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ATM: Tourism crucial for reducing Saudi Arabia’s dependence on oil revenues

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According to the experts speaking at Arabian Travel Market (ATM) 2019, tourism will play a major role in reducing Saudi Arabia’s dependence on oil revenues.

In a panel discussion titled ‘Why Tourism is Saudi’s New ‘White Oil’’, which took place on ATM 2019’s Global Stage, representatives from Saudia Private Aviation (SPA), Dur Hospitality, Colliers International MENA, Marriott International, Jabal Omar Development Company and Saudi General Investment Authority discussed opportunities related to upcoming tourist-focused developments and visa reforms.

Kingdom-based industries in direct contact with tourists are expected to generate more than USD 25 billion this year – approximately 3.3 per cent of Saudi Arabia’s GDP – according to figures released by the World Travel and Tourism Council (WTTC).

Reema Al Mokhtar, Head of Destination Marketing, Jabal Omar Development Company, said: “Our country has beautiful geographic diversity and a host of cultural attractions so, once visitors come into the kingdom and see the different projects lined up for them, I think it will market itself.”

Saudi Arabia’s domestic tourist trips are projected to rise by 8 per cent in 2019, while inbound visits from international markets are expected to grow by 5.6 per cent per year, according to research conducted by Colliers on behalf of ATM 2019.

With the creation of new local attractions thanks to the Quality of Life Vision Realization Program and the General Entertainment Authority (GEA), Saudi Arabia’s overall number of tourist trips is on course to hit 93.8 million by 2023, up from 64.7 million in 2018.

Commenting on Saudi residents’ historic tendency to travel out of the country for entertainment and leisure, John Davis, CEO, Colliers International MENA, said: “I think some airlines could probably double their number of [weekend] flights and still fill the seats. So, when the country opens [new local attractions], people will utilise them.”

By helping Saudi Arabia to further boost its domestic and inbound tourist numbers, panellists agreed that ‘giga’ developments will prove crucial in helping to meet the economic diversification targets set out in Saudi Arabia’s Vision 2030.

Alex Kyriakidis, President and Managing Director Marriott ME&A, Marriott International, said: “The challenge to date has been a lack of opportunities for domestic tourists. However, if you look at developments like The Red Sea Project and Qiddiya, which are completely reinventing destinations that will appeal to Saudi residents, you will find everything from hospitality and wellness to entertainment and sports. For many segments of the local population, these projects will stimulate spending in the country.”

Despite the more than 9,000 keys of three- to five-star international supply due to enter the market this year, the panel agreed that the kingdom is well placed to sustain and even increase occupancy levels over the coming years thanks to a combination of giga-projects, high-profile events, entertainment and religious tourism.

Dr Badr Al Badr, CEO, Dur Hospitality, said: “We’ve been in the hospitality sector for 42 years and we’ve never seen anything like this. What’s happening now is earth shattering. The change of mindset in terms of opening up this country for visitors – whether for religious or general tourism – is definitely something to be celebrated.”

Visa-related improvements are also expected to drive growth in Saudi Arabia’s tourism sector. With the roll-out of 30-day Umrah Plus Visas, eVisas for tourists and specialist visas for events such as the Formula E Championship’s E-Prix, the kingdom looks set to attract more international visitors than ever before.

Majid M AlGhanim, Director of Tourism, Saudi General Investment Authority, said: “Many of the reforms that are happening right now, such as 100 per cent ownership and easier registration for foreign companies, involve regulation. Hopefully, we will see lots of international investment in Saudi destinations very soon.”

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.

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

Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

Travel News | eTurboNews

A new Tourism potential in Tanzania: The Southern Circuit

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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

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.

Travel News | eTurboNews

Oxford Economics: Brand USA’s marketing initiatives drove record international visitor spending

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Today, Brand USA, the destination marketing organization for the United States, announced that a study by Oxford Economics shows Brand USA’s marketing efforts are generating a high return on investment (ROI) and driving significant incremental international visitation and spend, which is helping to fuel the nation’s economy. The report shows Brand USA has consistently driven strong results over the past six years, including record results in Fiscal Year 2018 (FY2018) for incremental international visitor spending, tax revenues generated, and total economic impact.

Highlights of the study show Brand USA’s marketing efforts in FY2018 alone (October 1, 2017 – September 30, 2018) helped drive:

• 1.13 million incremental international visitors to the USA who spent
• $4.1 billion on travel and fare receipts with U.S. carriers, and generated
• $1.17 billion in federal, state, and local taxes and
• $8.9 billion in total economic impact, and supported
• 52,305 incremental U.S. jobs

The resulting FY2018 marketing ROI was 32:1—meaning that every $1 Brand USA spent on marketing generated $32 in spend by international visitors.

