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Brexit has not deterred business travelers in the UK

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UK’s 2018 Hotels Market Report shows that the UK regional capitals are performing strongly with overall room nights booked growing by 8% across the top 250 UK cities.


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London continues to be business travelers’ favorite capital for work trips with 663,000 room nights booked in 2018, an increase of 5% when compared to 2017. But Edinburgh experienced the highest level of growth in 2018 with room nights booked increasing by 16%, Belfast was up 13% and Cardiff up 5%.

The 2018 Hotels Market Report analyses data from corporate hotel bookings made between January and December 2018 by Advantage’s TMC members, who represent around 40% of the UK business travel sector, highlighting business travel trends and booking behaviour.

The report also shows significant growth for cities in the Midlands and North East, with Derby seeing the highest growth with 31% more booked room nights compared to 2017, while York, Nottingham and Gateshead also saw double-digit percentage increases.

Top Ten UK Cities – Booked Room Night Percentage Increase (year-on-year), January – December 2018

1. Derby – 31%
2. York – 22%
3. Plymouth – 21%
4. Inverness – 20%
5. Nottingham – 18%
6. Edinburgh – 16%
7. Reading – 15%
8. Belfast – 13%
9. Norwich – 11%
10. Gateshead – 10%

Global Results

The business world continues to travel widely, with the 2018 Hotels Report recording that hotel demand remains strong in many international cities with New York, Auckland, Wellington, Houston, Paris and Sydney topping the Advantage Top Cities list. In total, worldwide volume grew by over 393,000 room nights, a total increase of 8.74% compared to 2017, indicating that SME (Small and Medium Enterprise) corporate accounts, in which Advantage TMCs specialise, continue to perform strongly.

The total number of bookings made by Advantage business travel members in 2018 saw similar growth – up 8.76% – while the average length of stay remained constant, at 1.87 nights. Increased demand and higher occupancy globally meant hotel rates have increased by US$2 to an average daily rate (ADR) of US$169.41.

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The report also looks at trends on bookings and ADR for cities and locations around the world, with New York once again topping the list as the highest volume worldwide city outside the UK, with 90,799 room nights booked at an average rate of US$395.97 per night. Increases were also seen in Bangalore (up 54%), Kuala Lumpur (up 36%) and Boston (up 27%).

The corporate hotel sector continues to grow, with another significant increase in bookings year-on-year, made by independent TMCs. Despite continued uncertainty in both the global and UK economies including Brexit, hotel room night demand is at record levels in many destinations. Although not all destinations in Britain saw an increase in room nights booked, ADR remained strong.

The report is representative of hotel bookings made across most of the major international and independent hotel groups including: Accor, Apex Hotels, Choice Hotels, Citadines, Clayton Hotels, Design Hotels, The Doyle Collection, Edwardian Hotels, glh Hotels, Hallmark Hotels, Hilton, HotelREZ, Hyatt, House of Daniel Thwaites, IHG, Jurys Inn & Leonardo Hotels, Loews Hotels, Macdonald Hotels, Maldron Hotels, Melia Hotels International, Millennium Hotels & Resorts, The Montcalm Hotels, NH Hotels, O’Callaghan Collection, Omni, Park Plaza, Pegasus, QHotels, Quest, Rotana, Radisson Hotel Group, Sabre Hospitality, Small Luxury Hotels, TravelClick, Travelodge, Village Hotels Club, WorldHotels Collection and Wyndham Hotel Group.

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Cable Car to be introduced on Mount Kilimanjaro, amid protest

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A cable car is to be rolled out on Mount Kilimanjaro by a foreign company to improve access and boost tourism, amid strong protest from key local industry players.

Overlooking the sprawling Savannah plains of Tanzania and Kenya, the snow-capped mountain of Kilimanjaro rises majestically in splendid isolation to 5,895 metres above the sea level, making it the world’s highest freestanding peak.

Tanzania Deputy minister for Natural Resources and Tourism Constantine Kanyasu says the Cable Car facility was part of the government’s latest strategy to woo tourists with over 50 years of age.

Mr Kanyasu says that they hope that the cable car will allow more ageing tourists to experience the wide variety of nature and wildlife of Mount Kilimanjaro.

Instead of the familiar views of snow and ice, this cable car would offer a day trip safari with a bird’s eye view, contrary to the eight-day hiking trip.

The initial work for the cable car has just taken off with AVAN Kilimanjaro hiring the Crescent Environment and Management (CEM) Consult Limited to conduct Environmental and Social Impact Assessment (ESIA).

CEM officer Beatrice Mchome had engaged tour operators and other mountain stakeholders in Kilimanjaro and Arusha region where she made presentations on the proposed cable car and a lodge projects as part of the ESIA process.

Uproar

Key industry players, namely tour operators, guides and porters strongly protest the new facility, saying climbing the magnificent Kilimanjaro Mountain on foot is a lifetime experience that should never be compromised by cable cars.

Mount Kilimanjaro Porters Society (MKPS) opposes the cable car product outright, saying it will deny employment nearly 250,000 unskilled porters scaling up Mount Kilimanjaro for a wage each year.

