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The next big thing in global tourism

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Enchanting tourist attractions, unique diplomatic stature and a thriving airliner have placed Ethiopia, Land of Origins, on top of the world when it comes to tourism growth.

According to the World Travel & Tourism Council’s (WTTC) annual review, the country saw the highest tourism growth in the world (48.6%), surpassing the global average growth rate of 3.9% and the African average of 5.6%. During the period, the sector supported 2.2 million jobs and contributed US$7.4 billion to Ethiopia’s economy, an increase of US$2.2bn on 2017.

The timeless charm of Ethiopia’s natural, cultural and historical tourist attractions has been driving an influx of tourists from far and wide. As the land where mankind, coffee and the Blue Nile trace their roots, Ethiopia has always been a fascinating destination for holidaymakers.

The country’s UNESCO-registered heritages including the majestic obelisks of Axum, the rock-hewn churches of Lalibela and the fortified historic town of Harar, among others, have always remained tourist magnets, drawing visitors in droves. And add to this the magnificent scenery and the unique wildlife riches, some of which are found in the country only.

As the Meetings, Incentives, Conferencing & Exhibitions (MICE) tourism blossoms around the world, Ethiopia is also uniquely positioned to reap the benefits, owing to its unique place in Africa’s diplomatic landscape. Ethiopia today the city stands among the top capitals in the world, hosting major regional and global conferences.

As the main hub of the Pan-African carrier, Ethiopian Airlines, Ethiopia also enjoys convenient air connectivity with multiple destinations in Africa and the rest of the world, making travel to the country easier than ever before. The connectivity options the airline offers to travelers has made Ethiopia ever more accessible to the whole world, and has facilitated the influx of tourists.

The airline’s catalyst role has never been more impactful, especially in promoting tourism, as alluded to by Gloria Guevara, President & CEO of the World Travel & Tourism Council concerning the exceptional growth of Ethiopia’s tourism. “Ethiopia’s Travel & Tourism boom was one of the great success stories of 2018. It has exceeded our sector’s global and regional comparisons to record the highest level of growth of any country in 2018”, Gloria Guevara notes. “This has been driven by the very strong performance of aviation in the country and the development of Addis Ababa as a dynamic and growing regional hub.” Africa’s largest carrier today spreads its wings to 120 destinations throughout the world, with half the destinations in Africa. Thanks to Addis Ababa’s strategic location at the center of the East-West lane and the ever-expanding service of Ethiopian Airlines, the city has emerged as the major gateway into Africa surpassing Dubai.

Besides its wide connectivity and multi-award winning signature services, the flag carrier’s cutting –edge technologies are adding a definite wow factor that is enabling the influx of tourists savor the beauty of the nation and designate the east Africa’s nation as a home away from home! Ethiopian Mobile App enables international travelers secure eVisa within 4 hours and elevates travelers to a high degree of personalization and end to end travel experience through mobile devices.

Global passengers can apply e-Visa and book their flights, pay online using credit or debit cards, mobile money, e- Wallet and bank transfer. They can also check-in and issue boarding pass as well as self-board. Passport and Ethiopian App suffice all the way to experience seamless travel to and from Ethiopia. The excellence of Ethiopian is also manifest in its hospitality and award winning service. The carrier has been certified by SKYTRAX as Four Star Global Airline.

As Ethiopia keeps leveraging its edge as a destination of choice for holidaymakers, and as Addis Ababa continues to augment its place as the diplomatic capital of Africa and the flourishing hub of Ethiopian Airlines, the sky will be the limit to its tourism growth in the years to come.

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Egypt Tourism Minister: Tourism is key to rapprochement and peace

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Egyptian Tourism Minister Rania al-Mashat and winner of IIPT Award said that Tourism and travel are the key to peaceful borders, cultural exchanges, bridge-building, communication, rapprochement and peace, especially in light of recent political and economic changes in the world.

World Travel and Tourism Council (WTTC) conducted a study revealing that the growth rate of the tourism sector in Egypt reached 16.5% in 2018.

In statements on the sidelines of her visit to Jordan for the World Economic Forum in the Middle East and North Africa, which was held from April 6 to 7, Mashat explained that this rate is higher than the average global growth of 3.9%, noting the remarkable development and improvement witnessed by the tourism industry.