The study also shows that the cumulative results of Brand USA’s marketing efforts over the past six years (FY2013 through FY018) has helped bring:

• 6.6 million incremental visitors to the USA who spent
• $21.8 billion on travel and fare receipts with U.S. carriers, and generated
• $6.2 billion in federal, state, and local taxes, and
• $47.7 billion in total economic impact, which has supported, on average,
• Nearly 52,000 incremental U.S. jobs each year

The six-year results equate to an average marketing ROI of 28:1.

“International visitation is an important driver for the nation’s economy—benefiting a wide range of industries well beyond travel and tourism,” said Christopher L. Thompson, president and CEO of Brand USA.

According to the U.S. Department of Commerce, international travel to the United States is the nation’s top services export and represents 11 percent of all U.S. exports, contributing a $77.4 billion trade surplus.

“The FY2018 ROI study reinforces the effectiveness of our promotional campaigns and how our efforts are supporting communities and employment throughout the country. The United States provides international travelers more value in its diversity of experiences than any other place in the world, and we look forward to continuing to work with our partners to market the USA as the ultimate travel destination,” added Thompson.

Each year, Brand USA deploys a number of market-driven platforms and programs as part of its mission to increase incremental international visitation, spend, and market share for the United States in order to fuel the U.S. economy and enhance the image of the USA with worldwide travelers.

Brand USA also collaborates with federal partners to communicate U.S. visa and entry policies and correct misperceptions about those policies as required by the Travel Promotion Act.

The Oxford Economics study includes an analysis of Brand USA’s work in nine markets – Australia, Brazil, Canada, China, Germany, Japan, South Korea, Mexico, and the United Kingdom—and also considers the organization’s total impact in other international markets where Brand USA’s marketing was active during the year via consumer, trade outreach, and cooperative marketing programs.

Travel News | eTurboNews

Benchmark appoints new Regional Director of Revenue Management

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Benchmark has appointed Michael Botha regional director of revenue management. Eric Gavin, Benchmark’s chief sales officer, made the announcement.

“I am very pleased to welcome Michael to Benchmark,” said Mr. Gavin. “He comes to us with an impressive revenue management pedigree, and vast experience with maximizing revenues of independent hotels and resorts. Michael is a terrific addition to our revenue leadership team.”

Michael Botha previously held the position of regional director of revenue management for Pyramid Hotel Group of Boston, Massachusetts. He has served as area director of revenue management for Nobel House Hotels & Resorts, and earlier in the same role for Dolce Hotels and Resorts.

Mr. Botha is a graduate of the University of Johannesburg Hotel School where he earned his National Diploma in Hospitality Management. He is the recipient of numerous professional honors including the Kyalami Castle Award for Best Experiential Learner; Southern Sun Award for Best Overall Experiential Learner; and Distinctions in Hospitality Management, Law, Financial Management, Operations, Food & Beverage. He resides in Cumberland, Rhode Island, where he will be operating out of a regional office.

Travel News | eTurboNews

Gleam of hope for tourism

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On March 27, all roads led to Mombasa, Kenya, for a joint business meeting organized by Uganda and Kenya and the two Presidents of both countries actually attended. The meeting gathered ministers, key business persons from both countries to discussing topics of mutual interest for the growth. I was personally hesitated to go because my wife and daughter were traveling same week and did not want them to leave without me saying a goodbye.

I also do not like meetings where people talk and do not come up with real solutions for the existing problems. I only made the journey after my family blessed it. I took a morning flight aboard Kenya Airways to join two Kenya friends (Shivam Vanayak and wife) out of Nairobi to Mombasa and thankfully, they had managed to secure three tickets on Madaraka train. Securing seats on the train from Nairobi to Mombasa is an uphill task because of high traffic.

I had been to Nairobi a number of times with an aim of securing seats and failed because of the demand. The business class is even worse because the tickets are booked out first way in advance.

The staff of Madaraka train dress more like air hostesses with a proper Kenyan hospitality. The train carries about 1,500 people each way and there are two trains departing Nairobi daily for Mombasa and vice versa which means 3,000 individuals are dropped into Mombasa daily which is a massive business opportunity for the Mombasa service providers such as hotels, restaurants, taxi drivers, entertainment joints, boats, bars, etc.

The train goes through Tsavo National Park which is Kenya’s largest and oldest standing at 13,747 square kilometers. While on the train, we also saw the 300 kilometer long Yatta Plateau, the longest lava flow in the world. Tsavo is home to the larger mammals, vast herds of elephants, rhinos, buffaloes, lions, leopard, pods of hippo, crocodiles, water bucks, lesser kudu, genenuk and the prolific bird life.

