Covid-19 Presented an Opportunity to Rethink Tourism, Industry Players Say

Covid-19 Presented an Opportunity to Rethink Tourism, Industry Players Say

Various stakeholders in the tourism sector have said that Covid-19 presented a major opportunity to rethink the industry and be more innovative despite the numerous challenges it brought.

Speaking at a roundtable discussion during the rebrand of Express Travel Group (ETG) to Hemingways Travel, Tourism CS Najib Balala noted that the Covid-19 pandemic presented an opportunity for industry players to think out of the box since it wasn’t things as usual.

“Technology innovation and collaboration enabled the tourism sector to ride the difficult Covid period and this should be the trend going forward,” Balala said.

According to Hemingways Travel MD Joseph Kithitu, the pandemic revealed that things can happen outside of your plans and that shows you need a serious travel back up to maintain your movement.

“Covid-19 didn’t come to kill travel or business, it came in to bring a new shift that people want to travel safe, in an organized way and that’s what we are bringing to the table with this rebrand,” said Kithitu.

Balala noted that innovation, digitization, and expansion to leisure travel is a sure win for Hemingways Travel and any other sector players looking to thrive in the tourism and travel sector as the industry continues to recover.

“Covid-19 gave us an opportunity to leapfrog to technology, the Hemingways travel is a testament to what we need to do as businesses, which is to rethink your business model on how to create better connections with your customers,” said Agnes Mucuha, CEO Kenya Association of Travel Agents(KATA).

The tourism industry was one of the most hit sectors by the pandemic with almost 1 million jobs lost according to industry data.

Even so, the industry is steadily recovering with the country’s tourism earnings growing by 65.4 per cent to Sh146.51billion in 2021 compared to Sh88.56billion in 2020.

This has been credited to the implementation of various interventions by the government to mitigate the effects of the pandemic on the sector, including a focus on domestic tourism.

Balala noted that despite the improvement, the industry had not recovered properly and much is needed from airline connectivity to affordability of products to ensure a full recovery.

“For 2022, we are hoping to surpass the 2021 revenues we don’t just want numbers,” Balala said.

According to the Annual Tourism Sector Performance Report 2021, new vision strategies such as digitization have supported sector recovery and Hemingways Travel has made significant enhancements to its platform to meet changing industry needs.

Source: Capital FM

CDC drops its COVID-19 risk advisory for cruise ship travel

The Center for Disease Control and Prevention has lifted its risk advisory for cruise ship travel Wednesday following two years of issuing warnings to travelers about the possibility of contracting COVID-19 onboard a cruise.

In an update posted online, the agency removed its “Cruise Ship Travel Health Notice,” a notice that recommended individuals against traveling onboard cruise ships. Three months ago, the CDC increased its travel warnings for cruises to Level 4 — the highest level — following investigations of ships that had COVID outbreaks.

While the CDC has lifted its travel health notice, officials say it’s up to the passengers to determine their own health risks before going onboard a cruise ship.

“While cruising will always pose some risk of COVID-19 transmission, travelers will make their own risk assessment when choosing to travel on a cruise ship, much like they do in all other travel settings,” the agency said in a statement to NPR.

The agency says it will continue to provide guidance to the cruise ship industry in order for cruise lines to operate in a way that will provide “safer and healthier” environments for crews, passengers and communities.

News of the CDC’s decision to remove its travel health notice was praised by the Cruise Lines International Association, the industry’s largest trade organization.

“Today’s decision by the U.S. Centers for Disease Control and Prevention (CDC) to altogether remove the Travel Health Notice for cruising recognizes the effective public health measures in place on cruise ships and begins to level the playing field, between cruise and similarly situated venues on land, for the first time since March 2020.

From the onset of the pandemic, CLIA’s cruise line members have prioritized the health and safety of their guests, crew, and the communities they visit and are sailing today with health measures in place that are unmatched by virtually any other commercial setting.”

The CDC emphasizes that travelers should make sure they’re up to date with their COVID-19 vaccines before taking a cruise, in addition to following their ship’s requirements and recommendations against the virus.

Travelers are urged to check their cruise ship’s COVID case levels and vaccination requirements online before traveling, the agency says.

Source: NPR

What You Need To Know About IATA’s New CO2 Calculation Method

The International Air Transport Association (IATA) announced the launch of its Recommended Practice Per-Passenger CO2 Calculation Methodology. This is the first tool of its kind developed by aviation industry actors and uses verified airline operational data to calculate and quantify CO2 emissions per passenger for a specific flight.

