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Tourism Ethiopia joins African Tourism Board

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Today Tourism Ethiopia joined the African Tourism Board as an observer.

Tourism Ethiopia (TE) is a national organization under the Ministry of Culture and Tourism;


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The mission Tourism Ethiopia has is to transform tourism of the country in general by developing tourism products to world standards and marketing them to the global market.

In charge of the new cooperation with ATB is Musa Kedir, the  Tourism Destination Development Senior Officer

Ethiopia is one of Africa’s most beautiful countries and its landscapes are epic in both scale and beauty. Here is a place where you can trek more than 3000m above sea level (the Simien and Bale mountains) or visit the lowest place on the African continent, the Danakil Depression. In between, there are lush highlands and stirring deserts, vertiginous canyons and sweeping savannah, vast lakes and high plateaus. If you look hard enough, you’ll also find landmarks of great significance, from the source of the Blue Nile to, again, the mesmerizingly desolate Danakil Depression, peppered with an astonishing 25% of Africa’s active volcanoes.

Ethiopia, the only African country to have escaped European colonialism, has retained much of its cultural identity and its story is one of Africa’s most fascinating. It all begins with Lucy, one of our most celebrated ancient ancestors, moves effortlessly into the realm of ancient Aksum with its obelisks and echoes of the Queen of Sheba, and then takes on power and passion as Christianity, with mysterious echoes of Ancient Israel, takes center stage. And unlike so many other places in Africa, the ancients here left behind some extraordinary monuments to faith and power which serve as focal points for so many wonderful journeys.

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When it comes to human cultures, Ethiopia has an embarrassment of riches. There are the Surmi, Afar, Mursi, Karo, Hamer, Nuer and Anuak, whose ancient customs and traditions have remained almost entirely intact. Venturing into these communities and staying among them is akin to receiving a privileged initiation into a forgotten world. A highlight of any trip here is witnessing one of the many festivals that are an integral part of the traditional culture, from age-old ceremonies marking rites of passage to Christian celebrations of singular passion, the impact upon those who witness such events can provide travel memories to last a lifetime.The government in Ethiopia decided in 2013 that tourism could generate jobs, income and wealth just like any other economic sector. A tourism transformation council was established to provide direction to the industry and the ETO was created to handle marketing, promotion and product development. The tourism push coincided with a massive upsurge in foreign investment from China, India, Turkey and other nations that boosted GDP to annual growth rates of around 10%. With the Ethiopian economy going like gangbusters, tourism is slowly but surely moving toward the great expectations generated more than half a century ago. Several members of the private industry from Ethiopia already joined African Tourism Board. 

CEO Doris Woerfel said: “We’re excited to work with Tourism Ethiopia in making Africa one tourism destination. Ethiopia brings so many new opportunities to promote tourism to Africa.”Founded in 2018, the African Tourism Board is an association that is internationally acclaimed for acting as a catalyst for the responsible development of travel and tourism to, from, and within the African region. For more information and how to join, visit africantourismboard.com. 

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Reimagining Tourism through Human Capital Development

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“Reimagining Tourism through Human Capital Development” written by Jamaica’s Minister of Tourism, Hon. Edmund Bartlett.

Around the world today tourism processes, tools, structures, systems and actors are being radically reviewed, reorganized and remade. In other words, tourism is being reimagined. What this means is destinations across the globe must find innovative methods to remain relevant and viable in this increasingly competitive industry.

Here in Jamaica, through strategic policy programmes and initiatives, we have been playing our part in this reimagining exercise in a bid to thrive in this space. Arrivals and earnings continue to hit records with 1.7million visitors (stopover and cruise combined) coming to our shores and spending USD1.2billion within the first four months of 2019; and the sector’s contribution to the country’s GDP now stands at 9%. Despite our continued successes we have never been complacent and seek to improve on this record growth.

A major component in the reimagining process is our human capital development strategy. This is a critical area to develop as our people remain our most iconic attraction. They represent the driving force behind our continued success and we recognize that to remain top of mind in the market and maintain our competitive advantage we must build our human capital by training and certifying them so as to increase their stackable credentials. This is why we have run the gamut from High School, through Tourism Sector workers and now into the realm of Graduate studies.

