President Ruto Says Investment in Cultural Tourism Will Expand Economic Opportunities

The Government is keen on promoting cultural tourism to generate more tourism revenues.

President William Ruto said the Government will exploit Kenya’s rich cultural heritage to diversify tourist attractions.

He argued that tourism is no longer just about sights and sounds but also about the people.

He noted that the Government will partner with Counties to support cultural preservation initiatives.

He cited the provision of funds for Maa Cultural Festival that will be celebrated annually.

“Today’s tourist is drawn to authentic cultural experiences; therefore, today’s tourism must meet a higher standard,” he said.

He made the remarks on Tuesday during the Maasai Cultural Festival at Sekenanie Gate, Narok County.

He was accompanied by Cabinet Secretaries Peninah Malonza (Tourism) and Soipan Tuya (Environment), Governors Patrick ole Ntutu (Narok), Joseph Lenku (Kajiado) and Jonathan Lati Leliliit (Samburu) and a host MPs.

He noted that the United Nations Educational, Scientific and Cultural Organisation has identified induction of boys ahead of initiation, shaving of morans and meat-eating ceremony that marks entry into adulthood as Intangible Cultural Items.

“I extend my gratitude to the Maasai community for their unwavering commitment to the preservation of Maa traditions and culture. Your resilience has given Kenya a global identity and enriched our nation’s cultural mosaic,” he said.

The President said Government will start ceding 50 percent of revenues from national parks to host communities as part of efforts to transform their lives.

He said the move was aimed at benefiting host communities, through projects aimed at uplifting their lives.

“I have directed that all revenues from our national parks and game reserves should be divided equally between the host counties and the national government,” he said.

Source: CapitalFm News

Uganda, Kenya Seek to Complement Each Other to Maximize Tourism Potential

Uganda and Kenya have announced dates for the second edition of the Uganda-Kenya coast tourism conference set for November this year.

Speaking on Tuesday, the state minister for Foreign Affairs, John Mulimba said the conference is yet another opportunity for both countries to seek to maximize the tourism potential between them.

“Uganda possesses some unique tourism products that can be used to make it one of the world’s leading tourist destinations. We possess some of the rarest primates in the world, Namugongo Martyrs shrines, source of River Nile and the rich culture, among others,” Mulimba said.

“Kenya is Uganda’s leading source market and last year alone, over 370,000 Kenyans visited Uganda for various reasons. Also, Uganda is Kenya’s second leading source market after the USA. Just last year over 150,000 Ugandans visited Kenya and out of those 22,000 visited the Kenya Coast.”

He said the conference is yet another opportunity for both countries to increase their tourism potential.

“The increasing number of tourists between Uganda and Kenya Coast has been aided by the improved air connection between Entebbe and Mombasa. Currently, Uganda Airlines operates three weekly direct flights between Entebbe and Mombasa. This is complimented by daily flights by Kenya Airways through Nairobi. Moreover, it is also possible to travel between both countries by road, using national identity cards. Thus, it is possible to leverage on the improved connection to grow the tourism between Uganda and Kenya coast.”

Uganda to tap into Kenyan coast

Kenya’s coastal tourism is booming with thousands of tourists going to the country enjoy various tourism products including the historical Fort Jesus, beaches, resorts, marine national parks, elephant sanctuary, the dolphins, slave caves, sacred forests, Vasco Da Gama Fort, white sands, coral reefs, diving and snorkeling among others.

However, according to Amb.Paul Mukumbya, Uganda’s Consulate General in Mombasa, Uganda seeks to tap into these big numbers.

He insisted that each of these countries needs each other.

“The Kenyan coast is one of the biggest hubs for tourism on the continent mainly because of the biggest beaches. On the other side, in Uganda we have products that are not at the Kenyan coast like the Mountain Gorillas, Chimpanzees, adventure tourism on River Nile, a special product called the Kampala nightlife, cultural tourism and many others that Kenya doesn’t have. By joining synergies, we can tap into each other’s tourism numbers,” Mukumbya said.