Airlines collaborating on calculations

How often are you prompted by airlines to offset your CO2 emissions? Often the choice is hidden away somewhere, and without the customer’s active participation, the little voluntary box to tick can be hard to locate. Even those who include the option on the booking details page do not tell you how much of ‘your’ generated emissions you are actually contributing to offsetting.

For those significantly invested in flying with a slightly greener conscience, there are, of course, already services out there that will allow you to calculate CO2 contributions on everything from dietary choices and daily commute, a long-haul flight to Asia, or a regional hop to go home and see your parents for Easter.

However, the measurements are quite generic and do not take into account the different efficiency of aircraft types, actual weight, cargo in the belly, or the recent addition of sustainable fuels. IATA’s new measurement system takes into account several industry-specific factors. Willie Walsh, IATA’s Director General, commented,

“Airlines have worked together through IATA to develop an accurate and transparent methodology using verified airline operational data. This provides the most accurate CO2 calculation for organizations and individuals to make informed choices about flying sustainably. This includes decisions on investing in voluntary carbon offsetting or sustainable aviation fuel (SAF) use.”

Measurable parameters

The methodology upon which IATA‘s calculations are based takes the following factors into account:

  • Guidance on fuel measurement, aligned with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
  • Clearly defined scope to calculate CO2 emissions in relation to airlines’ flying activities
  • Guidance on non-CO2 related emissions and Radiative Forcing Index (RFI)
  • Weight-based calculation principle: allocation of CO2 emission by passenger and belly cargo
  • Guidance on passenger weight, using actual and standard weight
  • Emissions Factor for conversion of jet fuel consumption to CO2, fully aligned with CORSIA
  • Cabin class weighting and multipliers to reflect different cabin configurations of airlines
  • Guidance on SAF and carbon offsets as part of the CO2 calculation
  • Tool for airlines, travel agents, and travelers

So more than simply allowing passengers to calculate their CO2 emissions to offset them accurately, the tool could be used to compare different flights of different airlines to see which option is the most sustainable to begin with. Mr Walsh further commented,

“The plethora of carbon calculation methodologies with varying results creates confusion and dents consumer confidence. Aviation is committed to achieving net-zero by 2050. By creating an accepted industry standard for calculating aviation’s carbon emissions, we are putting in place essential support to achieve this goal. The IATA Passenger CO2 Calculation Methodology is the most authoritative tool and it is ready for airlines, travel agents, and passengers to adopt.”

Source: Simple Flying

ATM 2022: Dubai prepares for return of Arabian Travel Week

RX Global has unveiled plans for Arabian Travel Week, a series of digital and in person events in Dubai this spring designed to foster a recovery in the hospitality sector.

At the centre will be Arabian Travel Market, the leading trade show in the Middle East, which will focus on the future of international travel.

Delegates will examine the likely challenges ahead for the sector, while looking at how to build resilience in an industry that is still coming to terms with the “new normal”. 

“Covid-19 has dominated our lives since March 2020 and continues to do so in many parts of the world.

“However, although international travel and tourism has learnt from past experiences and adapted in some cases almost seamlessly, we now have an ideal opportunity to look ahead to the future of our industry.

“Dwelling too much on the pre-covid past, would not necessarily be productive, especially because so many industry parameters and social attitudes have since been completely reset,” said Danielle Curtis, exhibition director, Middle East, Arabian Travel Market.

Working in collaboration with the Dubai World Trade Centre (DWTC) and the Dubai Department of Tourism & Commerce Marketing (DTCM), the event will take place live and in-person from Monday, May 9-11.

In similar fashion to the 2021 format, a virtual edition will again take place the following week on May 17-18.

“Undoubtedly innovation through internet of things, artificial intelligence, virtual reality and improved connectivity overall, will change the face of our industry dramatically, however, there are other challenges, that we should address together and share industry best practice.

“These issues include climate change and broader social challenges, as well as stakeholder attitudes towards equity in health, education and economic opportunity, particularly in the communities that we operate in,” added Curtis. 

Show highlights in 2022 will include, among others, destination summits focused on key source markets in Saudi Arabia, China and India, as well as Travel Forward, the leading global event for travel technology which puts a spotlight on the latest, next generation technology for travel and hospitality.