“Much as the cable car service doesn’t require porters, majority of tourists will climb Mount Kilimanjaro on day trip basis using the new product to cut down costs and length of stay,” MKPS vice chairman Edson Mpemba explains.

Mpemba wonders that decision makers had overlooked interests of the huge number of unskilled labour force, which solely depends on the mountain to eke out a living.

“Think of the ripple effect on families of the 250,000 unskilled porters,” he stresses, cautioning:

“The cable car facility will initially look like a noble and innovative idea, but it will, in a long run, ruin the future of the majority of local people whose livelihood depends on the mountain.”

Seasoned tour guide Victor Manyanga echoes his fears saying the glittering cable car product will contradict the country’s conservation policy, as it will encourage mass tourism and become a major threat to the ecology of Mount Kilimanjaro.

“The cable car will be installed along the Machame route, which doubles as an irreplaceable birds migratory route…I am greatly worried over electric wires severely affecting the migration of birds,” Manyanga says.

Speaking on condition of anonymity, a tour operator accuses authorities of deliberately violating the law of the land by allowing a foreign investor to operate a cable car service on Mount Kilimanjaro.

“The law provides for exclusivity of Mount Kilimanjaro services to local operators, how come a foreign company is licensed to operate a cable car against it?” he queries.

Section 58(2) of the 2008 Tanzania Tourism Act No 11 clearly says mountain climbing or trekking registration will be issued to companies fully owned by Tanzanians.

Tour operators are also worried over the cable car harshly affecting revenues in a long run, owing to the service significantly reducing the length of stay from eight to one day.

“Assume all 50,000 tourists hiking Mount Kilimanjaro a year opt for the cable car, the national park will get $4.1 million fee, down from the current $55.3 million,” the tour operators say.

They fear the multiplier effect of the decline to the entrance, camping, rescue and crew fees will also be reflected on the national economy.

Chief Park Warden with Kilimanjaro National Park (KINAPA) Betty Looibok says the cable car is but only one of several additional tourism products embedded into Mount Kilimanjaro’s General Management Plan (GMP) in an effort to boost revenue.

“Cable car is for physically challenged persons and aged tourists who want to experience the thrill of climbing Mount Kilimanjaro up to Shira Plateau without wishing to summit,” she explains.

Looibok says the construction of the cable car will depend on the outcome of the environmental and social impact assessment study, which is currently underway.

Plans for the cable car service on the Kilimanjaro Mountain are not entirely new; as the discussions date back 1960s when they were not successful.

The feasibility plan in place will, however, bring the cable car one step closer to reality and make the mountain more accessible than it has been so far.

Some of the 50,000 tourists conquering Mount Kilimanjaro peaks a year though use challenging specialist routes, most of them opt for one of the six separate walking routes to the roof.

They generally take seven to eight days and are provided with accommodation in camps pitched around peaks for them to adjust to the altitude as they ascend.

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Reunion Island breaks tourist arrivals record

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Despite a difficult end to the year, 2018 was profitable and even historic for Reunion tourism as more than 574,000 outside visitors were welcomed . This is 4.1% more than in fiscal 2017, which had already had an unprecedented inflow of visitors.

In 2018, 35 ships and 39,433 cruise passengers landed on the island, which was satisfactory, although slightly lower as several companies were forced to review their routes in November and December.

Nevertheless, with revenues still increasing and amounting to more than 432 million euros, also a new record for the destination, the tourism sector confirms its preponderant place in the economy of Reunion.

Reunion’s neighbors in the Indian Ocean remain fond of the destination. Arrivals from the Indian Ocean area remains above 60,000 tourists in 2018, after a spectacular increase of 46% recorded in 2017. Within this Indian Ocean zone, Mauritius remains the main source market since it represents more than 30,000 tourists, or 5.8% of total arrivals to Reunion.

The communication and promotion actions carried out on the main European markets, other than France, have also been fruitful, as this visitor source market now accounts for 7.4% of total arrivals, compared to 6% in 2017. In total, 39,664 visitors came from the rest of Europe in 2018 which is 4.2% more than last year!

Unsurprisingly, the leisure clientele represents an overwhelming majority of arriving visitors with 90.8% of the overall volume of arrivals on the island, supplemented by 8.5% of business tourism.

The average length of stay of these foreign tourists is 17 days and remains unchanged compared to 2017, a figure particularly important for a long-haul destination such as Reunion.

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Number of Hawaii visitors up but spending down

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Visitors to the Hawaiian Islands spent a total of $1.39 billion in February 2019, a decrease of 2.7 percent compared to February 20181, according to preliminary statistics released today by the Hawaii Tourism Authority. This is another dip following the 3.8 decrease in January.

In February, visitor spending increased from the U.S. West (+4.7% to $503.3 million) but declined from U.S. East (-6.7% to $370.9 million), Japan (-0.8% to $170.1 million), Canada (-0.7% to $150.7 million) and All Other International Markets (-15.3% to $188.7 million) compared to a year ago.