“The concept we are working with is creating synergies and working through complementarity at the Kenyan coast and Uganda. We want to see that if someone comes to tour the Kenyan coast, on the same itinerary, they can visit Uganda and look at the beauty we have and the vice versa as those who come to Uganda can visit the Kenyan coast.”

According to Stephen Asiimwe, the Executive Director of Private Sector Foundation Uganda (PSFU) by tapping into the tourism numbers to Kenya’s coast, Uganda stands a chance to also grow its tourism numbers.

He added that Uganda is well placed to tap into these numbers.

“The thousands of tourists to the Kenyan coast have money and time. They have done Zanzibar a hundred of times, Serengeti and many other places but they don’t know what is happening this side (Uganda). I can bet you if we can get them here, they can spend the money as they enjoy what Uganda has to offer,” Asiimwe said.

The second Uganda-Kenya coast tourism conference will be held between November 13 and 14 at Neptune Paradise Beach Resort and Spa in Diani, Kwale County in Kenya under the theme, “Consolidating Networks, Synergies, and Diversity to Maximize the tourism potential between Uganda and Kenya Coastal Region”.

The conference will also have tourism excursions, and farm trip.

Source: All Africa

Air transport in Africa: toward sustainable business models for African airlines!

Although there is a vast amount of literature on airline business models and their evolution in changing global landscapes, there is a general lack of research into the applicability of those models, traditionally defined in European and North American contexts, to the African scene.

Implicit in this study is the hypothesis that the African environment is unique enough to warrant its own host of strategies, which may be distinctive enough to form part of a new strategic template, or business model.

Initially, a review of existing literature is undertaken to profile the African aviation environment and evaluate existing airline business models and their evolution, both globally and in Africa. The methodology consists firstly of a cluster exercise, whereby 57 African airlines are analysed in terms of their network and size, to yield a number of heterogeneous groups which serve to identify the current business models of airlines on the continent.

Following this, eight airlines (representative of the groups outlined in the cluster analysis) were subsequently selected for analysis in terms of the Product and Organisational Architecture framework. While it was evident that the traditional models are followed in Africa, in some instances variations were apparent.

Full-service network carriers and regional carriers were concluded as being the most prominent and stable in the African market. The applicability of the low-cost carrier model in Africa was also examined at length, with mixed results. The analysis also raised network density and connectivity as essential components of business models for delivering profits in an African context.

The operating environments in which airlines find themselves are far from homogeneous. The diversity of policies, geographies and economies across the world imply a need for a set of bespoke strategies, which can be represented in broad templates or business models designed to respond to the challenges presented by specific operating environments. This paper will aim to examine the most sustainable of such business models in the African context, by first identifying the current business models pursued by airlines on the continent, followed by a study of their sustainability from 2 key perspectives: market presence and Product and Organisational Architecture (as used by Mason and Morrison (2008)).

Implicit in this research is the hypothesis that the African environment is unique enough to warrant its own host of strategies, which may be distinctive enough to form part of a new strategic template or business model. In the context of African aviation, chief bodies of research centre on the impact of liberalisation on the continent (Chingosho, 2009, ICAO, 2003, Morrison, 2004, Schlumberger, 2010, United Nations Economic Commission for Africa, 2001), with limited reference to the evolution of airline strategies in response to these developments.

Source: The Point

South African Airways Launches New Codeshare Flights with Lufthansa, Swiss to Follow Soon

South African Airways, in collaboration with the Lufthansa Group, has recently unveiled an exciting development for travelers heading to and from southern Africa. A new codeshare agreement between South African Airways and Lufthansa has been established, with Swiss joining the partnership in the near future. This strategic move comes as part of the Star Alliance network, aimed at enhancing the travel experience for passengers.

The highlight of this agreement is the revival of the reciprocal codeshare partnership between Lufthansa and South African Airways, set to commence in August 2023. Travelers can look forward to seamless connections between various destinations, providing greater convenience and flexibility.

