Reflections from the Arabian Travel Market
Posted on 06 May 2009 with no comments from readers
The first week of May in Dubai is always dominated by the Arabian Travel Market, a large trade event for the regional travel and tourism industry that caters for both inbound and outbound traffic.
This year the ATM was somewhat quieter and smaller, mainly because the local real estate sector has shut down its once noisy selling operations. The core hotel, airlines and leisure operators were still very much alive, albeit with sales and prices down due to the global recession.
Last minute bookings
The most general complaint is that people are booking at the last minute to get the lowest prices and just in case they lose their job. Holiday makers are also making one trip rather than taking multiple shorter breaks.
It does not add up to a happy time for the travel industry. Competition is fierce, and most evident in the aviation industry, even if Etihad Airways’ heavily discounted last-minute flight prices actually turn out to be slightly more expensive than Emirates’ cash-and-miles after taxes and surcharges.
The launch of FlyDubai, the new discount carrier, this June bemuses the industry which wonders why Dubai Government is competing with itself when Qatar Airways and Etihad are already clipping at its heels.
In the premium travel sector there is even plucky Wataniya from Kuwait whose launch on January 24th came just as the recession hit the region. It claims to be doing well and is adding Amman to its route list of Dubai, Bahrain, Beirut and Cairo.
Ticket prices are very reasonable and sell on a personalized service, although if you want an alcoholic drink this is not the airline to pick.
Still opportunities
Planet Group chairman Georges Moussa takes a long view and reports an excellent response for his new tours to Uzbekistan (pictured above). At the same time his 350-room, five-star hotel in Abu Dhabi which has been delayed since last November is about to go ahead with bank finance in place.
‘You have to look 18-20 months ahead to the completion,’ he told ArabianMoney.Net. ‘We are very confident that Abu Dhabi will be one of the first cities to emerge from the global financial crisis, and construction costs are down 25 per cent.’
Such entrepreneurial flair is perhaps a hallmark of the UAE tourism sector. But life is going to be hard for new entrants like the 120-room Dusit Princess City Centre Dubai hotel which opens on October 1st.
Dusit also plans to open new hotels in Abu Dhabi and Cairo in 2010. This says much about the continued attractions of the Middle East for hoteliers who will be hoping for a quick recovery from the current recession.
