Saudi Arabia’s growing tourism sector will be one of over 40 key travel and tourism trends under the spotlight on Arabian Travel Market’s Global Stage, as more than 100 experts from across the spectrum of global hospitality gear up for three days of interactive discussions, keynotes, and industry briefings.
The Kingdom will see a vast expansion of its hotel and resort inventory during 2019, with approximately 9,000 keys of three- to five-star international supply projected to enter the market despite major cities such as Riyadh and Jeddah experiencing an overall drop in ADR during 2018.
While this new supply will place additional competitive pressure on hotels’ performance across the country, the predicted growth in airport passenger numbers across Riyadh, Jeddah, Madinah and Al Khobar is expected to boost occupancy levels throughout 2019.
Discussing Saudi Arabia’s tourism potential, a seminar titled ‘Why Tourism is Saudi’s New ‘White Oil’ will take place on Monday.
With the overall number of annual tourist trips expected to increase to 93.8 million by 2023, according to Colliers International, panelists will discuss the opportunities related to these unprecedented growth projections, as well as the tourism sector’s potential to support Saudi Arabia’s economic diversification efforts.
Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “All available metrics point to the incredible potential within Saudi Arabia’s tourism sector. Increases in air passenger numbers are predicted across the board in 2019, and the kingdom’s hospitality sector is investing in its future with significant boosts to capacity.
“New revenue channels such as travel and tourism have a crucial role to play in achieving the goals set out in Saudi Arabia’s Vision 2030, which is why it is so important for our industry to explore how we can work together to catalyse further development.”
Kicking off day two will be a session titled ‘The Big Picture – Who will sell travel best in the future?’. With the global travel landscape rapidly evolving and the lines between traditional and non-traditional travel retailers blurring, this session will discuss what the future holds for an industry where every major tech firm, social media channel and online retailer is fighting to sell travel and what it means for traditional providers as we look ahead to the next decade.
Debuting on the Global Stage this year will be the ATM Hotel Industry Summit which takes place from 14:40 to 17:00 on Tuesday 30th April. Consisting of four separate panel discussions, the summit will shed light on infrastructure developments, technologies and innovative concepts with the potential to increase efficiency and improve the guest experience within the hotel segment.
As a younger generation of clientele with different preferences and budgetary requirements comes to the fore, panelists will explore up-and-coming hospitality hotspots in the Middle East, emerging trends such as mid-market resorts and lifestyle hotels, and an anticipated return to direct bookings.
Meanwhile, the Global Halal Tourism Summit will return for its third edition on Tuesday 30th April from 11:00 to 13:00. The summit will explore the top trends within the Halal tourism sector as well as the growing role of technology in the Muslim space, including the digitalization of the Umrah.
Curtis said: “This year’s edition of Arabian Travel Market will include a comprehensive programme of in-depth industry discussions, with topics ranging from emerging market segments to efficiency-boosting innovations.
“Not only will we be discussing new subjects such as Saudi Arabia’s burgeoning tourism sector, but we will also be revisiting previous focuses such as halal tourism. The inaugural ATM Hotel Industry Summit, meanwhile, will address everything from hotel infrastructure developments and investment opportunities to the digital innovations that are helping to transform guest accommodation in the Middle East.”
This year, the ATM Global stage will also host several high-profile speakers from the region’s aviation industry. From 12:10 to 13:10 on Monday, 29 April, Sir Tim Clark, President of Emirates, will offer insights into the Dubai-headquartered carrier’s growth strategy. Meanwhile, from 13:20 to 14:20 on Tuesday, 30 April, Adel Ali, Group CEO of Air Arabia, will reflect on 15 years of success within the Gulf’s low-cost carrier segment.
In the Travel Tech Theatre, which is sponsored by Sabre Corporation this year – seminar sessions will explore how to positively change the perception of destinations using the power of social media as well as discussing how immersive technology will transform the visitor experience at mega events such as the upcoming Expo 2020.
And, in the Inspiration Theatres, expert panels will discuss how the travel and tourism industry can best reduce carbon emissions as well as the evolution of bespoke luxury travel and the opportunities that both medical and wellness tourism present today.
Other popular features still to come to include the Digital Influencers’ Speed Networking, Best Stand Awards, Career in Travel and the Travel Agents’ Academy.
Outbound MICE and India: Growth and challenges
If destinations are serious about adding numbers and attain their statistical ‘Nirvana’, it will hold in good stead to focus on MICE movements.
