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Middle East and North Africa Edition

FEBRUARY 5, 2011 ISSUE 65

44

9

22AFRICAN CRUISINGCruising in and around Africa is animportant growth industry, with thepotential to boost the Middle Easternmarket, according to the organisers of anew event for the sector.

In This Issue

ABU DHABI’S SUCCESSAbu Dhabi’s hotel industry has met andexceeded growth targets set for 2010.According to Abu Dhabi TourismAuthority, 1.81 million guests stayed inthe emirate's 114 hotel and hotelapartments in 2010, beating the group’saimed-for figure by eight percent.

www.traveltradeweekly.travel

Saudi Ibis

Accor’s economy brand has spreadacross the Middle East in recent

years. Now the company has signedan agreement for the brand’s first

property in Saudi Arabia.

A ccording to Abu DhabiTourism Authority, 1.81million guests stayed in theemirate's 114 hotel and hotelapartments in 2010, beating

the group’s aimed-for figure by eight percent.In year-on-year terms the emirate increased thenumber of guests by 18 percent and guest nightsby 19 percent, indicating longer stays as well asa greater number of guests.Mubarak Al Muhairi, director general of ADTA,said new attractions and high profile events wereresponsible for the strong showing.“The introduction of exciting leisure products, suchas Ferrari World Abu Dhabi, new golf courses, theYas Island Show Weekends, the ongoing maturityof the emirate's international events calendar andthe launch of new MICE events, such as WorldGreen Tourism Abu Dhabi, helped ensure a very

successful final quarter and thedestination's best hotel guestperformance yet,” he said.Co-operation within Abu Dhabi’stourism industry was also afactor, al Muhairi noted. “Much is also due to the solid,highly active and more uniformedapproach to marketing on behalfof our growing stakeholder base,”he said.

“The authority itself stepped up its destinationmarketing in 2010 with increased mediaengagement, the roll out of our internationaladvertising campaign, participation in 20international trade fairs and the opening of adedicated promotional office in downtownBeijing.”However, while guest numbers grew, an increasein accommodation supply has led to lower ratesin Abu Dhabi.

Al Muhairi said this was a positive development,which ultimately made the emirate morecompetitive as a destination."Of course performance has also been aided bymore attractive rate structures, which haveincreased competitiveness and the market hasresponded accordingly,” he said. “By any measure, being able to achieve double-digit growth in what remains a challenginginternational scenario is a significant feat.”

FEBRUARY 5, 20112

TRAVEL TRADE WEEKLYManaging Editor

Mary Kammitsi

EditorLaura Warne

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Mary Kammitsi

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COUNTRY CURRENCY 1USD=UAE (AED) Dirham 3.67Egypt (EGP) Pound 5.85Saudi Arabia (SAR) Riyal 3.75Lebanon (LBP) Pound 1509.94Bahrain (BHD) Dinar 0.37Jordan ( JOD) Dinar 0.71Syria (SYP) Pound 47.04Kuwait (KWD) Dinar 0.28Qatar (QAR) Riyal 3.64Oman (OMR) Rial 0.38Tunisia (TND) Dinar 1.41Morocco (MAD) Dirham 8.20Iran (IRR) Riyal 10,410Yemen (YER) Rial 214.73Algeria (DZD) Dinar 72.93Libya (LYD) Dinar 1.24

MENA Exchange RatesAccurate as of 3/2/2011Currencies shown in red are fixed against the US Dollar

Strong 2010 Performance from Middle East and Africa STR Global figures show an overall positive performance for the hospitalityindustry of the Middle East and Africa in 2010.All three major measures used by the market analysis group – revenue peraverage room (RevPAR), average daily rate (ADR), and occupancy – showedpositive growth compared to 2009.Amman, Jordan experienced the largest occupancy bump, rising 6.5 percent to60.6 percent, followed by Muscat, Oman, which increased average occupancyby 4.8 percent to 55.8 percent.Abu Dhabi sank in all three measures; a result which local officials attributedto a market adjustment brought on by a large number of new hotels.Johannesburg and Cape Town in South Africa posted the largest increases indaily rates, growing by as much as a 30.5 percent in the case of Johannesburg.

Abu Dhabi Meets and Beats TargetsAbu Dhabi’s hotel industry has met and exceeded growth targets set for 2010.

