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Dubai and Abu Dhabi grow tourism spending

SINGAPORE, 17 February 2023: A World Travel & Tourism Council report released earlier this week reveals positive signs of recovery for the Travel & Tourism sector in Dubai and Abu Dhabi as overseas travellers head back, providing a much-needed boost to economies across the country.

The report, researched in partnership with Oxford Economics, analysed key indicators such as Travel & Tourism’s contribution to GDP, employment, and traveller spending.

The analysis of the impact of the Travel & Tourism sector in both cities shows that the direct GDP contribution, jobs, and visitor spending are all bouncing back.

The WTTC Cities Economic Impact Report shows that in 2019, the Travel & Tourism sector contributed almost AED 51BN to Dubai’s and AED 12.5BN to Abu Dhabi’s economy.

But although the pandemic had a damaging effect on many countries worldwide, the UAE demonstrated remarkable resilience.

In 2020, Travel & Tourism’s GDP contribution in both cities dropped by more than half. In Dubai, it fell to AED 19.5BN, and in Abu Dhabi, it declined to just AED 6BN. 

But the global tourism body’s research shows a strong recovery for both cities.

Dubai’s Travel & Tourism sector is forecast to have reached AED 46BN, only 10% below 2019 levels and Abu Dhabi’s Travel & Tourism sector is expected to have grown to AED 11BN last year, just 12% below 2019 levels.

WTTC president & CEO Julia Simpson said: “City destinations in the UAE continue to grow in popularity for travellers from around the world.

“Although these key cities were heavily affected by the pandemic, they have shown incredible resilience and signs of growth. The UAE’s Travel & Tourism sector is on the road to recovery, demonstrating the wide appeal tourist destinations across the region continue to hold for international travellers.

“But it’s crucial that the national and local governments continue to recognise the economic importance of Travel & Tourism for the local and national economies, jobs and businesses.”

Jobs on the rise

The report also shows that across key cities analysed, employment within the Travel & Tourism sector is set to overtake pre-pandemic levels.

The report also shows that in 2019 there were just under 262,000 in Dubai and almost 43,000 Travel & Tourism jobs in Abu Dhabi. 

The following year, job numbers dropped to just under 211,000 in Dubai (-19%) but increased slightly to just under 44,000 (+2%) in Abu Dhabi.

In 2021, employment rose by 10% in Dubai to reach more than 231,000 but fell by 4% to slightly fewer than 42,000 jobs in Abu Dhabi.

WTTC forecasts more job opportunities

In Dubai, employment numbers are forecast to rise by 13% to reach almost 262,000 jobs and Abu Dhabi employment numbers are set to reach just over 43,000 in 2022, showing a modest 0.4% increase in job numbers since before the pandemic. In Dubai, WTTC forecasts an AED1.5 billion increase in international visitor spending in 2022, compared to 2019, to AED108 billion (+1.4%).

Vistara: First Indian airline to fly the new A321

DELHI, 17 February 2023: Vistara, a joint venture of Tata group and Singapore Airlines, takes the lead as the first airline in India to deploy Airbus A321LR to its fleet.

The long-range variant of the Airbus A320neo (part of the order of 50 aircraft from the Airbus A320 family placed in 2018) arrived in Delhi earlier this month, 2023, from the Airbus production facility in Hamburg, Germany.

The Airbus A321LR allows Vistara to expand its international network to destinations that require a longer-range aircraft than the A320.

Vistara chief executive officer Vinod Kannan said: ” This addition reiterates our stronger focus on international expansion and enables us to offer longer range connectivity to our customers while also maintaining greater fuel efficiency.”

The A321LR aircraft has 188 seats in a three-class cabin configuration – 12 lie-flat seats in business class, 24 in premium economy, and 152 in economy class. All seats are equipped with four-way adjustable headrests, in-seat power/USB charging ports, a state-of-the-art In-Flight Entertainment (IFE) system featuring a multimedia library with up to 700 hours of content, and onboard Wi-Fi to accentuate the overall in-flight experience for the passengers.

The airline has recently been featured amongst World’s Top 20 Airlines while being recognised as the ‘Best Airline in India and Southern Asia’ for the second time in a row, ‘Best Airline Staff Service in India and Southern Asia’ for the fourth consecutive year, ‘Best Cabin Crew in India and Southern Asia’ for the second time in a row and ‘Best Business Class in India and Southern Asia’ at the Skytrax World Airline Awards 2022.

About Vistara

TATA SIA Airlines Limited, known by the brand name Vistara, is a 51:49 joint venture between Tata Sons Private Limited and Singapore Airlines Limited (SIA).

