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Expression of interests launched for new carrying-capacity studies for La Digue, Mahe and Praslin

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The Seychelles Ministry for Tourism, Civil Aviation, Ports and Marine have recently launched 2 expression of interests for carrying capacity studies to be undertaken on La Digue as well as Mahe and Praslin. The aim of the studies is to determine the current status of the islands and the acceptable amount of tourism development that can occur while still remaining sustainable, and assist the government in taking informed decisions on all future tourism development projects.

The Carrying-Capacity Study for La Digue dates back to 2013 and the results have led to the policy directive of setting a moratorium on the development of tourism accommodation establishments to 5 rooms per developer. This moratorium is supposed to be valid for a period of five years and the time has come to commission a new Carrying-Capacity Study.

Moreover, in 2018 the President announced that La Digue would be a model of sustainability as part of the National Vision 2033.  An eco-tourism strategy specific to the island for the next 15 years has been developed and the Carrying-Capacity Study on La Digue will aim to align with the established vision and provide recommendations to policy makers pertaining to future development on the island in view of assuring its sustainable development.

As for Mahe and Praslin, the Carrying-Capacity Study was commissioned in 2016 and set to be reviewed in 2020.  The results of the Carrying-Capacity Study has led to a number of policy directives and a set moratorium on the number of rooms that can be developed per promoter which is 20 rooms for Northern Mahe and 24 rooms per promoter for  the rest of Mahe and Praslin.

The carrying-capacity analysis will determine the ability of the ecosystem of La Digue, Mahe and Praslin and the various segments thereof to withstand all impacts of additional tourism development activities. The studies will apply the perspectives of Physical carrying capacity, Ecological carrying capacity, Social carrying capacity and Economic carrying capacity in order to develop a balanced overall assessment.

Consultants interested to undertake the study have to submit their expression of interest to the Department of Tourism by Friday, April 26, 2019 by 1500 hours. Results of the two carrying capacity studies will determine whether or not to maintain the moratorium currently in place on La Digue, Mahe and Praslin.

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New sales leader at Kimpton Hotel Monaco Washington DC & Kimpton George Hotel

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Kimpton Hotel Monaco Washington DC and Kimpton George Hotel announced the hire of Katherine Saad-Loman as director of sales and marketing for both boutique hotels in Washington, DC. Saad-Loman brings a strong resort, catering, and luxury hotel background to the position, as well as nearly 30 years of experience in the hospitality industry.

In her new role, Saad-Loman will drive all sales and marketing activities for Kimpton’s Hotel Monaco Washington DC and Hotel George. Saad-Loman’s day to day as director of sales and marketing for the two hotels will be spent with an emphasis on working with key corporate accounts while also leading the hotels’ expert sales, catering, and events staff. Under her guidance, the team will continue to create ridiculously personalized meetings, weddings, and creative event experiences, offering seasonally-inspired food and beverage in partnership with the hotels’ talented restaurant teams. Saad-Loman will also spearhead strategy for all sales segments and oversee the approach toward revenue, digital marketing, advertising and public relations efforts for the hotels.

Saad-Loman joins Kimpton with varied and impressive experience. She began her career at Hilton Singer Island Ocean Front Resort where she increased catering sales 350% across her three year term. After learning the ropes of a conference hotel, Saad-Loman gained experience as a director of food and beverage at Imperial Lake Golf and Country Club in Mulberry, Florida. She then cut her teeth in a number sales and operations roles throughout central Florida and Baltimore before joining the team at Walt Disney World’s Grand Floridian Resort as a senior sales and catering manager. She continued to advance her career at top hotels in the Florida market before returning to the Mid-Atlantic as a director of sales and marketing at Bethany Beach Ocean Suites in Delaware. Prior to joining the team at Kimpton, she was task force director of sales and marketing with Crestline Hotels & Resorts in Fairfax, Virginia.

A world traveler and graduate of Catham College in Pittsburgh, Saad-Loman has called the greater DC area home for the past seven months. Outside of work, she can be found planning her next trip, finding places to use her fluent French and recommends everyone live abroad at least once in their lives. Saad-Loman is a member of Hospitality Sales and Marketing Association International (HSMAI) with a passion for mentoring those looking to hone their sales and leadership skills, and she also volunteers, teaching financial literacy, work readiness, and entrepreneurship to first graders through Junior Achievement of Greater Washington in her spare time. Saad-Loman brings a stylish sense of leadership and a wide range of sales and marketing experience to both Hotel George and Hotel Monaco Washington DC.

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

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

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

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

Online is a significant source of research

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

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

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

Decoding the Indian travelers

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

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

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

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

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

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

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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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What is the discussion at the UNWTO / ICAO Ministerial Conference on Tourism and Air Transport?