Being able to achieve double-digit growth

in what remains a challenging

international scenario is a significant feat

FEBRUARY 5, 20114

Emirates Group Confirms Sponsorship of Desert ClassicEmirates Group has extended its sponsorship of the OmegaDubai Desert Classic golf tournament.

African Cruise Growth toBoost Middle Eastern Sector

The company hasbeen a sponsor ofthe event since1989, making theDesert Classic one

of Emirates’ earliest sponsorshippartnerships.The airline has since invested heavilyin sport sponsorship, with its logodecorating sporting teams andstadiums around the world.According to Sir Maurice Flanagan,executive vice chairman of EmiratesAirline and Group, the tournamentis still held in special regard.“Although we are proud of ourinvolvement in golf around theworld, with prestigious propertiessuch as the Ryder Cup, the OmegaDubai Desert Classic is particularlyspecial to us, having been part of itsince the inaugural event in 1989when we were making our first foraysinto sports sponsorship,” he said.Flanagan said the ongoing

partnership would continueimproving Dubai’s position as agolfing destination.“We have witnessed the tournamentdevelop into one of the biggestevents on the European TourInternational Schedule, helpingestablish Dubai as world-classgolfing destination in the processand Emirates is committed tohelping it continue to grow fromstrength to strength,” he said.Mohamed Juma Buamaim, CEO ofGolf in Dubai, organiser of thecompetition, said high profileparticipants would ensure a strongattendance.“With the great support ofprestigious sponsors like Emiratesairline and the presence of topranked golfers, like Tiger Woods andLee Westwood, boosting the field,we again can expect a huge numberof people turning up at our nextevents,” he said.

Cruising in and around Africa is an importantgrowth industry, with the potential to boost theMiddle Eastern market, according to theorganisers of a new event for the sector.Seatrade Global manages a number of large scaleevents for the cruising and maritime industriesand recently launched the Seatrade Africa CruiseForum.In the lead up to the event the company has reportedincreased cruise ship deployments in the region; aphenomenon that a Seatrade representative saidcould have an important flow-on effect for theburgeoning Middle Eastern cruise market.Mary Bond, editor of Seatrade Cruise Review, saidthe growth of cruising in the Middle East had thepotential for synergies with the growing interestin Africa’s east coast.“The emergence of cruise tourism in Dubai andthe wider Middle East and the internationalappeal of the Seychelles as well as Mauritius andReunion, allied to the South Africa domesticcruise season which takes place during theirsummer months (Europe’s winter), are all plusfactors which will support the cruise lines’ risingdemand for new destinations as well as newpassenger source markets,” she said.MSC Cruise has increased its presence in Africato two ships for the cruising season and isdeveloping facilities in Durban, South Africa andPortuguese Island, Mozambique.According to Seatrade, Costa, Princess Cruises,Crystal Cruises, Silversea, Travel Dynamics,Oceania and Fred Olsen are all active on theAfrican continent and more lines are expected toenter the market in the near future.

Oceania Cruiseship

The system, dubbedPaynet, will allow localbusinesses to finalisebookings online; animportant factor as web

bookings continue to increase in coremarkets.According to USAID Jordan TourismDevelopment Project, one of thedevelopers of Paynet, online travelbookings are set to exceed USD170billion in 2011.According to Ibrahim Osta, Chief of Partyof the USAID project, an online paymentsystem has been hitherto absent from thecountry.

“This is the first local e-payment serviceto be offered in Jordan and for the tourismsector it is a major step towards reachingonline tourism markets; this will helpJordan gain competitiveness as a tourismdestination.”

Zaid Goussous, Minister of Tourism andAntiquities for Jordan, said the paymentsystem was in line with a wider project for

developing the country’s integration withthe online world.“These efforts correspond with theministry's plans to develop the sector inresponse to the latest developments andglobal tourism trends in order to attractmore visitors to Jordan," he said.“Many potential visitors are online and byfacilitating online booking and payment,we can reach these markets and meet theirrequirements.”Paynet was developed by Visa JordanCard Services and Special TechnicalServices, then customised by the USAIDJordan Tourism Development Project foruse by the tourism industry.