When the going is good and the cats are at play, can the Indian MICE still be stuttering around? What started as a trickle is almost reaching a range of a matured storm! The globetrotting Indian is all set to disembark on International shores on a stomping spectacle of money, aspiration and, of course, bragging rights!
International Research body DPI Research states “India is poised to be the world’s fastest-growing outbound MICE tourism market, generating over US$ 45 Billion by 2025 in revenue and will generate more than 2 Million outbound MICE tourists by 2020.” The ‘World Travel and Tourism Council’ (WTTC) reports Indian spends outside the country while traveling abroad has doubled in the past 10 years, from $7.5 billion in 2005 to nearly $16 billion in 2015. The United Nations World Tourism Organization (UNWTO) estimates that India shall account for 50 million outbound tourists by 2020, growing at an annual growth rate of 10 – 12% over the last seven years and further expected to grow at a Compound Annual Growth Rate (CAGR) of around 7.23% during 2016 – 21. UNWTO further estimates Indian spend power as being at least four times that of the Chinese and Japanese. The average Indian spends USD 1,200 per visit as compared the Americans, who spend USD 700 and the British, who blow up USD 500!
The growth figures augers a favorable response from the National Tourist Offices, who are vying for a piece of the Indian action. The Indian mission of the United States, a destination previously perceived as a major VFR market has now undertaken as per Export USA, activities to stimulate the MICE market and counter perceptions of the US being a difficult destination due to concerns about visas, costs, and distance.
The Indian MICE market will grow exponentially and, if numbers do indicate, it is poised to be the fastest growing MICE markets in the world! If destinations are serious about adding numbers and attain their statistical ‘Nirvana’, it will hold in good stead to focus on MICE movements! Indian traditional businesses prefer short-haul destinations such as Thailand, Singapore, Malaysia, Indonesia (mainly Bali), Sri Lanka and Dubai. What will endure as a MICE Destination catering to the needs of the Indian MICE market, here are a few attributes:
Planning a board meeting at Gambling Meccas of Las Vegas and Macao to organizing a fun-filled dealer rendezvous on the Ibiza water-front no longer raises eyebrows. Well, even our well-oiled Swamis has discovered new occasions and added to their followers by holding their Satsang’s and Yoga discourses in middle of the high seas, aboard some of the finest luxury cruise-liners.
Easy and cheap visas: Bulk of the Indian MICE market is highly cost-driven. The rule is simple, the higher the cost of visas, the lower the destination preference. Preference for Visa on Arrival / E-Visas / Group Visas. Long visa approval time over 7 days will help you stay uncompetitive. Indians love free visas! There was one wedding group from Kolkata, which took over 20 helpers to lift luggage of guests! The higher the number of documents for the visas, the less popular the destination gets. Credit to the US Consulates in India, they sometimes offer Group Visa interviews for Indians. Indians would be probably the only consumer anywhere in the world, wherein, if not for the cumbersome visa procedures, can actually plan and execute an event in Europe on a week’s notice!
Direct flights and connectivity: With air connectivity, currently on steroids mode, in spite of Jet Airways losing its wings, the logistical support to destinations for multi-city boarding of delegates have also helped in the rapid rise of meetings and events held overseas! Three – Four hours of flight-time are ideal, but not a compulsion! If you are looking at bigger group movements from India, the higher the connected cities are with the destination, more chances of one bagging the event. Multiple Airline embarkation points are nice, but never underestimate the power of an Indian wedding group, where at one instance, a planner had to charter three aircraft to ferry marriage guests from Kolkata to Port Louis in Mauritius, paying three times the average fare!
Indian food: What is about Indians and their food preference? Well, it is what it is..Indian food is mandatory for big groups, though some will surely try the local fare. Get your list of Indian restaurants out, speak with the Convention Hotel on getting Indian food. Educate them about the preference for Indian food, Jain Food, Indian Vegetarian food (not Asian Vegetarian). Also, explore opportunities for Indian Chefs to fly down to help cater for the group. At most Indian mega weddings, having an Indian Maharaj being flown down is almost certain! The One big Gala Dinner can be a raucous affair, running late into the night (on a heady mix of noise, music, and unlimited alcohol), especially if you are catering to a dealer meet! One Cruise-liner found it the hard way when they had to refund the fare to other guests, who were clearly discomforted by the behavior of some of the members of this elite group recently! Availability of Hard liquor is important while Wine and Cheese are for those from a nearby planet! Your catering manager will have his hand’s full, but that’s the way it is! Do not see this change in a hurry! and of course, Dinner starts any time after 8.00 pm and at most times go on till dawn.
