Adapting to travel patterns
With drastic political changes occurring across the globe, the impact on tourism is imperative. The aviation and hospitality industries need to work together, share intelligence and future plans to prosper.
Aviation development has been a major catalyst for hospitality infrastructure development across the Middle East. This has been driven by an enviable geographic location conveniently connecting East and West, plus huge investment in both aviation and tourism infrastructure from the governments. Put simply, the hospitality industry is adapting by building rapidly. In their Middle East Real Estate Predictions 2016 publication, Deloitte predict that Dubai’s hotel room inventory will increase by approximately 14 per cent in 2016, representing 31 hotels coming online.
The Middle East has moved from simply being a hub between destinations to becoming a destination in its own right. Dubai is now the fourth most visited city globally after Bangkok, London and Paris, so its global appeal is clear.
The UNWTO have just announced that international tourism arrivals for the Middle East for the first nine months of 2016 are down by six per cent year-on-year. This is worrying and indicative of the instability that exists across the region. The terrorist attacks on Istanbul have had a devastating effect on Turkish Airlines, whilst Emirates has seen their net profits decline by 75 per cent year-on-year. However, we know that tourism is a resilient industry and its ‘bounceback-ability’ is strong.
Brexit will bring new challenges for the UK and Europe, but the truth is that the UK has not even invoked Article 50 as yet. In essence, they have not even begun the process of exiting the EU, so we do not know what post-Brexit Britain will look like. It is very much the same as the new US administration. Presidentelect Donald Trump does not take office until January and has already shown some early signs of moderating his battle cry, so it’s a waiting game. However, having said this, the uncertainty that these events bring is already taking effect. The pound has plunged in value, increasing the number of foreign tourists coming to a new, affordable Britain, whilst the Brits become less mobile as they have less money to travel with. Trump has indicated that he will be a “protectionist President” and this is not good news for the Middle Eastern carriers in their continued fight with the US carriers.
One thing we aim to do via our conferences is to bring the aviation planning teams and the hotel development teams closer together. We believe that by sharing intelligence and future plans, both industries will prosper. After all, travellers need hotels and hotels need travellers. With over 50 per cent of all international tourists arriving at their destination by air, the link is clear. The Middle East has the enviable opportunity to reach almost any market globally, so they must be strategic in their focus in order to make sound development decisions. China is now the world’s largest outbound tourism market, so it makes perfect sense that this would be a focus for the Middle Eastern carriers.
The Middle East has the enviable opportunity to reach almost any market globally, so they must be strategic in their focus in order to make sound development decisions. China is now the world’s largest outbound tourism market, so it makes perfect sense that this would be a focus for the Middle Eastern carriers
(The views expressed are solely of the author. The publication may or may not subscribe to the same.)