FEBRUARY 5, 20116

Online Payment Service for Jordan Tourism Industry In an effort to stimulate Jordan’s tourism industry, a number of entities within the country have come togetherto launch an online payment and reservation system for local tourism operators.

Heritage sites are becoming an increasing focus for theemirate of Dubai in the UAE.According to Anwar Al Hanai, director of the heritage anddiving village run by Dubai’s Department of Tourism andCommerce Marketing, interest in heritage attractions has beentrending upwards.“In the past few years, we have witnessed a major increase inthe number of tourists to the heritage sites, especially duringthe winter months, and accordingly the Department is focusedon pursuing its aggressive promotional activities," he said.“The DTCM is committed to promoting the culture and

presenting a real picture of the ethnicity and also hospitalitywhich is so widely admired.”He said DTCM has launched arange of events this winterseason, with the intention ofencouraging further interest inthe emirate’s history and culture.The Heritage and DivingVillage is a living museum inDubai, where tourists canexperience the production oftraditional handicrafts andother historic local activities.

Heritage Tourism Growing in Dubai

Dubai Heritage Village

By facilitating onlinebooking and payment, we

can reach these markets andmeet their requirements

FEBRUARY 5, 20118

- Accommodation

Kingdom Hotel Investments Makes USD61 Million SaleKingdom Hotel Investments (KHI) has sold a property in China –Swissôtel Kanshan.

SCTA AccommodationCrack DownThe Saudi Commission for Tourism and Antiquities (SCTA)has closed down 36 accommodation facilities in Makkah andJeddah, after the properties failed to meet new standardsimposed by the commission. According to SCTA, the facilities failed to comply with newregulations, even after a grace period was granted.SCTA has demanded all operators obtain permits, includingoperation licenses, civil defense licenses and municipallicenses.The closed properties failed to obtain the last two documents,SCTA revealed in a statement. The shutdowns come as part ofSaudi Arabia’s ongoing efforts to modernise and standardisetourism accommodation in the country.Mohammad Al Amri, Executive Director of MakkahProvincial Tourism Office said the closures were intended toraise the bar for lodging providers in the country.“Closure decisions fall within the supervising efforts ofSCTA  on tourism accommodation facilities across thekingdom, which aim to improve the performance and qualityof services that are provided by the accommodation sector tothe guest,” he said.SCTA has been progressively implementing a new ratingsystem for hotels and other accommodations and haspreviously shut down properties in several other Saudi cities.

K HI bought the hotel forapproximately USD60million in 2007,according to ChinaHospitality News.

The company has passed 100 percent ofits stake in the property to TA Global, aMalaysian real estate developer, for returnof USD61 million.Sarmad Zok, CEO of KHI, said furthersales were likely, as the company seeks torebuild its capital.“I am very pleased with this transactionwhich is executed in line with our statedstrategy of value realization,” he said.“This divesture unlocks significant capitaland we will continue to consider the saleof other assets as part of our capital

allocation strategy.”KHI is a subsidiary of Kingdom HoldingsCompany, a diversified investment groupchaired by Saudi Prince Alwaleed BinTalal Bin Abdulaziz Alsaud.

The company has ownership interests in23 properties in 17 countries, including19 operating hotels and resorts and fourhotels and resorts currently underconstruction.

Prince Alwaleed Bin TalalBin Abdulaziz Alsaud

I am very pleased with this transaction

which is executed in linewith our stated strategy

of value realization

he 176 room property will belocated in Riyadh anddeveloped by Al MohammadiaAlmotahda for Real EstateInvestment Company.

It is due to open in 2012.According to a statement from Accor, theproperty is part of a drive tostrengthen the Ibis’ brand’sposition with the Middle East.Christophe Landais, managingdirector of Accor Middle East,said the brand was alreadyleading the segment in theregion. “Our Ibis brand leads in theeconomy hotel market with afoothold since its introduction tothe Dubai market in 2003,” he said.“Highly resilient, Ibis remainsone of the best performingbrands in our portfolio and weaim to replicate its success in theSaudi market."Khalid Turik, executive manager ofAl Mohammadia Almotahda, citedbrand recognition as the reason forthe choice of the Ibis name.

