Tourism numbers increase 15% as Oman rolls out billion dollar investment plan

Total investment in travel and tourism set to hit $1.17 billion by 2026; Visitor numbers increase 15% through October 2016; Hotel occupancy rates forecasted to rise by 3% this year; Sultanate to go on charm offensive at Arabian Travel Market 2017

Oman’s tourism and hospitality industry is building momentum, with total investment in the sector set to hit US$1.17 billion by 2026, according to the World Travel and Tourism Council (WTTC).

The Sultanate returns to Arabian Travel Market (ATM) at Dubai World Trade Centre this year (April 24-27) to showcase its expanding hotel and tourism infrastructure pipeline following a successful 2016 with visitor numbers in the first ten months of the year growing to reach 2.5 million, representing a year-on-year increase of 15%.

Simon Press, Senior Exhibition Director, ATM, said: “It is no wonder that Oman is so popular and was recently named as one of the top ten places to visit in 2017 by a selection of the world’s top media. The country boasts a fantastic mix of culture, history and adventure for travelers, while the $120 million Majarat Oman futuristic theme park, set to open in 2017, will add to the huge selection of options available for families.”

The Reed Travel Exhibitions team were in Muscat to meet with key industry players from across Oman and discuss exhibitor opportunities for ATM 2017, with the total contribution of travel and tourism in the country set to rise to $785 million by 2026, according to the WTTC.

A report from Colliers International said: “Although the country faces significant competition other popular regional destinations, Oman has been able to distinguish itself as a unique tourism destination, being home to many eco, cultural and heritage attractions.”

To cope with the projected increased demand, hotel supply in Oman increased by 2,022 keys in 2016, and although occupancy rates were down 11% over that period, largely due to lower oil prices, which subdued business travel, as well as the effect that weaker currencies had on the UK and EU leisure markets, this is expected to recover by 3% through 2017.

The Colliers report said: “With the recent opening of the Oman Convention & Exhibition Centre, which is expected to host around 28 exhibition events in 2017, the market is expected to see a slight recovery, with the hotel occupancy forecasted to close at 58%.”

According to the latest data from STR, Oman currently has 15,843 hotels, with another 6,347 rooms in the pipeline, representing growth of 40.1%.

A further area of growth for Oman is through passengers arriving at the country’s airports, with a 17% increase in total airport arrivals through to the end of December 2016, while the new terminal at Muscat International Airport, which is expected to open this year, will have a capacity of 12 million passengers per annum.

Salalah International Airport (SAIA) has a current capacity of one million travelers annually with the ability to increase this further by up to six million. And six other airports are either in planning or construction phase, including the new airport at Ras Al Hadd.

Press added: “Oman’s tourism industry continues to grow and its offering keeps expanding to cater for the diverse needs of today’s travelers. Experiential tourism is the spotlight theme of ATM 2017 and this is central to the whole tourism experience in Oman.”

Among the Oman-based exhibitors already committed to participating at this year’s ATM include: Sex Senses Zighy Bay Resort & Spa, Al Bustan Palace Ritz Carlton, Anantara Jabal Akhdar Resort, Kempinski Hotel Muscat, Shangri_la Barr Al Jissah Resort & Spa and Intercontinental Muscat.

ATM - considered by many industry professionals as a barometer for the Middle East and North Africa tourism sector, witnessed a year-on-year visitor attendance increase of 9% to over 28,500 in 2016, with 2,785 exhibiting companies, signing business deals worth more than US$ 2.5 billion over four days.

ATM 2017 will build on its success with the announcement of an additional hall as Reed Travel Exhibitions looks to add to its record-breaking achievements of 2016.

For more information on Arabian Travel Market 2017, please visit: www.arabiantravelmarket.wtm.com

The Great Mid-Market Hotel Debate set to rage on through 2020 as PwC flags the region’s need to fast track sector development in this segment

51% of all Dubai hotels in mid-market segment versus 89% in New York; PwC research released at ATM 2016 touts construction figure of US$80k per room as incentive for developers looking for solid returns in high demand segment

The influence of Millennials and their preference for quality over luxury, as well as the rise of a new breed of trendy and tech-friendly mid-market hotel brands, was the focus of a dedicated PwC-hosted panel session today (Wednesday, 27 April 2016), with a line-up of international hoteliers stressing the importance of a diversified tourism proposition for the region’s key destinations.

