Tourism
Bahrain: Cruise plans
Bahrain is to step up its efforts to promote itself as an international tourism destination, unveiling plans to increase the number of European visitors while maintaining its appeal in the Kingdom's core market of the Middle East. Tourism is already a vital component of the Bahraini economy. According to the latest projections of the World Travel and Tourism Council (WTTC), the sector's contribution is expected to be just under US$2 billion this year, representing 8.6 per cent of GDP, rising to US$4 billion by 2020. The council also predicts that the sector will expand by 3 per cent this year, with growth to average a healthy 6.5 per cent over the next decade. Significantly for a government looking to provide employment to a young and expanding population, the WTTC report says that by 2020 travel and tourism will account for one in every 8.1 jobs in the Kingdom, totaling 64,000 positions, or 12.4 per cent of the workforce. This compares to the 45,000 jobs that the sector has currently created, representing 10 per cent of the employment pool, or one in every 9.9 positions in the economy. However, while the country's tourism sector is expanding solidly, attracting increasing numbers of overseas visitors, the actual pool that Bahrain draws its tourists from is relatively narrow, with almost 90 per cent coming from other member states of the Gulf Cooperation Council (GCC). In order to meet the projected growth targets, Bahrain is looking to broaden its horizons, seeking new markets to develop, particularly in Europe. In late May, Heba Abdulaziz, the chief executive of the Ministry of Culture and Information's marketing and tourism promotion project, announced that Bahrain was in the process of developing a major international tourism promotion campaign, scheduled to be launched in the last quarter of the year, with the main focal point being the European market. According to Abdulaziz, one of the themes of the promotional activities will be "small is beautiful", reflecting the many cultural and natural attractions of the island state. However, one segment that is already growing is cruise tourism. Until recently, Bahrain had limited success in getting itself included on the itineraries of the relatively small number of cruise lines that operated in the Gulf region. Over the past few years that has changed, with more than 150,000 ship-borne visitors coming to Bahrain in the 2009-10 cruise season. With the new season beginning in October, following the hot months of summer, Bahrain is preparing to host 100 visits by liners between then and May, well up on the numbers the preceding season. (Source: OBG)
Qatar sets aside US$20bn for tourism to 2013
Qatar, which is bidding for the 2022 soccer World Cup, has set aside US$20 billion for tourism investments until 2013, a top official said, as the Gulf Arab state aims to diversify its economy away from energy. Ahmed Abdullah al-Nuaimi, chairman of state-run Qatar Tourism Authority, said 40 new hotels with around 7,000 rooms would open in the coming year, mainly in the luxury segment. The economy of Qatar, the world's top exporter of liquefied natural gas, is projected to grow 16 per cent in 2010, with the state expecting a budget surplus of 9.7 billion riyals ($2.67 billion). It has been pouring billions of dollars into infrastructure, real estate and education projects. "Tourism was never looked at as a sector or industry that would be good for the country but now things have changed," said Nuaimi. "We are talking about US$20 billion of investment in five years, including infrastructure, hotels, airports, and ports, that support tourism." In the past three years, hotel rooms have jumped to around 8,500 from 2,700, and are to reach 15,000 by early 2011, said Nuaimi. Room numbers are projected to grow to 30,000 by the end of 2013, including hotels and furnished apartments.