There will also be ATM buyer forums and speed networking events, as well as Arrival Dubai @ ATM – a dedicated in-destination forum.

ATM 2022 will also host dedicated conference summits on the Global Stage, covering aviation, hotels, sports tourism, retail tourism and a special hospitality investment seminar.

The Global Business Travel Association (GBTA), a business travel and meetings trade organisation, will once again be participating at ATM.

The GBTA will deliver the latest business travel content, research and education to drive the recovery and support growth in business travel.

ATM will play an integral role in Arabian Travel Week, a festival of events dedicated to travel professionals from all over world, to collaborate and shape the recovery of the Middle East travel industry, through exhibitions, conferences, breakfast briefings, awards, product launches and networking events

Given the global travel and social restrictions, the ATM 2021 live, and in-person event was well received, with over 21,600 attendees from 110 different countries.

During the virtual event, 30,790 profiles were registered on the ATM Virtual platform, almost 20,000 face-to-face virtual meetings took place and there were over 6,600 conference views.

Putting those figures into context, ATM which is often considered by industry professionals as a barometer for the Middle East and North Africa tourism sector, welcomed almost 40,000 people to its 2019 event with representation from 150 countries.

As the build-up to the largest travel trade show in the Middle East continues, Arabian Travel Market has been producing a series of encouraging reports, suggesting the worst of the pandemic may be over in the region.

Most recently, there was confirmation hotel development is continuing apace.

Despite the pandemic headwinds that the global hospitality industry has had to contend with, new hotel development in prime spots in Saudi Arabia, Qatar, Oman and the UAE is robust.

According to new research commissioned by Arabian Travel Market and conducted at the end of 2021 by hotel market intelligence and global benchmarking company STR, Makkah and Doha are both expanding their hotel room inventory by 76 per cent.

This is followed by Riyadh, Medina and Muscat with 66 per cent, 60 per cent and 59 per cent growth respectively.

In Dubai, rooms growth stands at 26 per cent, which is still “extraordinary,” researchers said, considering its existing base and following years of continuous hotel development.

The figure is still more than double the global average.

Curtis added: “With the global average sitting at 12 per cent we are witnessing multiple GCC destinations growing at six times those rates.

“These figures coupled with the ongoing relaxation in travel restrictions, will undoubtedly encourage travel professionals throughout the Middle East and further afield.

“As such we are expecting a substantial increase in the number of participants at our live event this year, especially Saudi Arabia, Qatar, Oman and the UAE.”

There were also green shoots of recovery in the business travel sector.

Business travel expenditure in the Middle East is forecast to rise by a third this year, following a predicted 49 per cent increase during 2021.

That is according to a report by the World Travel & Tourism Council (WTTC) published in November.

Curtis said: “This positive data will provide a welcome boost for business travel and tourism professionals throughout the Middle East region, as economies around the world begin to relax travel restrictions, despite the disruption caused by the outbreak of the Omicron variant.

“During 2021, the increase in business spending for the full year is expected to have actually outpaced spending on leisure travel by 13, ten and one per cent in the Middle East, Europe and Africa respectively.”

Source: Breaking Travel News

RwandAir: Pandemic offers new chance to gain market share

Yvonne Manzi Makolo, CEO of RwandAir, says that the company, now 49% owned by Qatar Airways, is looking beyond the pandemic to exploiting Africa’s huge aviation potential.

How has the Covid-19 pandemic affected your expansion plans and your medium- to long-term strategy?

We had a lot of momentum in the lead-up to the pandemic. We were expanding and had 29 routes running and more planned, both within and beyond Africa, but when Rwanda went into lockdown, we had to shelve most of these plans.

Rwanda closed off its airspace to commercial flights between March and August 2020, so we had to ground our fleet and re-evaluate our business model. The government of Rwanda has taken the pandemic very seriously, but has been very supportive of affected businesses, including those in aviation. Our staff were considered front-line workers, so we were able to get everyone vaccinated quickly.

We were able to operate cargo-only flights to support the export sector, as well as bringing in medical supplies like PPE. We converted our cabins to allow us to transport high-value exports like avocados, chillis, French beans, and flowers to lucrative markets in Europe and the Gulf.

We also carried out several repatriation flights, mainly to and from Europe, North America, and China, not just for Rwandans but also for citizens of other Central African counties.