Held at the new ATM 2016 Global Stage and moderated by Vikram Loomba, Director – Hospitality & Leisure for PwC, the hour-long panel Great Mid-Market Hotel Debate addressed the status of the growing mid-tier accommodation segment in Dubai, including the current landscape, key barriers to entry and potential opportunities.

“Dubai will be home to somewhere between 20,000 and 35,000 mid-market rooms by 2020 and this surge in supply supports the PwC research, which flags a growing global movement away from luxury, and towards affordability, even from those for whom budget is not a primary concern,” said Nadege Noblet-Segers, Exhibition Manager, Arabian Travel Market.

“This is being driven predominantly by the rising affluent middle class in key markets such as Asia, and with Dubai set to host Expo 2020 and Qatar, the 2022 FIFA World Cup, the mid-market segment is the fastest growing in terms of demand and pipeline,” she added.

According to PwC, travellers opting for mid-market accommodation are looking for a well-connected location, clean rooms, uninterrupted WIFI, apps and accessibility via various technology platforms.

The high profile panel line-up included Mark Allaf, Cluster General Manager, Hilton Worldwide; Oliver Granet, Managing Director & COO, Accor Hotels Middle East; and Chris Newman, Corporate Director of Operations, Emaar Hospitality Group.

PwC used the example of Dubai as a regional case study, citing its current position as a luxury destination, which, as the city moves towards market maturity, is attracting a more diversified visitor profile supported by an enhanced offering.

Comparing the city’s current offering to other major international destinations, Dubai is lagging behind in terms of mid-market product at 51% with 88%, 89% and 90% of hotels in London, New York and Los Angeles in the affordable bracket; 66% of all Paris’ accommodation ranked mid-market and 76% in Hong Kong.

“With more and more Chinese and Indian travellers heading this way - and being actively targeted by both the Dubai and Abu Dhabi tourism authorities; the development of large-scale tourism projects, the unique behaviours of Millennials and a reduction in corporate travel budgets in straitened economic circumstances, the budget-friendly market is ripe for investment and development,” Says Vikram Loomba, Director – Hospitality & Leisure for PwC.

According to PwC, Dubai currently has a tally of 98,333 hotel and hotel apartment keys, with future supply through to 2020 expected to add a further 20,363 keys, of which around 56% will be within the five-star bracket, leaving ample room for additional three and four-star product to enter the market.

The panel also discussed the key challenges holding back mid-market hotel development, which include high land and development cost, with land in the accessible prime hotel clusters across Dubai rendered unfeasible due to land prices versus potential (lower) returns.

However, the PwC report authors believe that while higher five-star rates coupled with the current high occupancies enjoyed by the market in Dubai does make for an attractive investment opportunity, developing a mid-market hotel on the same plot of land can result in similar cash flows to the developer/owner.

This is due to smaller room size requirements, less landscape areas, leisure facilities and other ancillary experience-based offerings. A typical plot of land that can accommodate 250 five-star rooms may be able to accommodate 500+ mid-market hotel rooms wit the same allowable GFA, said the report; thus allowing similar commercial benefit. It is also possible to build from as low as US$80k per key.

The lack of public transportation connectivity was also raised as budget hotels are usually cited in secondary locations; as well as negative developer perception and a predilection for ‘trophy assets’.

ATM 2016 will build on the success of this year’s edition with the announcement of an additional hall as Reed Travel Exhibitions looks to add to its record-breaking achievements earlier this year. ATM 2015 witnessed a year-on-year visitor attendance increase of 15% to over 26,000, with exhibiting companies increasing by 5% to 2,873. Business deals worth more than US$2.5 billion were signed over the four days.

For more information on Arabian Travel Market 2016, please log on to: www.arabiantravelmarket.com

About Arabian Travel Market 
In its 22nd edition, Arabian Travel Market 2015, boasted more than 2,800 exhibitors and stand-sharers from 86 countries and attracted over 26,000 visitors from around the world.
www.arabiantravelmarket.com 

Visitors grow 4% during first two days of ATM

Number of visitors to Arabian Travel Market up by 4% on 2015; figures represent total number of visitors through the doors on Day 1 and Day 2; event on track for more than 26,000 visitors over four-day show

Arabian Travel Market (ATM) 2016 is experiencing healthy visitor growth, with a 4% increase in the number of visitors through the doors over days one and two, compared to 2015.