Hospitality and Tourism Management Programme

Last year we launched the first ever Hospitality and Tourism Management Programme (HTMP) in collaboration with the Ministry of Education, Youth and Information. The HTMP is a unique certification programme for high schools offered by the American Hotel and Lodging Educational Institute (AHLEI), which will allow students to gain entry-level qualifications in tourism as well as Associate Degrees in Customer Service and is recognized by the Jamaica Customer Service Association (JaCSA). This is a two year program currently offered in 33 High Schools across Jamaica with a cohort of 350 students now and will be expanded to 650 students by 2020.

Jamaica Centre of Tourism Innovation

The Jamaica Centre of Tourism Innovation (JCTI), was launched in 2017 as a pathway to professional certification in the sector. Its mandate is to identify competent workers in the industry who are not certified and also graduates from tertiary institutions who have theoretical knowledge but no practical experience. This programme will allow the workers of the sector to achieve mobility in the workspace while being effectively positioned to command professional advancement.

The JCTI, which was established with local and international organizations, is also on target to train 8,000 tourism workers over the next five years.

In April of last year, over 150 persons graduated from the JCTI with American Hotel and Lodging Educational Institute (AHLEI) and NVQJ Certification. While in November, over 300 persons received certification in tourism related fields including: 14 Certified Hospitality Educators; 9 Certified Hospitality Instructors; 17 Culinary Tutors; 12 Culinarians and Pastry Chefs; 20 Bartender Trainers and over 200 Bartenders.

In addition, we have established a program to certify workers in the entertainment sub-sector of our Hotels with 26 workers already achieving certification from the inaugural Tourism Linkages Network’s DJ Capacity Enhancement Training Program.

Graduate School of Tourism

With the changing technologies and modalities in the global tourism industry, the focus of talent development must extend beyond traditional areas and now consider the emerging skill requirements of an increasingly differentiated and segmented tourism sector. We recognize that even though tourism is a highly labor-intensive sector, the majority of the tourism-related jobs available are deemed to require low to medium-level technical skills and tend to offer relatively limited prospect for economic mobility. Consequently, the sector may not be viewed as attractive by a large number of people seeking high-skilled jobs.

The future of tourism lies in the manipulation and exploitation of Information and Communications Technology (ICT) capabilities such as big data, big data analytics, blockchain technologies, the Internet of Things, robotics, etc. We therefore need to urgently capitalize on the opportunities for high-skilled employment that are being generated in the ICT-related fields in tourism.

Within this context, we continue to identify the relevant skillsets needed to fill jobs in the evolving tourism sector with the anticipation that these skillsets will be translated into curricula that can be implemented as professional higher education programmes by tertiary institutions in Jamaica.

This is why I recently made a pitch at a function at the University of the West Indies for the institution to establish a School of Tourism. It will specialize in emerging areas, such as resilience-related studies, climate management, project management, tourism management, tourism risk management, tourism crisis management, communication management, tourism marketing and branding, monitoring and evaluation, sustainable tourism policies and tourism entrepreneurship. The University of the West Indies (UWI) should have its first-ever Graduate School of Tourism established at its Western Jamaica Campus by 2020.

Conclusion

We are doing this level of human capital development to not only reimagine the sector but influence the labour market arrangements, by professionalizing the sector and creating a cadre of workers that are qualified, certified and can be classified. Tourism workers will now be able to attract remuneration based on their certification and this is the surest way of securing tenure.

Building the capacity of our workers to be more innovative in this global industry is indeed the future of tourism. As we anticipate even further growth with more hotel rooms and more visitors, our workers will be the driving force in meeting these increased demands.

MEDIA CONTACT: Jamaica Ministry of Tourism, Corporate Communications, 64 Knutsford Boulevard, Kingston 5, Tel: 920-4926-30, Fax: 920-4944

Diversify and digitize to attract younger Muslim travelers, GCC destinations told at ATM 2019

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Gulf hospitality operators looking to increase their share of the growing halal tourism market should diversify and digitize their offerings to suit younger generations of Muslim travelers, according to experts speaking at Arabian Travel Market (ATM) 2019.

