Hotels have mixed feelings about business travel in 2023.

On one hand the corporate travel and groups segment is the main area of focus for hotel revenue teams this year.

But rather than staffing issues, business travel also represents their biggest challenge, according to a new Outlook & Trends 2023 Survey from revenue management software company Duetto.

When hoteliers were asked how they planned to optimize business mix in 2023, the top responses were group business (59.5 percent) followed by corporate business (51.9 percent).

Channel management (48.1 percent), online travel agencies (38 percent), then tour operator, wholesale and fully independent travelers (30.4 percent) followed.

Business travel is returning this year, but Duetto believes the fact it’s unlikely to return 2019 levels weighs heavily. for example, only half of companies located in North America are seeing international bookings recover to their pre-pandemic levels according to the Global Business Travel Association.

When it comes to the challenges hotels face in 2023, business travel came top at 60.8 percent.

Staffing followed at 55.7 percent, ahead of increased costs, government restrictions, lead times and cancellations.

As expected, seeking out sales digitally is a priority when it comes to channel management efforts — but revenue execs could be focusing on the wrong channel if they want to boost their business travel bottom line.

Their top focus for channel management in 2023 are metasearch websites such as Google, TripAdvisor or Kayak. This came out highest at 75.9 percent.

Other areas including loyalty (57 percent); online agency (55.7 percent); “own website” (54.4 percent); and global distribution systems (53.2 percent). Yet it’s these global distribution systems that are commonly used by corporate travel agencies.

Duetto’s survey was carried out from Dec. 1, 2022, to Jan. 16, 2023.

Respondents worked in leisure hotels, business hotels, casino resorts and hostels. Geographically they came from North America (39.5 percent), Europe (21.1 percent), Latin America (21.1 percent), Asia Pacific (14.5 percent), and the Middle East & Africa (3.9 percent).

Source: Skift

Africa’s tourism sector was on an upward trajectory with an average growth of 5% until Covid-19 struck with its devastating effects causing disruption for the global economy and the tourism sector to be specific.

The silver lining in the last 24-36 months has been how partnerships and collaboration for the tourism sector to accelerate recovery.

The power of tourism particularly in Africa cannot be over emphasised enough as it offers an incredible opportunity to transform the lives of many on the continent.  As the United Nations Secretary Antonio Guterres succinctly puts it, ‘’Tourism can provide decent jobs, helping to build resilient sustainable, inclusive economies and societies that work for everyone’’.

Recovery of the tourism sector is well underway and shaping up so well. Based on UNWTO’s forward-looking scenarios for 2023, international tourist arrivals could reach 80% to 95% of pre-pandemic levels this year, depending on the extent of the economic slowdown, the ongoing recovery of travel in Asia and the Pacific and the evolution of the Russian offensive in Ukraine, among other factors. The latest UNWTO barometer gives it further impetus as Africa recovered about 65% of pre-pandemic levels.

It is a positive omen that we need to maintain and further up with the needed policies to make the maximum push.

The meetings, incentives, conferences, and Exhibitions (MICE) sector which is One of the fastest-growing sectors of the global tourism industry is an area in Africa that can help sustain the continent’s sector. With the enormous benefits and ROI that it generates, with some little effort and investments, it could be gold for the tourism industry.

Facts

The World Travel & Tourism Council estimates the travel and tourism industry globally to be worth some US$7 trillion.it is estimated that the global MICE industry is worth around US$650 billion to US$700 billion, a sizeable figure. Africa is forecasted to have a paltry market share of 2% of it.

The above staggering data is just the tip of the iceberg which many other multiplier efforts beyond calculable. The illustration makes a serious case for Africa to position MICE in their strategies to drive tourism, their economies, and trade.

Prior to the covid-19 pandemic, several countries expressed the intent of making MICE a core pillar in their development agenda and went further in putting in place the governance structures to get it going. From the growing list of convention bureaus to a dedicated desk for MICE/Business events in itself is a commendable step. Uganda, Ethiopia, Ghana, Kenya, Malawi, and Zambia are few of the countries have made commitments for mice.

In Africa, powerhouses such as South Africa and Morocco and recent dominant Rwanda have been pace setters in consolidating and growing their market share of the pie.

As the tourism actors begin with their key roadshows and trade events such as meetings Africa, it is incumbent on its leaders and stakeholders to commit themselves to the progress and development of the sector and the continent as a whole.