Under this partnership, Lufthansa-operated flights will now extend their reach into Johannesburg, opening up two exciting routes: Johannesburg to Cape Town and Johannesburg to Durban. Simultaneously, South African Airways-operated flights will include Johannesburg to Frankfurt, creating an array of options for passengers.

The collaboration marks a pivotal moment in the long-standing relationship between these airlines. Dating back to 1995, the initial codeshare agreement was inked for the Frankfurt to Johannesburg route.

The codeshare agreement also extends to the Star Alliance network, which paves the way for further codeshare partnerships with other members of the Lufthansa Group. As a result, more options for passengers to explore international destinations are on the horizon.

As part of the plans for the near future, Swiss, another key player within the Lufthansa Group, is poised to join this codeshare agreement. This development will expand the network even further, with Zurich-Johannesburg flights expected to be covered.

Source: Airspace Africa  

Kenya’s tourism market makes an impressive comeback

  • In the first half of 2023, Kenya’s tourism sector experienced an impressive 31% increase in earnings compared to the same period in the previous year.  
  • The industry’s revenue growth was propelled by a 32% increase in tourist visits, with the number rising from 642,861 to 847,810. 
  • Leading markets for arrivals included the US, Uganda, Tanzania, the UK, and India, while both domestic tourism and visits for business, conferences, and meetings also contributed to the positive trend.

As a result of the continuous global recovery, the tourism industry in Kenya saw a 31% increase in earnings in the first half of the year through June compared to the same time in 2022.

In the last six months, the tourism industry booked Ksh152.6 billion ($1.06 billion), up from Ksh116.2 billion ($807.79 million) in 2022, according to data from the Kenya Tourism Board (KTB).

The revenues increased as tourist visits increased by 32%, from 642,861 to 847,810 in the same time in 2022. One of COVID-19’s hardest-hit industries was international travel and tourism, which is expected to recover to pre-pandemic levels in 2023.

“The tourism sector in Kenya experienced a remarkable upswing in international arrivals leading to a positive effect on the country’s tourism receipts,” said the KTB in its report. “This performance is a 92 percent recovery when compared to the 2019 performance of 929,814 arrivals same period. Of significance is that June 2023 arrivals closed at 168,051. This is a growth of one percent when compared to 166,692,” the report adds.

Holidays continued to be the primary reason for entry closure throughout the study period, accounting for 338,509 (39.9%) of all entries. Visits for business, conferences, and meetings came in second with 226,908 arrivals, an increase of 26.8%, while visits to family and friends came in third with 213,417 arrivals, an increase of 25.2 percent.

44,620 (5.3%) people used the transit system. Other goals included sports, medical, education, and religion, totaling 24,356, a gain of 2.9%.

According to the data, the US (118,480), Uganda (89,968), Tanzania (69,777), the UK (65,563), and India (42,805) are the top five countries for overseas arrivals.

Some important markets have outperformed 2019 (January–June) performance, including the US (up 7% from 110,743 to 118,480), Italy (up 15.6% from 22,017 to 25,451), Germany (up 4% from 32,142 to 33,418), Rwanda (up 34.5% from 18,845 to 25,422), and Ethiopia (up 66.1%).

The Netherlands increased by 6.9%, from 19,123 to 20,442, Nigeria increased by 7.3%, from 15,307 to 16,424, Ghana increased by 28.1%, from 5,137 to 6,583, and Russia increased by 40.8 %, from 2,514 to 3,539.

Domestic tourism increased throughout the time period under study, with bed nights concluding the year 2023 (January–June) at 2.3 million, up from 2.02 million. This represents a 16 percent gain. The Easter holidays and business travel, respectively, are to blame for the best-performing months of April and June.

Source: Business Insider Africa

Dubai becomes the world’s greatest tourism success story

Across all metrics, Dubai hospitality and tourism has outdone itself compared to pre-Covid times. 2019 was a record year for the emirate, but 2023 has seen the city pull ahead when it comes to visitor figures, hotel rates and occupancies.

As per the Dubai Media Office, Dubai is the world’s fastest-recovering destination globally. Pulling in 8.55 million travellers in H1 2023, the city is ahead of H1 2019’s 8.36 million feat.