SriLankan Airlines takes off to China

COLOMBO, 17 February 2023: SriLankan Airlines is set to renew its commercial operations in China by the first week of April 2023, with a thrice-weekly service each to Shanghai, Beijing and Guangzhou.

China was a leading source market for inbound tourism to Sri Lanka and one of SriLankan’s premier leisure traveller segments before the pandemic, and the airline is now positioned to make a strong comeback in China as travel restrictions end.

Photo credit: SriLankan Airlines

SriLankan will launch flights to Shanghai on 3 April, departing from Colombo every Monday, Thursday and Friday. The return flight from Shanghai to Colombo will depart every Tuesday, Friday and Saturday.

Flights from Colombo to Beijing will also commence on 3 April, departing for Beijing on Monday, Wednesday and Friday. The return flights to Colombo will depart on Tuesday, Thursday and Saturday.

SriLankan Airlines currently operates a weekly flight between Colombo and Guangzhou, and a second flight will be introduced on 4 March 2023. Flights to Guangzhou will increase to three weekly on 4 April. Departures from Colombo to Guangzhou will be scheduled every Tuesday, Thursday and Saturday. The return flights from Guangzhou to Colombo will depart every Wednesday, Friday and Sunday.

Air Astana resumes Beijing flights

SINGAPORE, 17 February 2023: Air Astana will resume flights from Astana to Beijing starting 18 March with two flights weekly on Wednesdays and Saturdays.

Using an Airbus A321LR aircraft, the airline plans to increase flights during the summer peak season.

In addition, from 2 March 2023, the airline will increase flights from Almaty to Beijing to four weekly, and it plans daily services during the summer season using Airbus A321LR and Airbus A321neo aircraft.

Air Astana vice president for marketing and sales Adel Dauletbek commented: “As we begin to navigate the summer season, the airline is gradually increasing capacity in China to meet the growing demand of the country with the largest economy and population.

“We are confident there will be strong demand from passengers heading to China for business, tourism and other purposes.”

The airline resumed flights to Beijing on 22 November 2022 after suspending operations in China in March 2020 due to the pandemic.

Bangkok hotel rates soar in January

SINGAPORE, 17 February 2023: Bangkok’s hotel industry reported the second-highest monthly average daily rate (ADR) on record in the market, according to preliminary January 2023 data from STR.

How Bangkok hotels performed

Occupancy: 67.5%
Average daily rate (ADR): THB4,338.82
Revenue per available room (RevPAR): THB2,930.15

December 2022 was the only other month with ADR above THB4,000 in Bangkok. The market’s January ADR level was 21.5% above the pre-pandemic comparable from 2019, while occupancy and RevPAR remained below the 2019 comparables by 19.7% and 2.4%, respectively.

When looking at daily data, Bangkok’s highest occupancy levels were seen on Thursday, 26 January (77.1%) and Friday, 27 January (78.6%), helped by extended Chinese New Year celebrations and initial demand from international Chinese visitors following the country’s reopening.

Overall, the market’s daily occupancy levels remained above the 60% mark throughout the month.

All of STR’s industry analysis can be found here

(Source: STR)

TG flights to Germany on 17 Feb cancelled

BANGKOK, 17 February 2023: Thai Airways International confirmed yesterday evening the cancellation of the following flights to Germany on 16 to 17 February 2023 as Frankfurt and Munich airports cease operations following massive labour strikes at multiple airports in the country on 17 February.

Cancelled flights

1. TG920 Bangkok-Frankfurt on 16 February 2023

2. TG921 Frankfurt-Bangkok on 17 February 2023

3. TG922 Bangkok-Frankfurt on 17 February 2023

4. TG923 Frankfurt-Bangkok on 17 February 2023

5. TG924 Bangkok-Munich on 17 February 2023 

6. TG925 Munich-Bangkok on 17 February 2023 

Passengers scheduled to travel on these flights may visit thaiairways.com for updates or call (66) 2 356 1111 for the THAI Contact Centre (24 hours a day).

Fast-track recovery earns an award

BANGKOK, 16 February 2023: Thai Vietjet takes home the winning award for the ‘Fastest Growing Lost-cost Airline – Thailand 2022’ presented by the International Finance Awards 2022 at an event in Bangkok earlier this month.

The “Fastest Growing Low-Cost Airline – Thailand 2022” award recognises the airline’s capacity to respond to the return of international tourism after the travel industry began to recover post-Covid-19 as borders reopened.