The trade event, which is taking place from 25^th to 28^th April at Dubai World Trade Centre, is well on track to welcome more 26,000 visitors in total over the four-day showcase, with pre-registered visitors representing an impressive 158 countries.

Now in its 23^rd edition, ATM boasts an additional hall this year, with 423 main stand holders representing 86 countries, 64 country pavilions and over 100 new exhibitors making their debut.

The show was officially inaugurated by His Highness Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai who was joined by dignitaries including His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman of Emirates Group and Helal Saeed Al Marri, Director General, Dubai Department of Tourism & Commerce Marketing (DTCM) and Director General, Dubai World Trade Centre Authority.

New this year is the ATM Global Stage, a 200+ capacity seminar theatre designed to showcase the very best speakers covering high-level strategic topics. A stellar opening session entitled ‘The Future of the UAE As A Global Tourism Hub’, which took place on 25^th April, set the scene for the days ahead by focusing on the need for the seven emirates to come together to promote the country as a top tourism destination while retaining their individuality.

The overriding theme of ATM this year is mid-market travel.

For more information on Arabian Travel Market 2016, please visit the website at www.arabiantravelmarket.com

BSI lays down guidelines for tapping into eco tourism

ATM 2016 seminar session highlights benefits for travel and tourism related organisations in the region in adopting international best practice standards; underlines DCTCM’s Green Tourism Initiatives as emirate looks to lead pursuit environmentally sustainable tourism

BSI, the world-leading business standards company and respected international certification body, provided a compelling case for organisations in the region to adopt international best practice standards and certifications during an interactive seminar session on day one of Arabian Travel Market (ATM) 2016, as Dubai Corporation for Tourism and Commerce Marketing (DCTCM) ups its focus on encouraging hotels and hotel apartments in the Arabian Gulf to take part in green tourism initiatives and awareness programmes.

The seminar, which took place under the theme ‘Environmental and Organisational Sustainability Through Standards’, saw Omar Rashid, General Manager, Training and Professional Services, BSI, draw on his extensive experience to highlight effective ways for organisations to become more sustainable and resilient by adopting standards.

Rashid raised a number of important points about how management systems and the procedures and processes involved with implementation can lead to improved efficiency and cost savings, as well as increased employee engagement; and provide a tool for attracting the growing number of eco tourists from around the world.

“Airlines and hotels are becoming much more conscious about being environmentally friendly,” he said. “This is being driven by the rise of the eco tourist and a desire to cater to them by showcasing eco credentials, such as how you deal with waste and how you recycle and manage your carbon footprint, for instance. Customers are increasingly asking tour operators in the region, particularly in Africa, how operators are complying to international standards.”

Rashid ran through the various standards that can help organisations gain a competitive edge, including Carbon Footprint Verification (CFV), ISO 50001 Energy Management System and ISO 20121 Sustainable Event Management, which was inspired by the London 2012 Summer Olympics.

ISO 14001 Environmental Management (EMS) was also highlighted as one of the most high profile international standards to adopt. “This is an effective management tool to demonstrate how you have cut costs. It sets out the requirements for an environmental management system, giving any company a competitive advantage,” said Rashid.

“It also lays the groundwork for compliance with future statutory and regulatory requirements and inspires increased leadership involvement and employee engagement. Benefits of those who have adopted this standard include a 57% waste reduction, 52% increase in competitive edge and 53% reducing business risk. It is applicable to any organisation of any size and can take from six to 12 months to implement, depending on the size of the organisation,” he added.

The focus on eco tourism mirrors Dubai’s pursuit of environmentally sustainable tourism, which is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.

“Sustainable tourism is a key theme at this year’s Arabian Travel Market,” said Nadege Noblet-Segers, Exhibition Manager, Arabian Travel Market. “The BSI seminar provided a valuable insight into the benefits of adopting these standards for those aspiring to be more sustainable, to build resilience and attract a slice of this valuable market.”

Major aims of DCTCM’s Green Tourism Initiatives, which support Dubai’s vision, are to encourage the hotel sector to be more conscious about the use of natural resources and energy conservation, to implement systems that reduce the emissions of CO2, to spread environmental awareness and social responsibility throughout the tourism sector and create a statistical environmental model for hotels that illustrates the scale of energy consumption and improvements.

For more information on Arabian Travel Market 2016, please visit the website at www.arabiantravelmarket.com