For comparison, United Nations World Trade Organisation estimates that international tourist arrivals could reach between 80-95 percent of pre-pandemic levels this year.

Hotel performance

Dubai’s hotels outperformed pre-pandemic levels across all hospitality metrics in H1 2023 including occupancy, ADR, RevPAR and length of stay. Among the highest in the world, Dubai hotels’ average occupancy of 78 percent is 2.2 percent points higher than the occupancy achieved for the same period in H1 2019.

This growth is particularly noteworthy considering the 13 percent increase in hotel establishments and 26 percent increase in room capacity over the same period in 2019. Continued domestic and international investment into the sector further increased the hotel inventory, and by the end of H1 2023, Dubai’s visitors and residents could choose from a total of 810 hotel establishments and 148,689 rooms, compared to 714 hotel establishments that were open with 118,345 rooms at the end of H1 2019.

The performance of the hotel sector is also evidenced by the fact that the average length of stay of guests increased to 3.9 nights (up from 3.5 nights in H1 2019), highlighting the city’s appeal for longer-stay travellers.

The average daily rate (ADR) of AED534 during the first six months of the year surpassed the ADR of H1 2019 (AED444), a 20 percent growth, while revenue per available room (RevPAR) of AED415 in H1 2023, surged by 24 percent compared to the first six months of the pre-pandemic period of 2019 (AED336).

Dubai tourism source markets

Looking at difference in the tourism landscape between now and 2019, there has been a surge in European business into Dubai.

In the first half of 2023, Western Europe emerged as a significant contributor to tourism arrivals, making up 20 percent of the total international visitation, while the GCC and MENA regions delivered a combined 28 percent of the regional share. South Asia held a 17percent share of the total visitation, and Russia, CIS, and Eastern Europe combined contributed 14 percent. North Asia and South East Asia contributed eight percent while the Americas, Africa and Australasia contributed seven, four and two percent, respectively.

Thanks to wise leadership

H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said: “The remarkable surge in international visitors witnessed by Dubai in the first half of 2023 further demonstrates its emergence as one of the brightest spots not only in the worldwide tourism sector but also the broader global economic landscape. This accomplishment has been made possible by the foresight of Dubai’s leadership, whose vision and prudent polices fortified its resilience in the wake of global challenges and enabled it to rebound more swiftly than other markets. While the growth of international visitation reinforces Dubai’s rise as a major global tourism destination, it also signifies its status as a pivotal hub for trade, investment and enterprise.

“The Dubai Economic Agenda D33, spearheaded by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has outlined an ambitious new trajectory for the city to further consolidate its status as one of the world’s top urban economies and tourism destinations. As a major pillar of Dubai’s economy, the tourism sector will continue to play a key role in realising its future aspirations.”

H.E. Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, commented: “This significant uplift in visitation, which surpasses both pre-pandemic levels and marks a new record for Dubai’s tourism sector, is the result of a highly coordinated, sustainable and robust strategy, that is underpinned by a strong execution mandate and driven forward by the vision and continuous support of His Highness Sheikh Mohammed bin Rashid Al Maktoum and the emirate’s entire leadership, in line with the 10 year Dubai Economic Agenda D33. 

“These results further add weight to the depth, scale and resilience of Dubai’s tourism ecosystem, both domestically and across the world, all of which have been instrumental to supporting the city’s highly calibrated and agile strategy for advancing growth over the previous decade, mitigating risk and building a comprehensive framework throughout the entire value chain to drive our ambitions for the coming 10 years. It is the strength of these partnerships, and all our stakeholders, that continues to set us apart. We will continue to invest in such partnerships and all factors that drive the growth of tourism and economic sectors over the long term.”

H. E. Issam Kazim, CEO, Dubai Corporation for Tourism and Commerce Marketing, said: “The H1 industry performance is testament to the future-oriented strategy of our visionary leadership to position Dubai as the best city in the world to visit, live and work. Within a highly competitive global tourism ecosystem, Dubai has continued to accelerate momentum and stay ahead of the curve, primarily by highlighting the diversity of the city’s offerings and the flexibility of our portfolio.  Central to our success in showcasing Dubai as a must-visit destination is fostering multi-level partnerships between the public and private sectors.