The minister pointed out that her goal since taking on her role in tourism has been to change the stereotypical image of Egyptian tourism, a goal that has already begun to be achieved. The impact of these developments has been shown through the expressed appreciation of many international institutions and international reports for the developments and growth witnessed within the sector.

She pointed out that Egypt recently won the Global Champion Award in addition to positive reports published by several international agencies and media on tourism in Egypt.

She pointed out that Egyptian tourism now has a common vision and plan, which is being worked out by all parties related to the sector from government, Parliament, private sector groups, investors, etc., pointing out that the structural reform program launched by the Tourism Ministry for the development of the sector is the result of the consolidation of these visions and ideas.

The minister pointed the importance of cooperation and openness between peoples, adding that this comes within the framework of the new recreational plan for Egypt through the concept of People to People (p2p), which is based on the openness of the Egyptian people to other peoples.

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Ethiopia, Rwanda and Uganda: Top 10 improved world travel destinations

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Three Eastern African nations have emerged among the top ten fastest-growing destinations for tourism in the world.

The 2019 annual report compiled by the World Travel and Tourism Council (WTTC) shows that Ethiopia is the fastest-growing travel destination in the world with Rwanda in sixth place and Uganda holding a twelfth position on the list.

Ethiopia’s tourism sector grew by a staggering 48.6 percent in 2018, making up 9.4 percent of the economy and creating 2.2 million jobs. Over 8 percent of Ethiopia’s total workforce now works in tourism.

Rwanda also saw growth rates of 13.8 percent and Uganda 11.3 percent, with all 3 showing the pull of East Africa both in terms of its wildlife, history, and beaches, the Nation Media Group reported from Nairobi.

Kenya also saw a big growth in 2018  at 5.6 percent  which had created 1.46 million jobs and made up 8.8 percent of the total annual economy.

Kenya stands as the leading tourist hub in Eastern Africa, taking an advantage of its rich wildlife, historical sites, and beaches on the Indian Ocean coast and improved tourist services, mostly hotels and air transport facilities.

In its annual analysis quantifying the global economic and employment impact of travel and tourism in 185 countries and 25 regions, the World Travel and Tourism Council’s research reveals that the sector accounted for 10.4 percent of global GDP and 319 million jobs, or 10 percent of total employment in 2018.

It adds that travel and tourism’s growth in 2019 is expected “to remain resilient” despite a slowing global economy.

“Our forecasts point to a 3.6 percent expansion for travel and tourism, faster than an expected global economy growth of 2.9 percent in 2019,” the report says.

It adds that one in 5 of all new jobs were created by travel and tourism over the past 5 years showing the growing importance of the sector to the global economy.

Travel and tourism GDP grew by 5.6 percent in 2018, significantly above the African economic growth rate of 3.2 percent.

This places Africa as the second fastest-growing region in 2018, behind only Asia-Pacific.

Such growth is partly explained by North Africa’s rebound from security crises as well as the development and implementation of policies that stimulate travel promotion.

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IATA Report: Aviation continues to deliver solid

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The International Air Transport Association (IATA) announced global passenger traffic results for February 2019 showing total revenue passenger kilometers (RPKs) rose 5.3%, compared to February 2018. This was the slowest rate of growth in more than a year but still in line with long-term demand trends. Monthly capacity (available seat kilometers or ASKs) increased by 5.4%, and load factor slipped 0.1 percentage point to 80.6%, which is still high by historic standards.

“After January’s strong performance, we settled down a bit in February, in line with concerns about the broader economic outlook. Continuing trade tensions between the US and China, and unresolved uncertainty over Brexit are also weighing on the outlook for travel,” said Alexandre de Juniac, IATA’s Director General and CEO.

February 2019
(% year-on-year)		 World share1 RPK ASK PLF
(%-pt)2		 PLF
(level)3
Total Market 100.0% 5.3% 5.4% -0.1% 80.6%
Africa 2.1% 2.8% 1.1% 1.1% 70.4%
Asia Pacific 34.5% 6.3% 5.8% 0.4% 82.6%
Europe 26.7% 7.3% 7.7% -0.3% 81.5%
Latin America 5.1% 5.0% 5.5% -0.4% 81.3%
Middle East 9.2% -0.9% 2.7% -2.6% 72.6%
North America 22.4% 4.2% 3.9% 0.3% 80.8%

 

nternational Passenger Markets

February international passenger demand rose 4.6% compared to February 2018, which was a slowdown from 5.9% growth in January. Capacity climbed 5.1%, and load factor dropped 0.4 percentage point to 79.5%. Airlines in all regions but the Middle East showed traffic growth versus the year-ago period.