9FEBRUARY 5, 2011

- Accommodation

Accor to Launch Ibis in Riyadh, Saudi Arabia, in 2012Accor has finalised a management agreement which will see the Ibis hotel brand launched in Saudi Arabia.

Christophe Landais

T “Ibis is one of the most recognised andrespected brands in the economy lodgingsegment in the hotel industry,” he said.“With Accor rapidly expanding in theMiddle East, we are delighted to havesigned this project with Accor and lookforward to further developing our

partnership in the future.”Accor currently operates nine Ibisproperties around the region: five in theUAE; two in Kuwait; one in Jordan; andone in Oman.Worldwide, the brand boasts 879 hotelsand more than 100,000 rooms.

Ibis remains one of the best

performing brandsin our portfolio

The first flight was welcomedby Belgium`s Prime Ministerand his entourage at thecapital’s International Airport.

The newly launched flights are expectedto appeal to business and leisure travellers,explained Arnaud Feist, CEO of BrusselsAirport Company explained. “This new service will be much welcomedby business and leisure passengerstravelling to a broad choice of QatarAirways’ onward destinations in theMiddle East and Asia Pacific,” he said.Brussels is among the mostinternationalised cities in the world, withapproximately one quarter of itspopulation made up of foreign residents.The Belgian capital represents the airline’s

third new European destination within amonth, following the launch of flights tothe Hungarian and Romanian capitals:Budapest and Bucharest.Qatar Airways has announced one further

European route to be launched early thisyear, which will bring its total number ofdestinations on the continent to 25.The airline will add Stuttgart, Germany toits network with flights starting on March 6.Qatar Airways is one of the largest airlines

in the Gulf; its total number of routes isset to reach 100 in April when the carrierlaunches its connection to Aleppo, Syria.

FEBRUARY 5, 201110

Royal Jordanian Signs Five Year Maintenance ContractRoyal Jordanian Airline has signed a supply contract withGoodrich Corporation for nacelle services.The five year agreement will see Goodrich provide maintenanceon nacelles (engine mounts) for the airline’s fleet of AirbusA320, Embraer 195 and Airbus A340 aircraft.Hussein Dabbas, CEO of Royal Jordanian, said themaintenance would be undertaken in Dubai, under Goodrich’sPrime Solutions package.“We are pleased to put this Prime Solutions agreement intoplace and that the work will be performed at the GoodrichDubai campus, which is close to the Royal Jordanian base inAmman, Jordan," he said. "The A320s, A340s and Embraer 195s represent a significantportion of the airline's fleet and we look forward to themaintenance work being performed by a well-known,renowned nacelle MRO.”Goodrich Corporation is a major defense and aerospacecompany based in the US.

Qatar Airways Launches Flights to BrusselsQatar Airways has continued its European expansion, launching flights to Brussels, capital of Belgium.

Royal Jordanian

Brussels

This new service will be much welcomed by business and leisure

passengers

- Air Travel

Emiratisation, the process ofbolstering the number ofnationals in UAEcompanies, has been a longterm project for the

country’s government.Mohammed Al Marri, vice president ofhuman resources at ADAC said the hightarget followed from the company’sresponsibilities as a nationalised entity.“As a national company we are proud tohave set a 30 percent Emiratisation targetfor this year, which we are very confidentin achieving,“ he said. “We strive to have the best talent and in turn,be the employer of choice in the Emirate.”According to ADAC, potential recruitswere targeted at the recent Tawdheef

career fair and via a redesigned onlinecareer portal.Al Marri said participation in Tawdheefwas a major source of his confidence.“Participating in Tawdheef, which occurs

at the beginning of the year, provides uswith an ample amount of time to process,evaluate and offer potential hires attractivepackages for the roles we have on offer,”he said.

11FEBRUARY 5, 2011

ADAC Ramps Up Emiratisation InitiativeAbu Dhabi Airports Company (ADAC) has set a 30 percent Emiratisation target for 2011.

UAE Signs Air Services Agreement with FranceThe UAE has finalised the terms of a new memorandum ofunderstanding (MoU) covering air traffic to and from France.Both sides agreed to an increase of 22 weekly flights, bringing thetotal number of connections between the two countries to 57.The flights will be made available to carriers designated by eachbody.The UAE has selected Air Arabia, Emirates and Etihad as itsdesignated national airlines for the purposes of the MoU.According to the UAE General Civil Aviation Authority, thenew flights will represent a 60 percent increase in frequency andreflect the strong relationship between the UAE and France.The agreement also included Bordeaux as a permitted point ofentry for UAE carriers, who have previously been able to accessonly Paris, Lyons, Nice, Marseille and Toulouse.