There cannot be any valid reasons why the continent is still struggling to take a giant step toward the elimination of artificial bottlenecks hampering movement and trade in the region. As so long as Africans are required to travel with a visa within the continent which in itself is not an easy task, the objective of taking advantage of the African continental area is a dead-on-arrival case. There ought to be a paradigm shift from the present situation to an efficient and smart way of doing things in our quest to truly attain the goals of the ”Africa we want” Agenda.

Even though the recent 2022 Africa visa openness report by the Africa development bank indicates improvement in visa facilitation across the continent, it needs a whirlwind of a push to accelerate movement and trade to grow African economies.

African Union Commission Deputy Chairperson Dr Monique Nsanzabaganwa in reacting to the latest report said: “This edition links free movement to the development of regional value chains, investments, trade in services and the AfCFTA. There is greater recognition that human mobility is key to Africa’s integration efforts.”

Meetings Africa, a platform created by South African Tourism has been a strong voice and effervescent force in mobilizing the business events industry and offering support and knowledge for Africa to grow this significant market segment. It has with other similar platforms encouraged and supported destinations to invest and commit to mice in its quest to grow tourism.

Now in its 17th year, the event is seeing the highest number of African participants coupled with other novelties to shape the new way of doing things in the industry. It is refreshing and welcoming for the continent to at least see a surge in the appreciation of MICE by decision-makers to drive its economy.  As a private sector-led industry, the profound endorsement of the public sector is very significant as it will encourage the provision of necessary infrastructure to meet the demands of hosting small to mega events thus creating jobs for many in the ecosystem.

Three hundred and five exhibitors representing 15 African countries have confirmed their spots on the Meetings Africa 2023 trade floor. They will have the opportunity to interact with thousands of buyers from around the world expected at the event. The countries represented are Botswana, Eswatini, Ghana, Kenya, Mauritius, Uganda, Nigeria, Tanzania, Seychelles, Rwanda, Zambia, Zimbabwe, Angola, Malawi, and Mozambique.

According to South African Tourism Acting CEO, Themba Khumalo, the increase in the number of African exhibitors is an indication that leaders throughout Africa recognize the business events industry as vital to their economy. “As Africa’s economy shifts towards a technological future characterized by the Fourth Industrial Revolution, more nations are building their business events industries to attract foreign investors and businesses.”

Aside from offering the perfect avenue to trade and sign deals, meetings in Africa will unravel the many novelties and innovations developed by African entrepreneurs/groups to make businesses seamless and spur growth. An imperative to develop a robust MICE sector is the ability to be sustainable in all fronts and Africa’s enviable sustainability footprint will be on display during the show in Sandton.

Meetings Africa 2023 will be held at the Sandton Convention Centre from 27 February to 1 March bringing together 350 exhibitors and more than 1,000 buyers to the trading floor.

There will be insightful sessions across all three days at Meetings Africa 2022, with speakers focusing on creating a positive African narrative, the future of meetings, and the challenges business events face because of a lack of airlift in Africa.

Meetings Africa will once again offer the fine opportunity to accelerate the continent’s tourism recovery.

Harnessing the immense resources for the growth of the continent will require intentional and conscious efforts by all and sundry.  Aviation expert, Sean Mendis is optimistic Africa’s aviation sector could see a strong rebound this year provided actionable measures are put in place to make airlines competitive, destinations accessible and build synergies among stakeholders towards a common approach for the realization of air travel objectives.

“In many parts of Africa, notably in West Africa, you find that the taxes charged by governments and authorities on travellers often exceed the fare travellers pay to the airlines to transport them. And when the airline is making $60 while you are paying the government $150 to travel for one hour by air, it immediately depresses the ability of people to be able to travel to the neighbouring countries to do business, explore the neighbouring countries to see the highlights of what the countries have to offer.’’  Sean Mendis.

Making tourism a transformative force for good will mean collaborating with all key stakeholders to create the enabling environment for businesses to thrive.

Source: Vanguard

President Joe Biden hailed cooperation with Africa and said he looked forward to visiting the continent soon as he endeavors to expand ties in a region where China and Russia have been making inroads.

Speaking at the US-Africa Leaders Summit in Washington, Biden announced billions of dollars in new commitments on financing and bolstering democracy, and affirmed he supported a permanent seat for the African Union at the Group of 20.