With the GDP impact of Muslim travel in the Middle East on course to hit USD 36 billion by 2020 – up from USD 30.5 billion in 2017, according to Salam Standard – halal tourism represents a lucrative prospect for GCC hospitality brands. The segment is expected to create 1.2 million regional direct and indirect jobs by next year.

Representatives from Wego, DinarStandard, Shaza Hotels, Tripfez, Serendipity Tailormade, Mosafer C by Ummah Collaboration, holidayme, Orange County Visitors Association, Cape Town Tourism and Japan National Tourism Organization (JNTO) explored ways to tap into the growing segment of Gen Z and millennial travellers at the Global Halal Tourism Summit 2019, which took place on ATM’s Global Stage.

Mamoun Hmedan, Managing Director – MENA and India, Wego, said: “There are new destinations popping up out of nowhere. Developers are building properties from scratch, with halal-friendly offerings that are designed to appeal to younger generations of Muslim travelers.

“Wego does a lot of work on social media and collaborates with tourism boards to educate people about the opportunities available to them when they travel. We make sure we always have options for our customers to look for properties near to mosques or attractions that may be of interest to Muslim travelers.”

Approximately 41 percent of Muslim travelers’ global outbound spending comes from the UAE and Saudi Arabia, according to figures released by Salam Standard. The Middle East’s total outbound spend is projected to grow to USD 72 billion by 2020.

In addition to emerging trends such as eco, ethical, all-female, experiential, gastro and adventure tourism, panelists also discussed digitization and success stories from ‘non-Muslim’ destinations such as Orange County, Cape Town and Japan.

Chris Nader, Vice President, Shaza Hotels, said: “Gen Z and millennial travelers are setting the trends in halal tourism. The biggest challenge for us involves the resort side of the market – providing the privacy and facilities that Muslim guests need while delivering the entertainment they are looking for. It can be a challenge to create that mix.

“Whenever we create a resort, we have to develop something that is culturally relevant to the location. Travelers are no longer looking for ‘just a hotel’; they want to know what we can offer in terms of experiences. So, Muslim travelers don’t necessarily need to see halal branding but they do need to know that halal services are available.”

Industry-wide investment in halal tourism-related travel technology currently stands at approximately USD 40 million, according to research conducted by DinarStandard. Panelists agreed that this figure is likely to grow further in the future, as younger Muslim travelers continue to drive innovation in online services.

Faeez Fadhlillah, CEO, Tripfez, said: “If you look at the distribution of millennials globally, many of them are living in Muslim-majority countries. In the next 10 years, the youth in this region are going to play a significant role in driving tourism trends. That’s why online travel agencies are so interested in meeting demand from Muslim travelers. Companies are doing everything they can to capture this market.”

Running until Wednesday, 1 May, ATM 2019 will see more than 2,500 exhibitors showcase their products and services at Dubai World Trade Centre (DWTC). Viewed by industry professionals as a barometer for the Middle East and North Africa (MENA) tourism sector, last year’s edition of ATM welcomed 39,000 people, representing the largest exhibition in the history of the show.

For more information about ATM 2019, visit https://arabiantravelmarket.wtm.com.

MEDIA CONTACT: NATHALIE VISELE, Director, Shamal Communications, Arjaan Office Tower, Dubai Media City, Dubai, United Arab Emirates, Tel: +971 4 365 2711 | Mobile: +971 50 457 6525, E-mail: nathalie.visele@shamalcomms.com , Website: www.shamalcomms.com

No surprises: New York, London and Tokyo top the list of world’s 15 richest cities

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Boston, Calgary, Perth and Macau – all associated with material wealth – have failed to make this list of the 15 richest cities in the world, compiled by market research firm New World Wealth.

The data gathered by the researchers reflects the total amount of private wealth held by all the individuals living in each of the cities on the list. Unlike traditional ratings, this top 15 is not based on Gross Domestic Product (GDP), but reflects analysis that covers all assets, such as property, cash, equities and business interests, excluding liabilities. Government funds are included.