By the time we resumed commercial flights in August 2020 we had shrunk our network to remove less profitable routes, including to Senegal, Juba, and Tel Aviv, which have still not been restarted.

Unfortunately, we were also forced to lay off some staff, though we have started rehiring them now. We had to cut back on in-flight services to focus more on safety and security procedures, which was obviously our priority.

We were on the road to recovery when the Omicron variant was recognised in December 2021, which was peak travel season. That knocked us back again as we had to stop all our Southern African routes, as well as major long-haul flights, to London and Dubai for example.

Now that the Omicron outbreak is being managed things are once again picking up and we are seeing increased passenger numbers. We hope to see consistent improvements between now and the 2022 summer season.

Covid has created challenges, but also opportunities, with SAA’s privatisation and Kenya Airways restructuring its network. How is RwandAir planning to fill new gaps in the market?

We had to pull out of some of our own routes, which other airlines are now eyeing, while we are looking at moving into new routes that have become available and which fit with our location and model.

Africa was already underserved and less connected than it should be, so there are lots of opportunities for airlines to gain market share at the moment. Even during the pandemic, we opened a few new routes.

These included Bangui (CAR), and Goma and Lubumbashi (DRC), which have been doing extremely well since we opened them in 2021. So, we are still working towards our objective of connecting Africans with each other and with the world.

In 2020 it was announced that Qatar Airways was purchasing a 49% stake in RwandAir. What is the state of negotiations, and how will they help RwandAir establish itself as a global airline?

Commercial initiatives, such as codeshares, between RwandAir and Qatar Airways were agreed upon in September 2021 and have been operation since December 2021. These have linked Kigali’s air transport hub with that of Doha, which allows us to expand our network significantly.

We can now reach most of Eurasia, while Qatar can reach most of Africa. Travellers can earn and exchange air miles between loyalty schemes, while we have access to Qatar Airways’ training facilities for pilots and cabin crew.

Qatar Airways has also purchased a 60% stake in Rwanda’s Bugesera International Airport. How does this arrangement benefit both Qatar and Rwanda?

The joint venture is still being worked out but is probably a few months away from being finalised. This will give Rwanda a large, modern airport, which is central to our plans to make Rwanda a transport hub, as well as Qatar’s plans to service the African continent. This will allow Rwand­Air to expand and allow the economy to benefit from ripple effects such as tourism and job creation.

It’s a massive project, around 25km outside Kigali, that is set to grow into an “airport city”, with housing, hotels, and entertainment centres, which presents a world of opportunity to local businesses. The first phase is set to be completed in 2024-25, which will give the airport a capacity of 7m passengers.

The second phase will expand on that, but details are yet to be finalised. The whole project is a good example of the government’s preferred private-public partnership (PPP) model, and there will be opportunities for further PPPs in everything from construction to service provision as the project advances.

How is RwandAir embracing innovation to attract customers and establish itself in the international market?

We are always looking for ways to make travel easier, add value and differentiate ourselves from the competition. We have invested in digitising and automating a lot of things, such as online sales and online check-ins, which has actually been helped by the pandemic and the emphasis that was put on getting things done remotely.

Qatar Airways has always been on the front line of innovation, and Rwanda is a very IT-focused country, so the deal between the two will let us complement each other’s innovative spirit perfectly.

How important is the African Continental Free Trade Agreement (AfCFTA) to Rwand­Air, and what is your role in the promotion of African trade?

The finalisation of AfCFTA will be a game-changer as it will force change across the continental economy, including in aviation. It will become impractical to operate a free trade area without broad “open skies” agreements, inclusive visa policies, and other provisions that will make it easier for people to use our services.

At the moment many barriers still exist across Africa, including complicated visa procedures, inconsistent infrastructure, a lack of ground handling facilities, prohibitively high airport taxes, and unmaintained or unlit runways, all of which have to be addressed before Africa can develop a sustainable and affordable aviation industry.

For AfCFTA’s benefits to be felt in full, governments need to look at the continent holistically and address some of these bottlenecks so that aviation isn’t a limiting factor.

As Rwanda becomes a regional centre for sport, tourism, and the MICE (meetings, incentives, conferences and exhibitions) segment, while promoting travel-friendly policies at home and abroad, AfCFTA presents Rwandans, RwandAir, and our partnership with Qatar with the opportunity to play a crucial role in Africa’s future.