Bordeaux, France

We strive to have the best talent and in turn, be the employer of choice in the Emirate

Abu Dhabi Airport

- Air Travel

FEBRUARY 5, 201112

AUD10 Million Flood Fund for Queensland, AustraliaThe tourism industry in the Australian state of Queensland is to receive a funding injection of AUD10 million(USD10.13 million) to address the damage caused by recent natural disasters.

Blizzards have caused widespread disruption in the US,causing the cancellation of thousands of flights.According to the Flightaware traffic tracking service, a total of14,428 flights have been cancelled in the past week.Tuesday, February 1 experienced the highest number ofcancellations, accounting for 6,994 of the groundings.According to local news reports, the storm has affected nearlyhalf of the mainland US but is concentrated on the Mid Westregion.Chicago O’Hare Airport, one of the largest in the world,managed only eight departures on Wednesday.The eastern city of Boston has managed to operate only 20percent of its usual traffic.

Snowstorm Shuts Down Mid West Aviation

The state has been badlyhit by both widespreadflooding and a majortropical cyclone, dubbedCyclone Yasi.

Anna Bligh, premier of Queensland, saidthe funding would be directed topromotional efforts.“This is about getting the message out to asmany people as possible that most of ourstate's tourism regions have been largelyunaffected by floods and now is the time totake a Queensland holiday," she said.Peter Lawlor, tourism minister for thestate, said the amount would help theindustry, which is a major contributor tothe Queensland economy.

"Tourism contributes a massive AUD9.2billion (USD9.32 billion) per annum tothe state, directly employing 122,000people and indirectly employing 100,000more,” he said.Bligh said the widely publicised floodingof Brisbane, the state capital, is having anongoing effect on the destination.“It's no secret the tourism industry, likemany industries in Queensland, has taken ahit by the floods and is still haemorrhagingbecause of the negative publicity that spreadworld-wide,” she said.Funding has been supplied by the stategovernment of Queensland and Australia’sfederal government.The Queensland Treasury has estimated

that the flooding alone has attenuatedeconomic growth in the state by nearlytwo percent.

Brisbane Flood

- International

The low cost carrier closedits base in Marseille inJanuary, in protestagainst a French courtruling that would require

Ryanair staff to pay tax and socialinsurance in France rather than theairline’s home country of Ireland.Nevertheless, the airline has announced11 new summer season routes from theairport, many of which represent thereturn of connections which werecancelled when the base was closed. The period from April 14 to September11, Ryanair will station two aircraft atMarseille to service the busier schedule.New routes include five in Morocco:

Agadir, Fez, Marrakech, Tangier and Nador.Other connections include Brest, Lilleand Nantes, France; Eindhoven in theNetherlands; Gothenburg, Sweden; andPalermo, Italy.

Michael O`Leary, CEO of Ryanair,commented on the flights.“Ryanair is pleased to announce thisexpanded Marseille summer seasonoperation which will deliver 24 routes(including 11 new routes) and 500,000

passengers to the Provence region thissummer, “ he said.“Ryanair remains committed to MarseilleAirport and we look forward tocontinuing to work with Marseille Airportand the Chamber of Commerce to delivernew routes and new visitors to MarseilleAirport from mid-April to earlySeptember 2011.”

13FEBRUARY 5, 2011

- International

Ryanair Has a Lot to Marseille with 11 New RoutesRyanair will increase its operations from Marseille during the summer season, despite having recently shutdown its base in the city.

Ryanair remainscommitted to Marseille

Airport

Michael O’Leary

FEBRUARY 5, 201114

Agent’s InsightName: Amin GassimPosition: Owner

Who are you?My name is Amin Gassim and I’ve been working in the industry for morethan two decades. I started at the age of 19 in a hotel, later on I continued asa tour guide for a travel agency and I also served the tourist police for a while.In 2005 I decided to establish my own agency, Yemen Holiday Tour. I run thecompany as a family business from our office in the capital of Yemen, Sana’a.