Thai Vietjet carried more than 6 million passengers in 2022 and resumed 11 international routes. It also received two new aircraft and maintained its second-place position in the domestic market for capacity share.

Thai Vietjet chief executive officer Woranate Laprabang commented: “The award recognition highlights Thai Vietjet’s capability to promptly bounce back from the pandemic and continue to move forward.

“Despite the challenges, we’ve learned to adapt and stay strong. Throughout 2022, we were among the first airlines to lead in opening and resuming numerous international flight services.

Promising to keep up the momentum, he noted that the airline offers scheduled commercial flights from its Bangkok (Suvarnabhumi) base to various cities in Vietnam, such as Ho Chi Minh City, Da Lat, Danang and Phu Quoc. In addition, it has resumed services to Fukuoka, Taipei, Singapore, and Phnom Penh, as well as charter flight services from Bangkok to Nanjing and Kunming.

Beginning in mid-February 2023, the airline will also offer a direct flight service between Chiang Mai and Osaka.

The International Finance Awards are organised by International Finance Magazine, a business and finance magazine published by UK’s International Finance Publications Limited. It recognises industry talent, leadership skills, industry net worth and capability on an international platform.

Rainforest lodge offers takeaways

KOTA KINABALU, 16 February 2023: Sustainable practices, unique experiences, and first-rate facilities are just some aspects rural community-based tourism (CoBT) operators can take away from the Borneo Rainforest Lodge (BRL) Danum Valley’s approach to luxury tourism.

Sabah Assistant Minister of Tourism, Culture, and Environment Datuk Joniston Bangkuai said communities could gain from a shift towards high-end rural tourism in terms of increased economic opportunities, preservation of local culture and traditions, environmental sustainability, improved infrastructure, and a greater sense of pride and community spirit.

“High-end tourists are individuals who are seeking luxury, unique, and personalised experiences during their travels. They seek out places like BRL for high-quality amenities, service, and special activities providing exclusivity and authenticity.

“This is the knowledge and understanding of what makes a high-end tourist product that rural communities need to begin capitalising on a lucrative and growing tourism market to create a more vibrant and prosperous local economy,” he said.

Joniston recently led a three-day trip to BRL Danum Valley in Lahad Datu for a product update and to experience luxury eco-tourism with the Sabah Tourism Board (STB)’s Board of Directors and management staff.

Among those on the familiarisation trip were Tourism, Culture, and Environment Ministry Permanent Secretary Datuk Mohd Yusrie Abdullah and Federation of Rural Tourism Association Sabah (FeRTAS) president Walter Kandayon, who is also a Board member of STB.

Joniston, who is also STB chairman, asserted that rural CoBT operators should not get complacent with the services and quality they already provide.

Instead, they should push themselves to develop distinctive tourism products and services that emphasise luxury and exclusivity, such as offering high-end private villas, gourmet dining, and personalised services.

“When these are in place, rural CoBT operators can collaborate with high-end tour operators to promote their destination and develop customised itineraries that meet the specific needs of high-end tourists,” said Joniston.

Meanwhile, Walter described his visit to the BRL Danum Valley as beneficial for gaining experience and learning how to develop luxury ecotourism products in the countryside.

He added that BRL Danum Valley has proven that rural tourism can attract high-spending tourists from abroad.

“The success of BRL Danum Valley provides a model for other rural and CoBT businesses who aspire to expand into the luxury market.

“I am certain that with a high level of seriousness, our rural areas can produce a product like the BRL in stages, using the experience available and the many resources as well as supports provided by the government,” he said.

FeRTAS, in collaboration with STB, has drawn up an 8-year strategic plan to enhance rural tourism offerings and services to elevate those with potential to high-end tourism products.

The BRL Danum Valley is a luxurious eco-lodge located in the heart of the Danum Valley Conservation Area, which is home to a 130-million-year-old ancient rainforest.

It promotes Danum Valley as a pristine tropical rainforest that is carefully developed and strictly regulated without compromising the area’s natural purity, making it an attractive eco-tourism destination for both nature lovers and wealthy tourists.

They have laid out well-thought-out trail routes for guests to enjoy and experience Danum Valley. In addition, they reinforce excellent service by providing the highest level of lodging and relaxation amenities despite their location deep in the forest.

The STB board members and management staff experienced, among others, guided jungle trekking to a waterfall and ancient burial site, a night walk, a canopy walk, a wildlife safari and tubing during the trip.

For more on community-based tourism, visit www.sabahtourism.com.