There is a growing market for an upmarket, luxurious, boutique small meetings. Even in this case, it should be noted to include a vegetarian and Jain menu. The Indian luxury market is predominantly vegetarian, with over 80% of the top 500 Richest people in the country, belonging to communities that can relish, endure and nurture Vegetarianism! Remember, meeting a South African DMC, who had started working with the Indian market, remarking that for the very first time, he came across a term called ‘Non-Vegetarian’. If catering to a South Indian group, don’t forget to offer Curd Rice, you’ll win them over for life! Well, just some food for thought!
Hotels and event infrastructure: Paramount! Indian companies rarely chose anything less than a four-star hotel’ Preference is given to hotels with good ratings, service standards and above all, flexibility. Big groups – get ready for requests for triple sharing, late-check outs (it can vary from 30 minutes to 12 hours!) and last-minute cancellations/additions, etc. In Room-dining and baggage services are expected! The request is simple – Best in the ‘value-for-money’ deals. India is probably, the world biggest last-minute market and one’s ability to adapt would only enhance your ability to win over! Indians cherish helpful assistance over the stiff-upper-lip extreme professionalism.
Unique MICE offerings: The market for unique meeting spaces, though on the upswing is still small! Jungle Safari camps, Meetings in Antarctica with the Penguins, Breakfast with the Orangutans, Weddings on the turquoise waters and other bewitching settings, etc., all offer tremendous niche opportunities and a growing market! A Travel Agent recently was even planning the logistics for a program in Turkey for Indian corporate to organize a team building activity on the Bosporus strait in Istanbul on a Yacht race from the Asian to the European Side of the country!
With only about 2% of the population having traveled abroad or even own a passport, the potential is immense and only poised to grow. The Outbound MICE Market from India is no mood to slow down! The onus to tap a market, wherein the rewards to the economies are immense by hosting an Indian MICE traveler clearly lies with discerning destinations and convention-bureaus! and of course..more MICE to catch!
ICCA releases statistics report for 2018
The release of 2018 Country and City Rankings marks yet another successful year for the association meetings market, with the global meetings industry trade association capturing a total of 12,937 rotating association meetings taking place in 2018, at an increase of 379 additional meetings compared to the number recorded at the same time in 2017. The highest annual figure the International Congress and Convention Association (ICCA) has ever recorded in its yearly Statistics, these new rankings signal industry growth is continuing on a strong and robust trajectory.
Paris, which previously held the top city spot in 2016, returns in 2018 to claim first place. The U.S.A. continues to top the country rankings.
Association meetings market expansion solidifies
According to ICCA Statistics, between 1963 and 2013, the number of international association meetings doubled every 10 years. Released in October 2018 to coincide with its 55th year anniversary as an association, ICCA’s latest industry report on the 55-year growth of the international association meetings market, “A Modern History of International Association Meetings – Update: 1963-2017”, confirmed that this exponential growth trend has now slowly transcended into a more mature, yet still solid, growth pattern between 2013 and 2017. The 2018 figures seem to confirm this trend.
2018 City rankings: Paris storms ahead in first place
Paris climbs to the top of the city rankings by a number of international association meetings with a landslide margin of 40 meetings above second place holder Vienna. In 2017, Paris and Vienna held joint second place, with 190 meetings each. Last year’s number one Barcelona falls to fourth place, with Madrid entering the top 5 for the first time since 2015 in third place. Among the top 5 cities for another year, Berlin falls to fifth place from fourth in 2017.
Remaining in the top 10 but changing position are London, Prague, Singapore, and Lisbon. London, Singapore, and Prague drop to seventh, eighth and ninth place respectively, and Lisbon climbs three positions to hold the sixth place. Bangkok rises seven places from 17th to 10th, knocking Seoul out of the top 10. Seoul falls to 15th place, surpassed by top 20 risers and joint position holders Amsterdam and Tokyo, which jump from 16th to 13th place and 18th to 13th place respectively. Buenos Aires stays firmly in 11th place and Hong Kong rises to 12th. Dublin drops four places to 18th, and Stockholm holds the 19th place for another year. Montréal, QC, and Rome drop out of the top 20, and newcomers Brussels and Taipei enter in 17th and 20th place.