What is your favorite thing about working in the travel industry?The biggest privilege is the opportunity to get to know different culturesand people. It might sound gross, but despite working in the tourism sectorfor more than 20 years, I’ve never been outside of Yemen. I truly believethat my country has so much to offer, that even I find always more andmore to discover about our natural assets, history and people.

When is the best time to visit Yemen?Our favorable climate makes the country a year-round destination. Ourgreen nature appeals to visitors seeking outdoor adventures from allaround the world. Yemen is considered as a 3,000 year old culture whichis well presented by the friendly people all around the country.

Where would you like to travel to for your next holiday?As I mentioned before I`ve never been outside my country, and although I`mwilling to get to know different cultures, I`m planning my next trips in Yemen.

Why should people come to you for travel advice?My agency specialises on personal services, on individual tourists andsmaller groups. Our aim is to give our clients a lifetime experience bytailoring their holiday to their wishes.

Company: Yemen Holiday TourLocation: Yemen

Arabian Adventures ExpandsRepresentatives NetworkArabian Adventures has appointed representativesin both Australia and Brazil.PillowMINT in Australia, and Brazil ExpertsBureau in Brazil will serve to promote the UAE intheir respective markets, while offering a range ofservices.The appointments bring Arabian Adventures’number of international representatives to 11, withthe company maintaining relationships in China,France, Germany, Italy, Japan, Russia, Spain, theUK and the US.PillowMINT specialises in the Australian MICEmarket, while Brazil Experts Bureau is a dedicatedmarketing and promotion firm for destinationmanagement companies.

Arabian Adventures

New Ticketing Tool Introducedfor Middle East AgentsTravelport has added a new refund capability toits Galileo travel distribution platform in theMiddle East.Called Ticketing Manager, the add-on has beendesigned to address the growing complexity ofelectronic ticket management, according toTravelport.Hari Kumar, director of regional product supportin Middle East and Africa (MEA) for thecompany, said the solution had been tailored tothe MEA market.“The availability of Travelport's new TicketingManager tool reinforces our commitment toprovide our customers in the Middle East andAfrica with value-added solutions that increase theefficiency of their day-to-day operations," he said. “This enhancement has been specificallydeveloped with our MEA customers in mind,and we are confident that it will meet theirevolving ticketing needs.”

15FEBRUARY 5, 2011

Afghan Airline Safi Airways has madetwo high level appointments. Newexecutives include: Michael McTighefrom the UK as chief operating officer,John Roijen from the Netherlands aschief financial officer and JordanianMohammad Al Hayek as deputy chiefoperating officer.McTighe comes from a background inestablishing new airlines and undertaking

strategic reviews of existing operators.In the past he has worked with Ryanair,Britannia Airways, Air Atlanta Europe,and Arik Air Nigeria.John Roijen comes from an airline andmanufacturing background. Beforejoining Safi he was a senior financialexecutive for the past 15 years in variousairline related industries including CFOat Virgin Nigeria and Arik Air.

Tarek ElsherifTarek Elsherif has been named as managing director of hotelmanagement company Five Continents Hospitality.Elsherif will oversee the company’s development plans while

formulating and implementingmanagement policies.Elsherif has 23 years of seniormanagement experience inthe hospitality industry.Prior to joining FiveContinents, he served asregional director of sales andmarketing at MillenniumHotels in the MENA region.He was educated in Egypt andthe US.

Magdi Labib has been appointed ascountry manager for Egypt by EtihadAirways.Labib will be responsiblefor the airline’scommercial operations throughout thecountry. He joined Etihad in February 2005 andpreviously held the position of countrymanager in Kuwait. Prior to that, he

worked for British Airways as regionalbusiness executive for Africa and theMiddle East.He was later made responsible forcommercial activities in Central Province,Saudi Arabia, where he served for two years. Alltogether Labib has more than 21 yearsexperience in the aviation industry in theUK and in the Middle East.

Abbas Mohammad Modak has been appointed as Emirates’new sales manager in Basra, Iraq. He has more than 30 yearsof airline experience, 18 years of which have been withEmirates. He was previously based in Kuwait. In his new role,Modak will be in charge of establishing strategic partnerships,maintaining contacts with key corporate accounts and drivingrevenue in Emirates new operations in Iraq.