He sought to dissuade the impression his promises could be short-lived, naming a top diplomat to ensure the summit’s commitments are executed. And he said a host of Cabinet officials – along with his wife – would also soon visit Africa to demonstrate American interest there.

“I’m eager to visit your continent,” Biden said to the nearly 50 leaders attending the conference. “Some of you invited me to your countries. I said, ‘Be careful what you wish for because I may show up.’”

“I’m looking forward to seeing many of you in your home countries,” he said.

Biden is hosting this week’s summit hoping to build more robust ties with African nations, stressing US desire to work together instead of simply sending aid and assistance.

“The United States is all in on Africa and all in with Africa,” Biden said Thursday. He said “African voices, African leadership, African innovation” were all necessary to addressing a host of global challenges.

“Africa belongs at the table in every room, in every room where global challenges are being discussed and every institution where discussions are taking place,” he said, noting his support for a seat for Africa both at the G20 and the United Nations Security Council.

“It’s been a long time in coming but it’s gonna come,” he said.

It’s not the first time African leaders have heard a similar message from an American president. President Barack Obama held his own US-Africa Leaders Summit in 2014, complete with gala dinner under a tent on the White House South Lawn. He promised then to take action to help build more prosperity and security in Africa.

But his predecessor former President Donald Trump largely ignored Africa, never visiting the continent and even rudely disparaging certain African nations in a 2018 meeting as “shithole countries.”

Meanwhile, other nations have made inroads on the continent. China has worked to grow trade relations with African nations and has developed major infrastructure projects there. Russia has expanded its military influence, including through mercenaries like the Wagner Group.

Biden avoided specific mention of those countries in his remarks, but he alluded to China’s creeping influence in Africa when discussing new US efforts at providing financing to “build sustainable and inclusive economies” with saddling nations with “back breaking debt payments.”

He said he was working alongside Congress to announce a total of $55 billion for investment in Africa in areas as diverse as rural development and collaboration in outer space.

He said the US would remain focused on leading with values, including support for democracy, respect for the rule of law, commitment to human rights, and emphasizing responsible government.

Earlier this week, Biden met with leaders from several countries holding elections in 2023 to emphasize the importance of free and fair voting.

“We see over and over again that our greatest power is our people,” he said Thursday, announcing $75 million to strengthen transparent government, voter registration and constitutional reform.

He said Ambassador Johnnie Carson, a former Assistant Secretary of State for African Affairs, would lead efforts to “make sure we translate our commitments on paper to progress.”

And he said he was looking forward to going to Africa himself. Biden hasn’t visited Sub-Saharan Africa since taking office.

Source: CNN

Geopolitical uncertainties are singled out in the latest Global Business Travel Forecast, which underscores the volatility the corporate travel industry is experiencing, and perhaps the pointlessness of trying to predict prices in the first place.

While travel prices may not spiral out of control as much as they did in 2022, many factors that impact costs will simply remain out of the hands of travel managers.

Next year could see even more price fluctuations due to geopolitical events, a new report from corporate travel agency CWT and the Global Business Travel Association has warned.

The pair projected back in November 2021 that air fares would rise 3.4 percent in 2022, with that estimate published just months before Russia invaded Ukraine — an event that contributed to jet fuel price increases that were handed down to passengers.

However, the actual rise of the average air fare is expected to be 48.5 percent for 2022, CWT and the association have stated in this year’s joint Global Business Travel Forecast, published Wednesday.

“There are three main forces exerting pressure on the economy, and conversely, the business travel industry,” the report said. “Russia’s invasion of Ukraine, coupled with other geopolitical uncertainties; inflationary pressures that are pushing costs higher; and the risk of further Covid outbreaks that could restrict business travel.”

Speaking to Skift ahead of the report’s publication, one senior exec warned more implicitly that travel managers should keep track of the rising tension between China and Taiwan. Taiwan’s foreign minister on Tuesday said China’s recent military maneuvers were a game-plan to prepare for an invasion.

“As well as the war in Ukraine, you need to keep an eye on what’s happening in Taiwan with China,” said Richard Johnson, senior director, CWT Solutions Group. “Drawing parallels with what’s happening in Ukraine and Russia at the moment, if there were to be an invasion of Taiwan, that could potentially impact demand for inbound and outbound business travel to and from China.”

One knock-on effect is that airlines would see demand reduced, particularly if there was an embargo, as well as safety risks.

With prices reduced in certain markets, Johnson said vendors would need to recoup their losses.

