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While the tourism industry worldwide suffered a
decline following the terrorist attacks of September 11,
no region was hit as hard as the Middle East.
Fortunately, although the slump was significant, the
industry has undoubtedly turned the corner, as a number
of countries have taken steps to improve their tourism
sectors, while the hospitality industry in particular
has seen optimistic news of late. The number of high
profile airport expansion projects announced and broken
ground on in the past few months is another positive
sign for the tourism industry.
Among
the countries of the region affected by the September 11
attacks on the United States, Egypt, which relies upon
its significant tourism industry, was particularly
affected. Egyptian tourism minister Mamdouh al-Beltagi
said in January that since September 11 the sector had
lost $3 billion, while the total for tourist arrivals in
2001, about $4.6 million, was 16.4 percent below the
record of 5.5 million in 2000 (EIU Mar 2000).
Fortunately however, there appears good reason for
confidence in the economy’s crucial tourism sector. One
reason for optimism is the slowing rate of decline in
tourist arrivals; the year-on-year monthly shortfall
from 2001 to 2000 has slowed from 42 percent in October
to 24 percent in December, with the tourism ministry
projecting the shortfall to fall further to 16 percent
in January 2002.
Several factors
have led tourists to return: including the recent
devaluation of the currency and a high-profile
government marketing campaign stressing the country’s
sunny beaches and cultural attractions. In December 2001
the government completed a major refurbishment of
Pharaonic antiquities, reopened monuments closed for
repairs and revamped others. The reopenings will soon
include the Southern Egyptian temple of Queen
Hatshepsut, closed to the public for nearly 40 years,
while President Mubarak recently inaugurated a $1.8
million project to preserve the Temple of Abu Simbel in
the south of the country. The addition of new cultural
attractions has combined with the country’s recent good
press—as evidenced by U.K. prime minister Tony Blair
taking a family holiday in Egypt this past Christmas—to
boost the tourism sector.
In addition
to Egypt’s positive outlook, Jordan has also experienced
optimistic changes in the tourism sector. Tourism
Minister Taleb Rifai reported that the Kingdom’s tourism
industry, while sensitive to external shocks, is also
one of the country’s most resilient sectors. While the
September 11 attacks affected the number of American and
European tourists, the Kingdom has seen an increase in
intra-regional tourists. An increase in visitors from
Arab countries of 25 percent from 2000 to 2001 (up to
963,051), combined with the many cultural activities
scheduled, has led to a government projection that the
country will attract a record 1.1 million Arab tourists
in 2002. In addition to the influx of Arab tourists,
Jordan is also still focused on bringing back the
European market which slumped in 2001.
The increase in intra-regional
tourism Jordan has experienced is mirrored across the
Arab World. Bassam Nakad, International Marketing Vice
President with the tourism marketing specialist Platinum
International, says that in the wake of September 11 the
Arab world has witnessed the “birth of a new form of
tourism”. In this trend towards increased regional
tourism Bahrain has positioned itself to make strides in
this new form of tourism. According to Nakad, Bahrain
has seen a number of new resorts, new tourist
attractions and new excursions being developed across
the country; developments which combine to make the
island an ideal destination for regional tourists.
Towards this end the government has launched the $10.6
million 2002 Bahrain Summer Campaign, expected to
attract more than 300,000 visitors from across the Gulf.
Bahrain’s Minister of Information
and Chairman of the Supreme Council for Tourism, Nabeel
bin Yacoub Al Hamer, has also recently outlined his
country’s plans for further developing its tourism
industry. Al Hamer, speaking after the opening of a
two-day seminar titled “Tourism and architecture-the
French know-how”, Al Hamer noted that Bahrain had all
the components necessary to promote its tourism
industry, while he emphasized Bahrain as a regional
destination for GCC citizens in particular. Assistant
Undersecretary for Tourism Affairs, Dr. Kadhem Rajab, in
his address to the seminar outlined Bahrain’s belief in
developing a sustainable tourism industry “which
provides a stimulus for the economic development and
diversification of economy in Bahrain“ (Bahrain Tribune
2/20/02). Tourism has become an integral part of the
Bahrain economy, as the country ranks second after Egypt
in number of arrivals; exceeding four million arrivals
in 2001.
