JUNE 2000 - The Middle East has been identified as a promising
new market in the budgets of many a PATA NTO and gained added interest
in the wake of the first outbound report produced by PATA in 1999. Reflecting
this new popularity, Pacific Asia destinations were out in strength at
the May 2-5, 2000 Arabian Travel Mart (ATM) in Dubai.
This year's ATM saw many Pacific Asia destinations stepping up their
campaigns in the Middle Fast, especially the Gulf Co-operation Council
countries. The ASEAN countries were very active as always. Among
the new entrants were New Zealand and the Indian state of Kerala, which
had its own high-powered stand backed by a high-profile media campaign.
Here is an update of what some PATA countries are doing to establish, maintain
or boost their market share in the Middle East, all based on interviews
conducted during this year's ATM.
Malaysia
A few weeks before the ATM, Malaysian Tourism Minister Dato Abdul Kadir
bin Hj Sheikh Fadzir undertook a 12-day jaunt through the Gulf and Middle
East to market Malaysia. It was the most extensive tourism promotion mission
ever undertaken by such a high-ranking official.
Malaysia received about 20,000 visitors from the Middle East in 4999
and is committing roughly eight million ringgit (about US$2.8 million)
into the market to attract some 50,000 visitors this year. That is about
double the 4999 budget. The Minister even talked of reaching a target of
200,000 visitors in the foreseeable future. The participation of 38 selling
companies at the ATM was a major increase over 29 sellers in 1999 and the
highest of any Pacific Asia country.
In addition to good flight frequency from throughout the Middle East
and visa-free facilities, Malaysia has the advantage of a common Islamic
heritage that rais-es the comfort factor for Middle East visitors, especially
in terms of dietary issues and dress codes. The country's rich rainforests
and beaches are particular draws. Asked why beaches, especially as the
Middle East has plenty of its own, Mr. Syed Muhadzir Jamallulil
of Tourism Malaysia responded, "Yes, they have beaches in the Middle East,
but not beaches with beautiful coconut palms." By 2004, Tourism Malaysia
is planning to open promotional offices in Cairo, Jeddah and Dubai.
Singapore
Singapore's historical advantage has been its geo-graphical location
at the crossroads of both Asia and Australia/New Zealand, plus its high
safety and service standards, visa-free facilities for Gulf nationals and
willingness to promote itself along with other regional destinations. Having
solid airlinks with the Middle East also helps.
The Singapore Tourism Board is expanding its "Singapore Live" campaign
throughout the Gulf, this year having broken ground for the first time
in both Kuwait and Iran. The strategy is to appoint travel agents throughout
the Gulf region to handle front-line marketing and promotions, with the
STB providing collateral support. To date, 48 agents have been appointed
throughout the Arabic-speaking region and further expansion is planned
into Iran.
The STB sees great long-term potential and is working on positioning
Singapore as an exciting destination with good long-stay potential. The
STB's director in charge of the Middle East, Mr. Vimal Harnal, says there
is a strong possibility of opening a full fledged marketing office in future.
Thailand
Thai]and was once the top Pacific Asia destination from the Middle
East but has lost significant market share of late, especially with the
Saudi Arabia market. Thailand has been focusing much of its energies on
the UAE and other Gulf countries and today the UAE is the top producer
of arrivals from the Middle East, with some traffic from Bahrain, Kuwait
and Qatar, who all get visas on arrival. The Thais had a contingent of
20 sellers at the ATM and reported strong demand for serviced apartments
and beach resorts. The expatriate market living in the Gulf is a major
target, especially as most of the westerners living there do not need visas
for Thailand. Thailand is one of the top selling destinations in the Emirates
Holidays brochure but is facing increasing competition from Malaysia and
upcoming Australia.
Indonesia
The announcement that Garuda Indonesia is to boost service from Bali
to Dubai from two to four times a week gave some cheer to the small Indonesian
contingent at the ATM, even though Dubai will only be a stopover on flights
to and from Europe.