“You might start to see an offsetting of the reduced demand in such a massive economy as China, by prices increasing elsewhere,” he added. “It’s a difficult one to predict.”

Air fares are predicted to rise 8.4 percent in 2023, according to the Global Business Travel Association.

Meanwhile, hotel prices are expected to rise 18.5 percent in 2022, up to $147 per night — a notable difference on the original 13 percent prediction the annual report made in November last year.

They’re forecast to go up by a further 8.2 percent in 2023. “Hotel prices have already eclipsed 2019 levels in some areas and will do so globally by 2023,” the report said.

Source: Skift

Global travel prices are forecast to continue rising in the remaining months of 2022 and throughout 2023, a report released on Wednesday said.

Rising fuel prices, labour shortages and inflationary pressures on raw material costs are the main drivers of expected price increases, according to the Global Business Travel Forecast 2023.

Prices have risen across all regions in most spending categories, driven by pent-up demand, the desire to build company culture and an uncertain economic outlook.

Air fares have seen a particularly marked post-pandemic upwards shift.

Business travel flight prices fell more than 12 per cent in 2020 from 2019, followed by an additional 26 per cent decline in 2021.

Economy ticket prices fell more than 24 per cent from 2019 to 2021, while premium tickets fell 33 per cent. Prices are expected to increase by 48.5 per cent in 2022, but even with this large increase, prices are expected to remain below pre-pandemic levels until 2023.

After a 48.5 per cent increase in 2022, prices are expected to increase by 8.4 per cent in 2023.

Increased demand and continued price increases for jet fuel which have seen prices more than double in some markets to $160 dollars per barrel, according to S&P Global, are putting upwards pressure on ticket prices.

The overall cost per attendee for meetings and events in 2022 is expected to be about 25 per cent higher than in 2019 and is projected to increase by a further 7 per cent in 2023.

“Demand for business travel and meetings is back with a vengeance, there’s absolutely no doubt about that.” said Patrick Andersen, chief executive of travel management firm CWT which contributed to the report.

“Labour shortages in the travel and hospitality industry, rising commodity prices and greater awareness of responsible travel are all impacting services, but forecast prices are broadly [in line] with 2019.”

Hotel prices are also on the rise after falling 13.3 per cent in 2020 from 2019 and another 9.5 per cent in 2021. The report expects them to rise 18.5 per cent in 2022, followed by an 8.2 per cent increase in 2023.

Hotel prices have already eclipsed 2019 levels in areas such as Europe, Middle East and Africa, and North America — and are expected to do so globally by 2023.

Hotel rate increases were initially driven by strong leisure travel in 2021, but group travel for meetings and corporate events is improving and temporary business travel is picking up a healthy pace, putting further pressure on average daily hotel rates.

An integral part of many trips abroad are car rentals, and after falling 2.5 per cent in 2020 before rising 5.1 per cent in 2021, prices are expected to rise 7.3 per cent in 2022 and to climb a further 6.8 per cent in 2023.

With the automotive industry unable to produce cars at the volume it did before the pandemic — largely due to global supply chain issues — rental agencies are back to buying used vehicles to increase fleet size and are keeping their vehicles for longer periods.

Some agencies are also buying vehicles from carmakers outside of their historically supported brands.

Source: The National

Eighty-two percent of travel executives say that increasing revenue is their top priority over the next two years, according to Accenture recent travel cloud survey. This view is no surprise considering the travel industry is still below 2019 revenue levels. But I think it raises two critical questions. What do customers want from travel companies? And how do travel companies deliver?

What do customers want from travel companies?

Seamless delivery.

Across almost every interaction, we (as customers) feel the strain of travel operations ramping back up. We feel the strain of staff as they cope with old and new demands, lower staffing levels, sickness and fellow travelers’ frustrations. We see the broken stitching between processes and departments across a journey that doesn’t go perfectly. And when we arrive at our destination, we’re relieved it’s over.

While we’re there, we see and feel the seams of hospitality travel technology in ways that weren’t noticeable before. Vouchers feel antiquated. Food waste is conspicuous. Queues are commonplace. Any lack of cleanliness is more noticeable—even though destinations are sparkling. When a switchboard operator asks, “To whom may I direct the call?,” it feels old-fashioned, but not delightfully quaint.

We want travel experiences to feel like other experiences, even though the experiences themselves are fragmented across so many travel service providers. First touch resolution is common across so many B2C industries that we suddenly expect it from travel companies.