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A Panel discussion is ongoing and a packed program are planned today for delegates in Sai Island, Cabo Verde attending the First UNWTO/ ICAO Ministerial Conference Tourism and Air Transport.

Air Transport and Tourism Policies: Regulatory convergence to maximize and balance their benefits

Air Transport and tourism depend heavily on each other and are essential engines of trade and economic growth for both developed and developing countries.

Despite the synergies, there can be conflicts between aviation and tourism policies due to the difficulties of States in balancing the interests of their airlines and the optimum development of their tourism industries. Separate sectorial policies result in a fundamental disconnect, which constitutes a severe deterrent towards the development of both sectors. How do we enhance policy coherence between the two sectors, harmonize the regulatory frameworks, and prevent separate sectoral policies? How can we strike a balance to maximize the overall benefits of tourism and air transport in the national economy?

What is the current status of Africa’s regulatory framework and what is its impact on tourism and air transport (the Lomé Declaration and the related Action plans both for Air Transport and for Tourism?

How can Africa benefit from and implement the joint UNWTO and ICAO Medellín Statement on Tourism and Air Transport for Development? How can the African Governments promote cooperation and compatible decision-making among transport and tourism authorities and other ministries in charge of related portfolios, including finance, economic planning, energy, environment and trade?

What are the challenges encountered by tourism stakeholders in reflecting tourism business interests in national and regional air transport policies?

Connectivity and Seamless Travel: Best practices to serve tourists and passengers

Aviation and tourism are a customer-focused economic sector.

While there is no single definition of air connectivity, it can be viewed as the ability of a network to move passengers involving the minimum of transit points, which makes the trip as short as possible with optimal passenger satisfaction at the minimum price possible. The realization of seamless travel can improve overall travel experience, which in turn fuels tourism demand.

With the recent launching of the Single Africa Air Transport Market (SAATM), open skies over Africa may soon be a reality, building the necessary regulatory framework to increase international intra-Africa travel.

How do we optimize the flow of passenger traffic through the air transport system? How can we generate sufficient demand for direct air services between African sub-regions, especially between the East-West coasts?

How well do current air service agreements (ASAs) contribute to connectivity and what are the prospects of air transport liberalization? What constitute the bottlenecks and slowdowns of seamless travel in the air transport system? What regulatory schemes can be used or developed to assure essential air services to Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS)?

What are the existing best practices and how could they be extended and adapted to other regions? What are the factors influencing airline choices for different market segments (the intercultural dimension)?

Funding and Financing for Development: Pragmatic measures to build a transparent, stable and predictable investment climate

Infrastructure deficiencies in the aviation and tourism sectors have long been an issue in Africa. While plans are in place to develop and modernize aviation infrastructure, relief is years away at best.

In the meantime, there will be lost opportunities for creating jobs and spurring economic growth. Another issue is the proliferation of taxes on tourism and air transport despite the fact that the industry recovers a vast majority of its own infrastructure costs through payments of user charges, rather than being financed through taxation.

Revenue raised by taxes can often be outweighed by the relinquished economic benefits as a result of dampened demand for air travel.

This Session will focus on

a) the creation of good governance and enabling the environment to build business confidence and encourage investments, and

b) the consolidation of planning and development efforts for aviation and tourism infrastructure in multi-modal and urban planning initiatives. What are the challenges of financing development projects related to the tourism and air transport sectors, particularly in LDCs, LLDCs, and SIDS?

What are the success stories in financing tourism and air transport projects? How do consumers perceive taxes, charges, and others levies and how to ensure transparency of taxes and charges to passengers and tourists?

Why is the limited volume of international public finance and assistance for development currently available for aviation and tourism infrastructure projects?

Travel Facilitation: Advancing visa facilitation in supporting economic growth 

Travel facilitation aims at maximizing the efficiency of border clearance formalities while achieving and maintaining high-quality security and effective law enforcement. Allowing passengers/tourists to cross international borders safely and efficiently contributes significantly to stimulating demand, enhancing the competitiveness of States, creating jobs and fostering international understanding.

In spite of the great strides made in recent decades in facilitating tourist travel in Africa, there is still room for considerable progress. For example, electronic visa processes and delivery could make travel more accessible, convenient, and more efficient without a diminution of national security.

States should also look into increasing cooperation on bilateral, regional and international travel facilitation regimes. How can new technologies be used to make travel more accessible, convenient and efficient? How to define and implement policies which facilitate international travel and tourism while ensuring the security and integrity of traveler identification and border controls?

How well do e-passports, e-visas and other documentation deal with emergent threats to security? How could the African States learn from other effective best practices?

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