  • European carriers showed the strongest performance for a fifth consecutive month in February. Passenger demand increased by 7.6%, compared to a year ago, unchanged from January. Europe’s continuing strong performance provides a paradox given Brexit concerns and signs of a softer economic outlook. Capacity rose 8.0% and load factor slid 0.3 percentage point to 82.3%, which still was the highest among regions.
  • Asia-Pacific airlines’ February traffic rose 4.2% compared to the year-ago period, a substantial slowdown from the 7.2% increase recorded in January. The timing of the Lunar New Year holiday in the first week of February this year may have shifted some traffic to January. Capacity increased 4.7% and load factor dipped 0.3 percentage point to 81.0%.
  • Middle East carriers recorded a 0.8% traffic decline in February compared to a year ago, the only region to report a drop year-over-year. Capacity rose 2.9% and load factor fell 2.7 percentage points to 72.6%. Broadly speaking, passenger volumes of the region’s airlines have been moving sideways for the past 12 – 15 months.
  • North American airlines’ traffic climbed 4.2% in February, a decline from 5.4% growth in January. Capacity rose 2.9% and load factor was up 1.0 percentage point to 79.0%. Signs of softening economic activity at the end of 2018, in conjunction with the effects of ongoing tensions between the US and several of its trading partners, may be mitigated by the region’s low unemployment and generally sound economic backdrop.
  • Latin American airlines saw traffic rise 4.3% compared to February 2018, a slippage from 5.4% annual growth in January. Capacity increased by 5.6%, and load factor dropped 1.0 percentage point to 81.4%. Renewed economic and political uncertainties in a number of key countries may weigh upon air transport demand in coming months.
  • African airlines experienced a 2.5% rise in traffic for the month compared to the year-ago period, down from 5.1% growth in January. Concerns over conditions in the largest economies are contributing to the slowdown. Capacity rose 0.3%, and load factor climbed 1.5 percentage points to 69.7%.

Domestic Passenger Markets

Domestic travel demand rose 6.4% in February compared to February 2018, down from 7.4% annual growth in January. All markets except Australia reported increases in traffic, with India recording its 54th consecutive month of double-digit percentage growth. Domestic capacity climbed 5.8%, and load factor edged up 0.5 percentage point to 82.4%.

 

  • China topped the growth chart for a second month in a row, with RPKs up a strong 11.4% year-on-year, although this was down from 14.5% growth in January compared to a year ago.
  • Brazil’s domestic traffic increased 5.8% in February, compared to a year ago, the fastest pace in more than six months and more than double the 2.6% year-over-year rise for January. Brazil was the only domestic market tracked by IATA to show an increase in the year-on-year growth rate compared to January 2019.

The Bottom Line

“While overall economic confidence appears to be softening, aviation continues to deliver solid results, helping to sustain global commerce and the movement of people. The Brexit deadline has come and gone with no separation agreement, but with vital air connectivity between the UK and the Continent maintained for the present. Temporary measures, however, are no substitute for a comprehensive Brexit package that will ensure that the Business of Freedom is able to play its vital role in contributing to the well-being of the region—and the world,” said de Juniac.

Read the full February Passenger Traffic Analysis  (pdf)

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Travel Trends Index: International and domestic travel growth projected to dwindle

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Travel to and within the U.S. grew 3.2% year-over-year in February, according to the U.S. Travel Association’s latest Travel Trends Index (TTI).

However, the predictive Leading Travel Index (LTI) continues to project a slowdown in both international and domestic travel growth, as both segments could continue to feel the effects of rising trade tensions, volatile financial markets and weakening business and consumer confidence. These factors have the potential to stunt travel growth and dull American competitiveness at a time when the U.S. is seeking to reverse its declining share of the global international travel market.

Though international inbound travel grew for the ninth consecutive month, the segment grew only 1.4% in February. Domestic travel increased 2.8% year-over-year in February, with growth in both the business and leisure travel segments. Domestic business travel outpaced the leisure segment for the first time since October 2018, registering slightly above its six-month moving average with a 3.0% growth. Leisure growth fell slightly below its six-month moving average with a more tepid 2.6% growth rate.

