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EXPLORE: SYRIA
MARKET UPDATE 2INVESTIGATION: Future Tourism 3VISIT: Jordan 4EXPLORE: Syria 10ONSITE: Sri Lanka 14TRAVEL TALK 16TRAVEL CHANNELS 17TOUR: UK 18LONG HAUL: LA 20EXCLUSIVE: Religious Travel 21WHO’S MOVED 22RENDEZVOUS 23NEWS & EVENTS 24
INVESTIGATION:FUTURE TOURISM
JUNE 2011 ISSUE 20
VISIT: JordanVISIT: Jordan
Middle East and North Africa Edition
www.traveltradeweekly.travel
Technology is constantly evolving and with it,industries continue to evolve too. Be it throughsocial media, sustainability technology orrobotic hotel receptionists, technology willdramatically change the future face of tourism.
Syria’s hodgepodge of cultures, religions, sectsand traditions, as well as its colourful andanguished history with countless remaininghistorical sites, have attracted worldwide visitors.Nevertheless, an identity struggle has persistedand a current plight for democracy has shifted thecountry into disarray. Today’s Syria is afascinating place, albeit unstable, with potentialto revive its languished image through developingits faltering travel and tourism industry.
In This Issue
44
33
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Despite unrest across the MENA region, Jordan is makingprogress in marketing the country as still safe to visit, albeitfull of thrilling and precarious adventure activities. Jordan’s
mesmerising landscape and numerous attractions havepulled in a mix of domestic, regional and long haul visitors
and it strives to improve its status further.
June 2011, Issue 20
JUNE 20112
COUNTRY CURRENCY 1USD=UAE (AED) Dirham 3.67Egypt (EGP) Pound 5.95Saudi Arabia (SAR) Riyal 3.75Lebanon (LBP) Pound 1,509Bahrain (BHD) Dinar 0.37Jordan ( JOD) Dinar 0.71Syria (SYP) Pound 47.40Kuwait (KWD) Dinar 0.28Qatar (QAR) Riyal 3.64Oman (OMR) Rial 0.38Tunisia (TND) Dinar 1.40Morocco (MAD) Dirham 8.02Iran (IRR) Riyal 10,598Yemen (YER) Rial 214.33Algeria (DZD) Dinar 72.23Libya (LYD) Dinar 1.22
MENA Exchange RatesAccurate as of 25/5/2011Currencies shown in red are fixed against the US Dollar
TRAVEL TRADE WEEKLYManaging Editor
Mary [email protected]
JournalistsRita Kasziba
Duncan MacRaeMarianna Keen
Design & LayoutElina Pericleous
Sales & MarketingDimitris Thomaidis
DirectorsAndreas Constantinides
Mary Kammitsi
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IHG: Increasing ProfitsInterContinental Hotels Group (IHG) has recorded significant growth in profits in the firstquarter (Q1) ending March 31.
Jazeera Airways: Record PerformanceJazeera Airways Group has announced record results for the first three months of the year, makingthe period the group’s third consecutive profitable quarter. The group recorded a net profit of KWD1.1 million (USD4 million), up from a net loss of KWD4.5million (USD16.4 million) in the same period of 2010. The term represents another profitable quarterafter the record breaking Q3 (USD16 million) and Q4 (USD7.3 million) 2010, and the best Q1 sincethe inception of the company’s Turn-Around Plan in 2005. Operating revenues rose by 22.6 percentover Q1 2010 and reached KWD11.6 million (USD41.5 million), while the operating profitaccounted for KWD1.8 million (USD6.6 million), compared with an operating loss of KWD3.4million (USD12 million) in 2010. Marwan Boodai, chairman, Jazeera Airways Group, elaborated on the performance in the light ofongoing turmoil. “We are very pleased with our record first quarter results, which demonstrate Jazeera Airways’ successin mitigating the impact of the political unrest seen in the Middle East in the last quarter. We wereable to secure this success because of the flexibility we enjoy within Jazeera Airways Group, betweenour aircraft leasing business, which has assets deployed across the Middle East, and our commercialairline business that serves 18 destinations across the Middle East. Combined, they have not onlyshielded the group’s performance from these events, but they have also put the company on a winningstreak for three straight quarters.”Boodai projects strong results for the restof the year.“Our outlook for the second half of theyear remains unchanged, however we haveupgraded our Q2 outlook from ‘slow’ to‘mild’ as we welcome the inclusion ofCairo into our network, starting from May18. We remain focused on making everyquarter of 2011 a profitable quarter.”
The Group’s revenue totalled USD396million, representing an increase ofnine percent over the same period in2010. The operating profit rose 35percent and accounted for USD112
million, compared with USD83 million in Q1 2010. Andrew Cosslett, CEO, IHG, elaborated on thecompelling performance.“We delivered a strong set of results in the first quarter.Global revenue per available room (RevPAR) grew 6.9percent, with 18.8 percent growth in Greater China and8.4 percent in the US. Underlying revenue growth of sixpercent was converted to 23 percent operating profitgrowth, reflecting good use of our scale and theefficiency of our business model.“We remain confident about the outlook for the rest ofthe year. Demand for our brands continues tostrengthen from both guests and hotel owners. This isdriving our performance and reinforcing our industryleading pipeline. We are well positioned to takeadvantage of the gathering rate momentum we now seearound the world.”
In terms of regions, EMEA continued to deliver positivefigures, with 1,425 rooms (eight hotels) signed in thefirst three months of the year. RevPAR increased by 4.2percent in all EMEA nations excluding Egypt (10hotels) and Bahrain (two hotels), where the turmoilresulted in cogent declines. In Saudi Arabia, RevPARrose 7.5 percent and in the UAE it increased by 2.4percent. Revenue reached USD95 million, representingan increase of six percent, while operating profit grew10 percent to USD23 million.
Cosslett closed the announcement by handing over hisposition to his successor.“My time with IHG comes to a close on June 30. I nowhand over the reins to Richard Solomons, confident thathe and the excellent team we have in place will lead IHGto a bright future.”.
Demand for our brands continues to strengthen from both
guests and hotel owners
3JUNE 2011
- Future Tourism
n
It may sound like something from ascience fiction B movie, but robotichotel staff members already exist.Perhaps it should not be so surprising. Over the decades, humans have
embraced technology in so many ways in orderto improve the quality of their lives. The tourismindustry is certainly not unique in this respect. Dimitrios Buhalis, president, InternationalFederation for IT and Travel and Tourism (IFITT),has been monitoring the developments over theyears. “Since 1980, information communicationtechnologies (ICTs) have been transformingtourism globally, creating applications andsolutions often termed as eTourism.”Social media and mobile technology, forexample, are fairly recent innovations that willhave a huge impact on tourism. Holiday tips from friends worldwide, interactivebookings and mobile travel guides at destinationswill become the norm in the coming years,according to experts at the World Travel Monitor.The dramatic success of smart phones, such as theiPhone and Blackberry, in recent years has createdexciting new opportunities for the travel industry.As many as 40 percent of international travellersown a smart phone with internet and e-mailaccess, and more than 40 percent of them alreadyuse their devices to get destination information.About 34 percent of business travellers and 26percent of leisure travellers use them to makechanges during their trips too, according to thelatest World Travel Trends Report.Car rental company, Avis has already made amove to mobile technology and AnthonyAinsworth, commercial director, Avis, revealsthere are more technological advancements forthe company in the pipeline.“Following the successful launch of the AvisiPhone application in August 2010, we arecurrently looking into further forms of mobiletechnology that will enable our customers tobook Avis car hire on the move. An update to theexisting iPhone application will be included inthese developments.”
Social networkingBoth mobile apps and social media are veryimportant to Avis, as they increase the number
of ways customers can interact with the brand.“Avis has been at the forefront of social mediaintegration within the travel industry,” explainedAinsworth. “We were one of the first companiesto launch a blog, now more than five years old, andour Twitter feed has one of the largest number offollowers of all UK Car rental companies.”Avis is not alone in embracing social networks.Jumeirah Group has launched a successfulFacebook room reservation tool and has rolledout a similar booking tool for its restaurants.Floor Bleeker, vice president of IT, JumeirahGroup, notes that the company is attempting toconnect its guests to local culture throughtechnology.“The recently opened Jumeirah Himalayas Hotelin Shanghai is the first hotel to have DestinationExplorer, an in-house developed application thatwill help our guests to explore Jumeirah-curatedlocal experiences straight from a touch-enableddevice like Surface, Touch TV or tablet. We willsoon launch Destination Explorer, as well as aJumeirah app, in other locations as well.”The hotel group has also focused on implementingcentralised enterprise platforms and globalinfrastructure to support those platforms. Thisincludes systems such as CRM, financials,procurement, Human Resource ManagementSystems (HRMS) and business intelligence.“We are currently working on a few excitingguest-facing projects as well. Through apartnership with our local telecom provider, weare implementing Telepresence in five countries,”Bleeker explains. “This highly advanced form ofteleconferencing will give our guests the sense ofbeing in the same room even if they are actuallyon different continents.”The list of available technologies of which traveland tourism companies can take advantage is vast.RFID, sensor integrated environments, LEDlighting, prefabricated buildings, nanomaterialsand plastic electronics are just the tip of the iceberg.