Source: African Business

Ethiopia: Legendary Ethiopian Airlines CEO Tewolde GebreMariam quits after 37 years

The long serving CEO of Africa’s largest airline Ethiopia Airlines has stepped down, citing ill health. Starting at the firm in 1985, he become CEO in 2011. He leaves behind a strong legacy, the envy of other African airlines who struggle to match Ethiopian’s operational efficiency.

Less than 24 hours after the announcement of the resignation of Tewolde GebreMariam, the CEO of Asky Airlines in Togo, Mesfin Tasew, has been appointed to take over as head of Ethiopian Airlines.

His appointment on 24 March, follows the resignation of Tewolde GebreMariam, who took early retirement on March 23 for health reasons.

Tasew will be responsible for the continent’s leading airline, with 130 aircraft covering 120 destinations worldwide.

Tewolde GebreMariam is a towering figure of African aviation, dragging Ethiopian Airlines through a profound modernisation process, and running the state-backed company profitably, in comparison to many continental peers.

“I pay tribute to the work of a man who has led Africa’s largest airline for over 11 years”, says Abdérahmane Berte, head of the African Airlines Association (AFRAA).

“Under his leadership Ethiopian Airlines became the largest African airline. A position maintained for many years”, he says. “For the sake of history I also note the important role of Ethiopian Airlines as one of the founding companies of AFRAA.”

Ethiopian Airlines tripled its fleet under Tewolde GebreMariam’s watch, from around 40 when he took over as CEO in 2011, to 120 today.

Turnover also grew from $1.3bn in 2011 to $3.9bn in 2019-2020. And Ethiopian’s Addis Ababa hub now flies to 120 destinations, compared to 80 in 2010.

While the Covid-19 pandemic has had a huge impact, kicking a billion-dollar hole in the budget, Ethiopian Airlines has managed to be operationally flexible, refitting several passenger planes into cargo carriers, the fruit of a long-started diversification exercise.

Ethiopian Airlines was the continent’s fifth largest carrier, after South African Airways, Egyptair, Royal Air Maroc and Kenya Airways. But post pandemic, thanks to this agility — and the decline of other carriers — it finds itself Africa’s biggest as measured by turnover in our exclusive ranking of Africa’s Top 500 Companies.

“Ato Tewolde was a game changer in African aviation. He bumped Ethiopian Airlines into the new century with a solid and steady hand, expanding the airline in terms of scope and profits beyond what was thought possible in Africa”, says one African aviation expert who asks not to be named. “His agility was apparent in Ethiopian’s stunning quick turn once the pandemic decimated passenger traffic by quickly converting passenger aircraft to freighters, earning the awe and admiration of business leaders worldwide. Honestly his handling of ET during Covid was spectacular.”

“I have already retired due to ill-health & the resignation I submitted to the gov’t was accepted”, Tewolde told Ethiopia Check.

The news was broken by local news outlet the Addis Standard.

Source: The African Report

KQ to start daily flights to India on easing of curbs

Kenya Airways will now fly daily to India after the Asian country lifted the restrictions that had limited the national carrier to three flights a week, coming as a major boost to the airline that is struggling financially.

KQ, as the carrier is known by its international code, has been operating flights to India under a special arrangement normally referred to as ‘air bubble’ in aviation and which also limited the number of passengers to 400 a week.

The carrier, which resumed flights to India in September last year after it had stopped flying to the Asian country on April 2021, will also be making ten weekly flights to India starting April, coming as a major relief to passengers seeking to travel to the country.

“We are excited and ready for take-off to Mumbai with daily flights from March 28, 2022, and ten weekly flights from April, 17,” said KQ in a notice to its customers.

India has now opened its airspace to the national carrier as cases of Covid-19 in the country continue to decline.

The additional frequencies to Mumbai come just days after KQ cut frequencies to some of its destinations and stopped the launch of new routes citing declining demand for passengers.

A large number of patients from Kenya travel to India every year for specialised medical treatment, especially cancer care, helping to drive medical tourism in the densely populated country that boasts relatively more affordable healthcare.

Kenya Airways has postponed the launch of flights to Italy even as it suspended its operations to Cameroon due to low demand for passengers.

The national carrier was to start flying to Rome and Milan in June but it says the plans have been put on hold due to lower demand than it had earlier projected.