And they can’t deliver (yet).

We also want travel companies to excel at upselling services—theirs and others’—that lift our experience through a retail marketplace. Many of us are open to paying for supplemental products and services from travel provider if they improve our experience. These extras could include everything from sports classes and fashion consultations to curated food boxes. Comfort, convenience and brand relevance will influence what actually sticks.

How do travel companies deliver?

In my view, travelers’ new expectations are a call for travel companies to finally break out of the strong process foundations laid at the beginning of the age of rail travel in the 1800s. These processes get in the way of delivering what customers want – new processes and technology is critical to doing this. The good news? Coming out of COVID, 51% of CXOs aspire to pivot into a tech-driven business model1, as part of their strategic priorities over the next two years.

It is certainly easy to say, “Here’s a quick fix. Migrate commercial, operational, and financial systems to the cloud and innovate from there. Today’s problems will be solved.” However, this isn’t true. The travel industry’s needs don’t have scalable quick fixes to these problems. Experience short-falls, contextual upsell problems, and rough seams between departments and providers, are a product of our existing, deeply ingrained ways of doing business in travel.

Right now, travel companies are unlocking smaller opportunities to grow ancillary revenue streams and improve differentiation, while many are avoiding addressing the larger opportunities. Ecosystem partnerships are essential. In fact, 44% of travel executives say that building ecosystem partnerships to combine complementary capabilities is a top business priority today. As digital blurs industry boundaries, there are so many possibilities to deliver multidimensional experiences.

Beyond migration to innovation

To take advantage of these possibilities and further diversify some of their revenue portfolio, travel companies need cloud. And it’s true that travel companies are migrating workloads to cloud and benefiting from cost savings and efficiency. However, those travel companies that go further and activate what we call the “Cloud Continuum” can have much greater success with ecosystem partners.

What does this “Cloud Continuum” mean? 

Cloud can already transform how ecosystem partners work together, making it easier to onboard new capabilities and service providers. It’s the foundation for simplified booking, merchandising discoverability and attribute-based selling, and integrated loyalty programs. In the Cloud Continuum, travel companies will move ever closer to interacting with travelers, combining who they are with their current transactional needs. None of this is possible unless travel companies adopt an ambition to seize cloud’s full potential.

A breakthrough approach to cloud

In our study, my colleagues found that Cloud Continuum companies make up just 12 to 15% of companies globally. Yes, cloud delivers cost savings and efficiencies for them, but their cloud investments are powering continuous reinvention. My colleagues also identified what it takes to become a Cloud Continuum company.

Know where you want to go. With so much pressure to transform experiences and serve “new travelers,” travel companies focus on acting for now instead of developing a flexible strategy over time. It’s essential to understand how cloud should factor into the ecosystem strategy with a realistic view of the gap between the current state and the desired future state.

Establish cloud practices to address your business needs. Continuum travel companies simultaneously focus on non-technology related capabilities across the workforce to smooth the transition and speed positive outcomes. In other words, the business must become infused with the vision of what improvements are possible now, using cloud technologies. Talent and skills development is hugely important because it generates the “pull” that helps improve the business processes driving agility.

Accelerate innovation to deliver exceptional experiences. Cloud Continuum companies make it a top priority to innovate with the experience. The thought shouldn’t be, “What can cloud do?” Rather, decision makers should ask, “What do travelers want from experiences? How do partners want to interact? And at a more technical level, how can cloud enable these expectations?” You can imagine this will require fundamental operating model changes in many travel companies.

Keep committing to the strategy. Cloud Continuum companies have an abundance mentality, not a scarcity mentality. Constantly thinking about costs and limiting resource use is naturally narrow because it ignores the downstream benefits from well-designed innovation and automation. The Cloud Continuum is the opposite of naturally narrow. It pushes leaders to think big and broadly—to go beyond the current state to see the possibilities down the road.

A continuum of new travel revenue opportunities

As we move into the next phase of travel’s revitalization, I expect that we’ll see many fascinating experience bundles from both aviation and hospitality players. The companies that excel here—in making the experiences seamless for the travelers and service providers they work with—will be on the Cloud Continuum, no doubt. They will find an abundance of opportunities to boost revenue.

Source: Accenture

During the global COVID-19 pandemic, the business aviation industry has experienced significant growth, and this has also been the case in the Africa region.