On a statewide level, average daily visitor spending was down slightly (-0.9% to $200 per person) in February year-over-year. Visitors from Japan (+3.3%), U.S. West (+1.2%) and All Other International Markets (+0.7%) spent more per day while visitors from U.S. East (-4.1%) and Canada (-1.0%) spent less.

A total of 782,584 visitors (+0.5%) came to Hawaii in February 2019, up slightly from the same month last year. Arrivals by air service (+0.3% to 766,293) were comparable to last February while arrivals by cruise ships (+12.1% to 16,291) increased. However, total visitor days2 declined (-1.9%) versus February 2018 due to a shorter average length of stay by visitors from most markets.

The average daily census3 of total visitors in the Hawaiian Islands on any given day in February was 248,244, down 1.9 percent compared to February last year. Arrivals by air service realized growth from U.S. West (+6.5%), Canada (+2.5%) and Japan (+1.1%) which offset decreases from U.S. East (-0.9%) and All Other International Markets (-17.2%).

Visitor spending on Oahu decreased (-1.6% to $613.0 million) while visitor arrivals (456,820) were flat compared to last February. Maui recorded increases in both visitor spending (+1.2% to $413.0 million) and visitor arrivals (+1.5% to 220,801). The island of Hawaii saw declines in visitor spending (-17.5% to $192.3 million) and visitor arrivals (-14.8% to 137,502). Visitor spending increased on Kauai (+4.7% to $153.5 million) while visitor arrivals were similar (+0.2% to 104,167) to February 2018.

A total of 1,010,961 trans-Pacific air seats serviced the Hawaiian Islands in February, up slightly (+0.5%) from a year ago. Growth in air seats from Canada (+10.9%), Japan (+6.3%), Oceania (+1.8%), U.S. West (+0.5%) and U.S. East (+0.5%) offset declines from Other Asia Markets (-25.1%).

Year-to-Date 2019

Through the first two months of 2019, visitor spending declined (-2.4% to $3.01 billion) compared to the same period last year. Visitor arrivals increased (+1.8% to 1,603,205) but a shorter length of stay (-1.8% to 9.43 days) resulted in no growth in visitor days. Average daily spending (-2.4% to $199 per person) was lower compared to a year ago.

Visitor spending decreased from U.S. West (-0.8% to $1.06 billion), U.S. East (-1.8% to $832.5 million), Japan (-3.8% to $349.6 million), Canada (-0.4% to $318.3 million) and All Other International markets (-7.5% to $443.2 million).

Visitor arrivals increased from U.S. West (+5.5% to 631,064), U.S. East (+0.7% to 356,943), Japan (+3.3% to 251,488) and Canada (+0.7% to 133,915), but declined from All Other International Markets (-7.9% to 201,981).

Other Highlights:

U.S. West: Visitor arrivals from the Pacific region rose 7.6 percent in February compared to the previous year, with more visitors from Alaska (+13.7%), California (+8.4%), Washington (+6.7%) and Oregon (+2.9%). Arrivals from the Mountain region were up 3.2 percent in February with growth from Arizona (+9.5%) and Nevada (+8.5%), offsetting declines from Utah (-5.7%) and Colorado (-1.3%). Through the first two months, arrivals from the Pacific (+7.4%) and Mountain (+1.8%) regions increased versus the same period last year.

Through February 2019, average daily visitor spending dropped to $182 per person (-2.4%) compared to the same period last year, largely due to decreases in transportation and food and beverage expenses.

U.S. East: Growth in February visitor arrivals from the East South Central (+1.6%) and East North Central (+0.6%) regions were offset by decreases from the West South Central (-4.1%), South Atlantic (-4.0%), New England (-2.4%) and Mid Atlantic (-0.7%) regions compared to a year ago. For the first two months of 2019, arrivals were up from the East South Central (+7.2%), West North Central (+2.6%) and South Atlantic (+0.7%) regions.

For the first two months of 2019, average daily visitor spending declined to $214 per person (-1.4%), largely due to a decline in transportation expenses.

Japan: In February, more visitors stayed in hotels (+5.2%) while stays in condominiums (-16.1%) and timeshares (-7.6%) decreased compared to a year ago.

For the first two months of 2019, average daily visitor spending declined to $238 per person (-4.4%), primarily due to lower lodging and transportation expenses.

Canada: In February, less visitors stayed in condominiums (-7.3%) and hotels (-1.6%). Stays in rental homes (+23.7%) and timeshares (+4.4%) increased from a year ago.

For the first two months of 2019, average daily visitor spending decreased (–0.7% to $177 per person) compared to the same period last year, due to lower shopping as well as entertainment and recreation expenses.

MCI: A total of 57,043 visitors came to the Hawaiian Islands for meetings, conventions and incentives (MCI) in February, an increase of 10.4 percent from last year. More visitors came to attend conventions (+18.6%) and corporate meetings (+2.2%) but fewer traveled on incentive trips (-1.0%). Contributing to the growth in convention visitors was the 2019 International Stroke Conference, held at the Hawaii Convention Center, which brought nearly 6,000 delegates. Through the first two months, total MCI visitors grew (+10.5% to 116,310) compared to the same period last year.

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