Sustainable tourismAvis now claims to be a carbon neutral companyand is committed to updating its fleet of vehiclesto reduce the amount of CO2 emissionsproduced, according to Ainsworth.“In recent years we have worked hard to provide
our customers with greener options includingthe launch of Avis Eco, a fleet of Diesel-onlyVolkswagen Golf Bluemotions, and the additionof the Mercedes BlueEfficiency E-Class to theAvis Select Series fleet.“Technology is going to continue to be vital tothe future of travel, from the development ofalternative fuels for aircraft, through tocontinuing to develop communication tools tohelp customers have a better experience with thebrands that they use. Robots will have their partto play too, having already demonstrated theirabilities in mobility, voice recognition andspeech skills in Sheraton Grande Tokyo BayHotel as far back as 2006.Robots will be supporting a number of functionsin the hospitality industry in the future,” Buhalisexplains. “These may be housecleaning tasks,serving or providing special services. To thedegree that interactivity with robots isdeveloping, we will see more robots serving us.Also, in countries where hotels have a lack ofprofessionals, robots can be a solution to providethe service that is needed but personal service byfriendly staff is always preferable.”It is unlikely that robots are going to take over thetourism industry anytime soon, though.The main reason Jumeirah has such a largenumber of returning guests is down to its staff,according to Bleeker.“Technology is not going to replace them.Technology will help our colleagues to focuseven more on the excellent guest services that weare known for.”
Future Tourism UnveiledTechnology is constantly evolving and with it, industries continue to evolve too. Be it through social media, sustainabilitytechnology or robotic hotel receptionists, technology will dramatically change the future face of tourism, as Travel TradeMonthly discovers.
Duncan MacRae writes
Robot receptionist
ordan, a wondrous mix of mountains,woodlands and expansive desert, withremnants of ancient civilizations, isteeming with opportunities forexploration.
It was ranked as eighth out of 16 countries in theMENA region for its travel and tourismcompetitiveness in the Travel and TourismCompetitiveness Report 2011, released on March6 by the World Economic Forum (WEF).However, feeling the country warrants muchmore recognition as a premier place to visit, theJordan Tourism Board ( JTB) is taking freshinitiatives to encourage tourism to both Jordan’scities and its expansive natural landscape.With biosphere reserves across Jordan promotingsolutions for the conservation of biodiversity withits sustainable use, the country looks likely tocontinue its trend for environmentallyresponsible tourism. Endorsements and offerings of eco-tourism havebeen widened, including adrenaline filled sports,while the extensive array of luxury resorts andhotels across the country are making moves toimprove their sustainability. The city of Aqaba, which is yet to fully capitaliseon its potential as a tourism destination, is hopedto follow suit with initiatives of sustainability andconservation.Haifa Abu Ghazaleh, minister of tourism, Jordan,has a strategy for Jordan’s travel and tourismindustry which seeks further opportunities in
eco-tourism as well as other popular areas,including medical and domestic tourism. TheJordan Rift Valley lures visitors not only for itsdramatic beauty and historic resonance but alsofor the medicinal value of the Dead Sea’s mineralenriched mud. The tourism industry continuallypushes to capitalise on this market with its top-rated wellness resorts. In addition, while many travellers visit Jordan forpopular attractions such as Petra and Wadi Rum,the country is rich with historical and religioussites. According to JTB, visitors to religious siteshave registered an increase in 2010.With so many leisure sectors being catered for, aswell as countless options for business and MICEmarkets, Jordan looks set to strengthen itstourism industry as soon as normality resumesin the region’s market overall.
HotelsHotels in Jordan have reported an impact onoccupancy from instability across the MiddleEast. The blow spans the entire market. However,a belief that Jordan is safe from huge scalepolitical and social unrest, along with a strongfocus on procuring tourism, has led to an air ofoptimism, albeit with a dose of caution. Gregoire Salamin, general manager,InterContinental Hotel Jordan, commented thatbusiness is volatile. “We estimate that occupancyin Jordan has been affected by 20 percent.Expectations for the rest of the year are cautious.”Visitor markets for the hotel include Europe,America and the GCC. Salamin noted that ahuge portion of business is being lost due to thetrend for package bookings. Tours to Jordan arebooked in combination with Egypt, Syria andLebanon, and due to political protests andsecurity concerns in these countries, entirepackages are being cancelled. Naji Alia, CEO,Belle Vue Hotels Middle East, commented onthe extent of cancellations. “50 percent ofbookings [to Belle Vue Hotel, Ammam] havebeen cancelled by travel agents.” Alexander Bieber, general manager, SheratonAmmam and area manager, Jordan, emphasisedthat protests in Tunisia alone had no effect on
JUNE 20114
- Jordan
Jordan in BriefCapital: AmmamCurrency: Jordanian Dinar ( JOD)Language: Arabic
The Drive for Eco-adventure and WellbeingDespite unrest across the MENA region, Jordan is making progress in marketing the country as still safe to visit, albeit full ofthrilling and precarious adventure activities. Jordan’s mesmerising landscape and numerous attractions have pulled in a mixof domestic, regional and long haul visitors and it strives to improve its status further. Travel Trade Monthly assesses Jordan’stourism industry and its revived strategy towards becoming a prime destination of choice.
Marianna Keen writes
J
We arestressing onpromotingJordan as astand-alonedestinationwhere we
have a lot tooffer
business in Jordan, but that impacts have beenmeasurable since the events in Egypt on January25. He also suggested that misleading mediacoverage is partially to blame for negativeperceptions of Jordan’s current situation.“Especially during February and March, smalldemonstrations received – unfortunately –disproportionate media coverage.” Hakam Barakat, general manager, Toledo Hotel,displayed confidence in Jordan’s security. “Thesituation in Jordan remains stable and personallyI believe it will remain as such.” However, in spite of the circumstances in Jordan,the situation in close by regions is displacingtravellers elsewhere. Barakat reported thatoccupancy at Toledo Hotel has dropped 25-35percent compared with the same period in 2010.In an effort to adapt to the current threat to theindustry and minimise the effect on revenue, thehotel is exploring new channels and intensifyingmarketing efforts. It also has a strongsustainability scheme and was reportedly the firstindependently operated hotel in the Middle Eastto receive the Green Key certificate, qualifiedthis February. InterContinental Jordan has alsostarted the Green Key certification process. In2010, the hotel’s Premium Wing was equippedwith a grey water system to recycle soft water andenergy and water saving devices were installed.Sheraton Ammam has also incorporated manygreen initiatives, including fitting LEDs or
energy saving bulbs, installation of motiondetectors to control lights, eradication ofpolystyrene use and influencing suppliers to usefewer pesticides on their products. Incollaboration with a local company, EntityGreen, the hotel also piloted a recycling
programme that has been rolled out acrossJordan. In 2008, researchers at Hashemite Universityfeatured an article in Energy Conversion andManagement, which indicated that more than 75percent of hotels were not using solar waterheaters. Since then, the adoption of solar energyhas spread. In 2009, the Jordan Valley MarriottResort & Spa completed the installation of 275solar panels, enabling the resort to officiallyswitch to solar panel energy.Some hotels are attempting to bring aboutawareness from guests as well as influence theirbehavior. Meg Evans, country director of salesand marketing, Marriott hotels, Jordan, enthusedthat the group is asking guests to help it in itsgreen plight by not replacing towels and linen ona daily basis. Hotels are considering the effects their actionshave on the environment in a number of ways.Evason Ma’in Hot Springs & Six Senses Spa, hasinitiated a project that will facilitate it to accessnew markets and widen recognition of Jordan’spristine wilderness. Alaa Al Arfah, director ofsales and marketing, Evason Ma’in Hot Springs,gave details.