Looking ahead, domestic and international inbound travel are both projected to grow, but at a moderate pace.

Said U.S. Travel Senior Vice President for Research David Huether: “Growth is expected to decelerate in the case of domestic travel while international inbound travel is projected to remain soft. This is consistent with an expectation of stable-yet-moderating economic growth both in the U.S. and globally.”

U.S. Travel economists caution that this decelerated growth rate will make it even more difficult for the U.S. to regain its diminishing share of the global international travel market. Acting on certain legislative initiatives—such as Brand USA’s long-term reauthorization and the rebranding and expansion of the Visa Waiver Program—can help the U.S. increase competitiveness in the global travel market.

The TTI is prepared for U.S. Travel by the research firm Oxford Economics. The TTI is based on public and private sector source data which are subject to revision by the source agency. The TTI draws from: advance search and bookings data from ADARA and nSight; airline bookings data from the Airlines Reporting Corporation (ARC); IATA, OAG and other tabulations of international inbound travel to the U.S.; and hotel room demand data from STR.

Click here to read the full report.

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Middle East visitors to Egypt to increase 50% by 2022, ATM report reveals

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Arrivals from the Middle East to Egypt are expected to increase 50% from 1.49 million in 2018 to 2.23 million in 2022 with visitors from Saudi Arabia driving this growth, according to data published ahead of Arabian Travel Market 2019, which takes place at Dubai World Trade Centre from 28 April – 1 May 2019.

While arrivals from Europe are expected to be the largest contributor on a regional basis, increasing from 6.2 million in 2018 to 9.1 million tourists in 2022, the latest research from Colliers International revealed arrivals from the Middle East will actually witness the highest Compound Annual Growth Rate (CAGR) at 11%.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “Over the last 12 months, Egypt’s tourism industry has witnessed healthy and steady growth, with arrivals up 14.5% from 8.3 million in 2017 to 9.5 million in 2018. Growth has been fuelled by the cheaper Egyptian Pound and government incentives for charter airlines operating international flights.

“Adding to this, we are witnessing this growth first hand at ATM with the total number of attendees coming from Egypt increasing 16% YoY.”

Taking advantage of this resurgence in tourists are some of Egypt’s most prominent tourism companies including Dana Tours, Nicolas Tours and Standard Tours who will exhibit at ATM 2019 – and of course the Egyptian Tourism Promotion Board who will have a major presence too.

Egypt tourism capital investment is estimated to reach US$ 4.2billion (EGP 75bn) in 2019, up 25 per cent on 2018, as the country strives to keep pace with an ongoing leisure travel boom and GDP growth.

The data from Colliers revealed that Egypt’s total tourism revenue will increase at a CAGR of 16.5% between 2018 and 2022 – outperforming the business segment. During 2017 and 2018, the leisure spend was US$ 13.79billion (EGP 239bn) and US$ 16.67billion (EGP 289bn) respectively, while business totaled US$ 1.93billion (EGP 33.5bn) and US$ 2.36billion (EGP 41bn) over the same period.

“The overall revenue generated by the leisure segment in 2018 represented 87% of total tourism spend and we expect this growth to continue as a series of new government and private sector attractions and investments are unveiled – including the development of new airports and new luxury hotel resorts in Red Sea destinations Sharm El Sheikh and Hurghada,” Curtis said.

Egypt has a diverse range of source markets – decreasing the risk of being over-reliant on one specific market. Germany, Russia, the UK and Italy are Egypt’s top four source markets, with the first and last in top gear – both growing 29% in 2018 – and showing the highest CAGR growth of 11%.

The UK, which recorded just a 4% increase in arrivals between 2017 and 2018, has traditionally been a long-standing major source market for the Red Sea resort of Sharm El Sheikh. However, an ongoing ban on direct flights between the two destinations has stifled visitor numbers.

Curtis added: “It is hoped the recent resumption of Serbian flights to Sharm El Sheikh after a six-year absence and the introduction of Turkish Airlines’ daily flight from Moscow to the Red Sea via Istanbul, will kick-start direct flights between the UK and Egypt, and of course Russia and Egypt.”

ATM, considered by industry professionals as a barometer for the Middle East and North Africa tourism sector, welcomed over 39,000 people to its 2018 event, showcasing the largest exhibition in the history of the show, with hotels comprising 20% of the floor area.