Abbas Mohammad Modak

Magdi LabibMagdi Labib

Safi Airways

Tarek Elsherif

Safi Airways’ management team

FEBRUARY 5, 201116

Travel Talk is your space– this is a casual forum for travel industryprofessionals to discuss current issues and share stories. We want tohear from you, so send your comments, questions, frustrations andobservations to editorial@traveltradeweekly.travel

Samer MajaliCEO Gulf Air“The global aviation industry today is at a crossroads, having justemerged from the effects of the economic recession, yet stillfacing multiple macro and micro economic challenges, bothexpected and unexpected. During my tenure, I hope to engageand steer community members towards developing strategies andsolutions for the benefit of the global aviation industry. I lookforward to encouragingdiscussions throughout2011 with my colleaguesfrom the industry.”

The globalaviation

industry today is at a

crossroads

Anne TullisHead of Corporate Responsibility, EtihadEtihad’s corporate social responsibility (CSR)program has expanded considerably in recentyears along with our commitment to a CSRpolicy and plan that is wholly embedded in ourbusiness, and in line with our role as a majorcompany in Abu Dhabi.We will launch a new program this quarter whichintegrates the many existing initiatives andactivities already in place, and believe that accessto the resources and expertise available throughBusiness in the Community and the moreestablished companies and markets will help usfill in the gaps and make sure we’re implementingbest practice on our sustainability journey.”

Etihad’s corporate social responsibility (CSR)

program has expandedconsiderably in recent years

Shane O’HareCEO, Royal JetThere is no magic formula in business aviation. Companies which invest in theirbusiness – and their customers’ needs – will continue to outlive those that haveaimed to 'revolutionise’ the industry simply by offering a cheap price. Operatorsseeking quick gains soon realized that paying for market share with low prices isa short-term and short-sighted strategy.

Paying for market share with low prices is a short-term and short-sighted strategy

Shane O’Hare

Samer Majali

beverage revenues if you do not sell alcohol, but Ido not see this as a loss. I have set out from thebeginning to run a dry hotel, so that is not money Iever had.

Travel Trade Weekly: Can you tell me aboutmanaging dry hotels?Tarek Elsherif: Actually dry hotels are not a newtrend. There are a lot of hotel operators, regional orlocal, that have decided to operate dry hotels, in linewith Muslim beliefs.People tend to be afraid to manage dry hotels, butthere is a lot of demand for it. Especially fromowners who want to get into the hospitality game,but do not want to accept any money that has comefrom alcohol.Dry hotels are not just limited to Muslims; one ofthe biggest sections is corporate clients from Europe.Alcohol becomes secondary when you are travellingon business and for families and when travelling toshop.There are food and beverage questions with dryhotels as well; for instance you might not be able tohave an Italian restaurant, as Italian cooking isassociated with using wine.But why cry over not having an Italian restaurant,when there are so many choices. We can haveIndian, or even Iranian – it is not a problem.

Travel Trade Weekly: Please tellme about your business.Tarek Elsherif: The company isFive Continents, and was foundedthree years ago in 2007 as part of themother company EABG, which is theEmirates Associated Business Group.We are part of this group and are,basically, a hospitality managementcompany.The core value of the company is thatwe only manage dry hotels, which isvery much in line with the culture inthis part of the world.We operate our hotels under the FiveContinents brand, but we haverecently added a new brand calledPalazzo.Five continents operates three to fourstar hotels and apartments, so weadded Palazzo as a five star brand togive more options to the owners andoperators that we work with.Palazzo has not yet been officiallylaunched, but we already have twosigned properties.We plan to launch officially at thisyear’s Arabian Travel Market, which

will be in line with the launch of thefirst phase of the hotel in Libya.

Travel Trade Weekly: Is runningdry hotels a business or moraldecision?Tarek Elsherif: There is a veryclear restriction on alcohol in Muslimbelief. It is forbidden.But people are different. You havesome people who know it is not right,and some people who know they aredoing wrong but do it anyway.Then you have people who might sayI don’t drink it, but its ok if you wantto, it is my belief.Then there are some who try toenforce their beliefs on others.A few months ago, there was a roundtable debate on dry hotels, which Iwas watching. It was very interestingto me, as all the CEOs and managingdirectors were not Muslims.This says that people are taking thisas a business plan and are looking tosatisfy niche markets.Some people worry about revenues;they say you will lose 30 percent of

FEBRUARY 5, 201118

Q and A with Tarek ElsherifTravel Trade Weekly quizzed Tarek Elsherif, managing director of Five Continents Hospitality Group, onhis plans for the future and the challenges of running alcohol free hotels.