5JUNE 2011
- Jordan
The presentbusiness
trend tendsto show a ratherserious
impact onleisure
and toursactivities
with morethan a
25 percentdrop involume
projectionsfor 2011
Coral SadeenAmman Rotana Hotel
“We are setting up a new project with the themeof ‘luxury camp in the middle of nature,’ whichwill give more exciting experiences to our guestsin Wadi Rum and the Jordanian desert.” As seenacross the country, the hotel has experienced adecrease in occupancy, predominantlyEuropean, Russian and GCC markets.Another resort hotel, Holiday Inn Dead Sea, hasalso registered a severe impact from unrest in theregion. Jean Baptiste Pigeon, area generalmanager, Holiday Inn, Jordan elaborated onfigures. “The present business trend tends toshow a rather serious impact on leisure and touractivities with more than a 25 percent drop involume projections for 2011.” The hotel’soccupancy has been balanced between local andregional business sources and international(predominantly European) visitors, thoughdomestic tourism may well be boosted given thatSyria was previously a top travel destination forJordanians, with many now prompted to stay inJordan. In the meantime the hotel continues tofulfill its Corporate Green Engage initiatives tofurther improve the hotel’s environmentalresponsibility and attractiveness to stakeholders.Marc Guenther, general manager, Kempinski
Hotel Aqaba, identified that since politicalturmoil in the region, slight demographic shiftsare evident. He remarked that the hotel is constantlydiscovering new markets and opened a new spain April. Meanwhile, Kempinski Hotel Ishtar hasinitiated a new programme offering day use of itsfacilities. Golden Tulip, Airport Ammam iscurrently under full renovation, with work dueto be completed by the end of July.Jurgen Ammerstorfer, general manager,DoubleTree by Hilton Aqaba, added to
approaches in the current conditions, saying thatthe hotel is creating promotions to stimulate andattract the local market. Rum Group hotels haverevealed that even corporate business fromdiplomatic and United Nations (UN) clients hastaken a drop, and as part of its strategy to adaptit is building an online booking system which isexpected to be ready in June.
DevelopmentsThe latest development within theInterContinental Hotels Group in Jordan will bethe addition of the Crowne Plaza Jordan DeadSea set to open in late this year. A new Marriotthotel is expected to open on schedule in 2013and Starwood Hotels and Resorts Worldwideplans to open the St. Regis Ammam, the first St.Regis hotel in Jordan, in 2014.Rotana will be managing two properties locatedin Abdali New Downtown, the new urbanregeneration project in Ammam. BoulevardArjaan by Rotana is scheduled to open in 2012and Ammam Rotana Hotel is set to open by theend of 2012. Amal Harb, corporate vice presidentmarketing, Rotana Hotels, commented onprogress. “[Unrest] has caused a slight delay withprojects across the region, however, we are goingahead with our plans.”Abdali New Downtown, positioned as the futurebusiness district of Ammam, will cover morethan 1.7 million m2, with 55 percent of projectscurrently under construction in phase one. Thefirst sectors of phase one are estimated to beopen to the public by mid 2012, with theremaining sectors to be completed by the end of2014. Abdali claims it will increase Ammam’shotel capacity by more than 2200 rooms. Inaddition to Rotana, the first phase will include WHotel, 400 luxury serviced apartments and manyentertainment options.Aqaba, named Arab Tourism Capital 2011 bythe Arab Tourism Ministers Council, is itselfgoing through a significant amount of change.
JUNE 20116
- Jordan
With the increasein facilities in Jordan,such as theexpansion
of the airport and the
number ofhotel rooms,our marketwill become
moreattractive toindividuals
andbusinesses
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IT’S YOUR TURNTO FEEL THE THRILL
JUNE 20118
n
- Jordan
The city provides several luxury brands includingKempinski and InterContinental, with Marriottsoon to join them. Establishment of the AqabaSpecial Economic Zone has helped to spurgrowth however, in terms of tourism it is in itsearly stages.
ToursDespite the number of package cancellations,several tour companies provide a plethora ofopportunities to adventurous, sports-mad, andeco-concerned travellers once they arrive.Dakkak Tours offers four different ecoprogrammes combined with soft adventure aswell as many adrenaline filled sports includingtrekking, rock climbing, canyoning, horse riding,and camel safari. In light of falling revenue acrossthe industry, Ziad Dakkak, CEO, Dakkak Tours,suggested a change in focus on Jordan’s strategy.“We are stressing on promoting Jordan as astand-alone destination where we have a lot tooffer.” A diverse portfolio and readiness to adaptare proving beneficial to the company.Al-Jazeerah Travel and Tourism has found thatoutbound travel is best withstanding the currentthreat to the industry. Internationals who visitare escorted by tourist police to ensure security.Although the company offers eco and adventuretours, demand is low, remarked Ibrahim AbuZannad, marketing manager, Al-Jazeerah Traveland Tourism. “Royal Society for the Conservation of Nature(RSCN) does not offer special rates for travelagencies (RAK rate), which does not encourageus to promote those products.”Although further promotion could help to furtherthe sector’s environmental impact, Jordan standsas an eco-tourism leader in the region. RSCN,with its eco-tourism implementing division, WildJordan, spearheaded the trend, and won theGuardian-Observer Ethical Travel Award for2010. According to RSCN, more than JD1.5million (USD2.1 million) was generated fromeco-tourism activities in Jordan’s differentreserves in 2010, excluding Wadi Rum. As thenumber of tourists to Jordan’s nature reservesincrease, economic conditions of local
communities around the reserves have boomed.Jordan houses eight nature reserves, whichcontain different ecosystems. The number is setto rise to 16, three of which will be launched thisyear: Qatar, Fifa and Jabal Masouda. Yehya Khaled, director, RSCN, highlighted thatdespite the booming eco-tourism industry,protection of Jordan’s nature reserves is facedwith obstruction. “The major challenges we seekto address are people’s view of reserves asobstacles to development projects, the need toregulate land use around the reserves as well asresources for sustaining its infrastructure andsocio-economic projects.” He added thatJordan’s reserves lack employees specialised inthe management of such areas.
Air travelAirlines, too, are experiencing the squeeze ondemand spanning from private aviation tochartered airlines. Petra Airlines cancelled some flights, whileothers have been rescheduled to adapt to thesituation. Marwan Shennara, director ofcommerce, Petra Airlines highlighted theimpact. “2011 is witnessing a 25 percent dropversus 2010.” The airline, which has a long-termplan of becoming a low-cost carrier (LCC) istargeting Europe. “With the increase in facilitiesin Jordan, such as the expansion of the airportand the number of hotel rooms, our market willbecome more attractive to individuals andbusinesses,” added Shennara.Arab Wings private and executive charteroperations based in Jordan have also noted cutsin demand since a lot of its clients are from Cairo,Damascus, Lebanon and other areas affected byunrest. Manal Obeid, head of sales and marketing,Arab Wings, emphasised the expansion plans ofthe business despite the fall in demand. “We arein the process of opening the first maintenancecentre for business jets in Jordan.”Amid detrimental affects in the travel industry,
easyJet’s reasonably new London to Ammanservice represents tremendous opportunity toposition Jordan as a destination for budget-conscious travellers from the UK and the rest ofEurope. The airline reports it could also offerservices from France and Switzerland if demandis strong enough.
Pushing forwardThe Travel and Tourism Economic Impactreport for Jordan, 2011, released by the WorldTravel and Tourism Council (WTTC) onFebruary 14, indicated that leisure spendingconstitutes 91.2 percent of spending on traveland tourism in Jordan, with only 8.8 percentattributed to business spending. This indicatesthat the significant reduction in leisure travel isa mammoth loss to the industry. A figure of 89.7percent was given for foreign visitor spending,indicating that a boost in domestic tourism couldset profits back on track.Eco-tourism linked with adventure is evidentlyleading the way to boost Jordan’s tourism, whilea strategy to promote medical and wellness basedvisits appear a suitable fit in the responsibletourism mix. Eco-tourism may be increased bystrengthening promotions for eco tours; whilesustainability in the market will requirecontinually increasing awareness from visitors,tourism players, suppliers, manufacturers etc. In order to capitalise on Jordan’s tourism markets,of course regional conditions are required toimprove. It is the profound contrast of the wealthyand powerful with the poor and dispossessed thatcreated the surge for recent protests in Jordan,pushing for more equal distribution of wealth.This is something that needs to be recognised andaddressed in order for the country to moveforward. Jordan’s tourism industry is clearlyfocusing on heritage and the environment, whileaddressing pressing local and global concerns, andthe hope for many Jordanians is that they will alsobenefit from efforts.
