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A new Tourism potential in Tanzania: The Southern Circuit

April 21, 2019 by Forimmediaterelease

A new Tourism potential is about to be unlocked In Tanzania. All roads and international air routes will in the near future, be leading to the Southern circuit, as the tour operators have major plans to open new tourism revenue streams.

Complimenting the Government’s drive to transform the Southern tourism circuit, the key tourism players are currently scouting for apt partners to invest heavily in accommodations as part of a strategy to open up the area for travel.

It is understood, the Fifth Government under President Dr John Pombe Magufuli is working overtime to put up hardware infrastructures as it seeks to unleash the full economic potential of the area.

Impressed by the government move to designate Iringa as the Southern circuit hub, Tanzania Association of Tour Operators (TATO) last week deployed a delegation led by its Vice-Chairman, Mr Henry Kimambo to identify new potential members in its effort to establish a chapter in the area to cater for the entire Southern circuit.

“We want to replicate the best practices from the northern tourism circuit to Southern shred,” Mr Kimambo told the tour operators in Iringa during the engagement meeting.

He revealed that TATO plans to bring its services close to its members in Southern circuit, comprising Morogoro, Iringa, Njombe and Mbeya anytime soon.

This implies that the 36-year-old advocacy agency for a multi-billion dollar industry, with its base in northern safari capital of Arusha, will soon have a liaison office in Iringa to take care its Southern circuit members.

Mr Kimambo said that his association was aware that the Southern circuit based tour operators not only have their own different issues but also need strong ties with their northern tourism circuit peers if the tourism potential is to be unleashed.

Presenting the benefits before the Southern Circuit tour operators, TATO Chief Executive Officer, Mr Sirili Akko said lobbying and advocacy is a core service offered by his association.

“Members enjoy the conducive business environment as TATO represent a collective voice for private tour operators in lobbying and advocate towards the common goal of improving the business climate in Tanzania” Mr Akko explained.

TATO also provides unparalleled networking opportunities for its members, allowing individuals tour operators or company to connect with their peers, mentors, and other industry leaders and policymakers.

As a member, one is in the unique position to attend conventions, seminars, award dinners and other related events with like-minded professionals in the field. These events are attended by the brightest minds and are a hotbed of ideas and collaborative efforts.

“An association’s annual General meeting represents an incredible opportunity for members to meet and network with the largest gathering of their peers during the year” Mr Sirili explained.

TATO also trains its members on key issues such as labour laws, tax compliance, corporate social responsibility, conservation issues, among others, he noted.

As if that was not enough, TATO members also enjoy the service of having a platform where they channel their operational or policy related challenges to the government for a solution.

Members are also bonded together as they advocate for their peers and share their challenges and triumphs with one another, TATO CEO explained.

“Indeed, TATO provides members with a competitive advantage because they become active, informed members of their industry” Mr Sirili said, stressing that his members also get updates on all issues on tourism and related sectors by providing resources, information, and opportunities they might not have had otherwise.

Thanks to USAID PROTECT Project for building the capacity of TATO, an umbrella organization with over 300 members, for it to become an efficient advocacy agency for the tourism sector.

Project coordinator, Mr Jumapili Chenga said the scaling up membership base for TATO is one of his scheme’s components.

Iringa Region Tourism Officer, Ms Hawa Mwichaga was grateful that at the long last a strategy to unlock the Southern tourism circuit has stepped up a gear.

Tour operators from Iringa, Mbeya and other regions namely Ernest Luwala, Nancy Mfugale, Modestus Mdemu, Serafina Lanzi supported the idea of joining TATO as a concrete step to spur tourism in southern circuit.

Natural Resources and Tourism Ministry’s officer-in-charge for Southern Circuit, Ms Tully Kulanya said her zone has a great potential for tourism business.

“The Southern Parks are the perfect destinations for travelers looking for plentiful and rare wildlife in a remote area of Africa” Ms Kulanya noted.

The national parks namely Mikumi, Udzungwa, Kitulo Ruaha, as well as Selous Game Reserve, have fewer visitors and give the feeling of being all-alone. Activities include game drives in open vehicles, boat safaris, and walking safaris. These safaris include flights between the parks.

Tanzania’s earnings from tourism jumped 7.13 percent in 2018, helped by an increase in arrivals from foreign visitors, the government has said.

Tourism is the main source of hard currency in Tanzania, best known for its beaches, wildlife safaris and Mount Kilimanjaro.

Revenues from tourism fetched $2.43 billion for the year, up from $2.19 billion in 2017, Prime Minister, Mr Kassim Majaliwa said in a presentation to parliament.

Tourist arrivals totaled 1.49 million in 2018, compared with 1.33 million a year ago, Majaliwa said.

President John Magufuli’s government said it wants to bring in 2 million visitors a year by 2020.