“These collaborations with government entities, industry stakeholders and global partners form the backbone of our growth strategy, paving the way for a well-aligned and united cross-sector endeavour to create a unique positioning and drive international visitation, as well as support the wider talent attraction and economic growth agendas. As we move forward, we remain dedicated to delivering memorable experiences to all our guests, residents and the business and MICE community at large, to set new standards and push the boundaries of excellence globally.”

Source: Hotelier

Nairobi To Host East Africa’s Biggest Tourism Expo In November

Nairobi is set to host East Africa’s biggest tourism expo from November 20–22 this year as the country seeks to increase tourist arrivals.

The Magical Kenya & East Africa Regional Tourism Expo (MK & EARTE) 2023 will be hosted at the Kenyatta International Convention Centre (KICC) in Nairobi.

It will bring together 160 agents (buyers) from Kenya’s key source markets.

They will then be taken on 3-5-day familiarization trips to sample the products before a three-day business-to-business (B2B) forum with over 25 exhibitors and more than 700 trade visitors.

“The 3-day B2B forum is based on prescheduled appointments with a smart matchmaking tool and guaranteed meetings,” Magical Kenya said in a statement.

EARTE, which is an annual regional travel fair showcasing the region’s diverse tourism and trade opportunities, is hosted by the East African Community partner states on a rotational basis.

The inaugural regional tourism expo was hosted by the United Republic of Tanzania (URT) in October 2021 in Arusha.

A subsequent event was held in Burundi’s capital, Bujumbura, in September 2022.

“As Kenya hosts the third edition of EARTE, the two events MKTE & EARTE have been combined into one event, creating more value and enhancing the level of engagement at the show for all the participants,” it added.

Source: Capital Business

Africa banks on visa-free travel to support tourism

Africa’s tourism is having a moment, two years after the sector was hit hard by the Covid-19 pandemic.

Some countries are pushing for an end to intra-Africa visas, while others are revamping memorials, putting up new archeological sites and introducing longer visa tenures to prop up tourism numbers.

By end of the first quarter of 2023, international arrivals across Africa had hit 88 per cent of pre-pandemic levels, with North Africa surpassing 2019 levels by 4 per cent in the same period, according to United Nations World Tourism Organisation data.

Kenya is aggressively campaigning for African integration, headlined by the removal of visa restrictions for citizens from other African countries travelling into the country for business.

Over the next five years, the country has set an ambitious target to boost its tourism numbers to 10 million, about five times its best-ever arrivals number recorded in 2019.

New leadership at the Kenya Tourism Board, a government agency mandated with marketing the destination, confirmed these targets.

“The new board is starting its assignment when the tourism sector is quickly recovering from the impact of the Covid-19 pandemic that put tourism on its knees,” KTB chairperson Francis Gichaba said in statement.

“Focus will be on the quick-wins to bolster the arrivals.”

Kenya’s rate of tourism recovery in terms of arrival numbers is already 72.4 per cent of pre-pandemic figures, compared to a global recovery figure of 63 per cent, according to Kenya’s 2022 annual tourism performance report.

Since May, Kenya has announced the removal of visa restrictions for citizens from the Democratic Republic of Congo, Djibouti and the Comoros.

In February, the governments of Botswana and Namibia signed an agreement allowing citizens of the two Southern African countries to cross each other’s borders without passports.

Botswana has also initiated a discussion with Zimbabwe to scrap passport requirements between their countries. Other countries that have recently initiated talks to remove visa barriers include the DRC and Uganda.

Memorial Tourism

Memorial tourism is also gaining traction across Africa as governments invest in restoring cultural and historical sites.

Ghana wants to see a million tourists every year visiting the newly-refurbished Kwame Nkrumah Memorial Park. As the first African nation to gain Independence from colonial rule, this cultural heritage site has huge significance for all people of African descent, and the area had been closed for renovations since 2015.