1. New York City – $3 trillion

2. London – $2.7 trillion

3. Tokyo – $2.5 trillion

4. San Francisco Bay Area – 2.3 trillion

5. Beijing – $2.2 trillion

6. Shanghai – $2 trillion

7. Los Angeles – $1.4 trillion

8. Hong Kong – $1.3 trillion

9. Sydney – $1 trillion

10. Singapore – $1 trillion

11. Chicago – $988 billion

12. Mumbai – $950 billion

13. Toronto – $944 billion

14 Frankfurt – $912 billion

15. Paris – $860 billion

According to New World Wealth, wealth is a measure that differs from a GDP indicator, which is another common metric used to gauge economic power. The research firm revealed that Houston, Geneva, Osaka, Seoul, Shenzhen, Melbourne, Zurich and Dallas had just missed out on the top 15.

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How does India travel? Let us count the 94 billion ways

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Bain & Company and Google India are together launching a report on “How Does India Travel.” According to the report, the Indian traveler has come of age, spending approximately $94 billion in 2018 on around 2 billion domestic and international trips. This has helped the Indian travel and tourism industry achieve unprecedented scale, and the momentum is expected to continue with the industry growing at a 13 percent CAGR to $136 billion by 2021, according to a report.

Fueled by digital, Indian travelers are expected to spend an additional $24 billion on online travel bookings over the next 3 years. The report outlines how India spends on travel, the influence of online channels in their purchase journey, and potential growth opportunities for travel businesses until 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing.  The report states that during key research-heavy phase of interest, research and experience, digital plays a pivotal role with over 86 percent of consumers being influenced by online channels. During this phase, travelers spend their maximum time on search, travel tour provider websites, price comparison websites, and travel articles. Online video too plays a significant role with 21 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent share feedback online with social media being the dominant platform.

Talking about the market opportunities for online travel players, Vikas Agnihotri, Country Director – Sales, Google India said, “New users perceive that online channels are geared towards the more frequent flyers and experience-oriented travelers; and existing travelers research online but the lack of trust in payments and booking experience make them end up booking offline. If travel players tap these online users through personalized marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey and moving from one-time engagement to ongoing relationships to have a positive impact.”

“There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorized each against their online research behavior:

  • Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.
  • Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.
  • Experience-oriented traveler: Around 70 percent of their bookings were done online. and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.
  • Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.
  • Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

However, challenges remain in meeting the expectations of these travelers. Customers perceive online channels geared towards premium cohorts (frequent flyer and experience-oriented traveler), while mass cohorts, with $55 billion in spending, remain underpenetrated. There are about 160 million non-transacting active Internet users in India with only 5 percent of online travelers from Tier-2 or Tier-3 cities. There is a significant (20 percent) difference between the booking rates of premium cohorts and mass cohorts, the latter being also dissatisfied with online channels (~33 percent satisfied) vs. premium cohorts (~42 percent). The second challenge is in penetrating existing users who exhibit a marked distrust in use of online channels to make bookings, especially around payment and pricing terms and booking experience compared with offline channels. Consequently, their online usage drops between the research (>86 percent online influence) and booking phases (~40 percent offline bookings).

How travel businesses need to adapt to the needs of online consumers

The report cites five major shifts that marketers need to make to market to the online travelers – First, alleviate consumer concerns by improving the booking and payment experience to build a trusted brand and increase adoption. Second, they need to address the negative customer perception issues by mass customization to drive higher share in the segment. They also need to utilize consumer technology to penetrate mass segments (standardize, enable sharing), reach non-transactors (build offline presence), and create new user access.  Moreover, they need to find innovative and frugal ways to package the experience to increase both adoption and retention.  Finally, they need to create a robust digital backend to adapt to customer needs across the purchase journey.

“The contribution of travel and tourism’s spend in India has reached developed market levels, from 6.7percent of GDP in 2013 to 9.4 percent in 2018. This growth, combined with a rapidly growing internet user base and adoption of online bookings will lead to $24 billion in incremental revenues through online channels by 2021. In order to benefit from this trend, businesses need to actively increase new user adoption and increase penetration in the existing user base across the purchase journey.” Joydeep Bhattacharya, partner Bain & Company said.

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