King Hussain Hilton
W hile protesters on thestreets are appealing fordemocracy, better livingconditions and betterleadership, the economy
has all but ground to a halt in Syria. DespitePresident Bashar Al Assad’s previous apparentinterest in reform, media shows him to haveresorted to a devastating option for both civilians’and industries’ wellbeing. The InternationalMonetary Fund (IMF) in April downgradedSyria's 2011 growth forecast to three percent from5.5 percent, with detrimental effects of the chaoshaving spread to all sectors, including tourism.In December 2010, Syrian prime minister,Mohammad Naji Otri and Lebanese minister oftourism, Fadi Abboud, reviewed means ofenhancing the Syrian-Lebanese cooperation toserve the best interests of the two countries;however given the escalation of Syria’s struggle,tourism has taken a spot on the backburner. It is not just current instability that has raisedconcern surrounding the industry. According tothe Global Competitiveness Report 2010-2011,from the World Economic Forum (WEF),released on September 9, 2010, Syria's tourismindustry became less competitive last year.Among the 16 Middle East and North Africa(MENA) countries surveyed, Syria was ranked13th most competitive, with only Iran, Algeriaand Libya positioned lower. However, Syria'stourism industry ranked relatively well in termsof price competitiveness, coming 51st in theglobal ranking out of 139 countries.According to the WEF report, the shift towardsa green economy has accelerated significantly.The international community has increasinglyrecognised the need to deal responsibly withclimate change in cohesion with other globalchallenges such as extreme poverty andeconomic volatility, while preparing for thefuture. Syria may well have located the right pathin preserving its unique ecosystems and reachingsustainable solutions, but capitalising on this willneed to wait until it has reached goals in otherareas of prosperity in the country.In light of recent changes in government, Lamia
Assi is the new minister of tourism for Syria. Ithas been suggested that she should encourageinvestment by taking some tips from Turkey,namely by offering investors free land andsubsidised financing for a large portion of thetotal cost of a project. Stronger leadership,further investment and the address of protesters’requests will need to be achieved for tourism toresume; and the travel industry may well be themarket to provide jobs and better livingconditions if not democracy.Archaeological sites, cultural tourism, eco-tourism and religious tourism are all likely toresume their attraction to European visitors aftersome kind of stability and security is achieved.
Hotels and ToursThe hotel and tour industries in Syria have beenshocked by the significant reduction in tourismsince protests broke out and news of violence wasdisseminated across international media. Someindustry players are benefiting from a diverseproduct offering, while others across the boardare looking to exploit whatever markets they can.Abeer Yousef, quality and customer care manager,Julia Dumna Group, highlighted the scope of Syria’sattraction across cultures. “Syria, has many culturesand that is why it is suitable to most nationalities.”Inbound packages have been affected, which Yousefattributed partly to disinformation in the media
about the political and civil situation. “The mediais still playing a big role in spreading fakeinformation about the real situation that we arepassing through.” He expressed that internationalmedia is misleading with regard to governmentefforts, and is cultivating negative perceptions. “Ourgovernment is working really hard to get out of thisbad situation safely,” he added.Sharif Al Ferm, managing director, Dawn Group,agreed that media is exaggerating the situation.“I think they [international media] are playing anunethical and unprofessional game.”Some encouraging figures may well remain ingovernment but the problem remains that thereis no obvious coherence or affective leadership,and the agenda of elites that influences theoutcome is not profiting civilians. With media sooften influenced by elites, people around theworld are left unsure of the facts. Whatever thetruth, the country’s economy, its tourism and itspeople’s livelihoods are at stake. Zein Sarmini, operations manager, Levant SansFrontières, highlighted the extent of the impactcurrently being experienced by the tourismindustry in Syria. “Travel trade has been hit very badly in Syria tozero demand. Not a single package can withstandthe threats to the industry.”In spite of the scale of the situation, NaramOmran, director of public relations, Four SeasonsHotel Damascus, remarked on the positiveattitude taken towards recovery of the industry.
JUNE 201110
- Syria
Striving for an Identifiable AgendaSyria’s hodgepodge of cultures, religions, sects and traditions, as well as its colourful and anguished history with countlessremaining historical sites, have attracted worldwide visitors. Nevertheless, an identity struggle has persisted and a current plightfor democracy has shifted the country into disarray. Today’s Syria is a fascinating place, albeit unstable, with potential to reviveits languished image through developing its faltering travel and tourism industry. Travel Trade Monthly investigates the outlookfor Syria’s tourism market.
Marianna Keen writes
Syria in BriefCapital: DamascusCurrency: Syrian Pound (SYP)Language: Arabic
Krak des Chevaliers
The media is still playing a big role in
spreading fake informationabout the real situation that
we are passing through
Krak des Chevaliers
Krak des Chevaliers
“We saw a general decline in occupancy comparedto 2010 but we continue to be optimistic aboutthe recovery of our business later in 2011.” Headded that both leisure and business markets havebeen equally affected and visits from its mainmarkets in the Middle East have been reduced byrecently imposed travel advisories.The cancellation of trips to Syria increased aftersome countries issued travel advisories warningtheir citizens against going to Syria while unrestprevails. This has affected the entire region andis unlikely to resume to normality until stabilityis evident. “The hotels in Syria were verycooperative [regarding group cancellations],andno one asked for a no show penalty due to forcemajor,” added Sarmini.In light of the stagnant market, Dawn CreativeTours is attempting to develop domestic tourism.“This development is a trial from our side to dosomething to overcome the shortage of demandfrom other markets abroad,” expressed Al Ferm.He added that so far, the market to best withstandthe threat on the industry is corporate travel.The focus across the hotel and tour industries ison improving conditions for when stabilityresumes, including looking to the future oftourism. “We are using most of our time fortraining, upgrading the software and looking fornew packages to be ready for the future, like ecotourism packages,” added Al Ferm.British ethical tourism group, ResponsibleTravel.com,sells tours and accommodation in a range of MiddleEastern countries including Yemen, Palestine,Oman, Iran and Syria. An Egypt-based holiday topstheir 10 year charts, with Turkey coming second,signifying positive business for Syria in eco-tourism.
DevelopmentsIn order for the tourism industry to prevail, thesecurity and contentment of employees workingin the field are paramount, particularly to levelsof hospitality achieved. Omran expressed thatthe Four Seasons Hotel Damascus has investedin the wellbeing of its employees. “We haveenhanced the hotel’s employee experiencethrough the full renovation of the staff restaurantand the opening of an employee lounge.”Julia Dumna Group is set to launch Julia DumnaHospitality Academy as well as the soft openingof its new hotel in Aleppo: both promisingdevelopments for the industry and the economy.InterContinental Hotels Group plans to openHoliday Inn, Damascus in Syria this year, whilethe four-star Four Points by Sheraton Tartous isscheduled to open on July 1. It will be located inthe city centre of Tartous, Syria's second largestport city.
Air travelCommercial flights in and out of Syria areavailable throughout the world despite travelwarnings, although frequency of flights has beenaffected due to lacking demand. Michael Braun,spokesman, Austrian Airlines, emphasised thestability of operations in Syria. “The situation inNorth Africa is different to the one in Syria. Wehave safe flight operations in Syria.”Austrian Airlines’ service of five flights per weekto Damascus is promising towards the revival oftourism from Europe. “Tourists’ safety is a keyelement for a prospering travel industryeverywhere in the world. In the long run, webelieve in this market since Syria is such abeautiful and interesting country,” added Braun.Although potential tourists are discouraged by newsof violence in Syria, as well as by visa restrictions fortravel into Syria (especially for those coming fromoutside the Arab world), available flights areawaiting the return of more passengers.The future for Syria’s tourism in the comingmonths and coming years is unpredictable.Businesses across the board are preparing as bestthey can for conditions to improve, while theyapprehensively await the moves of the Ministry ofTourism and the outcome of clashes betweencivilians and the Assad regime. The situation is likely to take some time to settleeven when a degree of agreement and democracyis achieved. Given room to manoeuvre, tourismcooperations between Syria and Lebanon mayresume. Previous plans on the table includedimproving the quality of tourist products anddeveloping tourism services to enhance the roleof tourism in the country’s development process.Good relations and cooperation with Turkeymay also lead to positive developments in thetourism industry.According to the Travel and Tourism EconomicImpact Report, Syria, 2011, released by the WorldTravel and Tourism Council (WTTC) onFebruary 14, the total contribution of travel andtourism to Syria’s GDP is forecast to rise fromSYP412.7 billion (USD8.7 billion or 14.2 percent
of GDP) this year to SYP607.5 billion (USD12.8billion or 13.4 percent) by 2021. Tourism hasevidently contributed a lot to Syria in the recentpast. The report was released prior to uprisings inSyria, so the tourism outcome is unknown,however the report indicates it has potential. The WTTC report indicates that travel andtourism is expected to support directly 320,000jobs (4.8 percent of total employment) this year,rising by 2.7 percent per annum to 417,000 jobs(4.4 percent) by 2021. Travel and tourisminvestment is estimated at SYP39.9 billion(USD841.7 million) or 7.6 percent of totalinvestment for this year. In order to improve theSyrian economy and its tourism industry morequickly, the hope is that these will increase further.The Federation of Arab News Agencies reportedon May 5, that at a meeting with the board ofdirectors of Damascus Chamber of Tourism, Assicalled upon the tourist activities to increase theirrole in improving the Syrian tourist product andin conveying the true civilised image of Syria tothe world, in addition to attracting investments,upgrading quality and paying more attention tointernal tourism. She highlighted the importanceof the tourist sector in the national economy asit improves living conditions and provides jobopportunities. Delegates at the meeting agreedon the importance of the communication andparticipation in decision making, calling forreconsideration of prices and taxes in light of astudy to be prepared by the Ministry of Tourism.Preparations appear underway for Syria’s tourismto resume progress whenever possible. Damascusis a significant cultural and political centre in theArab world, while the country also offers anabundance of beautiful countryside and heritage,which will always offer interest to travellers fromacross the globe. Tourism players are investing in employees,quality assurance and sustainable development,which is likely to make the country even moreattractive to travellers. Syria may also be able tocapitalise further on the increasingly budgetaware traveller market.