Among the new attractions are a presidential library and Freedom Walk.

“The burial site of Kwame Nkrumah must be appropriate to his status as the outstanding pan-Africanist of this generation and for his exceptional contribution to the liberation of Africa from colonialism and imperialism,” Ghanaian President Nana Akufo-Addo said during the park’s reopening.

The country now has plans to build more historical parks and museums.

In Benin, a vast memorial and tourist complex is under construction at the coastal town of Ouidah. The town was once one of the most active slave trading ports in Africa. The route where slaves were taken to ships is lined with monuments that lead to a memorial arch, The Door of No Return.

Work on the modernisation of the area began in 2020 and will entail historical reconstruction of a slave ship, gardens of remembrance and recollection, an artisanal village and a hotel. The project is expected to position the country as a major destination for tourists from the diaspora.

In Egypt, a number of archaeological museums, including one of the oldest, the Graeco-Roman Museum, are getting a facelift and modern fixtures as the country ramps up marketing of its “civilisation journey”.

The country’s newest project, the Grand Egyptian Museum, is possible by the end of 2023, according to independent information site, grandegyptianmuseum.org. It is expected to be the largest archaeological museum complex in the world, hosting more than 100,000 artefacts.

The introduction of a multi-entry visa valid for five years, the extension of some tourist visas to three months and cashless payments at museums, are just some of the measures being taken to drive up Egypt’s arrival numbers and encourage longer stays.

Between January and June, Egypt recorded over 7 million tourists arrivals, and the country projects the number to hit 15 million by year-end, against 11 million recorded in 2022.

Source: The star

Why Africa should also issue travel advisories

By the time you read this, Cape Town’s minibus taxi (matatu) strike should be over. Nevertheless, the impact of the strike, which as I write has been ongoing for four-days, will continue to be felt for quite a while.

The people who suffered the most were the general public, most of whom use the taxis to get in and out of Cape Town for work.

On the day the taxi strike began, thousands of commuters were caught off guard and forced to walk home in the cold and dark of a typical winter evening.

The taxis went on strike following clashes in the week after the City Council began enforcing new traffic by-laws. The new rules allow them to impound vehicles in cases where drivers cannot produce a valid operating licence, or are found to be operating contrary to the conditions of their operating licence.

The councillor in charge of Cape Town’s Safety and Security department, is a hard headed, thick-skinned, no-nonsense type who appears to relish fighting the taxi industry.

For instance, when the trouble hit, the councillor poured oil on the fire.

He said: “I have been asked by the mayor to ensure that the violence caused by some in the public transport sector is met with an appropriate response, and to remind them that we will proceed with impounding 25 vehicles for every truck, bus, vehicle or facility that is burnt or vandalised.”

Of course, as is usual when there is any sort of public unrest anywhere in Africa, our supposed friends in Western capitals are quick to issue travel alerts to their citizens, warning them not to visit.

Even when as in Cape Town, Nairobi and elsewhere, tourists are often the least affected people in such situations. 

Let’s face it, few if any tourists use public transport in the way locals do.

Also, since most of them come from countries where they have experienced public disturbances, such as protests and riots, they should have the sense to stay behind closed doors until the storm passes, or in this case, in their hotels and Airbnbs.

The UK, where they have had their fair share of protests in recent months on issues from cost of living to the environment, appears to have been one of the first to issue a travel advisory to its people who were planning to visit Cape Town.

Considering that the UK is one of the biggest tourism markets, this travel alert is of particular concern. It may well dramatically reduce the number of tourists visiting Cape Town and the Western Cape just as tourism was beginning to think things were looking up.

That said, I have always believed such travel alerts should go both ways. I have yet to see South African or, for that matter, Kenyan authorities issuing travel alerts for situations in Europe or North America, even though they should.

It needn’t be some sort of tit-for-tat reaction. 

For instance, in May, seven countries issued advisories warning their citizens about gun violence when travelling to the US. They are Australia, Britain, Canada, France, New Zealand, Uruguay and Venezuela.