According to the initial schedule, KQ was to operate two weekly flights on Wednesday and Sunday using a large capacity aircraft Boeing 787 Dreamliner.

KQ re-introduced flights to Rome in 2019 after a seven-year hiatus, banking on increased traffic between the two continents and a new link in Geneva to boost its earnings.

Source: The East African

US downgrades Kenya Covid travel alert on vaccines, low infections

The US has eased travel restrictions on Kenya in the wake of declining cases of Covid-19, offering a boost to the East African nation’s recovering tourism sector.

Kenya has been moved to level one from level three, which requires US citizens to avoid all non-essential travel to a destination and reconsider any planned travel.

The downgrade to level one is set to boost summer bookings from a country that accounted for the largest share of foreign visitors to Kenya last year at 136,981.

Kenya’s tourism industry has started to pull out of its deep Covid-19-induced slump as local travellers take advantage of lower prices, but foreign visitor numbers are still well below pre-pandemic levels.

The US’s latest advisory follows a sharp decline in infections and hospital admissions in recent weeks, which made the Kenyan government to relax coronavirus restrictions, lifting requirements for compulsory wearing of face masks in open places and ending quarantine measures.

“The Centers for Disease Control and Prevention (CDC) has issued a Level 1 Travel Health Notice for Kenya, indicating a low level of Covid-19 in the country,” says the US embassy in Nairobi. “Your risk of contracting Covid-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA authorised vaccine.”

Kenya’s positivity rate — the proportion of tests coming back positive — stood at 0.3 percent on Monday compared to a peak of 37.6 percent on December 27.

The lower infection rates come on the back of increased inoculation against Covid-19, with 7.93 million Kenyans fully vaccinated, up from 3.93 million on December 27.

Kenya’s tourism is expected to record increased numbers in the next two months as visitors from western countries troop in for summer holidays. Kenya expects tourism, typically one of its top sources of foreign exchange, to earn Sh173 billion this year, up 18.5 percent from last year, the government said.

Earnings slumped to Sh88.6 billion in 2020 as governments around the world restricted the movement of people, including through the closure of airspaces, to curb the spread of the coronavirus.

They bounced back to Sh146 billion last year, with the number of hotel nights occupied by Kenyan travellers doubling during the period.

Local resorts, which normally concentrate their marketing efforts on foreign tourists, were forced to turn to the domestic market by the pandemic, offering cut rates to entice holidaymakers.

Foreign visitor numbers were still sharply lower than pre-pandemic levels, at just under 870,500 last year against two million in 2019. They are forecast to reach 1.03 million this year.

The drop in earnings in the sector from foreign tourists has contributed to a sharp fall in the local currency, which is trading at all-time lows against the dollar.

Source: Daily Nation

Kenya’s ranking as conferencing hub improves on higher arrivals

The Kenya National Convention Bureau (KNCB) has reported improvement in the country’s profile as a Meetings, Incentives, Conference and Exhibition (MICE) destination owing to sustainable and legacy meetings industry.

KNCB National Coordinator and CEO Ms Jacinta Nzioka said conferencing facilities have greatly improved with cities and major towns such as Nairobi, Mombasa, Kisumu and Eldoret now having more establishments.

Their conferencing facilities now match the needs of the MICE business market.

Latest report on tourism trends showed that holiday trips lead the pack with 226,168 international victors representing 34 per cent of all arrivals.

Those coming for business and MICE increased to 178,799 or 27 per cent of the total arrivals, which analysts say is a boost to tourism.

With Nairobi being ranked number one by the World Travel Awards (WTA), Kenya has hosted various international conferences in the recent past – showcasing its capability to host high-end events.

Ms Nzioka said brand ‘MeetInKenya’ has been buoyed by the nation’s membership to regional economic blocs coupled with its strategic geographic location.

The country is a gateway to East Africa with over 135 million people and the Common Market for Eastern and Southern Africa (Comesa) market with over 450 million people.

Kenya is also a beneficiary of several preferential trade arrangements such as the African Growth and Opportunities Act (Agoa) and the new Africa Caribbean and Pacific-European Union (ACP-EU) as well as the Economic Partnership Agreement (EPA) that gives duty free access to the EU among others.

Ms Nzioka said in a statement that the State is working with other key industry stakeholders to improve conferencing opportunities.