With an expanding business aviation industry comes the increased need for business aircraft handling services. With this uptick in demand, current infrastructure, the provision of security services and opportunities for investment have been a focus for ground service providers in Africa’s business aircraft handling sector.

Infrastructure in Africa

A defining preference of business aviation travelers is to move away from the standard experience, instead going through an exclusive private experience that enhances the overall objectives of their travel and creates a flexibility that regular flights do not offer.

According to officials with UAS Africa, however, some airport administrators and authorities in Africa do not fully appreciate this concept and prefer to place security considerations above anything else.

“In some cases, the funds are not just available to develop infrastructures for business aviation due to current volume of traffic, despite the potential that such facilities may hold for the future,” say UAS Africa officials. “At African airports, FBOs or private terminals are not very common. In fact, VIPs and business travelers are often subject to the same immigration and custom procedures as regular airline passengers. This means that most times it is not convenient for VIPs and business travelers, and it erodes the ideas and experience associated with private or business travels.”

The exclusive facilities that FBOs offer include private meeting rooms and lounges for VIPs who travel for short meetings lasting only a few hours and then returning, thereby avoiding chaotic traffic situations common in African urban cities, according to UAS Africa representatives.

“Other FBO features that are attractive to business aircraft include dedicated fuel services (and) easy access to light maintenance,” they say. “We have seen the effects of these facilities in Nigeria and South Africa on the exponential growth of business traffic in these two countries in the last decade.”

Security Services

According to UAS Africa officials, aviation security threat issues are quite similar globally and exist in any region.

“Africa no doubt has its own share of such threats, which are unique and peculiar to Africa. The first threats are theft and pilferage of baggage and cargo,” say officials at UAS Africa. “Poor baggage surveillance systems at some airports can lead some people to take advantage and steal valuable items and cargo.”

When aircraft are parked overnight, for long periods in remote locations or at parts of airports with limited security surveillance, reports have been made of fuel thefts and removal of minor parts of an aircraft, according to UAS Africa officials.

“The ‘stowaway’ issue is a phenomenon often associated with Africa. People often take chances with this extreme but disastrous route,” they say. “These are often airport staff who have easy access to aircraft, or inhabitants of neighboring residential areas to airports who over time have discovered security loopholes.”

Another threat for some airports that are located in the heart of a city, or which over time have been caught in developments around the airport, is that they could be compromised in terms of security, especially if they have fences that are not properly secured to completely ward off intruders, according to UAS Africa officials.

“For airports that are at quite some distance from a city and hotels and require passengers to travel long distances at night or odd hours, providing security escorts becomes imperative especially in areas with histories of insurgencies, banditry, wars and general insecurity,” say UAS Africa representatives.

In certain parts of Africa there is also the need to prevent the infiltration by insurgent groups that mean to cause harm to passengers or airport infrastructure.

“These include Al Shabab in Somalia, Boko Haram in Nigeria Sahel region and others. We have seen a recent case in Kaduna, Nigeria where people were allegedly attempting to overrun and take over the airport but were repelled by security forces,” say officials at UAS Africa.

For what concerns the movement of contraband, it is known that Africa is rich in minerals and valuable resources, observe UAS Africa representatives.

“Unscrupulous people move minerals like gold from its source to more lucrative markets by taking advantage of porous borders and corrupt government systems. Likewise, Asia is a ready market for rare animal species and trophies and some people will use all means to move these through our airports to the markets,” they say. “All these threats can easily be addressed by considering additional aircraft security on the ground. Operators may also want to consider secured crew transfers with escorts. In general, however, most airports in Africa are generally safe and secure.”

Investment Opportunities

Opportunities abound everywhere in Africa for investment in infrastructures, UAS Africa officials explain.

“In the area of FBOs, Africa lags other continents. FBOs in Africa are in only a few countries, yet they are the future of growing business travel. The long-term prospects are that the concept is gaining traction and many airport authorities are seeing the need to have public-private partnerships to develop FBOs,” they say.

With Africa’s growing fleets, aircraft maintenance is in high demand. But maintenance facilities are thin across Africa apart from Ethiopia and South Africa, which have comprehensive MRO facilities for large aircraft.

“Investing in MROs would surely be a great idea. Aircraft spares supply and distribution is another area which investors are overlooking,” say officials at UAS Africa. “We have seen numerous AOG situations where aircraft wait on end to secure parts from Europe, America and even the Middle East for spares as simple as aircraft tires – all with very cumbersome customs clearing processes. Investments in this area would be worthwhile, too.”