Joining Jordan and Bahrain
in focusing upon intra-regional tourism is Tunisia. Head
of the Tunisian National Tourism Bureau, Mohammed
Saifullah Al Asram, recently outlined a number of
incentives the government has put in place to woo
tourists, especially those from Arab countries. Chief
among the government’s ideas is a plan to increase the
body of travel agencies while establishing desirable
lines of cooperation with them so as to better promote
the country. As Asram noted, “We have the best beaches,
in addition to facilities that have been established for
the comfort of tourists around the desert areas” (Kuwait
Times, 12/01).
Qatar is also taking
steps to launch their tourism industry on a wider scale.
In May the newly formed Qatar General Tourism Authority
(QGTA) unveiled plans for its first country-wide summer
tourism promotion, named Qatar Summer Wonders. Among the
events to be held during the month-long event, from July
15 to August 15, will be a classic car show and a
photography exhibition, in addition to the events held
at an entertainment and sports arena. QGTA chairman
Shaikh Sultan Bin Jassem Al Thani called the promotion
“the first step in an ongoing campaign aimed at
promoting Qatar as a single-added value package”
(TradeArabia.com 5/02).
David
Tewelde, general manager of QGTA, has outlined the
Authority’s next tasks as organizing festivals,
attractions, and events with the aim of making Qatar a
more international exciting destination for families and
business travelers. Further progress for the Qatar
tourism industry was made in March when an agreement was
signed that month that created a new company, called
Travco Qatar Holidays, that will seek to develop tourism
sites, promote in-bound tourism, and advance the country
as a premier destination. Though fairly new to the
tourism industry, the government of Qatar has been
undeniably clear of its desire and political will to
develop the sector into one of the region’s finest.
The Sultanate of Oman has also
recently focussed upon its tourism sector. In January of
this year Commerce and Industry Minister Maqbool bin Ali
Sultan announced new plans to develop the sector. A new
Tourism Law has been drafted, while in co-ordination
with the Ministry of Foreign Affairs tourism promotion
offices will be set up in Oman’s European embassies. In
addition, to promote the Sultanate as an attractive
destination sixteen exhibitions will be conducted in
Europe, the Far East, and the United States. In another
move, a detailed study has been conducted regarding the
renovation of forts, caves, and other historical
sites.
The developments since January
of this year in Oman follow upon earlier developments.
In December 2001 Tourism Under-Secretary Mohsin bin
Khamis al Balushi announced that the country had adopted
a system of integrated policy focussing on quality
tourism with the aim of developing the tourism sector.
Al Balushi said that the Sultanate is developing tourism
related academic and technical institutions, in addition
to conducting specialized studies for each type of
tourism. Another goal he stated was the further
development of tourist areas in the country in terms of
facilities and installations—for example the Al Sawadi
tourist resort project in the Batinah
region.
In a similar move to those
made in Egypt and Oman, Morocco has recently turned part
of its tourism focus towards cultural and historical
aspects. In May the country announced that it will start
organizing cultural circuit trip for tourists to
discover historical monuments and archeological sites
throughout the kingdom. Culture and Communication
Minister, Mohamed Achaari, said the experience, meant to
promote this different type of tourism, will help break
the isolation of the rural regions, initiate new
activities once the winter sports season is over, and
contribute to sustained
development.
In addition to the
programs to reinvigorate the tourism sector taken by
several of the region’s countries, 2002 has also seen
the signing to two joint tourism accords promoting
cooperation in the field of tourism. In February Syria
and Lebanon signed an agreement to boost cooperation in
tourism and attract visitors to both countries. The
accord, signed by Syrian Tourism Minister Saadallah Agha
Qalaa and his Lebanese counterpart Karam Karam, calls
for reviving tourism, while Qalaa has pushed both
countries to coordinate strategies to draw tourists in
particular from the Gulf Arab states. In March Tourism
and Crafts Ministers from Algeria and Tunisia signed a
report of the meeting of the second session of the
Tunisian-Algerian joint commission of cooperation in
Tourism. In addition to recommending the necessity in
extending coordination in fairs, the two sides agreed
that Tunisian tourism experts would be sent to Algeria
to impart their experience in the
industry.
Airport expansion is
another aspect of the tourism industry that has seen a
great deal of movement in the past few months, as
Bahrain, Qatar, and Dubai have all recently announced
airport expansion deals in 2002. In May initial work
began on the $2.5 billion Dubai International Airport
expansion; a project that is expected to be completed by
2006. The Department of Civil Aviation President, Sheikh
Ahmed bin Saeed, noted that the aim was to build the
most advanced aviation hub. As part of this expansion
the Dubai Department of Civil Aviation recently invited
bidders to prequalify for a contract to supply automated
people-mover systems for the second phase of expansion;
an indication of the breath of the variety and number of
contracts expected as part of the project.