At the moment, the US itself has Level 2 warnings that advise travellers to “exercise increased precautions” in 51 countries, ranging from some of their closest allies (such as France, Germany, Italy, Spain, Sweden and the UK) to the usual suspects.

In this case, the usual suspects are countries that depend a lot on tourism for income, such as Gambia, Kenya, Madagascar, Malawi, Mozambique, South Africa and Tanzania.

Others are Brazil, Indonesia, Morocco, Oman, Tunisia, Turkey, Turks and Caicos and the United Arab Emirates.

Of course, travel advisories can also come from within. For instance, in May, a US Civil rights group issued a travel advisory for Black tourists visiting Florida. The advisory came from the National Association for the Advancement of Coloured People, specifically, the president of the Tallahassee branch.

The advisory said Florida is openly hostile toward African Americans, people of colour and LGBTQ+ individuals.

Source: The Star

Global passenger traffic hit 94% of pre-Covid levels in June, airlines say

Global passenger traffic continued to improve in June, reaching 94 per cent of pre-Covid levels, as the summer travel season in the Northern Hemisphere got off to a strong start, the International Air Transport Association has said.

Total traffic, measured in revenue passenger kilometers, rose 31 per cent in June compared to the same month in 2022, IATA said in its monthly report.

In the first half of 2023, total traffic jumped 47.2 per cent compared to the same period last year, buoyed by growth in both domestic and international trips.

Demand for domestic travel in June surged 27.2 per cent compared to the same month a year ago and was 5.1 per cent above the June 2019 levels. Domestic demand was up 33.3 per cent in the first half of 2023 compared to a year ago.

International traffic climbed 33.7 per cent compared to June 2022 with all markets recording robust growth, IATA said. International travel demand reached 88.2 per cent of June 2019 levels. In the first half of 2023, international traffic was up 58.6 per cent from the six-month period in 2022.

“Planes are full, which is good news for airlines, local economies, and travel and tourism-dependent jobs. All benefit from the industry’s continuing recovery,” IATA director general Willie Walsh said.

Middle Eastern airlines’ June traffic climbed 29.2 per cent compared to last year, while capacity rose 25.9 per cent. Load factor, a measure of how well airlines can fill available seats, improved by two percentage points to 79.8 per cent.

African airlines’ traffic rose 34.7 per cent in June from the same month a year ago, the second highest percentage gain among the regions, while capacity was up 44.8 per cent. However, load factor fell by 5.1 percentage points to 68.1 per cent, the lowest among the regions, IATA said.

Travel demand continues to outpace capacity growth amid aviation supply chain problems, leaving airlines awaiting new jet deliveries and critical spare parts for parked aircraft, Mr. Walsh said.

“As strong as travel demand has been, arguably it could be even stronger,” he said.

“For the fleet that is in service, some air navigation service providers are failing to deliver the requisite capacity and resilience to meet travel demand. Delays and trimmed schedules are frustrating for both passengers and their airlines. Governments cannot continue to ignore the accountability of ANSPs in places where passenger rights regimes place the brunt of accountability on airlines.”

Meanwhile, global air cargo demand in June contracted at its slowest rate in 16 months since February 2022, according to IATA, as volumes continue to normalize following the peaks recorded during the Covid-19 pandemic.

Air cargo demand in June fell 3.4 per cent year-on-year, while capacity rose 9.7 per cent during the period, IATA said in its monthly report.

“We remain hopeful that the difficult trading conditions for air cargo will moderate as inflation eases in major economies. This, in turn, could encourage the central banks to loosen the money supply, which could stimulate greater economic activity,” Mr. Walsh said.

Middle Eastern carriers posted a 0.5 per cent increase in cargo volumes in June compared to the same month a year ago. This was up from the 2.9 per cent year-over-year decline registered in May.

Capacity rose 11.1 per cent for the month.

“Both Middle East-Asia and Middle East-Europe route areas saw annual growth,” IATA said.

Source: The National News