Additionally, many African airports have minimal parking space and cannot easily accommodate large aircraft.

“The high cost of airport infrastructure prevents them from making it a priority to develop and expand airport infrastructure. The effects are that despite economic growth on the continent, some countries will continue to rely on neighboring countries to ship in their goods by air or transport large numbers of passengers on planes,” says UAS Africa officials. “This ends up being more costly for the economies. There is therefore a great opportunity in developing modern airports that can accommodate large and modern aircraft and terminal facilities for passengers.”

Another opportunity is in upgrading airports with the latest technology to minimize time taken filling forms, checking in and other manual procedures.

“These include self-service check-in systems and automated passport control,” note UAS Africa officials. “These are happening at some locations, and although very slowly, there are prospects of wider coverage in the very long term.”

UAS Africa representatives highlight that good hotels in and around the airports create a multiplier effect of business and infrastructural developments around the airports.

“Hotels are an integral part of the travel industry and with growing urbanization, which is also rapidly creating situations of chaotic traffic jams and insecurity. Airport hotels are becoming popular. Unfortunately, investments in this area are still slow,” say UAS Africa officials.

One last important point to highlight is catering.

“It may be shocking to know that there are still quite a few major international airports in Africa where one cannot get catering items as minor as ice, except if one procures from the city or the hotels,” say officials at UAS Africa. “Even where catering companies are available, their leaning tends to be towards the regular commercial airlines catering where the volume is. Specialized business or VIP catering could be the way to go.”

Source: Aviation Pros

Wealthy Kenyans and private aviation firms have resumed flying and buying planes after a slowdown in 2020 following the Covid-19 pandemic that reduced the millionaires’ net worth and hit demand for travel.

Official data show the number of registered planes increased by 47, excluding those owned by the National Police Service and the Kenya Defence Forces, to 782 last year.

This is a rebound from the previous year when the rich and aviation firms sold and grounded 72 planes after coronavirus triggered a slump in air travel and reduced the need for purchase of commercial flights.

The virus, which disrupted businesses and hammered most asset classes, reduced the net worth of wealthy Kenyans and saw the rich reduce their appetite for helicopters and small jets.

Kenya’s economy has rebounded following the easing of measures aimed at curbing Covid-19’s spread while travel has also resumed.

“ The resumption of international flights on August 1, 2021, within the Covid-19 operating period spurred revival of passenger operations within the aviation industry and operators renewed their certificates of airworthiness in order to continue with operations,” said KCAA on Thursday.

“Most aircrafts had been parked during the Covid period 2019/2020.”

Kenya’s business magnates, politicians and new millionaires are fast taking to the skies as the preferred mode of transport – expanding the market for leasing and private ownership of planes.

Apart from urban-based business leaders, politicians and wealthy deal-makers, Kenyan skies are also dominated by large-scale farmers and ranchers based in Narok, Laikipia and Nanyuki.

The farmers mostly use their small aircraft to spray their crops.

Aero Club of East Africa – a lobby group of private aircraft owners – attributed the recent growth in the number of registered planes to Nairobi’s rising status as the region’s business hub and a growing number of wealthy individuals with the means to own and maintain an aircraft.

Kenya has been ranked fourth in terms of the number of dollar millionaires, according to a report by research firm New World Wealth and Henley & Partners which helps high-net-worth individuals to acquire residence or citizenship through investment.

The Africa Wealth Report 2022 indicates that Kenya has 8,500 individuals with a net worth of over $1 million (Sh115.7 million).

The population of Kenya’s dollar millionaires in the study is significantly higher than estimates in other reports, indicating the difficulty of tracking the wealthy in Africa.

The latest Knight Frank Wealth Report put the number of Kenya dollar millionaires at 3,323.

When the devolved system of government was introduced in 2013, it raised hopes of addressing the economic imbalance, but analysts say there is a need to offer incentives to attract private investors to counties.

Besides convenience, wealthy individuals have also acquired aircraft to satisfy their ambitions for reliable and personalised travel.

Source: Business Daily

As the number of refugees escaping the war in Ukraine tops four million, surpassing even the United Nations’ worst-case prediction, many businesses operating in the region are working out their next set of contingency plans.

The number of “what if” questions is on the rise, partly because of the uncertainty surrounding ongoing peace talks.

