Carlson Rezidor sees knock-on effect of device ban on its business
Trump flights directive likely to lower passenger numbers, crimping demand at key locations
Adecline in flights to the US from the Middle East as a result of the electronics ban will impact Carlson Rezidor’s business, particularly in Turkey, according to Mark Willis, the company’s area vice-president for the region.
In an interview with Gulf News, Willis referred to Emirates’ recent announcement that as a result of weakened demand, stemming from the electronics ban and visa restrictions, it would be cutting down on its US flights.
“That’s got to have a knockon effect and you’ll see that quite quickly impact key locations such as Istanbul,” he said.
Despite that, Beirut, which has long been subject to travel restrictions, had been the region’s best-performing location in 2016, according to Willis.
Carlson Rezidor owns and operates the Radisson Blu and Park Inn brands in the Middle East and Turkey. In separate comments, Willis remarked that “if there’s an area of continued concern, it’s the Red Sea for me. It’s a real shame.”
Downed flight
On October 31, 2015, Metrojet Flight 9268 was brought down over northern Egypt by a bomb stored in the cargo hold, killing 224 people. Shortly after, the Sinai branch of Daesh (the self-proclaimed Islamic State of Iraq and the Levant) claimed responsibility.
The tragedy formed part of a wider conflict between Islamist militants and the Egyptian army taking place in the Sinai Peninsula, which has driven tourism away from once popular destinations such as Sharm Al Shaikh.
Many airlines cancelled their flights to the region in the wake of the attack. “It’s a real shame for the Red Sea, they’ve been badly hit by the various events over the last 24 months, one after the other. It’s been a tough time for them,” Wallis said.
In the past decade, Egypt had tried to reposition the Red Sea, attracting strong investment and a number of international hotels, including a Ritz-Carlton and a Four Seasons.
Carlson Rezidor operates a Radisson Blu hotel in the area.
Describing the weak local currency that Egypt is currently experiencing as “dreadful”, Wallis added that there had been a rate decline for their property on the Red Sea as they “look to facilitate the local market in to the property.”
“Rate is based on demand, and demand in Egypt has fallen dramatically,” he added.