Table 1: Top 20 city ranking by number of meetings organized in 2018
2018 Country rankings: The U.S. remains unchallenged
In an unsurprising turn of events, the U.S.A. remains in the top country spot, unchallenged for over two decades. Germany remains in second place and 2017’s number three the United Kingdom drops to fifth place, overtaken by Spain, which rises to third. After exiting the top 5 last year, France re-enters in 2018 in fourth place. Italy replaces France in sixth place, and Japan and China-P.R. remain in seventh and eighth place for another year. The Netherlands and Canada swap positions, coming in at ninth and 10th respectively.
Portugal remains in 11th place and the Republic of Korea climbs one position to 12th. Brazil and Poland fall one place to 17th and 19th respectively, and Switzerland drops to 20th place, while Australia and Sweden climb to 13th and 14th. Austria remains in the top 20 but falls four places to 16th. Newcomer Argentina regains its position in the top 20 after falling to 21st place in 2017, knocking Denmark from 20th to 22nd place.
Table 2: Top 20 country rankings by number of meetings organized in 2018
|12||Republic of Korea||273|
The most respected global comparison of destinations’ performance in attracting international meetings, ICCA’s annual country and city rankings are highly anticipated by the meetings industry. However, ICCA continuously seeks to emphasize that this annual report is a snapshot of just one segment of the meetings industry, focused on charting the growth of international association meetings. Only those meetings that meet ICCA’s stringent assessment criteria – rotating between at least three countries, have a proven attendance of at least 50 participants, and are held on a regular basis – are recorded within the global association’s annual statistics.
ICCA CEO Senthil Gopinath said, “Although the most comprehensive global benchmark of the international association meetings sector, the ICCA rankings should not be mistaken as providing an overview of the entire meetings industry. We always seek to encourage and advise ICCA members to consult other rankings and collect their own meetings statistics to help them provide a full picture of their performance.”
“We have recorded our largest ever annual snapshot of the immediate past year’s meetings data in 2018. These results closely follow the release of our 55-year history of the international association meetings market in October 2018. ICCA’s latest figures uphold the mature, robust growth pattern we identified in this report and provide more evidence of our firm belief that the association sector continues to be an unrivaled stimulator of global societal development and force for progress across the globe,” said Gopinath.
ATM 2019 highlights
Here’s what happened at the four-day mega event in Dubai.
The 26th edition of Arabian Travel Market (ATM) was held in Dubai from April 28 to May 1. The four-day event played host to travel agents, tour operators, hoteliers, event management companies, travel technology providers and other relevant players in the travel and tourism space around the globe.
This year’s ATM was a landmark opportunity for industry stakeholders to discover new trends shaping the travel landscape and explore innovations changing the face of travel trade worldwide.
Danielle Curtis, Exhibition Director ME, Arabian Travel Market, announced that ATM remains the focal point for the Middle East’s travel industry and continues to be at the forefront of the digital revolution.
“Whether that’s through innovative applications ranging from voice and facial recognition, chatbots and beacon technology to virtual reality, blockchain as well as robotic concierge, the guest or passenger experience is destined to become even more automated,” said Curtis.
In view of this, technology in travel was one of the most discussed topics at the mega event. The Travel Tech Theatre at ATM, sponsored by Sabre, served as a sounding board to a variety of tech topics, including how emerging technologies are simplifying travel experience, how social media can be effectively used to positively change the perception of a destination, and how immersive technologies like virtual reality (VR) and augmented reality (AR) are engaging travelers. The sessions also shed light on virtual payments and pointers on choosing the right digital influencers.
The event also focused on the importance of creating compelling brand content that would help travel companies sell better, Dr Hamish McPharlin, Head of Insight, BBC Global News, shed light on ways to deliver content with impact and efficiency.
‘Women in Travel’ was another sought-after topic at this year’s ATM. Women today are looking to forge opportunities of their own. The Women in Travel meetup at ATM 2019, which attracted huge participation, served as a motivational platform for women entrepreneurs as well as those working in the travel and hospitality sectors. The session taught women how to acquire self-confidence and cultivate leadership qualities.
The ATM Global Stage also played host to Travel Agent’s Academy. This educational platform came in handy for travel agents to network and learn about new destinations. The three-hour free training also imparted knowledge of how to sell destinations better.
The focus was also on hotels. The ATM Hotel Industry Summit turned the spotlight on upcoming developments, technologies, and concepts that are set to shape the hospitality sector. A panel of industry experts discussed new infrastructure, regional development hotspots, and hotel models that would help scale new heights in delivering world-class customer experience.
Shedding light on the future of travel, a panel that comprised top brass from Google, Booking.Com, Sabre, and Emirates, discussed how the global travel landscape is rapidly evolving with the lines between traditional and non-traditional travel retailers blurring.
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