JUNE 201112
- Syria
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Umayyad Mosque, DamascusPalmyra
JUNE 201114
- Sri Lanka
The end of the conflict in May2009 came along with relief aswell as further challenges for thetourism industry. Despite thecrucial economic times the
country was forced to keep relatively discountedprices to defy the favoured neighbouringcountries. This strategy has paid rich dividends.The industry has fast rebounded and touristarrivals increased with 2010 reaching an all timerecord of 654, 476 arrivals, along with a recordbreaking 46 percent year-on-year growth. The top generating region was Western Europe with256,861 arrivals; while from the Middle East37,540 tourists explored the country, with morethan 9,000 arrivals originating from the UAE andSaudi Arabia. The intensive influx continues well into this yearwith 215,124 arrivals registered in the first threemonths, representing a year-on-year increase of34.1 percent and forecasted record-breaking figuresby the end of the year. In 2010, average spends pertourist night increased from USD82 to animpressing USD87, and it is projected to grow toUSD97 this year, due to gentle price corrections.The government declared this year as the year oftourism. Malraj Kiriella, acting managingdirector, Sri Lanka Tourism, elaborated on thecomprehensive promotion campaigns, whichincluded the organisation’s participation at theArabian Travel Market (ATM) in Dubai.“Visit Sri Lanka 2011 marketing campaigncomes to life at a stage in which Sri Lanka isexperiencing the changing winds of new foundfreedom and gradually marching towardssecuring its due place in the world tourism map.By launching this campaign we hope to promotea range of vibrant experiences to the tourists whovisit our country and make their stay aneverlasting memory filled with much colour tocherish for a lifetime. We hope Visit Sri Lankayear 2011 will bring Sri Lanka tourism itsgreatest heights this year.”
AirlinesSriLankan Airlines, the national carrier, providesconvenient connections to several destinationsin the Middle East, including Abu Dhabi,
Amman, Bahrain, Damman, Dubai, Jeddah,Kuwait, Muscat and Riyadh. In addition, anumber of airlines operate flights from theMiddle East to Colombo, namely Emirates,Etihad Airways, Qatar Airways, Gulf Air, KuwaitiAirways and Royal Jordanian.Colombo’s profile is undoubtedly on a rise,emphasised Basel Kilani, media director, RoyalJordanian. “Passengers travelling betweenAmman and Colombo fly on the route formultiple reasons: business as well as leisure. Wepredict strong growth this year due to an increasein capacity. The fourth frequency to Colombostarts this summer due to the growing demandon the route.”Gulf Air has re-commenced services betweenBahrain and Colombo in October 2010. Thesuccess of the route has exceeded expectations.Karim Maklouf, chief commercial officer, GulfAir, commented on the service.“Since then we are witnessing 80 percent seatload factors. There are hundreds of passengersfrom Bahrain, as well as from the GCC countries,visiting Sri Lanka on leisure holidays or visitingfriends and relatives. In addition, Gulf Airprovides excellent connectivity via its Bahrainhub to the vast Sri Lankan diaspora living andworking in Europe and North America. Becauseof our strategic location at the doorstep of SaudiArabia, our Colombo service has been wellembraced by the Sri Lankan businesscommunity as they can reach out not only to thebusiness of Bahrain but also to the multi-milliondollar business market of Saudi Arabia.”The recent frequency and capacity increaseunderscore Sri Lanka’s revival.“Effective May 17, flights between Colombo andBahrain increased from seven to eight per weekwith a 14 percent added seat capacity to meet theincreasing demand during this summer season,”concluded Maklouf.
HotelsThe lower prices at the beginning of the post-warperiod have since then gradually been altered,heralding a new era of the Sri Lankan hospitalityindustry which has fast gained upon the regionin terms of pricing. Colombo’s five-star hotel
rates climbed higher than in Bangkok, due tomomentous increase of about 40-60 percent in20 months. However, industry specialists warnabout further price rises without notableimprovement in both services and quality. In summer 2010, around 1,000 hotel rooms wererefurbished, and massive renovations areplanned for this year as well, along with newhotel brands’ forays into the island, includingShangri-La Asia which is poised to launch twonew properties. The 500-room luxury hotel inColombo plans to welcome its first guests in2014, while a 300-key city resort in Hambantotais scheduled to open in 2013. Greg Dogan, president and CEO, Shangri-LaInternational Hotel Management, commentedon the new properties.“Sri Lanka is a country of unsurpassed naturalbeauty, rich in cultural heritage, and above all it iswell recognised for its warm and hospitablepopulation. The local government is fullycommitted to rebuilding the economy followingthe end of three decades of conflict and we believethat Shangri-La will be able to assist in positioningthe country as a prime global tourist destination.”In addition, both Marriott and Hyatt are said tobe eager to develop a hotel each in Hambantota.Daniel Ford, executive director ofcommunications, Asic Pacific region, Marriott,confirmed that the company is deliberatinginvestment.“We are interested in Sri Lanka and currentlyconsidering a number of opportunities forseveral of our brands.”
The Hidden Gem of the Indian OceanDue to the harsh impact of the civil war, Sri Lanka has been long outshined by its neighbours. In the post-war period theprospects for tourism has altered and the island is now rapidly becoming a bustling tourist hotspot with arrivals increasingdramatically. The government has declared this year as the year of tourism and aims to turn Sri Lanka from a hidden gem tothe true pearl of the Indian Ocean.
Rita Kasziba writes
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Sri Lanka in BriefCapital: ColomboCurreny: Sri Lankan Rupee (LKR)Language: Sinhala, Tamil
Colombo
JUNE 201116
Travel Talk is your space – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear fromyou, so send your comments, questions, frustrations and observations to [email protected]
Michael ScullyManaging Director Hospitality, Seven Tides
“Guests in the future will be more inclined to favour an authentic culturalexperience, entertainment, ambience as well as creative food and beverageinitiatives. These aspects need to come through a flexible design to create anoverall experience that would be memorable by being different. Gulf hotelspresently focus too much on capturing western demand while reacting slowlyto the growth potential in the booming economies in Asia and the Far East.Innovative design will be essential if hotels here are to create newopportunities to exploit more niche markets and by doing so, broadeningtheir overall appeal.”
Ashraf HelmyGeneral Manager, Iberotel Emirates Grand Hotel
“We would like to introduce our hotel as the newly opened businesshotel along Sheikh Zayed Road that will stand as an icon of warm MiddleEast hospitality. We have well appointed rooms with well equippedkitchens, spacious bedrooms, large lounge and a dining area that canaccommodate up to six people. Business men and women who aretravelling with their families will be staying comfortably at our hotel.”
Innovative design will be essential
if hotels here are to create new
opportunities to exploit more niche markets
Michael Scully
We would like to introduce our hotelas the newly openedbusiness hotel alongSheikh Zayed Roadthat will stand as anicon of warm Middle
East hospitalityAshraf Helmy
17JUNE 2011
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A survey commissioned byorganisers of the Arab HealthExhibition & Congress,suggests the UAE is among thetop 20 medical tourism
destinations in the world.Of the 35 countries identified in the survey asbeing significant healthcare tourism providers,India was ranked as the number one destination,with Thailand and Singapore positioned atsecond and third places respectively, while theUAE came in at number 11.Some of the reasons given by survey respondentsfor why patients travel abroad for medicaltreatment are accessibility, better quality andavailability. Perhaps the main reason, however, isaffordability.A heart bypass in the US, for example, could costbetween USD70,000 and USD133,000 but the
same operation could be priced at USD7,000 inIndia or USD22,000 in Thailand.Likewise, a hip replacement in India, Malaysia,Singapore, South Korea or Thailand can cost aslittle as a fifth of what it would in the US. Manymedical tourists are also going abroad for plasticsurgery treatment. A face-lift, priced up to USD16,000 in the US,can cost as little as USD2,400. Dental care is alsoproving to be a popular sector of medicaltourism, particularly in Costa Rica, Hungary,Mexico and Thailand, which are quickly gaininga reputation for high-quality dental work at lowcosts.The medical tourism sector is currently worthmore than USD60million and is expected to beworth about USD100million by 2012, provingthat it is an aspect of tourism worth takingseriously.