“From a global perspective, health and hygiene continues to be at the forefront of travellers concern, so we continue to implement the latest suggestions provided by healthcare leaders, such as the Centre for Disease Control and Prevention and World Health Organisation, which has seen higher guest confidence,” she said.

‘’There has been a huge growth noted within the local MICE sector, in line with the Ministry of Tourism’s change in policy that has allowed the sector to drive and sustain local events and meetings that have supported the recovery in the last 24 months.” She said such events include The Magical Kenya Open Golf tournament, WRC Safari Rally Kenya among others.

These have seen local investors sustain the MICE sector and in turn attracting global tourists on a short-term, mid-term and long-term basis.

Kenya recently hosted events such as the Fourth Africa Labour Law Society Conference, AGRF 2021 Summit, Jumuiya Agribusiness and Blue Economy Investment Conference 2021, The Magical Kenya Golf Tour, Africa Health Business Symposium Africa Tech Summit among others.

Source: The Standard

African airports offer new opportunities for investors

The unprecedented demand for airport capacity to handle essential cargo such as temperature-sensitive pharmaceuticals and Covid-19 vaccines over the past two years of the Covid-19 pandemic exposed the massive shortage of airport infrastructure in Africa.

Even among major airport hubs in various parts of Africa, passenger and cargo figures have overwhelmed available capacity or would do so in the near future. This poor capacity restricts African airports’ growth and associated revenue. In response to this challenge, Ethiopian had increased the existing Bole International Airport capacity from seven million passengers per annum capacity to 22 million capacity. In addition, Ethiopian Airlines a few years ago announced plans to build a $5 billion massive airport in Addis Ababa, to complement the existing Bole International Airport and accommodate fast-rising passenger and cargo traffic. The airport would cover an area of 35 square kilometers and accommodate 100 million passengers annually.

Agreeably, this lack of airport capacity in Africa represents investment opportunities for investors. Transit sheds, cold stores, specialized freight consolidation centers, and e-warehousing, among others, present good investment opportunities all over the continent. Daniel Eckstein, Business Development Manager Middle East, and Africa of Munich Airport International (MAI) – Munich Airport’s international business subsidiary, said African airports and investors have opportunities to create airport cities, business parks, or free trade zones in order to tap further non-aviation revenue potential.

On the landside too, African airports could diversify revenue streams with shopping, restaurant, hotel, and conference centers, office leasing for international companies, rental events spaces and construction of a smart city in form of the cross-industry innovation centre, among other businesses.

Leading from the front Currently, a number of African airports and airport authorities are already developing or executing future expansion plans to meet crucial current and future demand, ensure steady growth and development of their airports, and contribution to their economies. The Kenya Airports Authority (KAA), which refers to itself as “the largest air freight service provider in Africa”, is implementing its Air Cargo Strategy 2019-2022 to drive cargo development.

At Isiolo International Airport, KAA says cargo handling sheds have been completed to take care of the export of agricultural produce and Miraa. Construction of a modern transit shed is underway at Mombasa’s Moi International Airport, and a new cold storage room and specialized consolidation area will form part of the upgrade planned for the airport. Kisumu is being positioned to attract massive trade and investment in its Great Lakes region.

Early January 2022, Kisumu Airport announced its first cargo flight to international markets on Kenya Airways. “Local and international investors are attracted to Kisumu International Airport due to its multi-modal transportation capabilities and proximity to the Kisumu Port, the ICD, and the modern road network,” KAA states. KAA is also in the process of modernizing and expanding Eldoret International Airport’s transit sheds to handle more cargo “as we envisage increased airfreight activity, both local and international.”

Cameroun recently announced infrastructure improvement inaugurated at the Yaounde-Nsimalen International Airport including the Emergency Operations Centre (EOC), the patrol road, the rehabilitation of the security fence, and the Yaounde-Nsimalen International Airport ring road. Sierra Leone also reported efforts to improve safety at its airports. Jack Massaquoi, General Manager of Sierra Leone Airports Authority (SLAA), says the Sierra Leone Airports Authority wants to keep first responders on their toes and to always stay cognizant of their safety roles. For Seychelles airports, they have a “strategy to proactively pursue innovative business ventures to provide more diverse services for our customers.”

Public-private partnership Partnerships are vital to reposition African airports to meet the current and future needs of airport users including airlines, tourists, and business meetings. Public-private partnership is instrumental to the development of Kenya airports, and this offers the solution to develop Africa’s remote airports where agriculture and other primary produce are generated.