At the business forum in Mombasa, I was given an opportunity to address the audience which included President Museveni and President Uhuru Kenyatta on behavior Uganda and Kenyan tourism group. My address focused on seven points we had agreed upon before the Presidents arrived at Sarova sands where the meeting took place.

The first point focused on the flights between the East African countries especially Kenya and Uganda. Our observations are that the tickets between Uganda and Kenya are very expensive because of the high taxes levied by both governments. Kenya for example charges $50 on every ticket and Uganda charges $57 which makes a total of $107. That figure is what should be the cost of a ticket between the two countries. We actually recommended that flights between the two countries be domesticated.

The second point focused on the East African tourists’ visas which have Uganda, Kenya and Rwanda working together. Our proposal was that the two presidents convince the Tanzanian leadership to join the good arrangements. Many tourists are finding it easy paying $100 for a visa that covers the above three nations which allows them to move back and forth.

Since some local airline operators such as coastal want to fly into Ugandan national parks, it would positively affect the tourism business between the four nations. The third point focused on politics. Overtime, we as the tourism operators in the region have seen politics affect tourism a lot especially during campaigns and since insecurity and tourism can’t co-exist, foreign tourists will fear to travel in the region.

The leaders were asked to remember what their actions mean to business and practice restrain. This particular point was well received by both leaders and we hope to see some change with time. The fourth point focused on trans-boundary tourism opportunities which focus on the shared tourism attractions such as Lake Victoria and Mountain Elgon.

The tourism fraternity feels we need a combined effort in exploiting the above because we miss out on potential billions of dollars that could come out of activities such as cruises, sport fishing, water transport, accommodations on the shores and the many islands found on the lake. We also talked about the joint marketing opportunities across the globe that would see millions flock to Uganda and Kenya hence more revenues.

We asked the presidents to go easy on the yellow card requirements for citizens from both countries because it inconveniences the business travelers most since they are frequent.

Travel News | eTurboNews

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.

Travel News | eTurboNews

Volaris: Passenger demand continues to be strong

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Volaris, a low-cost airline serving Mexico, the United States and Central America, reported their preliminary year to date traffic results.

In March 2019, capacity measured by ASMs (Available Seat Miles) increased by 13.5% vs last year, with demand measured by RPMs (Revenue Passenger Miles) showing a strong increase of 16.7%.  Volaris carried 1.8 M passengers in total (19.4% increase vs last year), with load factor increasing 2.3 pp to 86.6%.

During the month, Volaris started operations on ten domestic routes from key cities Mexico City, Chihuahua, Merida, Hermosillo and Tijuana; and launched an additional ten new domestic routes for sale linking existing cities: Mexico City, Guadalajara, Chihuahua, Monterrey, Durango and Queretaro, and two international routes: between Mexico Cityand El Salvador; and also, Guadalajara and El Salvador.

Volaris’ President and Chief Executive Officer, Enrique Beltranena, commenting on the results, said: “Passenger demand for Volaris continues to be strong.  We carried a record number of passengers for the month of March this year, despite last year´s figures including Holy week which will be in April this year.  In addition, our unit revenues continue to improve as a result of our new Plus fare launch.”

The following table summarizes Volaris traffic results for the month and year to date.

March
2019

March
2018

Variance

March

YTD 2019

March

 YTD 2018

Variance

RPMs (in millions, scheduled & charter)

Domestic

1,234

1,037

19.0%

3,386

2,902

16.7%

International

468

422

10.9%

1,358

1,253

8.4%

Total

1,702

1,459

16.7%

4,744

4,155

14.2%

ASMs (in millions, scheduled & charter)

Domestic

1,381

1,190

16.0%

3,971

3,446

15.2%

International

584

541

8.0%

1,733

1,609

7.7%

Total

1,965

1,731

13.5%

5,704

5,055

12.8%

Load Factor (in %, scheduled)

Domestic

89.4%

87.1%

   2.3 pp

85.3%

84.2%

1.1 pp

International

80.1%

78.2%

 1.9 pp

78.6%

77.9%

0.7 pp

Total

86.6%

84.3%

  2.3 pp

83.2%

82.2%

1.0 pp

Passengers (in thousands, scheduled & charter)

Domestic

1,469

1,212

21.2%

4,004

3,383

18.4%

International

329

294

11.8%

958

880

8.9%

Total

1,798

1,506

19.4%

4,962

4,263

16.4%

http://www.volaris.com

 

Travel News | eTurboNews

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.

Travel News | eTurboNews