Prem Jagyasi, an experienced consultant in thehealthcare travel sector, conducted the recentsurvey. He believes medical tourism is set forsteady growth.“Medical tourism can offer huge benefits in termsof quality of service and its affordability. Theindustry is set to grow enormously over the nexttwo decades as more and more destinations openup to patients from overseas.”
Medical Tourism Looks HealthyThe outlook for medical tourism has never looked so healthy and, with a fine collection of state-of-the-art hospitals and highlyskilled medical staff, the Middle East is one of the more popular destinations when patients opt to travel abroad for theirhealthcare needs.
Britain’s Royal Wedding drew theattention of the world’s media inApril, as well as that of plenty oftourists who were keen to witnesshistory in the making first-hand.
The ceremony was just one of a handful of majorevents that the government and tourism agency,VisitBritain, hope will get Britain’s tourism tradeback on track after the global recession caused itto falter.The Queen’s Diamond Jubilee this month,followed by the Olympics and Paralymics to beheld in London in 2012, provide furtheropportunities to boost the tourism industry.By the end of this year, Britain will have attracted300,000 more visitors than it did in 2010,according to statistics from VisitBritain.The number of inbound travellers is expected tobe 30 million, and the amount they spend during
their holidays is set to increase to GBP17.2billion (USD27.7 billion), up GBP0.34 billion(USD0.5 billion). These figures will likely beeven higher in 2012. VisitBritain has been leveraging the major eventswith the roll out of a multi-million pound globalmarketing campaign that could revitalise theimage of Britain in the core markets of Americaand near Europe and build awareness of allBritain has to offer in developing tourismmarkets such as India and China.Concerns have been raised, however, that theevents could come and go without Britain’stourism industry taking full advantage of them.Ufi Ibrahim, chief executive, British HospitalityAssociation (BHA), expressed concern aboutthe UK’s high level of VAT, compared with thelow rates charged on accommodation by otherleading European countries.
“This puts the UK at a severe competitivedisadvantage, which is damaging UK tourismeven harder since the rise in VAT to 20 percent– the third highest in the EU.In competitive terms, UK tourism is operatingwith one hand tied behind its back, and this willbecome ever more damaging if we don’t dosomething about it.”
MarketingBudget hotel chain, Travelodge, also raised concernsover tourism marketing towards the end of 2010.The company is investing GBP140 million(USD225.1 million) in an effort to make it London’slargest hotelier in time for the 2012 Olympics,although Grant Hearn, CEO, Travelodge, feels morecould be done to promote the games.“I am a firm believer in the great opportunityprovided by this magnificent event but there isno real plan to make the most of the commercialbenefits that the games can offer tourism.”Nevertheless, VisitBritan believes that plenty isbeing done to attract visitors. Carol Maddison,manager, VisitBritain UAE, notes that theorganisation has launched an online mediacentre in both English and Arabic to facilitate themedia with regular updates on events and whatis happening in Britain.“The Royal Wedding provided a fantastic warmup to the 2012 Games, providing an idealspringboard for our ‘Britain You’re Invited’marketing programme and giving us a taste ofwhat the summer of 2012 holds in store. One ofour biggest challenges in destination marketingterms is to use the Games to successfullyshowcase the country to new audiences inemerging markets.”The British tourism industry has also respondedextremely positively to the Government’schallenge last summer to create a marketing fundof more than GBP100 million (USD160.8million) to boost tourism around theforthcoming big events, according to Maddison.
JUNE 201118
- UK
UK in BriefCapital: LondonCurrency: British Pound (GBP)Language: English
UK’s Fun and Games Attracts Visitors The United Kingdom (UK) hopes to reap major financial rewards from hosting the Olympic Games in 2012 but experts havewarned that its tourism and hospitality sectors stand to lose out on the full benefits unless they can become more competitive.Travel Trade Monthly looks at what can be done to leave an Olympic legacy for the industry.
Duncan MacRae writes
Incompetitive
terms, UK
tourism isoperatingwith onehand tied
behind its back, and this
will becomeever moredamaging
if we don’t do
somethingabout
it
The four-year marketing campaign aims toeventually deliver one million extra overseas visitorsper year, GBP2 billion (USD3.2 billion) morevisitor spending in the UK and 50,000 new jobs.Companies including British Airways, DFDS(ferries), lastminute.com, P&O and RadissonEdwardian have pledged cash and payment inkind to help match the GBP50 million(USD80.4 million) of public money alreadycommitted by VisitBritain. British Airways experienced a sharp growth incustom around the date of the Royal Wedding,especially from New York, Boston,Washington, Los Angeles, Miama andSan Fransisco. Closer to home, therewere increased passenger numbersfrom Edinburgh, Glasgow, Paris, Nice,Munich and Berlin. The airline expectsa similar boost in business around thedates of the Olympics too.In March, low-cost carrier easyJetbecame one of the latest companies tosign up to VisitBritain’s marketingcampaign to boost UK tourism.Carolyn McCall, chief executive,easyJet, is excited about the potentialboost to the industry that the OlympicGames could have.“Over 300 million Europeans live withina one hour drive of an easyJet airport andthis partnership will help easyJet bringeven more visitors to the UK.”
Positive impactLuca Virgilio, general manager,Baglioni Hotel London, feels thatBritain and London are beingpromoted in the right ways.“We feel very positive on the businessoutlook these events will bring toLondon as a destination. The impact ofthem is definitely very positive as theyare putting London as a destination onthe map in different ways – heritage,fashion and beauty through the RoyalWedding and, of course, sporting eventsthrough the Olympics. I definitely feelthat the impact will be stronger in thelong-term because many people haveactually deserted, and will desert, thedestination during these heavy periodsin order to avoid overcrowding.”In particular, Virgilio expects the eventsto entice more visitors from the MiddleEast and North Africa, with visitorsfrom these areas already accounting for20 percent of the hotel’s guests.
“That will remain one of our main feeder marketsand we see a lot of new potential in the Africancountries where, at the moment, we feel we areonly touching the tip of the iceberg.”Despite concerns the BHA has raised in the past,it feels Britain’s tourism industry is in a positionwhere it can take full advantage of any increasein visitor numbers.Miles Quest, publicity officer, BHA, points outthat the hotel industry has constructed morethan 1,500 new-build hotels, with more than100,000 rooms over the past eight years.
“This investment has been well over 25 billion.No industry could have done more to face up tothe new demands being made on it. And therestaurant sector, with more than 130 Michelinstarred restaurants has transformed itself.”How successful the Olympic Games andParalympics will really be for Britain’s tourismindustry is down to the industry itself, accordingto Maddison.“Britain is on show, so we must make sure thatwe provide a quality product with a qualityservice.”
19JUNE 2011
- UK
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W ith 25.7 million visitorsin 2010, LA remains oneof the world’s mostsought-after destinationsand retains its position as
the second internationally most visited city in theUS, where nearly one in five tourists come fromabroad, indicate LA Convention and VisitorsBereau (LA Inc) figures. Tourism-relatedindustries established themselves as primeemployers with about 437,000 Angelenosworking in the sector. Another striking figure isthe visitor spending that totalled USD13.1billion, 10.4 percent higher than in 2009, whichcan be attributed to the steadily mending financialenvironment. Michael McDowell, senior director,cultural tourism, LA Inc., the metropolitan’sofficial tourism organisation, commented on thefigures.“We believe that the economy is slowlyrebounding and that there is a pent-up demand fortravel – particularly leisure travel. As the mostpopular destination in the western US, LA isbenefiting from both. We will continue workingwith LA World Airports, to maintain and expandLA’s role as the premier gateway to NorthAmerica. Besides our top overseas visitor markets,including Australia, UK, Japan, France, Germany,South Korea, China and Taiwan, we believe thatwe can significantly grow our market in theMiddle East, which represents an importantregion for us. Therefore, we will continue workingwith Emirates to promote its service between LAand Dubai through traditional and new media aswell as various promotions.”Mark Liberman, president, LA Inc., predicts atwo percent increase with an estimated 26.3million overnight visitors for this year."We're forecasting that LA will welcome morevisitors in 2011 than it has in more than a
decade," stressed Liberman, who also claims thattourism will remain the region’s largest industry,generating an estimated USD14 billion andproviding around 450,000 jobs.