(Your Stories: Sabah Tourism Board)

Europe’s tourism recovery in top gear

SINGAPORE, 16 February 2023: A new report from the World Travel & Tourism Council (WTTC) reveals strong signs of recovery of the economic impact from Travel & Tourism in the five-city ‘powerhouses’ of Western Europe.

The Cities Economic Impact Report, sponsored by Visa and researched in partnership with Oxford Economics, analysed key indicators such as Travel & Tourism’s contribution to GDP, employment and traveller spending. The study examined the sector’s impact in London, Paris, Berlin, Rome, and Madrid.

Photo credit: WTTC

The report from the global tourism body shows that in 2019, the Travel & Tourism sector contributed over USD83.5 billion to the economies of the five European capitals, and last year was just 15% below 2019 at almost USD71 billion.

Paris has shown the strongest recovery of the five capital cities, with the other four being 18% to 30% below 2019, demonstrating slightly slower recoveries than the French capital. In Paris, the sector GDP contribution was USD38 billion in 2019, but in 2022, it recovered to just 6% below pre-pandemic levels at an estimated USD35.7 billion.

Although the sector’s GDP contribution to London was worth almost USD15 billion in 2022, it is slightly behind Berlin in terms of recovery to 2019 levels. The German capital’s contribution to the city’s economy was worth over USD7.7 billion in 2022, 18% below 2019.

Madrid’s GDP contribution was more than USD5.5 billion in 2022, 24% below 2019. However, Rome is witnessing the slowest recovery – 30% below 2019- with a sector contribution of almost USD7 billion.

WTTC President & CEO Julia Simpson said: “Travellers are flocking back to Paris, London, Berlin, Madrid, and Rome. Business travel is growing steadily. And China’s reopening is bringing welcome visitors to cities across Europe. Tourists provide a massive boost to both the economy and job creation.

“It is crucial that the national and local governments continue to recognise the importance of Travel & Tourism for the local and national economies, jobs, and businesses.”

Jobs on the rise

Before the pandemic, there were over 976,000 jobs in Travel & Tourism across the five cities.

In 2020, job numbers in the five capitals fell by 41% to just over 580,000 jobs. The following year, job numbers rose by 13% to 654,000, and last year job numbers rose again by a further 23% to reach 807,000, just 17% below the combined total in 2019.

Paris currently has the largest job market in Travel & Tourism of the five capitals, with almost 322,000 jobs.

New hotel consultancy launched in Vietnam

HOI AN Vietnam, 16 February 2023: A new hotel business consultancy, Wafaifo Optimisers, has been launched in Vietnam to serve hoteliers in the country and across the Mekong Region.

The lead ‘optimisers’ in the venture are: Wafaifo Hospitality managing director Pieter van der Hoeven; commercial director Mikkel Krantz; and deputy managing director Uyen Ngo.

The Wafaifo Optimers’ goal is to help hotel owners assess and evaluate the relationship that the hotel may have with a management company.

On sales and distribution, the Wafaifo Optimisers believe that with technological developments, efficient sales distribution doesn’t necessarily have to rely on major online travel agency platforms such as Booking, Expedia, Hotelbeds, Agoda and others, which can take over 20% commissions.

“Wafaifo Optimers will help independent hotels by conducting impartial, clear-eyed analysis of the hotel’s strengths, weaknesses and opportunities,” said van der Hoeven.

The Wafaifo Optimisers: (l to r) Pieter van der Hoeven, Managing Director;Uyen Ngo, Deputy Managing Director; Mikkel Krantz, Commercial Director.

“We aim to empower hotel owners on strategic direction. With the owner, we will clinically evaluate whether the hotel is best served with a brand or operating independently. We will advise on pricing and positioning, create standard operating procedures and make sure the hotel meets the specific needs of its target markets,” he said.

“The needs and expectations of, for example, Western, Japanese, Indian and local guests vary,” said van der Hoeven. “We will advise the hotel owner so that he or she can maximise results affordably and efficiently.”

The consultancy launches at a time when Vietnam’s GDP growth for 2022 was 8.02% (the highest rate since 1997), neighbouring China has lifted its Covid-related travel restrictions, and Vietnam Airlines reported that it carried 18 million passengers in 2022, up from 6.1 million in 2021.

In 2023, the Vietnamese government plans to spend heavily on infrastructure developments that will boost domestic road and air connectivity.

On tourism arrivals in early 2023, Vietnam is seeing strong growth from relatively new markets such as India, the Middle East, Kazakhstan and Uzbekistan.

Against this backdrop, Wafaifo Optimisers are also developing the all-new Wafaifo Resort Hoi An, which is scheduled to open in the heritage city in central Vietnam in January 2024.