In May Qatar announced that a new $1
billion airport will be constructed by 2006. Qatar
Airways’ Chief Executive, Akbar Al Baker, said that the
top priority for the project is the development of the
airport into one of the region’s most important. In a
separate project, Doha International Airport’s current
arrivals terminal will be expanded at a cost of $20
million and will be completed within six months. Al
Baker gave the figure of 2.45 million passengers by the
close of fiscal 2002-2003 as the aim of the expansion.
In addition, the chief executive said the airline would
promote tourism, which he noted plays such a key role in
the country’s economic development.
Another airport expansion program in
development in the region is the $700 million Bahrain
International Airport (BIA) program. With more than $200
million spent on the BIA upgrade since 1994, another
$500 million has been earmarked for the next five years.
These funds will be used for BIA’s new control tower,
runway resurfacing, terminal expansion, the creation of
a multi-story car park and shopping mall, a logistics
park, corporate hangers, and additional aircraft parking
stands, among other items. One of the next projects to
be finished will be an airport hotel operated by
Movenpick that is to be completed by the end of the
year.
Another sign of the
reinvigoration of the tourism industry in the region is
the large number of positive developments seen in the
hotel sector within the past month. Millenium Hotels and
Resorts announced in May that it had signed management
contracts to operate two 5-star hotels in Morocco; in
Agadir and Marrakech. Tony Potter, Chief Operating
Officer of Millenium Hotels and Resorts mentioned his
company’s interest in Casablanca and Rabat as future
locations. Also in May, Shangri-La Hotels and Resorts
announced that the company will be opening three new
properties in the Gulf in the next three years. Two of
the hotels will be built in Dubai, scheduled to open in
March and July 2003, while the third will be built in
Muscat, Oman by early 2005.
Marriott
International is another hotel company that has recently
reinforced its commitment to the region, as in May a
22-member team of senior managers from the company
toured the region. Samir Daqqaq, Vice President of
Global Sales, Middle East, Africa and South Asia spoke
of the sales mission’s three main objectives: to thank
customers, validate relationships, and update customers
on new products. The mission, he said “confirms our
commitment to the region, and our strong belief in an
industry recovery. Our team this year is even bigger
than last year’s, and we’re very excited about the
opportunity to meet our travel trade and corporate
customers” (TradeArabia.com 5/14/2002).
In Bahrain, in an attempt to promote
tourism and increase business, the country’s hotels will
be joining forces, creating a national hotel association
which will represent the interests of the country’s
hospitality sector. The decision to establish the new
association was made by the Bahrain Chamber of Commerce
and Industry Tourism Committee, formed earlier this year
to act as a liaison between public and private sector
hospitality interests. Committee head Abdul Hakeem Al
Shimary announced that in June an organization meeting
will be held to determine what direction the association
will take.
In addition to the
creation of a new national hotel association, in May the
Industry Tourism Committee held an open forum, drawing
dozens of private hotel industry executives, and
producing a 14 point draft recommendation to be
submitted to the Tourism Affairs Directorate. Among the
requests were that the government not impose new
regulations on governing hotel entertainment without
first studying the impact such restrictions might have
on the flow of tourism. In addition, the committee asked
the government to consider developing and enhancing
tourism sites on Bahrain’s outer islands and emphasized
the need to attract more business to the island by
creating more of a market in meetings and
events.
One of the most positive
signs of the reinvigoration of the tourism industry, in
particular the hospitality sector, is the success of the
region’s leading hotel supplies exhibition: the Hotel
Show in Dubai. Preliminary numbers suggested that this
year’s exhibition attracted a record number of
exhibitors. During the event Joanne Evans, Director of
Streamline Marketing, the show organizers, remarked that
“The feedback we’re getting is that the quality of
visitors is very high, and many exhibitors say they
expect to secure a significant amount of new business”
(TradeArabia.com 5/21/02). This year’s show, as in the
past, attracted a diverse range of products and services
vital to a hotel’s day-to-day
running.
The positive news across the
region that the tourism industry has seen of late is a
welcome sign that the tourism industry in the region has
turned the corner. In addition to the efforts made by
the governments of individual countries, the wave of
airport expansion projects and positive news from the
hospitality sector provide the impetus for strong growth
for the region’s tourism
industry. |
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