AirlinesIn 2010, more than 59 million passengers passedthrough the terminals of the metropolitan’sprimary airport, LA International World Airport(LAX), nearly three million more than in 2009.McDowell, LA Inc, elaborated on the solidgrowth. “From 2009-2011, air carriers Delta,Iberia, Singapore, Turkish, American, United, AirChina, Alitalia, Cope, Air Nippon, V Australiaand, of course, Emirates have added a combinedtotal of 16 new daily or weekly nonstop flights toLA. This expanded service makes travelling toLA even easier than before.”This also applies to the Middle East, as several Gulfand US carriers singed code share agreements,including American Airlines which code-shareswith Etihad offering services to Abu Dhabi andwith Royal Jordanian on flights to Amman. Theservices from Los Angeles to Abu Dhabi andAmman connect through JFK, where passengerscode-share on Etihad and Royal Jordanian flights.Virgin America, the US owned, controlled andoperated airline, is another carrier servingMiddle Eastern passengers. The airline has interlined agreements withEmirates and Qatar Airways. Emirates servesLAX, and connects SFO and SEA to DXB flights.
HotelsAs LA tends to recreate itself repeatedly, so doesthe metropolis’ hospitality sector with openingsand re-openings framing the year. Marriott will soon enhance its LA portfolio witha 22-storey hotel tower that will house twobrands: Courtyard and Residence Inn.
The construction of the project, that willencompass 377 rooms, is scheduled tocommence in March 2012, while the grandopening is slated for March 2014. Antonio Villaraigosa, LA mayor, hailed the newdevelopments. “This project will create countlesslocal construction and permanent jobs and willexpand Los Angeles’ infrastructure to supportlarge-scale conventions that generate significantrevenue for the city.”The latest Hilton property in the city, Doubletreeby Hilton, LA Westside, opened its doors inApril, while Ritz-Carlton was unveiled in 2010and has received staggering responses since.Bridget Finley, director of public relations, Ritz-Carlton, LA, commented on the property. “The highly anticipated Ritz-Carlton, LosAngeles is the first luxury hotel of its caliber inDowntown LA. We draw a number of guestsdomestically, from all of California, New York,Dallas and Chicago as well as Western Europeand parts of Asia.”Another anticipated property, Mr. C, thesignature hotel brand of Cipriani, will debut onJune 1. The 12-storey, 138-room property setsthe stage for a new era in timeless, contemporaryhospitality. Ignazio Cipriani, fourth generationof the owner family, commented on the hotel.“Mr. C is the essence of how I envision travel andhospitality today. We look forward to bringing a newsensibility to the Los Angeles market and beyond.”Other upcoming hotels include Viceroy BeverlyHills, which is due to debut in 2012 and WilshereHotel, due to welcome its first guests in July,affirmed Michael Orwitz, president, OSMInvestment Company. “OSM InvestmentCompany and Greystone Hotels is adding to itscollection with the launch of the dynamic 74-room boutique hotel which will breathe new lifeinto LA’s famed Wilshire Boulevard. The propertywill appeal to travellers and locals alike filling thevoid for a place to stay, dine, relax and play in anarea where there is much to see and do but littlein terms of hotel offerings.”
JUNE 201120
- LA
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City of AnglesAs the world’s business, trade, technology, science and entertainment centre, Los Angeles (LA) proves to be the city with variousangles where, despite the abundant diversity, both dreamers and investors arrive with optimism.
Rita Kasziba writes
Los Angeles in BriefState: CaliforniaCurrency: United States Dollar (USD)Language: English, Spanish
Faith travel has become big businessand has developed over thecenturies into a dynamic industryvalued at USD18 billion worldwide.It is a resilient market, having come
through the global recession relatively unscathedand it looks as though it will keep going fromstrength to strength, particularly in the Middle East. A recent report from Euromonitor Internationalsuggests that the region’s travel and tourismindustry is in a strong position and will grow inglobal importance, benefiting from robustreligious tourism demand. Although there is anarray of religious sites in the region, this growthwill be driven mainly by tourists heading toMacca and Madinah.The Travel and Tourism Global Overview reporttips Saudi Arabia’s tourism sector to have one ofthe largest compound annual growth rates in theworld of 12.3 percent for arrivals over 2010-2015, which will result in an additional 9.3million visitors to the country. This makes SaudiArabia the fifth largest country in terms ofabsolute arrivals growth over the forecast review.Other countries, such as Jordan, Palestine, India,Japan, France, Italy and Portugal are alsoexperiencing strong growth in tourism due topilgrimages.Many companies are investing heavily in a bid toattract and accommodate religious travellers, andinfrastructure developments in air transportationand accommodation will help encourage thedevelopment of religious tourism.Al Khozama Management Company (AKMC),a leading luxury commercial propertydevelopment, investment and managementcompany in Saudi Arabia, has earmarkedreligious tourism as its key focus.It recently announced the signing of amanagement agreement for its first five-star hotelin the holy city of Madinah, the Al FaisaliahHotel Madinah, due to open before the end ofthe year. The company already operates theaward winning five-star AKMC-Al ShohadaHotel in Makkah.
Significant religious citiesReligious tourism currently accounts for 47.1percent of all trips to Saudi Arabia. Last year,almost one million Ramadan visas for foreign
pilgrims were issued by the Ministry of Hajj, anincrease of 16 percent from 2010.Masaed Al Said, CEO, AKMC, comments thatthe company has been at the forefront of thehospitality industry’s development in thecountry since 1995.“One of the key aspects of AKMC’s business anddevelopment strategy is to expand its hospitalityportfolio into the significant religious andbusiness cities in the Kingdom.”Etihad Airways is another company that is doingits best to cater for the religious travel market,recently increasing its number of flights to Jeddahfrom seven flights per week to 12.James Hogan, CEO, Etihad Airways, expectsstrong growth in demand from religioustravellers in the coming years.“Saudi Arabia is a cornerstone market for Etihadand Jeddah has always been an importantstrategic destination for the airline. Our newflights will further cater for the Saudi Arabianpopulation living in Abu Dhabi and across theUAE, as well as the growing numbers of businessand religious travellers looking to fly to the city.”Hotel group Rezidor operates one hotel inMadinah. A total of 90 percent of guests at AlMuna Kareen Radisson Blu Hotel, Al Madinah,are religious travellers and this can reach almost100 percent during Ramadan and Hajj seasons.The company plans to open three more hotels inSaudi Arabia’s holy cities within the next coupleof years and Mohamed Benamar, district directorSaudi Arabia, Rezidor Hotel Group, believes thereligious tourism market has a great deal ofpotential.“According to the Saudi Supreme Commissionfor Tourism and Antiquities, it is estimatedthat religious tourist arrivals to the country grewby five percent year-on-year to 12.9 million in2010, after remaining constant in 2009 at justover 12 million.”
Growth and profitIn Jordan, religious tourism is considered to beequally as vital. Sa’ed Zawaideh, marketingmanager, Jordan Tourism Board ( JTB), hasnoticed an enormous increase in religioustravellers to Jordan, especially from the US,Canada, Latin America, Italy, Spain and EasternEuropean countries.
“Religious tourism is considered to be part of theJordanian niche products and one of our mostunique segments. Therefore, we offer allnecessary facilities and services either at the sitesor the area beside.”JTB began increasing its efforts to attractreligious tourists in 2000, after Pope John Paul IIvisited the country and after declaration ofBethany Beyond the Jordan, the baptism site ofJesus, as the beginning of Christian pilgrimage.“I believe the sector is going to develop more in thecoming years,” Zawaideh adds. “The main reasonis that it’s becoming more well known, especiallyafter the Vatican assigned five pilgrimage sites inJordan as a part of the Christian pilgrimage.”
Despite the hugely positive outlook for religioustourism, Rezidor’s Benamar believes the sectormust be marketed better if it is to reach its fullpotential.“We have to visit the main feeder markets for thereligious travellers such as Turkey, Egypt,Morocco, Malaysia, Indonesia and South Africa,to showcase what is on offer. Lately, theEuropean market such as France, UK, Germanyand Holland, became a very interesting marketfor our properties.”Zawaideh concurs, adding that improvementscan also be made on facilities and services.“We will continue to host media, church leadersand specialised tour operators. We can still domore in order to succeed, as marketing neverends. All efforts need to be combined andgathered to reach the targeted tourists.”
21JUNE 2011
- Religious Travel
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Travel Trade’s Prayers AnsweredReligious travel is a multi-billion dollar business, with the majority of the money in this sector being generated in the MiddleEast. Travel Trade Monthly examines what the region’s tourism professionals are doing to cater for this fast-growing market.