“Over the last 48 hours, there has been a marked change of tone from Russian state-affiliated media outlets, indicating that the Kremlin may actually be serious about changing its objectives,” noted international security company Global Guardian on Wednesday. However, it said Russia will use this time to regroup, reorganize and resupply.

Now one crisis specialist is advising corporate clients on a range of issues, ultimately designed to alleviate stress levels in the face of an expanded geopolitical crisis.

“From our sources, there’s no let-up. It’s more a repositioning, not a withdrawal,” said Julian Moro, senior vice president of security solutions, at risk management company International SOS, which has had a team in Ukraine since January 26.

“While many organizations reduced their exposure to Ukraine, they are thinking about their other populations. What do we tell our employees in other locations to show we are thinking about it, that we have done some contingency planning.”

Perception Versus Reality

That planning has become more difficult for many companies after their crisis teams battled the pandemic for long periods. “There are two things about Covid. One positive is that a lot of companies now have crisis teams, whereas they didn’t pre-Covid,” Moro said. “On the flip side, many crisis teams are exhausted after two years of the pandemic.”

International SOS is now advising company bosses and crisis management teams, where perceptions and emotions rather than the reality are coming into play. It’s talking about Russia’s weapon systems, the distances involved, and what’s the doctrine of the Russians when they are in conflict.

“I feel like we’re helping them manage their anxiety in adjacent countries, about the likeness of an escalation, what would that look like, what are the different scenarios,” Moro said.

Meanwhile, more work around mental health support is emerging, with many of International SOS’s clients requesting multi-lingual crisis hotlines for emotional support, for evacuees, their families and staff members.

Global Guardian, meanwhile, continues to operate in Ukraine evacuating employees of American companies and their families. It has so far helped almost 10,000 people to safety, more recently focusing on retrieving valuable physical assets left behind by U.S. companies.

Source: Skift

Kenya has scored a major win after countries directed UNEP to return all its key departments to Nairobi.

Although UNEP is headquartered in Nairobi, African nations complained the Kenya office was just a shell because key departments are based in Europe, where their high-level meetings are held.

On Thursday, ministers who attended the UN Environment Assembly said this must stop. They signed a political declaration directing all these departments to return to Kenya and their meetings to be held in Nairobi. Other institutions affiliated with UNEP were asked to bring their meetings to Nairobi.

“[We invite] the governing bodies of all the multilateral environmental agreements, in particular those hosted by the United Nations Environment Programme, to consider convening, within their mandates, their meetings more frequently in Nairobi,” the ministers said.

They said not only must UNEP offices in Gigiri be upgraded, but all UN member states who have not joined the programme should now do so.

The ministers said the matter was already settled at the UN General Assembly, where members agreed to strengthen the Nairobi office.

“[We] invite all member states and members of specialised agencies who have not yet done so, to become accredited to the United Nations Environment Programme,” the resolution seen by the Star says.

“In that regard, take note with interest of the adoption of General Assembly resolution 76/246 and underline the need to continue improving the United Nations Office at Nairobi, as the only United Nations headquarters duty station in the global South and the host of the headquarters of the UNEP and, furthermore, invite the United Nations Office at Nairobi to provide more competitive services.”

In 2018, former UNEP executive director Eric Solheim resigned following revelations he was working in Europe, away from Nairobi, 80 per cent of the time. He also unofficially allowed chosen European staff to work from Europe rather than at UNEP headquarters in Nairobi.

An internal UN audit in 2018 showed Solheim alone had spent almost Sh56.95 million ($500,000) on air travel and hotels in just 22 months. He refunded the amount.

Yesterday, the ministers also stressed the importance of advancing equitable geographic distribution and gender parity among the staff of the secretariat of the UNEP, particularly in professional and senior-level positions.

Currently, Africans are underrepresented in those positions, although the body is based on the continent. UNEP will now be required to regularly report to the Committee of Permanent Representatives on progress achieved on the diversity of its staff.

The agreement was signed by heads of State and government, ministers and high-level representatives, at the special session of the UNEP to mark 50 years since its establishment at the KICC in 1972.

Mid last month, Kenya’s Permanent Representative to UNEP Makena Muchiri, complained some of the headquarters departments of UNEP are based in France and Geneva.

“We have been talking about how do we bring all that together to Nairobi where UNEP is headquartered,” she said.

“UNEP is a big organisation taking care of other international bodies that are headquartered here. So, you cannot push that agenda too much.”

Source: The Star