Travel News | eTurboNews

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IATA announces judges for Diversity and Inclusion Awards

March 29, 2019 by Forimmediaterelease

The International Air Transport Association (IATA) announced the members of the independent judging panel for the IATA Diversity and Inclusion Awards as:

  • Angela Gittens, Director General, Airports Council International
  • Gloria Guevara, President and CEO, World Travel and Tourism Council
  • Mark Pilling, Vice President Publishing and Conferences, FlightGlobal
  • Karen Walker, Editor-in-Chief, Air Transport World

“We are honored to have such a renowned and diverse panel of experts as judges for the IATA Diversity and Inclusion Awards. Our aim is to inspire greater diversity and inclusion across the aviation industry by recognizing role models and company initiatives that are driving critical change,” said Alexandre de Juniac, IATA’s Director General and CEO.

IATA also announced the following important changes for nominations:

  • Eligibility: The Young High Flyer Award will be extended to nominations for women under the age of 40 (previously 30). This is to better accommodate the contributions made as nominees develop their careers and networks within the industry.
  • Deadline: The deadline for all nominations will be extended to 6 PM Central European Time, Monday, April 15. This will ensure ample time for any new nominations as a result of the category criteria adjustments.

Sponsored by Qatar Airways, the IATA Diversity and Inclusion Awards will honor excellence demonstrated in the categories of: (1) Inspirational Role Model, (2) Young High Flyer and (3) Diversity and Inclusion Team. The first awards will be presented at the conclusion of the 75th IATA Annual General Meeting and World Air Transport Summit to be held in Seoul, South Korea (1-3 June 2019).

For more information on the Awards visit the webpage.

Travel News | eTurboNews

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Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

March 19, 2019 by Forimmediaterelease

Fraport

Boards propose dividend increase to EUR2 – Outlook remains positive
In the 2018 fiscal year (ending December 31), Fraport AG continued on
its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport’s international portfolio – with the airports in Brazil
and Greece, in particular, making a significant contribution.
Fraport AG’s executive board chairman Dr. Stefan Schulte said: “We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects.”
Revenue and earnings targets achieved
The operating result (Group EBITDA) climbed markedly by 12.5 percent
to over EUR1.1 billion. The Group result (net profit) rose even
stronger, by 40 percent to EUR505.7 million. This includes earnings
gained from the sale of Fraport’s stake in Hanover Airport, which
contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport’s international
business, while remaining in positive territory at EUR6.8 million.
Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).
Passenger traffic rises noticeably at FRA and internationally
Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.
CEO Schulte commented: “We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport – while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us.”
In response to strong passenger growth, Fraport hired over 3,000 new
staff members at Frankfurt Airport in 2018. Despite the constraints
experienced at some central process points in the terminals during
peak periods – particularly at the security checkpoints – global
satisfaction of passengers with Frankfurt Airport was at 86 percent
in 2018 – thus even posting a slight increase compared to the
previous year (2017: 85 percent). To provide additional space for
security checkpoints, Fraport is investing in an extension to
Terminal 1 for installing seven extra security lanes in the summer of
2019.
Fraport’s international portfolio also posted a significant gain in
passenger traffic during 2018. In Brazil, the two airports of Porto
Alegre and Fortaleza reported a 7.0 percent increase to 14.9 million
passengers in 2018 – Fraport Brasil’s first year of operating these
airports. At the 14 Greek airports, traffic rose by almost 9 percent
to 29.9 million passengers. Antalya Airport in Turkey grew by a
significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.
Outlook: Growth expected to continue
Fraport is forecasting sustained growth at all of the Group airports
in fiscal year 2019. At Frankfurt Airport, passenger volume is
expected to rise between around two and roughly three percent.
Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport’s stake in Hanover Airport. The application
of the IFRS 16 accounting standard – which changes the accounting
rules for leases – will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.
Fraport’s four business segments at a glance
Revenue in the Aviation segment increased by 5.5 percent to slightly
over EUR1 billion. This was due partly to higher revenue from airport
charges resulting from increased passenger traffic at Frankfurt
Airport. At EUR277.8 million, segment EBITDA increased by 11.3
percent year-on-year, while segment EBIT rose 6.5 percent to EUR138.2
million.
Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.
Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.
At nearly EUR1.3 billion, the International Activities and Services
segment significantly advanced by 58 percent compared to the previous
year. After adjusting for the EUR359.5 million in revenue related to
IFRIC 12, the segment’s revenue rose by 20.1 percent to EUR931.4
million. This revenue growth received major contributions from the
Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9 million),
as well as Fraport Greece (+ EUR53.2 million). Segment EBITDA
increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.
You can find our 2018 Annual Report and the presentation from the
press conference on our financial statements (as of 10:30 a.m.) on
the Fraport AG website.

MEDIA CONTACT: Fraport AG, Torben Beckmann, Corporate Communications, Media Relations, 60547 Frankfurt, Germany, E-mail: [email protected]

Travel News | eTurboNews

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