Oman: New strategy for tourism
Officials responsible for developing Oman's tourism strategy have announced the industry will be embarking on several new campaigns to attract additional visitors to the Sultanate in the coming season. The ambitious plans, which aim to take advantage of Oman's infrastructure and regulatory improvements, will see the Sultanate look to increase visitors from neighboring Gulf markets in the summer season, as well as expand beyond European markets for the country's high season - September to February. Speaking at this year's Arabian Travel Market (ATM) exhibition, held earlier this month in Dubai, Rajiha Abdul Ameer Ali, Oman's minister of tourism, officially launched Oman's "Summer Campaign", aimed at attracting guests from within the Gulf Cooperation Council (GCC) during the off-peak summer months. "Oman's Summer Campaign is a highly competitive industry-wide initiative," she told delegates, adding "The ministry, Oman Air and our leading hotels, resorts and apartments have crafted packages for affordable short breaks, family and leisure holidays." According to the minister, the packages will offer heavily discounted airfares coupled with attractive accommodation rates, including all taxes. As an additional incentive they will include a free extra day for a weekend or longer booking. The minister's announcement follows on from comments made by Khalid Al Zadjali, the acting director of tourism events for the Tourism Ministry, during the Gulf Incentive, Business Travel and Meetings Exhibition (GIBTM) in Abu Dhabi this March. Al Zadjali described Oman as "an exciting niche destination" for meetings, incentives, conference and events (MICE), and added that the proposed new 6000+ seat convention centre in Muscat due for completion in 2013 would act as a "springboard" for MICE in the Sultanate. By expanding into both off-season travel and MICE, the ministry is clearly looking to enhance the economic benefits of the tourism sector in the economy. Tourism has for a long time held a significant place in the government's economic diversification strategy, which aims to reduce the Sultanate's reliance on oil and develop new growth sectors. However, in light of the global downturn last year, and with many other Gulf countries also expanding their tourism offerings, the sector has become highly competitive within the GCC. Speaking to regional magazine Gulf Business at the International Tourism Bourse in Berlin earlier this year, Haitham M Al Ghasani, the director of tourism in Oman's Tourism Ministry, claimed that the crisis did not impact on tourism in the Sultanate too greatly. "Many European tourists had booked their seats for Oman much before the crisis," he said, adding that, "Other countries of the GCC also provided good traffic." However, the crisis had nonetheless prompted the ministry to alter its strategy slightly. "We have learnt from the economic crisis that it is unwise to put all your eggs in one basket," Al Ghasani said. "We are no longer relying on Europe alone. We are looking at other regions as well." As a result of this new, expanded strategy, Oman is looking to add to existing tourism promotion offices in France, Germany and the UK, with new offices in Belgium, the Netherlands, Italy and Scandinavia. Beyond traditional European markets, the Sultanate will also open branches in Russia, China, Japan and India. (Source: OBG)
'New beginning' seen for MENA hotels sector
The hotels sector is tipped to lead the real estate recovery in several MENA markets including Dubai, a new report by Jones Lang Lasalle has said. The report said the hotel investment market in the region was "at tipping point" with the sector moving from being development-led to investment-led this year. "2010 is expected to mark a new beginning for the MENA hotel market...the sector is showing signs of reawakening, which is expected to result in additional transactional activity over the next 12 months," it added. Jones Lang Lasalle said the combination of additional supply and an increased willingness to sell would result in more hotel properties being offered to the market this year. The MENA region's supply pipeline was still significant, it said, with the number of hotel rooms poised to increase from 640,000 to 730,000 over the next five years. JLL said in some markets it was now seeing more buyers than sellers. In Saudi Arabia, the report said, the holy cities of Makkah and Madinah were "witnessing a strong surge in demand for hospitality projects" while Dubai "has seen increased interest from opportunistic investors attracted by more realistic pricing and the relatively high transparency of the market. The hotels sector will be the first to recover in a number of regional markets including Dubai, with the investment value of branded hotel properties stabilizing over the past six months," the report noted.
GCC to spend $1.17 billion on hotel projects this year
Regional hospitality industry continues to spend heavily on hotels during 2010 despite turbulent global economy. According to a new study, cash expenditure in the GCC hospitality industry is set to reach more than US$1.17 billion this year. This is despite a tumultuous global economy with major developed economies recording budget deficits and colossal sovereign debt. The report was produced by the renowned Dubai-based research company, Proleads, for The Hotel Show, which is a Middle East's trade event for the hospitality and leisure sector. The Proleads figures show estimated cash expenditure this year on hotel projects under construction across the GCC will top US$1.17 billion. Unsurprisingly the bulk of that spending power is in the United Arab Emirates at US$463.8 million however, what is surprising is that Oman will eclipse Saudi Arabia this year, spending US$269.2 million as opposed to the Kingdom's US$245.5 million. However, that will not prevail beyond 2010. Qatar then leads the rest of the GCC with an estimated spend of US$100.3 million, followed by Bahrain with US$65.3 million and finally Kuwait with US$31.7 million. "These figures really show that there is no shortage of ambition or liquidity," said Ray Tinston, Sales Director, The Hotel Show. "At a time when the US and countries in Europe are preparing stringent austerity measures, to reduce their budget deficits and repay billions in loans, the Middle East region is powering ahead." Earlier this year Proleads reported that active hotel projects under construction but due for completion by 2013 throughout the GCC stood at US$7 billion. In their latest report that figure has grown to US$7.8 billion, an increase of US$800 million, mainly due to new project announcements in Qatar and Saudi Arabia.
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