 6% become board directors. However, the impending European Commission directive proposing that large publicly listed companies will need to raise the proportion of women in non-executive boardmember positions to at least 40% by 2020, means it couldn’t be a better time for women to get into the industry. Meanwhile, any ambitious women keen to move up the ladder, can benefit from various training, networking and incentive opportunities – such as the ITT and People 1st initiative. This government-funded scheme is offering subsidies of 90% on course fees, with the aim to enable women to achieve their full potential in senior roles while Women 1st is a great resource for women in the industry. With tourism being the largest employer in most countries, according to The Travel & Tourism Competitiveness Report 2013, it is a fast track into work for many women and young people. n • For more information visit: www.itt.co.uk/training/women_first.php and www.women1st.co.uk • People 1st is the sector skills council for hospitality, passenger transport, travel and tourism in the UK.

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Come and meet us at the Brand USA Pavilion


Savor the fresh tastes of New England. Endless possibilities begin in the USA with unforgettable experiences for your clients, and new business opportunities for you. For partnership information, contact partnerships@thebrandusa.com.

Discover this land, like never before.


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Come and meet us at the Brand USA Pavilion

Stop by and see us at Stand NA245 booth 12


Expand your horizons on the plains of North Dakota. Endless possibilities begin in the USA with unforgettable experiences for your clients, and new business opportunities for you. For partnership information, contact partnerships@thebrandusa.com.

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Two Islands... Two Unique Experiences The islands of Trinidad & Tobago bloom with a plethora of personalities ranging from laid-back, and tranquil to vibrant and energetic. Tobago, is the peaceful partner with sun-kissed, secluded beaches. Recognised as a premier eco-destination, it offers the nature-lover a myriad of sights and sounds with its lush protected rainforests, crystal clear waters, and teeming coral reefs. Activities include biking or hiking into the canopied mountains to seek out waterfalls, the annual turtle hatchling programme on the beaches, diving and snorkelling among the shallow reefs to discover the world’s largest brain coral, visiting beautiful bird sanctuaries, kayaking, stand up paddle boarding along the stunning coastline and lagoons or teeing off on one of Tobago’s challenging golf courses. Often described as the ‘cultural capital of the Caribbean’, Trinidad is internationally famed for its annual Carnival. Throughout the year visitors can experience the Carnival atmosphere by visiting the steel pan yards and interacting with local bands as they plan their carnival themes and fetes for the following year. Mirroring Tobago’s natural beauty, a visit to the many nature and wildlife sanctuaries is a must for all visitors as well as the new ziplining course ‘ZIP-ITT’ in the north west of the island. There is something for everyone in Trinidad and Tobago.

@TnT_SteelyPan

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www.gotrinidadandtobago.com

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Two Islands... Two Unique Experiences


WORLD FOCUS: TRINIDAD & TOBAGO

Travel and Tourism in Trinidad and Tobago Sports tourism could be set to boom in the World’s Best Tourism Destination 2012. We take a closer look at how its travel and tourism industry has been faring.

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012 saw tourism organisations from 27 EU member states vote unanimously for Trinidad and Tobago to receive the highest honour in tourism, the World’s Best Tourism Destination award. The Best Tourism Destination award is offered to countries that have complied with the United Nations Tourism Division, UNESCO and the EU on Tourism and Trade’s principles on fair tourism, ethical tourism, safety standards and the historic preservation of cultural sites. Some reasons for the awarding of the World’s Best Tourism Destination for 2012 to Trinidad and Tobago were the respect for cultural patrimony and traditions in offering tourists the possibility to participate in festivals such as Holi, Hosay, Divali, Corpus Christi, Eid Al-Fitr, Tobago Heritage Festival, and Carnival. The country’s dedication to the protection of the environment, the wetlands, beaches and ecological and geographical biodiversity also contributed. Research shows that nature attracts tourists to Trinidad and Tobago. There are

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a wide range of activities which can be participated in that revolve around nature: cave exploration at Gasparee Caves, wildlife photography in places such as the El Tucuche Reserve, Valencia Wildlife Sanctuary, Caroni Bird Sanctuary, cycling and hiking at Argyle Waterfall and kayaking at Paria Bay and Tobago. Trinidad and Tobago protects its wetlands and beaches and supports the concept of nature-friendly tourism, for the preservation of natural biodiversity and the protection of endangered species and areas. The Forest Reserve in Tobago attracts tourists worldwide. Tobago’s coral reefs are some of the best in the region, and an impressive abundance of marine life can be seen. A niche area that Trinidad and Tobago is pursuing is sports tourism, which may be set to boom. In Trinidad, stadia host cricket, football and track and field events. Also, a sports tourism department in the Tourism Development Company has been established in order to take advantage of sporting opportunities, such as hosting games that could attract thousands of people at a time.

The islands of Trinidad & Tobago bloom with a plethora of personalities ranging from laid-back, and tranquil to vibrant and energetic. Tobago, is the peaceful partner with sun-kissed, secluded beaches. Recognised as a premier eco-destination, it offers the nature-lover a myriad of sights and sounds with its lush protected rainforests, crystal clear waters, and teeming coral reefs. Activities include biking or hiking into the canopied mountains to seek out waterfalls, the annual turtle hatchling programme on the beaches, diving and snorkelling among the shallow reefs to discover the world’s largest brain coral, visiting beautiful bird sanctuaries, kayaking, stand-up paddle boarding along the stunning coastline and lagoons or teeing-off on one of Tobago’s challenging golf courses.  Often described as the ‘cultural capital of the Caribbean’, Trinidad is internationally famed for its annual Carnival. Throughout the year visitors can experience the Carnival atmosphere by visiting the steel pan yards and interacting with local bands as they plan their carnival themes and fetes for the following year. Mirroring Tobago’s natural beauty, a visit to the many nature and wildlife sanctuaries is a must for all visitors as well as the new zip-lining course ‘ZIP-ITT’ in the north west of the island. There is something for everyone in Trinidad and Tobago.


Š2012 Brand USA. All Rights Reserved.

Discover this land, like never before.

Redefine extraordinary in Antelope Canyon, Arizona. Endless possibilities begin in the USA with unforgettable experiences for your clients, and new business opportunities for you. For partnership information, contact Partnerships@thebrandusa.com

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WTM Business 2013