Duncan MacRae writes
Every year millions ofMuslims come to Mecca forthe Hajj, the largest annual
pilgrimage in the world
Mecca
JUNE 201122
Karim MakloufKarim Maklouf has been appointed as chief commercial officer at Gulf Air.Maklouf joined the carrier in October 2010 as director of commercial planning,and has led a business-critical department since then. He has 14 yearsexperience in commercial and strategic planning along with operationalunderstanding. Maklouf started his career with Lufthansa, where he gainedexperience in pricing, network planning and project management before takingon the position of senior vice president of German Wings, a subsidiary ofLufthansa. He, thereafter, held the chief commercial officer position atSkyEurope airlines and worked as chief commercial officer and deputy CEO ofMalev Hungarian Airlines.
Elaine WatsonElaine Watson has been appointedby Southern Sun Middle East ascomplex general manager of AlManzil and Qamardeen Hotels.Watson, who has long beenrecognised within Dubai’shospitality community, began hercareer as financial controller in theUK. Prior to joining Southern Sun,she worked for Marriott for most ofher 20 years spent in the industry.She held positions of director ofrooms and director of operationswith the lodging company’sfranchised properties before takingon the role of pre-opening generalmanager at Marriott International, incharge of its first ExecutiveApartments property in DubaiCreek. Following the successfullaunch of the hotel, Watson, whowas the first female general managerin the Middle East, was awardedwith the company’s InternationalGlobal Diversity Award. She also ledthe teams of Marriott’s Dubai Greencommunity property (operatingunder its Countyard brand) as wellas of its Executive ApartmentsGreen Community development.
Karim Maklouf
Elaine Watson
Travel Trade Monthly: With carefulevaluation required for each potential Shazaproperty, and rigid selection criteria applied,do you believe Shaza will reach its target of26 hotels by 2016?Simon Coombs: It is true that we are veryselective over which projects we should take, andthe protection of our brand is of critical importanceto Shaza. Having said this, it is interesting thatbecause Shaza occupies a market niche andprovides an attractive solution for owners lookingfor an international luxury operator, who at thesame time understand the traditions and culture ofthe East, we are finding many like-minded ownersand developers who strongly identify with ourbrand. This has actually meant that when wereceive an opportunity, the process then benefitsfrom the strong alignment between owner andShaza in terms of our shared vision.
Travel Trade Monthly: With the Shaza AlMadina now open, which hotel will be nextto join the family?Simon Coombs: The next hotel to open willbe our very exciting property in Marrakech, followedby Fez which will be particularly interesting becauseit is the first property to open under our exclusive‘Shaza Collection’ flag. We also expect our hotels inKarbala and Sarajevo to open in 2013.
Travel Trade Monthly: In addition to thesecities, what other areas of the Middle Eastand North Africa will feature a Shazabranded hotel in the coming years?Simon Coombs: We have an extensive list ofprojects, both under negotiation and alreadycommitted. In addition to a second property inSarajevo, we are developing interestingopportunities across Iran, Dakar, Doha, Riyadh,Jeddah and Mecca, as well as city and resortopportunities in Oman, Istanbul and other keydestinations in Turkey. There will also bedevelopment in Abu Dhabi, Al Khobar, Sharjah,Kuala Lumpur, Durban, Cape Town, and weeven have an opportunity to develop an exclusiveresort in the Caribbean.
Travel Trade Monthly: Will the Shazabrand’s adherence to the authentic experience
of the East include alcohol-free hotels?Simon Coombs: Shaza Hotels will not servealcohol but our focus is really on what we do haverather than what we do not have. Not servingalcohol is not and never will be a legitimatepositioning statement and there are far morecompelling aspects to our brand upon which tofocus, such as our unique food and beverageofferings and highly intuitive and personalisedservice standards.
Travel Trade Monthly: When do youforecast that the Shaza brand will extend tothe broader Indian subcontinent includingthe Ottoman areas? Simon Coombs: We are currently pursuingseveral opportunities in Turkey. A little knownfact of interest here is that Sarajevo was once thesecond most important city in the OttomanEmpire, after Istanbul, and we will have twoproperties there. India is extremely interesting toShaza and we have already had a team in Indiapursuing opportunities. We believe that Shaza isa perfect fit for selected cities within India.
Travel Trade Monthly: The Shaza Hotelwebsite suggests additional Europeanlocations may include London and Geneva,due to their dense population of feedermarkets from the Shaza belt. When arethese developments expected to take place?Simon Coombs: Specifically referring toLondon and Geneva, it is hard to say when wewill be able to find the right partner and the rightproject for Shaza. Our initial thinking was toenter via direct investments but even thisapproach requires us to identify the mostoutstanding opportunities. It is possible that oneof our existing partners would like to bring Shazainto these markets and, of course, we wouldwelcome the opportunity.
Travel Trade Monthly: Shaza Hotels wasestablished as the joint venture of Kempinskiand Capital Guidance. What uniquefeatures of Eastern style, culture and servicehave been carried over from Kempinski’slong standing experience in the hotel market?Simon Coombs: Our relationship with
Kempinski lies at the centre of everything – ourability to deliver operating expertise, ourdistribution, know-how, training expertise,systems and procedures and, indeed, thisunderpins the credibility of our brand. WhilstKempinski clearly brings distinctive Europeanflair, even to its Middle Eastern properties, Shazahas evolved from the East, culturally andphilosophically. Whilst still leveragingKempinski’s long standing experience in theregion, it is still of fundamental importance thatShaza Hotels continues to develop its ownidentity, touch and character in terms of bothproducts and service style and culture.
Travel Trade Monthly: What uniquefeatures do Shaza affiliated hotels, such asHotel Bristol Sarajevo, offer to guests?Simon Coombs: Even affiliated hotels mustreflect the Shaza standards and philosophy.Employees of an affiliated hotel still feel part ofthe family, and it is my responsibility to ensurethat they do. It may be that we do not fullyimplement some of our more distinctiveelements in terms of products, but we willembark on the same thought process to ensurethat these distinctive elements are developed forspecific hotels in a unique and individual mannerthat is sympathetic to the location of that hotel.The process and our attention to detail will notalter – if we are responsible for the operation ofany hotel then we will always ensure that ourguests feel the difference.
23JUNE 2011
Q&A with Simon CoombsShaza Hotels prides itself as a contemporary lifestyle brand offering authentic Middle Eastern hospitality experience with thehighest of standards. The company aims to enhance its portfolio of properties to 26 in the next five years. Simon Coombs,president and CEO, talks about the brand’s vision, positioning and further developments.
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Simon Coombs
JUNE 201124
China Incentive, Business Travel and Meetings ExhibitionBeijing, China, August 30-September 1, 2011 (www.cibtm.com)A leading event for the meetings, incentives, business travel and eventsindustry in China and Asia.
PATA Travel MartNew Delhi, India, September 6-9, 2011 (www.pata.org)Asia Pacific’s premier travel trade show with networking and contractingopportunities.
Top Resa, International French Travel MarketParis, France, September 20-23, 2011 (www.iftm.fr)France’s international travel and tourism trade fair for networking, doingbusiness, innovating and keeping abreast of market developments.
Cityscape DubaiDubai, UAE, September 26-29, 2011 (www.cityscape.ae)Business-to-business networking exhibition and conference for emerging realestate markets globally.
International Travel ExpoHong Kong, June 9-12 , 2011www.itehk.comHong Kong’s only Travel Fair also covering markets of China and Asia.
Asia Luxury Travel MarketShanghai, China, June 13-16, 2011(www.altm.com.cn)An event showcasing the world's most sought after destinations and travelexperiences to travel buyers from across the Asia Pacific.
CITY FAIR The European Cities Travel Workshop London, UK, June 20, 2011(www.cityfair.travel)A one day event of pre-scheduled appointments dedicated to the sectorof city tourism.
AIBTMBaltimore, US, June 21-23, 2011(www.aibtm.com)A US event for the business travel and meetings industry.
Business Opportunities to Increase at EIBTMFollowing the success of EIBTM 2010, businessopportunities for this year’s event may increase,with hosted buyer appointments possibly risingby 10 percent.Reed Travel Exhibitions (RTE), the eventorganiser, is now set to make changes to its pre-scheduled appointment (PSA) system and hasannounced that it will increase the number ofmatched appointments from six to seven per dayof attendance for all buyers.The changes were proposed after research fromEIBTM, showed that both buyers and suppliers
want RTE to find ways of achieving even moreopportunities to do business during the event.Graeme Barnett, event director, EIBTM,underlined the importance of the changes. “The return on investment for buyers andsuppliers attending EIBTM is top of ouragenda and as their satisfaction is partmeasured by the business achieved onsite, wewant to create more opportunities to satisfy thedemand.”Figures show that 65 percent of hosted buyersdid, or will do, between USD50,000 and USD1
million of business as a result of their attendanceat EIBTM 2010.
This year’s EIBTM will take place in Barcelonafrom November 29 - December 1.
The return on investment for buyers and suppliersattending EIBTM is top
of our agenda
Images from EIBTM 2010
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