This was the third time that Indonesia participated at the ATM since
1996. The country is working hard to boost its image after three years
of internal strife. The Indonesian Ambassador to the UAE gave a press conference
at the ATM to start the image rebuilding process during which he reaffirmed
the country's efforts at tourism promotion and noted that everything was
being done to restore harmony and equilibrium. He noted that in 1999, Indonesia
received 1,900 visitors from the UAE and that |
Arrivals from the
Middle East to Select Pacific Asia Destination Countries
Destination
|
1994
|
1999
|
AARG%
|
USA |
338,191 |
525,841 |
9.2 |
India |
129,996 |
127,444 |
-0.4 |
Canada |
55,800 |
63,064 |
2.5 |
Indonesia |
30,283 |
51,409 |
11.2 |
Hong Kong, China |
36,800 |
50,326 |
6.5 |
Korea (ROK) |
14,482 |
20,721 |
7.4 |
Japan |
13,247 |
15,342 |
3.0 |
Chinese Taipei |
8,932 |
9,564 |
1.4 |
Source: NTOs
|
more are expected in 2000. A media release accompanying the press confer-ence
highlighted the strong Islamic ties between the Arab world and Indonesia,
where 85 percent of the 200 million people are Muslim.
Hong Kong, China
With a +13.2 percent growth rate in 1999 over 1998, the Middle East
is one of the fastest growing markets overall. Sensing the potential, Cathay
Pacific is due to increase its flights from seven to 11 a week from Dubai
and Bahrain to Hong Kong, China. That will add to Emirates Airlines' own
five flights a week, and Gulf Air's total services of seven a week from
Abu Dhabi, Muscat and Bahrain. While both Emirates and Cathay have active
holiday programmes to Hong Kong, the Hong Kong Tourist Association says
Gulf Air is seeking to raise its market profile and expects to be working
actively with Gulf Air in future.
None of the Gulf countries nor Egypt need a visa for Hong Kong. The
HKTA is seeking to build a case for the government to fund an office in
Dubai but is finding that a bit of a hard sell in these days of budgetary
difficulties. The HKTA was the first Pacific Asia NTO to produce a full-fledged
Muslim guide for visitors and printed another 30,000 copies in Arabic for
distribution at the ATM and beyond. HKTA Regional Director Mr. Kevin Welch
said he would like to see Hong Kong, Thailand, Singapore and any other
interested Pacific Asia destination exhibiting jointly at future ATMs under
the banner of "Together in Asia."
Kerala, India
For the first time this year, the Indian state of Kerala, which borders
the Arabian Gulf, took its own stand at the ATM. Previously, it had a small
"stall." This year, after an extensive study of the GCC market, including
the PATA Arab Gulf Countries Outbound Market Report, Kerala upgraded its
participation and backed it with a major advertising blitz, including half-and
full-page ads in the ATM dailies and associated newspaper and magazine
supplements. The state is committing US$300,000 to the Middle East as part
of a major awareness-building campaign from April 2000 to September 2001.
Kerala's three airports, Calicut, Trivandrum and Cochin, get a total
of 120 weekly frequencies by Indian Airlines and five Gulf carriers. But
these serve mainly the thousands of Keralite workers in the GCC. Dr. Venu
Vasudevan, the state's new officer |
Middle East Traffic
to India, 1999
Origin
|
Arrivals 1999
|
% Share
|
Libya |
1,723 |
1.4 |
Egypt |
7,075 |
5.6 |
Bahrain |
10,001 |
7.8 |
Iran |
11,655 |
9.1 |
Israel |
23,417 |
18.4 |
Jordan |
3,594 |
2.8 |
Kuwait |
3,915 |
3.1 |
Lebanon |
2,051 |
1.6 |
Saudi Arabia |
14,424 |
11.3 |
UAE |
16,780 |
13.2 |
Other Middle East |
32,809 |
25.7 |
Source: Ministry of Tourism, Government of India
|
in charge of tourism promotion, says the state government is going all
out to raise Middle East visitor arrivals (non-resident Indians, Western
expatriates and "premium" Arab customers) from just under 5,000 a year
presently to about 20,000 a year within 18 months. His focus: The preventive
and healing powers of Ayurvedic medicine, rainforests, great beaches, casinos.
"This is a high-voltage, high-risk campaign," he said.
Nepal
Expatriates in the Middle East are the main targets for Nepal which
this year doubled its presence at the ATM to six sellers. Expatriates include
both westerners as well as Indians planning religious pilgrimages to the
landlocked Hindu kingdom.
As always, the major problem is flight connections. The trade is talking
to Royal Nepal Airlines to start flights to the Middle East and reduce
dependence on the Indian market which has taken a steep dive as a result
of the pullout by Indian Airlines. The few Middle East airlines operating
to Kathmandu, like Gulf Air and Qatar Airways, are mainly transferring
passengers originating in Europe to Nepal. Charter operator Transavia operates
weekly charters from Sharjah to Kathmandu but is considering moving to
Dubai and boosting the number of charters to two a week from September
to April.