Brand new for this year’s show will be the launch of Arabian Travel Week, an umbrella brand comprising four co-located shows including ATM 2019, ILTM Arabia, CONNECT Middle East, India & Africa – a new route development forum and new consumer-led event ATM Holiday Shopper. Arabian Travel Week will take place at Dubai World Trade Centre from 27 April – 1 May 2019.

About Arabian Travel Market (ATM)

Arabian Travel Market is the leading, international travel and tourism event in the Middle East for inbound and outbound tourism professionals. ATM 2018 attracted almost 40,000 industry professionals, with representation from 141 countries over the four days. The 25th edition of ATM showcased over 2,500 exhibiting companies across 12 halls at Dubai World Trade Centre.  Arabian Travel Market 2019 will take place in Dubai from Sunday, 28th April to Wednesday, 1st May 2019. To find out more, please visit: www.arabiantravelmarket.wtm.com.

About Arabian Travel Week

Arabian Travel Week is an umbrella brand comprising four co-located shows including Arabian Travel Market and ILTM Arabia as well as CONNECT Middle East, India and Africa – a new route development forum launching this year and ATM’s first ever consumer event – ATM Holiday Shopper. Providing a renewed focus for the Middle East’s travel and tourism sector – under one roof over the course of one week – the inaugural Arabian Travel Week will take place at Dubai World Trade Centre from Saturday 27th April – Wednesday 1st May 2019. For more information visit: arabiantravelweek.com

About CONNECT

CONNECT Route Development Forum delivers a total networking experience, bringing together airports, airlines and aviation suppliers in a format that offers formal one-to-one pre-arranged meetings, engaging industry seminars together with social opportunities to cement relationships with existing clients and engage with new ones. Created and organised by The Airport Agency-France, CONNECT is now in its 16th year and set to attract over 650 participants in June 2019 at its flagship event taking place in Cagliari, Sardinia. For more information, visit: www.connect-aviation.com

The inaugural CONNECT Middle East, India & Africa event will be the first and only networking forum in the Middle East. Ideally located in Dubai to address the booming aviation market of the Middle East, it will bring together the aviation and the tourism industry which are the backbone and catalyst to economic development. For more information, visit: www.connect-aviation.com/2019-meia/

About ATM Holiday Shopper

ATM Holiday Shopper is the brand-new travel event for consumers offering the very best travel and tourism discounts and deals plus the chance to learn about a range of emerging and unexplored destinations and activities from destinations around the world.  The inaugural event will take place in Hall 1 of the Dubai World Trade Centre on Saturday, 27th April 2019 from 12:00 – 20:00. For more information, visit: www.atmholidayshopper.com

About ILTM Arabia

International Luxury Travel Market Arabia is an exclusive event for those looking to attract HNW travellers from the Middle East to their destination. Returning for its third year, ILTM will allow international luxury suppliers and key luxury buyers to connect via one-to-one pre-scheduled appointments and networking opportunities. ILTM will take place on Sunday 28th April and Monday 29th April 2019. For more information, visit: www.iltm.com/arabia/

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PATA: Indian tourism to Asia Pacific will increase by 5.4 million in next 4 years

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India is set to generate an incremental increase of 5.4 million visitor arrivals between 2018 and 2023, according to a latest report by PATA’s Asia Pacific Visitor Forecasts 2019-2023.

Of the 210 million additional foreign arrivals into Asia Pacific generated between 2018 and 2023, 73.7 percent will come from Asian origin markets.

The strongest Asian generators of additional visitor arrivals between 2018 and 2023 will be led by China and Hong Kong SAR with respective increases of 49.2 million and 30.8 million. These markets will be supported by Korea (ROK), Malaysia and India. The Asian Average Annual Growth Rate for tourism receipts between 2018 and 2023 is expected to be around 9.1 per cent, with Northeast and Southeast Asia showing even stronger average growth.

“The growth momentum of Asia Pacific as both a receiver and a generator of international visitors – not just into Asia Pacific but globally – and the receipts that they both receive and generate, is set to continue to at least 2023,” said Dr Mario Hardy, CEO, PATA. “As is always the case, growth in international arrivals across Asia Pacific and indeed globally, is often unequal, with subtle changes and shifts occurring as travellers tune into new experiences and the destinations that offer them,” he said.

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