In West Africa, Nigeria’s move to concession its major international airports in Kano, Port Harcourt, Abuja, and Lagos could be a first step towards positioning the country’s airports to benefit from the air transport and trade liberalization in the continent. Without the intrigues and controversies that marred previous concessions in Lagos, Nigerian airports development could be another example for other African airports to toe their line.

Airline-airport synergy Both Kenya and Ethiopian Airports expansion are significantly driven by their well-established national carriers, Kenya Airways and Ethiopian, respectively, which spearhead cargo and passenger traffic to the airports. Other African states could drive their airports expansion relying on traffic from privately-owned domestic or regional African airlines, which have now been empowered to fly into airports on the continent unfettered by the glorious Single African Air Transport Market (SAATM) established in 2018.

About 35 states have signed the SAATM, so airlines from these states are expected to explore the airports in these states and the high volume of trade is expected to ensue from the operationalization of the complementary African Continental Free Trade Area (AfCFTA) launched continent-wide in January 2021. Under the new SAATM and AcfCFTA environment, there must be robust collaboration and partnerships between African airlines and African airports. This also presupposes that African airports must intensify their non-aeronautical revenue drive which would enable these airports, in turn to reduce emphases on charges on airlines. Most African airports operate far below 50 percent of non-aeronautical revenue.

Ethiopian Airports, for instance, is showing good example in non-aeronautical revenue development, with its luxury Skylight Hotel that offers 373 guest rooms and conference hall for 2500 guests, being the biggest hotel in Addis Ababa. Targets and timelines The examples of multi-year development plans by Kenya Airports Authority, Ethiopian Airports, and Airports Company South Africa (ACSA) have clearly demonstrated benefits. The 2010 World Cup in South Africa enabled ACSA develop especially the Johannesburg airport to accommodate the traffic resulting from the event and future traffic.

Setting airport expansion and development targets would enable African airports measure their direction, as well as growth achieved within a given period. It will also guide the private sector investors and concessionaires to expedite action in areas of immediate need. Most importantly, Africa is still providing less than two percent of global air traffic; thus, setting a realizable target of 5-10 percent of global market share over the next 5-10 years is a project all African airports should strive towards, as a priority. Synergize with cargo value-chain Aviation cannot develop in a silo.

Airports development stakeholders must collaborate with especially cargo sources such as the agricultural sector and the transport and packaging value-chain to develop and facilitate acceptable products and package standards for movement by air. This would reduce spoilage and economic losses associated with movement of perishable agricultural and other products by poor road networks over long distances in Africa. Embrace technology and e-commerce Africa’s 1.3billion population has remarkably the youngest population that is also largely immersed in mobile technology and e-commerce. African airports should realign accordingly and adopt new airport technology to enhance customer experience, and further explore the fast-rising e-commerce industry.

E-commerce should be a key feature among businesses in the evolving Free Trade Area in Africa which is designed to drive massive trade activities within Africa. The current traffic trend mired by the Covid-19 pandemic could make short-term traffic projections rather difficult. The International Civil Aviation Organization (ICAO) says “Africa and the Middle East recovering moderately, until Africa plunged again due to Omicron restrictions.” In fact, Ali Tounsi, secretary-general of Airports Council International Africa Region (ACI-Africa), says that cargo is now one-third of the airline business; and it is hoped that air cargo can grow even further with the advent of the African Continental Free Trade Area, e-commerce and the linkages to manufacturing facilities and Special Economic Zones (SEZ).

Despite this challenge, 2022 presents a window of recovery for African airports and investors to take the better option of planning and executing for the immediate- and longer-terms, given that the pandemic would become better managed to unstop reopening of borders and flow of air traffic to African airports.

Government must take responsibility According to Tounsi, African airports are controlled nearly 90 percent by governments. This puts the responsibility of driving the evolution of African airports on the governments. Governments must, in turn, create the enabling environment that attracts private investors, including airport-airline partnerships. African governments must take responsibility to ensure that African airlines are supported – under a robust Dispute Settlement Mechanism of the SAATM – to drive cargo and passengers to African airports, including airports with huge cargo potentials. Foreign airlines are already positioned to take away the opportunities emanating with the AfCFTA, with Qatar Airways relishing prospects of cargo from Nigeria’s Kano International Airport.

Source: Logistic Update Africa