Nepal does have a fair presence in the brochures of regional operators
like Emirates Holidays, Kanoo Travel and Dnata. Sellers at the ATM said
they plan to boost contacts with these wholesalers to see how to better
target their database with offers for Nepal, to boost awareness and hence
give RNAC more of a reason to increase some flights.
Pakistan
Pakistan had a limited presence at the ATM. Inbound operator Travel
Walji's was represented at the Emirates Holidays brochure launch prior
to the ATM. Managing Director Mr. Iqbal Walji said getting visitors to
visit Pakistan through Karachi is virtually impossible these days. Hence,
he is taking advantage of the recently launched Emirates flights to the
north Pakistani cities of Islamabad, Lahore and Rawalpindi to route traffic
there and beyond to the Silk Route cities. He says he also noted good demand
among Gulf residents for snow and skiing holidays, and Pakistan is one
of the closest and most accessible places they can go for that experience.
New Zealand
There are no direct flights from the Middle East to New Zealand, but
there is one major advantage: None of the Gulf Co-operation Council citizens
need visas, a policy that took effect July 1, 1999. A small delegation
of seven sellers from New Zealand, headed by New Zealand Tourism Board
Chairman Mr. Peter Allport, turned up at the ATM to investigate the market
potential. Following the investigation, sellers are hoping that Mr. Allport
will assist in the task of obtaining more marketing money.
The New Zealand product is well suited for both the Arab and expatriate
markets, especially long-staying families looking for good weather, children's
activities, safety and a fresh, green environment. Airline support is coming
from carriers flying through points in Southeast Asia, such as Malaysia
Airlines, which last year took a group of media on a fam trip via Kuala
Lumpur.
Much work has to be done culturally, and the New Zealanders are not
falling short. Ms. Kaye Martin, General Manager of the Park Regency Auckland,
has had some rooms equipped with a ceiling arrow indcating the direction
of Mecca, scouting around for availability of halal food and getting some
of the hotel's basic collaterals translated into Arabic.
Australia
Mr. Abdulla Al Noon, Senior General Manager of Dnata Agencies, a major
Gulf wholesaler, says Australia is one of the hottest selling destinations,
one that has become "very popular in a short span of time." Being in the
southern hemisphere means nice cold weather to counteract the summer heat
in the Gulf. The Australians are working hard to promote their destination
which is featured prominently in the Emirates Holidays brochure. Daily
flights from Dubai to Melbourne are an added advantage.
The remaining problem: visas. Australian immigration authorities say
they may consider expanding their Electronic Travel Authority to the Gulf
countries, after the Olympics. Meanwhile, all applications have to go through
the respective consular offices, which can take up to eight days. To help
reduce the work load, the Australian Immigration Service has begun allowing
wholesalers to apply for visas on behalf of visitors. Dnata Agencies has
been given the first green light, but only for UAE nationals. The Australians
say they are open to applications for similar rights from other Gulf wholesalers
and travel agents.
UK
The British are carefully watching the growing competition from Asia
and Australia. They have long enjoyed the dominant market share out of
the Middle East from where they received about 431,000 visitors in 1999,
who spent about GBP6I3 million. The forecast is for an increase of about
2-3 percent for 2000. In the wake of economic belt tightening in the Middle
East, the strength of the British pound against the weakness of Australasian
currencies is also a factor in shifting market trends.
The British Tourist Authority's new strategy: sports tourism. The Arabs
love football and horse-racing, and Britain is renowned for both. For the
expatriate market, there is tennis, cricket and rugby The BTA is working
with various sports federations in the UK to make it easy for Middle East
visitors to obtain tickets to the events. A full-fledged sports division
has been set up under the BTA headed by Mr. Adrian Bevan, who was previously
head of the BTA's Middle East unit. His first task in his new position
is to raise the sports promotions profile there.
Due to its long-standing lead in the Middle East, one thing Britain
has done well is translating a lot of its collateral literature into Arabic.
The next step: Translating its Internet sites into Arabic, which Mr. Bevan
says should be ready by autumn 2000.
That the markets of the Middle East are becoming significant for many
destinations within the Pacific Asia region is unquestionable. Apart from
the fact that many destinations now have a sizeable volume of traffic from
those source markets (see table 1), most are now also identifying individual
source countries rather than relying on the all-encompassing categories
of "Other Countries" or "Middle East" as collectives.
India, for example, publishes data on ten individual Middle East markets,
which collectively account for almost three-quarters of the traffic from
that region
These markets therefore have already been identified as having long-term
potential and the recognition and tracking mechanisms have (for many) already
been initiated. With measurement possible, it is now up to the marketers
to devise those tactics that will ensure growth to their respective destinations. |