Tarek Elsherif

19FEBRUARY 5, 2011

Top Tips for Capturing the Emerging Chinese MarketChina has been widely billed as one of the most important emerging travel markets. With its massivepopulation and booming economy, Chinese tourists are set to become a core demographic for destinations theworld over. Chinese hotel company, New World Hotels, has compiled a hit list of trends that the operator saysare key to capturing the interest of travellers from China.

Out With the OldAccording to New World, hotelstaples such as the businesscentre, front desk safe depositboxes and formulaic restaurantswill need to be rethought.An increasingly tech savvymarket, Chinese travellers arekitted out with personal devicesand prefer hotel-wide access tothe old-fashioned businesscentre.Similarly, in room safes aremaking front desk depositsobsolete.

Coming TogetherCommunal spaces are another site for a major rethink, with New World indicating that thechinese market is trending away from the standard ball room and towards more idiosyncraticpublic spaces.Open kitchen bars for meetings and outdoor dining are two ideas that are picking up steam.

From Concierge to Connoisseur Online research is breeding a generation of travellers who demand more from their hotelservices. According to New World, it is no longer enough for a concierge to offer basicinformation on their locality. Keeping ahead of online information and providing in-depth localknowledge is the way of the future.Similarly, the online world is encouraging engagement with a wider range of hotel staff andhotels are becoming social hubs for China’s middle class; take advantage by letting your guestsask chefs for recipes on Twitter, or event managers for party advice on Facebook.

FEBRUARY 5, 201120

EventsFood and Hospitality ExpoManama, Bahrain, February 8-10, 2011 (www.foodexpbh.com)Hospitality technology, systems and equipment, along withexhibitors from international food companies.

Emitt IstanbulIstanbul, Turkey, February 10-13, 2011 (www.emittistanbul.com)Istanbul’s only international trade fair: focused on tourism inthe Eastern Mediterranean.

Middle East Exclusive 2011Dubai, UAE, February 20-22, 2011(www.middleeastexclusive.com)Luxury brand and travel retail exhibition.

EventopediaAmman, Jordan February 22-23, 2011 (www.eventsunlimited.com.jo)Conference covering the A to Z of events management, aimedat encouraging Jordan’s MICE market.

Gulfood Exhibition 2011Dubai, UAE, February 27-March 2, 2011 (www.gulfood.com)International exhibition for the food, drink and hospitality markets.

ITBBerlin, Germany, March 9-13, 2011(www.messe-berlin.de)One of the world’s major travel and tourism exhibitions for allaspects of the travel industry.

STTIM Organisers Expect Continued Tourism Growth for KSATourism is expected to increase its shareof the Saudi economy in 2010 and 2011,according to the organisers of SaudiTravel and Tourism Investment Market(STTIM), to be held in March.The event is entering its fourth year, andhas seen a steady increase in interest fromboth regional and international operators.The event has tripled in size since it wasfirst held in 2008, growing from around40 exhibitors in that year to more than120 in 2010.The show is operated by SaudiCommission for Tourism and Antiquities(SCTA) and held annually at the RiyadhInternational Exhibition Centre (RIEC).STTIM will incorporate segments coveringa range of tourism niches, includingmedical tourism, adventure travel, businesstravel, eco tourism, heritage tourism andthe resort and leisure market.

According to SCTA, tourism in SaudiArabia increased by 230 percent betweenthe years of 1995 and 2009, coming torepresent nearly 10 percent of thecountry’s non-oil economy.The domestic market dominates the Saudiindustry, accounting for approximately 75percent of all trips.

STTIM was developed by SCTA tostimulate both business to business andbusiness to consumer interactions, in abid to further increase the role of tourism.Saudi Arabia is the largest economy in theMiddle East, but draws most of its incomefrom rich oil reserves.

Riyadh